As Nongshim cuts prices, "Ramen and snack prices drop" one after another... Is bread next?

Nongshim Shin Ramyun and Saewookkang Price Cuts Spread Across Food Industry
Ottogi to Lower Prices of 15 Ramen Products by Average 5% Starting Next Month
Paldos Also Reduce Prices of 11 Products by 5.1%
Lotte Wellfood and Haitai Confectionery Cut Prices on Some Snack Items
Baking Companies Prepare to Lower Prices

Nongshim's decision to lower the prices of its 'national ramen' Shin Ramyun and 'national snack' Saewookkang has sparked a wave of price reductions across the food industry.

Ottogi announced on the 28th that it will reduce the prices of 15 ramen products by an average of 5% starting July 1. Based on large supermarket retail prices, the price of Snack Ramen (5-pack) will drop from 3,380 won to 3,180 won, a 5.9% decrease. Sesame Ramen (4-pack) will be reduced from 4,680 won to 4,480 won, down 4.3%, and Jin Jjambbong (4-pack) will fall from 6,480 won to 6,180 won, a 4.6% discount.

The price of Ottogi's flagship ramen product, Jin Ramen, will remain unchanged. Previously, Ottogi lowered Jin Ramen prices in 2010 and kept them frozen until August 2021 despite increases in raw material and labor costs. An Ottogi representative said, "We hope the ramen price reduction will help stabilize living costs for ordinary people," adding, "We will continue to repay customers with better taste, quality products, and services."

Paldo also decided to reduce the consumer prices of 11 ramen products, including Ilpum Seafood Ramen, Wang Ttukgeong Bag Noodles, and Namja Ramen, by an average of 5.1% starting next month. Accordingly, Ilpum Seafood Ramen, Wang Ttukgeong Bag Noodles, and Namja Ramen will decrease from 1,000 won to 940 won, a 60 won reduction.

On the same day, the snack industry also announced price reduction plans. Lotte Wellfood will lower the prices of three products?Butter Coconut, Lottem, and Zec?by 100 won starting July 1, and Haitai Confectionery will reduce the price of Ivy Original by 10% from next month.

The company that ignited the wave of price cuts was Nongshim. The day before, Nongshim announced that it would reduce the ex-factory prices of Shin Ramyun (bag noodles) and Saewookkang by 4.5% and 6.9%, respectively, effective July 1. As a result, the retail price of a single bag of Shin Ramyun, currently sold at 1,000 won, is expected to drop by 50 won, and Saewookkang, priced at 1,500 won, will decrease by 100 won. Following Nongshim's announcement, Samyang Foods immediately declared that it would sequentially lower the prices of 12 major products, including Samyang Ramen, Jjajjaroni, Delicious Ramen, and Yeolmu Bibimmyun, by an average of 4.7% starting next month.

This price adjustment in the ramen and snack industries was made following the recommendation of Deputy Prime Minister and Minister of Economy and Finance, Choo Kyung-ho. Earlier, on the 18th, Deputy Prime Minister Choo commented on the ramen price issue, saying, "Companies raised prices significantly in September and October last year, but the international wheat price has since dropped by about 50%. I hope companies will appropriately lower prices in line with the wheat price decline."

Following ramen and snacks, bread prices are also likely to be reduced. SPC Samlip, the leading domestic bakery company, has decided to lower product prices and is coordinating specific items and reduction rates, with an announcement expected as early as today. Bakery and confectionery products handled by SPC affiliates such as Paris Baguette and Dunkin may also be included in the price cuts.