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Jjajangmyeon at 7,000 Won Era... 300 Billion Won Jjajang Ramen Market 'Battle'

Leading Nongshim Jjapagetti Launches New Product 'The Black'
Enhanced Nutritional Content, Strategy to Solidify Premium Position
Latecomers Ottogi, Pulmuone, Harim Compete
Competition for Second Place Around 20% Market Share

As dining-out prices continue to rise, the price of a bowl of jajangmyeon, a representative dish for the working class, has surpassed 7,000 won. In the food industry, there is a trend to strengthen the jajang ramen lineup targeting the substitute demand for jajangmyeon. While Nongshim's Chapagetti, which holds about 80% of the market share, has launched a premium new product as a strategic move, latecomers are also putting effort into increasing their recognition.


Jjajangmyeon at 7,000 Won Era... 300 Billion Won Jjajang Ramen Market 'Battle' Nongshim Chapagetti Snack Bar Pop-up Store
Photo by Nongshim

According to the related industry on the 30th, Nongshim began selling the new Chapagetti product, 'Chapagetti The Black,' from the previous day. This product was created to commemorate the 40th anniversary of Chapagetti's launch this year. It aims to be a premium product that delivers a deeper and richer taste by changing the noodles and soup. It uses thick dried noodles to reduce calories by more than 20%, and features large pieces of dried meat and cabbage. It is a high-calcium product containing 262 mg, which is 37% of the daily recommended calcium intake of 700 mg, thus enhancing nutrition. The price is set at 1,600 won at convenience stores, about 33% more expensive than the existing flagship product, Olive Chapagetti (1,200 won).


Launched by Nongshim in March 1984, Chapagetti has established a dominant position in the domestic jajang ramen market. As of last year, the cumulative sales amount reached 3.9 trillion won. Annual sales at retail stores were about 213.1 billion won last year, occupying 90% of the entire market based on bagged noodles and about 73% of the jajang ramen market including cup noodles.


In the approximately 300 billion won domestic jajang ramen market as of last year, other manufacturers are competing for the second place with around 20% market share. For example, Pulmuone introduced the dried noodle jajang ramen 'Roasting Jajangmyeon' in 2021, and Ottogi launched 'Jjashu-leng' in 2022, which increased the weight of powdered soup compared to existing jajang ramen to create a richer jajang taste. In the same year, Harim entered the competition with 'The Misik Unijajangmyeon,' developed to allow consumers to enjoy the Chinese cuisine menu Unijajangmyeon at home, and recently expanded its lineup with 'The Misik Szechuan Jajangmyeon,' which adds spiciness.


Jjajangmyeon at 7,000 Won Era... 300 Billion Won Jjajang Ramen Market 'Battle'

Additionally, The Born Korea challenged the non-soup ramen market last December with 'Baek Jjajang,' and Ourhome, a catering specialist, released restaurant-ready meals (RMR) that allow consumers to enjoy popular dishes like Gan Jjajang from the premium Chinese restaurant 'Singkai' at home.


An industry insider said, "Jajang ramen has a different appeal from soup ramen and is consistently loved by consumers looking for a delicacy not only at home but also during outdoor activities such as camping and outings," adding, "Although Chapagetti's dominance is overwhelming, even securing a double-digit market share in the 300 billion won market can generate sales worth hundreds of billions of won, making it an area manufacturers cannot afford to miss."


Meanwhile, according to the comprehensive price information portal Chamgagyeok of the Korea Consumer Agency, the average price of jajangmyeon in the Seoul area last month was 7,069 won, up about 4% compared to the same period last year.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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