Nongshim, Paldo, and Now Ottogi... Ramen Price Increases Continue

Nongshim to Raise Prices of Shin Ramyun and Other Ramen by an Average of 11.3% Starting the 15th
Ottogi and Paldo Also Join Price Increase Trend in October

[Asia Economy Reporter Koo Eun-mo] Recently, as food companies have been raising product prices one after another, increasing the burden of grocery prices on consumers, ramen companies are also following suit with price hikes.

According to the food industry on the 17th, Nongshim raised the wholesale prices of major ramen products, including Shin Ramyun, by an average of 11.3% starting from the 15th. Nongshim is known to have pulled out the price increase card as its domestic operating profit recorded a loss for the first time in 24 years, worsening its business situation.

The last time Nongshim raised ramen prices was in August of last year. Nongshim stated that since April this year, raw material prices have surged sharply due to international conflicts and inflation, and the exchange rate has risen, intensifying cost burdens. In particular, after the second quarter of this year, the supply prices from domestic partner companies increased, further increasing Nongshim’s manufacturing cost burden. In fact, the supply prices of most raw materials such as wheat flour and starch have risen.

A Nongshim official said, “Considering the impact of ramen and snack prices on consumer prices, we have internally endured cost increase pressures by promoting cost reduction and management efficiency, but the price adjustment was urgently needed as we recorded losses domestically in the second quarter. Especially, due to the increase in supply prices from partner companies, the price increase of ramen and snacks was urgent, but we postponed it until after Chuseok to consider stabilizing consumer grocery prices.”

The items to be increased this time are 26 ramen brands. The price increase rate for major products based on wholesale prices is 10.9% for Shin Ramyun and 9.9% for Neoguri. Accordingly, the price of Shin Ramyun, which is currently sold at an average of 736 won per pack in large supermarkets, is expected to be adjusted to about 820 won.

[Image source=Yonhap News]

Ottogi also announced on the 16th that it will raise the prices of ramen products by an average of 11.0% based on wholesale prices starting from the 10th of next month. This is 1 year and 2 months after the last price adjustment in August last year, which was the first in 13 years. Based on large supermarket selling prices, Jin Ramen will increase from 620 won to 716 won (15.5%), Jin Bibimmyun from 970 won to 1070 won (10.3%), Jin Jjambbong from 1495 won to 1620 won (8.4%), and Cup Noodles from 1280 won to 1380 won (7.8%).

An Ottogi official said, “Due to the rise in raw material prices, sustained high exchange rates, and sharp increases in domestic and international logistics and other costs, we decided to adjust prices. Even after this price adjustment, Ottogi ramen prices remain lower than major competitors. We will repay customers with better taste, quality products, and services.”

Paldo will also raise ramen prices by an average of 9.8% starting from the 1st of next month. The price increase applies to 12 ramen brands. The main products’ increase rates based on supply prices are 9.8% for Paldo Bibimmyun, 11.0% for Wang Ttukbaegi, and 9.9% for Teumsae Ramyun Bbalgyetteok. A Paldo official said, “The manufacturing cost pressure has intensified due to increases in raw materials, logistics, and labor costs. We decided to minimize the increase rate considering the impact on consumer prices.”