[Why&Next] Bagged Ramen at Convenience Stores More Expensive Than at Supermarkets... Why the Explosive Growth?

Rising Demand for Bagged Ramen Driven by Influx of Foreign Tourists
Convenience Stores Emerge as 'Test Beds' for New Product Launches

Samyang Foods began selling its new ramen product, "Samyang 1963," at convenience stores just one week after its launch in large supermarkets on November 3. Traditionally, in the industry, bagged ramen is introduced at large supermarkets first, and it typically takes about a month before it appears in convenience stores. The significantly shortened launch gap this time reflects the judgment that both large supermarkets and convenience stores have become the key stages for initial sales. Within just one month of its release, 7 million units of the product were sold, with 1.2 million units (17%) purchased at convenience stores. The retail price at convenience stores is 1,900 won, which is 26% more expensive than the 1,406 won price at large supermarkets. However, the rapidly increasing share of sales at convenience stores indicates that the focus of ramen consumption is shifting from "price" to "accessibility and experience."

CU Ramen Specialty Convenience Store Wangsanmarina Branch.

Convenience stores are emerging as a new battleground in the bagged ramen market. The long-standing convention of "first launch at large supermarkets, later entry into convenience stores" is beginning to break down. Analysts attribute this to changing consumer trends and the increasing influx of foreign tourists, with convenience stores now serving as outposts for product testing and sales expansion.

According to the retail industry on December 14, CU, a convenience store operated by BGF Retail, saw its bagged ramen sales grow by 17.9% year-on-year from January to December 9 this year. This is a higher rate than the 9.6% increase in cup ramen sales during the same period. Seven-Eleven and Emart24 also reported increases in bagged ramen sales of 20% and 10%, respectively.

GS Retail reported that GS25’s bagged ramen sales from November 10 to December 9 increased by 32.1% compared to the same period last year, marking the highest growth rate for this period over the past three years. A GS25 representative stated, "The popularity of the new product 'Samyang 1963' has driven the increase in bagged ramen sales." Seven-Eleven and Emart24 also saw increases in bagged ramen sales of 20% and 10%, respectively.

Bagged ramen at convenience stores is 20-30% more expensive than at large supermarkets. For example, the price of Nongshim's "Shin Ramyun" at convenience stores is 1,000 won, 28% higher than the 782 won at large supermarkets. Ottogi's "Jin Ramen" is also 1,000 won at convenience stores, compared to 654 won at large supermarkets, a 34% difference. Despite this price gap, rising bagged ramen sales at convenience stores suggest that consumers are no longer prioritizing "lowest price" as their only purchase criterion.

The 'K-Ramen Craze' Fueled by Foreign Tourists

The increase in convenience store bagged ramen sales is largely driven by growing foreign demand. Last December, CU opened its first "Ramen Library" in Hongdae, displaying hundreds of varieties of bagged ramen in one location and introducing various experiential content. As word spread among foreign tourists eager to experience Korean ramen culture, the "Hangang Ramen Experience" became popular, leading to a surge in bagged ramen sales. A CU representative explained, "At the Hongdae Sangsang branch, one Chinese customer bought one of each of about 100 varieties of ramen, and since a single receipt can list a maximum of 55 items, two receipts were printed consecutively. This illustrates the high demand among foreigners for a wide range of Korean bagged ramen."

In response to this trend, CU expanded its ramen specialty stores from about 30 locations last year to more than 80 this year. Analysis of sales at these stores showed a sales ratio of 78% bagged ramen to 22% cup ramen. This is the opposite of the typical sales structure at regular convenience stores, where cup ramen dominates. Across all CU stores, the share of bagged ramen sales rose from 21.3% last year to 24.6% this year.

CU's ramen specialty stores are also serving as test markets for manufacturers' new products. For example, Pulmuone Foods collaborated with the Seoul Metropolitan Government to launch "Roasting Seoul Ramen," which was first sold at CU. Manufacturers are increasingly prioritizing convenience stores in their new product launch strategies.

The growth in foreign customer sales is also evident at GS25, Seven-Eleven, and Emart24. GS25 reported that its foreign customer sales through simple payment methods (Alipay and WeChat Pay) from January to November this year increased by 74.7% compared to the same period last year. The company attributes this to convenience stores becoming a popular tourist destination for quickly experiencing Korean culture. Seven-Eleven saw an 80% increase in foreigner bagged ramen sales, while Emart24 reported a 37% increase in foreigner sales during the same period. Notably, after the resumption of visa-free entry for Chinese group tourists on September 29, sales at the Myeongdong branch from September 29 to October 12 rose by 43% compared to the previous equivalent period.

8 Million Single-Person Households: Grocery Shopping Shifts from Large Supermarkets to Convenience Stores

The increase in single-person households and the decline in large supermarket usage are also cited as factors supporting the growth of convenience stores. As the number of single-person households rises, small-quantity and nearby consumption have become the norm, and grocery shopping has naturally shifted from large supermarkets to convenience stores. According to the National Data Office, there were 8,045,000 single-person households in Korea last year. This marks an increase of over 800,000 in just three years since surpassing 7 million in 2021, when there were 7,166,000 such households. Single-person households now account for 36.1% of all households, the highest proportion ever recorded. The share of single-person households was 30% in 2019 and 35% in 2023, showing a clear upward trend.

This shift in consumption patterns is also reflected in the performance of large supermarkets. According to the Ministry of Trade, Industry and Energy, large supermarket sales fell by 0.8% last year compared to the previous year, and declined by another 1.1% in the first half of this year. In contrast, convenience stores have emerged as a primary shopping destination, leveraging 24-hour operations, accessibility, and small-package products to meet daily consumer needs.

The ramen market is experiencing a similar trend. As more single-person households seek products that are easy to purchase and cook, and as foreign tourists look for unique Korean experiences, the share of both bagged and cup ramen sales at convenience stores is increasing. An industry insider commented, "Convenience stores have now become more than just supplementary shopping destinations; they have established themselves as essential channels catering to both single-person households and foreign consumers. The convenience store-centered structure in the ready-to-eat meal market, including ramen, will only become stronger."