[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 launching it at large supermarkets on November 3. Traditionally, in the industry, it takes about a month after a bagged ramen product is released at large supermarkets before it is stocked at convenience stores. The decision to significantly shorten the launch interval this time was based on the judgment that both large supermarkets and convenience stores have become 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%) sold at convenience stores. The convenience store price for this product is 1,900 won, which is 26% higher than the 1,406 won price at large supermarkets. However, the rapid increase in the proportion 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 the new battleground in the bagged ramen market. The long-standing industry practice of "launching first at large supermarkets, then later at convenience stores" is beginning to break down. Analysts attribute this to changes in consumer trends and the growing 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, BGF Retail's convenience store chain CU saw its bagged ramen sales increase by 17.9% year-on-year between January 1 and December 9 this year. This is a higher growth rate compared to cup ramen sales, which rose by 9.6% during the same period.

GS Retail reported that GS25's bagged ramen sales jumped by 32.1% in the most recent month (November 10 to December 9) compared to the same period last year, marking the highest growth rate for the same period in the past three years. A GS25 representative stated, "The popularity of the new product 'Samyang 1963' drove the increase in bagged ramen sales." Sales of bagged ramen at Seven-Eleven and Emart24 also rose by 20% and 10%, respectively.

Bagged ramen prices at convenience stores are 20-30% higher than at large supermarkets. For example, the convenience store price for Nongshim's "Shin Ramyun" is 1,000 won, which is 28% higher than the 782 won price at large supermarkets. Similarly, Ottogi's "Jin Ramyun" is sold at 1,000 won in convenience stores, compared to 654 won at large supermarkets, a 34% difference. Despite the price gap, the rise in bagged ramen sales at convenience stores suggests that consumers are no longer prioritizing "the lowest price" as their sole purchasing criterion.

The "K-Ramen Craze" Fueled by Foreign Tourists

One of the key drivers behind the increase in convenience store bagged ramen sales is the growing demand from foreign customers. Last December, CU opened its first "Ramen Library" branch in Hongdae, displaying hundreds of varieties of bagged ramen in one space and introducing various experiential content. The "Hangang Ramen Experience," which allows tourists to try Korean-style ramen, quickly spread by word of mouth among foreign visitors, leading to a surge in bagged ramen sales. A CU representative explained, "At the Hongdae Sangsang branch, a Chinese customer purchased one of each of about 100 different ramen varieties. Since a single receipt can only list up to 55 items, two receipts were printed consecutively. This shows the high demand among foreigners for a wide variety of Korean bagged ramen."

In response to this trend, CU expanded its ramen specialty stores from about 30 last year to over 80 this year. Analysis of sales at these stores shows that bagged ramen and cup ramen account for 78% and 22% of sales, respectively-a reversal of the usual structure, as cup ramen typically dominates sales at regular convenience stores. Across all CU stores, the proportion of bagged ramen sales rose from 21.3% last year to 24.6% this year.

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

The increase in foreign customer sales is also evident at GS25, Seven-Eleven, and Emart24. GS25 reported that foreign customer sales via simple payment methods (Alipay and WeChat Pay) rose by 74.7% year-on-year from January to November this year. The company explained that convenience stores have become a must-visit destination for tourists seeking quick access to Korean culture. Seven-Eleven's bagged ramen sales to foreign customers grew by 80%, while Emart24 saw a 37% increase in foreign customer sales during the same period. Notably, at Emart24's Myeongdong branch, sales jumped by 43% from September 29 to October 12, following the resumption of visa-free group travel for Chinese tourists.

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 Agency, there were 8,045,000 single-person households in Korea last year. This marks a rise of over 800,000 in just three years, after surpassing the 7 million mark in 2021 with 7,166,000 households. Single-person households now account for 36.1% of all households, the highest proportion ever recorded. The proportion of single-person households rose from 30% in 2019 to 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 become a primary shopping destination, leveraging 24-hour operations, accessibility, and small-package products to cater to everyday consumer needs.

The ramen market is experiencing a similar trend. As more single-person households seek products that can be purchased and cooked quickly, and as foreign tourists look for unique Korean experiences, the share of both bagged and cup ramen sales at convenience stores continues to grow. A retail industry official stated, "Convenience stores have evolved beyond being just a supplementary shopping destination and are now established as lifestyle channels that cater 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 going forward."