Ramen Leading K-Food... Targeting $1 Billion in Export Revenue

Cumulative Ramen Exports Reach $876.1 Million... Record High
Samyang Foods Leads with 'Buldak', Accounting for 66% of Total Exports
Samyang Expected to Achieve 1 Trillion Won in Sales This Year

Korean ramen, celebrating its 60th anniversary this year, is aiming for an annual export value of 1 billion dollars. Leveraging the influence of K-content, K-ramen has rapidly increased its recognition in the global market, achieving remarkable growth, making the notion that ramen is solely a domestic industry a thing of the past.

According to export-import trade statistics from the Korea Customs Service on the 22nd, ramen exports last month amounted to 90.77 million dollars (approximately 118 billion KRW), a 37.3% increase compared to the same period last year (66.11 million dollars). This is the first time monthly export value has exceeded 90 million dollars, marking the highest monthly figure ever recorded.

The annual ramen export record has also been rewritten. The cumulative export value up to November this year reached 876.1 million dollars (approximately 1.141 trillion KRW), surpassing last year's total export value of 765.41 million dollars, which was the highest ever. Ramen exports have been accelerating every month this year. Starting at 61.51 million dollars in January, exports increased to around 70 million dollars from February onwards, grew to an average of over 80 million dollars per month in the second half of the year, and exceeded 90 million dollars last month. The total export value, which was about 413.09 million dollars in 2018, has more than doubled in five years.

The remarkable growth in ramen exports this year, surpassing 1 trillion KRW for the first time ever, is largely attributed to the K-content craze. Starting with "Jjapaguri" (a combination of Chapagetti and Neoguri) popularized by the movie Parasite, scenes of K-pop stars eating ramen on social media and various entertainment programs have frequently attracted overseas consumers' attention, leading to record-breaking export figures.

Samyang Foods is leading the growth in K-ramen exports. Last month, Samyang Foods recorded exports worth 59.63 million dollars (approximately 78 billion KRW), accounting for 66% of the total ramen export value. Samyang Foods has been rapidly increasing its share in the overall export market every month. Combining the export values from the four regions where Samyang Foods’ factories are located (Seongbuk-gu in Seoul, Wonju in Gangwon, Iksan in Jeonbuk, and Miryang in Gyeongnam), the share rose from 53% in January to over 60% in June, reaching 66% last month.

Samyang Foods, which sparked the spicy flavor craze with its "Buldak Bokkeum Myun" (Hot Chicken Flavor Ramen), is emerging as a representative K-food export company. Its cumulative export value for the third quarter of this year reached 587.6 billion KRW, a 30% increase compared to the same period last year, and overseas sales account for 68% of total sales (866.2 billion KRW). The countries targeted for export, initially focused on Asia, have expanded to include the Americas, the Middle East, and Europe. The company explains that sales are rising evenly across all regions due to strengthened local sales and marketing efforts.

Samyang Foods 'Buldak Bokkeummyeon'

The first-ever sales milestone of 1 trillion KRW within 60 years of its founding is also expected to be achieved. Since 2016, Samyang Foods has been breaking its own records every year. Sales grew from 359.3 billion KRW in 2016 to 909 billion KRW last year, and operating profit increased from 25.3 billion KRW to 90.4 billion KRW. Samyang Foods announced the expansion of its Miryang Plant 2 in August, just one year after expanding Miryang Plant 1, with the policy of "rowing decisively while the tide is in." Producing all export volumes domestically, Samyang Foods plans to begin construction of Miryang Plant 2, dedicated to producing export-only Buldak Bokkeum Myun, in the first quarter of next year to meet the surging overseas demand.

The industry expects the growth trend of K-ramen to continue for the time being. This is because K-food’s overseas expansion is still in its early stages, and there is a clear trend of increasing demand for cost-effective consumer goods in the global food market overall. Jiho Choi, a researcher at Samsung Securities, predicted, “Considering the global consumer trend toward cost-effective products, the demand for ramen, which is the least financially burdensome item in the food category, is unlikely to decrease.”