Ramen Priced at 400-500 Won Gains Popularity Amid High Inflation
Securing Value for Money by Reducing Costs and Marketing Expenses
Ultra-Low-Price Products Encourage Store Visits
As high inflation continues, even the price of ramen?often called "the common person's meal"?has been rising across the board. In response, the retail industry is launching ultra-low-price marketing campaigns featuring private brand (PB) ramen priced in the 400-500 won range. Analysts say this is a strategic move by retailers not only to compete on price, but also to draw consumers back to offline stores amid mounting cost-of-living pressures.
According to the retail industry on July 1, PB ramen priced between 400 and 500 won is gaining significant popularity among consumers who prioritize value for money. PB products are managed directly by retailers from planning and production to distribution, giving them structural advantages such as the ability to adjust profit margins and set prices flexibly.
Monthly sales of Emart's PB ramen (per unit) have been steadily increasing, from about 396,000 units in January to 468,000 in February, 510,000 in March, 520,000 in April, and 595,000 last month. Emart's flagship PB ramen products are No Brand Ramen One Bowl and Jjajang One Bowl, priced at 456 won and 556 won per pack, respectively. No Brand Ramen One Bowl has sold a cumulative total of 12.5 million units since its launch in August 2016 through June 25 of this year. Riding on its popularity, Emart released Ramen One Bowl Dried Noodle Original Flavor and Seafood Flavor in January at 745 won per pack.
Homeplus's PB ramen, Lee Chunsam Jjajang Ramen, launched in 2022, has sold 14.25 million units to date. The price per pack was raised from 500 won at launch to 575 won in November last year, but sales remain steady at around 300,000 units per month. This ramen reduces costs by including only noodles and liquid soup, omitting flake soup, and is sold solely through shelf placement without separate marketing. The strategy of focusing on consumer pricing has proven effective.
Lotte Mart also sells its PB ramen, Yorihada Beef Ramen and Fire Flavor Jjajang Ramen, at 598 won per pack. From January through June 25, PB ramen sales increased by 5% compared to the same period last year. A Lotte Mart representative stated, "Our PB ramen strategy maximizes value for money by selling beef ramen and jjajang ramen for less than 600 won per pack," adding, "The low-price strategy is in place because, amid high inflation, many consumers want the cheapest possible options for staple foods like ramen."
In the convenience store sector, ultra-low-price PB ramen continues to show steady growth. At CU, sales of the 480-won PB ramen "Deuktem Ramen" rose by 37.5% this month compared to the same period last year. Since its launch in April 2021, cumulative sales have reached 7 million units. The annual sales growth rate of CU's PB ramen was 9.2% in 2022, 15.3% in 2023, and 16.8% last year. The share of PB ramen in total ramen sales at CU also increased from 3.8% in 2022 to 4.4% in 2023, and 5.0% last year. At GS25, the PB ramen share rose from 11.5% in 2022 to 16.5% in 2023, and 17.7% last year. GS25's PB ramen "Myeonwang," launched at the end of 2023, increased its weight by 22% compared to existing cup ramen, was priced at 990 won, and has sold a cumulative 1 million units.
The reason retailers are focusing on ultra-low-price PB ramen, even at the expense of margins, is that these products serve as "strategic items" that drive overall store sales, rather than just selling a single pack of ramen. When consumers visit stores to purchase specific low-priced PB products, they are more likely to buy additional items as well. In other words, these products function as so-called "loss leaders." Amid prolonged high inflation, PB ramen has become a practical alternative for consumers looking to reduce fixed expenses. There is growing interest in how the retail industry's ultra-low-price strategy will impact the broader cost of living in the future.
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