Korean Ramen Offensive to Begin in Second Half [Click e-Stock]

Expanding Overseas with Ottogi's Jin Ramen
Nongshim Targets Europe, Launches Shin Ramyun Tumba in US
"Top Player" Samyang Foods Sees Soaring Demand for Buldak Bokkeum Myeon

After the gaming crisis, companies raised prices on 53 processed food items including coffee, bread, frozen foods, and ramen, causing a surge in "table prices." Many analysts believe that companies had previously restrained price increases in cooperation with the government's price stabilization measures but raised product prices in bulk during the government’s administrative vacuum. The photo shows the ramen sales section at a large supermarket in Seoul on June 10, 2025. Photo by [Photographer's Name]

Expectations for earnings growth among domestic ramen companies in the second half of the year are rising. Analysts believe that expansion into the US market and the popularity of content such as K-Pop Demon Hunters will help boost profitability and drive overall growth.

On September 2, Korea Investment & Securities maintained its overweight recommendation on the ramen sector based on these factors.

First, even Ottogi, which had been underperforming, is now seeing growing expectations for a rebound. Since last month, Ottogi has begun distributing Jin Ramen cup noodles at 64 Costco locations in Northern California. Since the beginning of this year, the company has also been running a global promotional campaign for Jin Ramen featuring BTS member Jin. Ottogi plans to expand its presence to Costco stores in Southern California within this year.

Despite holding the second-largest market share in the domestic ramen market, Ottogi's overseas sales accounted for only 10.2% of its total revenue as of last year-a figure significantly lower than its competitors, Nongshim (26.2%) and Samyang Foods (77.3%). If Ottogi is able to increase its overseas sales ratio, a revaluation of the company's valuation can be expected.

Nongshim, which had seen its profitability decline due to intensified competition in the US ramen market, succeeded in boosting its stock price after announcing a collaborative marketing plan with K-Pop Demon Hunters following its second-quarter earnings release. The recent establishment of a European sales subsidiary is also accelerating its penetration into the European market. With the full-scale launch of Shin Ramyun Tumba products in the US market starting in the second half of the year, earnings growth is anticipated.

Although increased promotional expenses in the US have recently reduced the profitability of its US subsidiary, investor expectations for third-quarter results have already been adjusted downward. Analysts believe that if sales growth in the US market is confirmed despite additional promotional spending, optimism about ramen market growth will be reignited.

Samyang Foods is expected to maintain its robust performance. Demand for Buldak Bokkeum Myeon remained strong in the second quarter, to the extent that the US subsidiary continued to experience supply shortages. With a Walmart penetration rate of 90% and a Costco penetration rate of 50%, Samyang Foods still lags behind competitors in terms of mainstream market entry, and its per-store sales are not yet high, suggesting ample room for future growth.

With commercial production from its second Miryang plant being exported from the third quarter of this year, even faster earnings growth is expected in the second half. Taking into account the planned operation of a plant in China by 2027, the potential for overseas earnings growth appears even greater.

Kang Eunji, a researcher at Korea Investment & Securities, explained, "Compared to other domestic food and beverage companies, Samyang Foods demonstrates the most pronounced overseas business growth and the highest operating margin, making it our top pick within the food and beverage sector."