Due to High Inflation... The 'Golden Age' of Ultra-Low-Priced PB Ramen

Emart's PB Ramen Sales Up 37.8%
Homeplus Sells 5.42 Million Lee Chunsam Units
Convenience Stores Also Compete with Cost-Effective Ramen

As high inflation continues, private brand (PB) ramen at large supermarkets and convenience stores is selling like hotcakes.

A model is introducing Ichunsam Jjajang Ramen at Homeplus.
[Photo by Homeplus]

According to Emart on the 18th, No Brand’s ‘Ramyeon Han Geureut’ sold 1 million units last year, and 650,000 units were sold up to last month this year. As a result, in the first quarter of this year, sales growth for regular bagged ramen was 8.9%, but PB bagged ramen recorded 37.8%. Ramyeon Han Geureut is priced at 396 won per pack and features a savory and deep beef flavor with a slightly spicy broth. Unlike conventional ramen, it combines powdered soup and dried ingredients soup into one, reducing manufacturing costs.

Homeplus introduced the 500-won ‘Ichunsam Jjajang Ramyeon’ per pack at the end of last year. As of the 15th of this month, cumulative sales reached 5.42 million units, generating about 2.7 billion won in sales. It ranks first in sales volume and fourth in sales revenue within the ramen category. Ichunsam means ‘This is real chunjang 39.6%’, indicating it is not just a cheap ramen but contains plenty of chunjang (black bean paste). It consists only of noodles and liquid soup without separate dried ingredients soup, and costs were reduced by fully displaying the product in Homeplus stores instead of marketing or promotional activities.

CU launched the ultra-low-priced ramen ‘Ramyeon Deuktem’ in April 2021, and has sold 4 million units so far. This product currently ranks sixth in bagged ramen sales this month. Ramyeon Deuktem is priced at 380 won per pack, focusing solely on cost-effectiveness (performance relative to price). It is about one-quarter the average price of convenience store bagged ramen. Although the price is low, to ensure taste and quality, it was manufactured by Samyang, the first in the domestic industry to produce ramen. A BGF Retail product planner directly participated in development to create a popular beef broth ramen flavor.

At Emart24, ‘I’m e Spicy e Ramyeon’ and ‘I’m e Rich e Jjajang’ are popular. Especially, Spicy e Ramyeon has ranked among the top 5 in sales for five consecutive years since its launch. From January this year to the 15th of this month, PB ramen sales increased by 33% compared to the previous year. Spicy e Ramyeon is priced at 550 won and was developed in collaboration with Paldo. It features a spicy and savory beef broth base. Rich e Jjajang is priced at 840 won and includes fried onion powder and fried onion seasoning oil to enhance the deep taste and flavor of the jjajang sauce.

An official from the distribution industry said, "In the high inflation situation, PB ramen products that offer cost-effectiveness are gaining great popularity," adding, "We expect the trend of practical consumption to continue and plan to introduce differentiated ramen products."