"Are Expensive Ramen Really Selling Well?"... What's Happening in the Changing Ramen Market [Week+Money+Talk]

Ramen Prices Up 27% in Five Years
Price Increase Driven by Premium Ramen Boom
Premium Ramen "Samyang 1963"
7 Million Units Sold Within One Month of Launch

Editor's NoteWe are living in a time when a single serving of pork belly costs 20,000 won and a bowl of Jajangmyeon is 7,500 won. In 2024, the consumer price index stands at 114.18 (2020=100), and in 2025, the burden on consumers' grocery bills has grown due to the ongoing impact of high inflation. Through the "Week+Money+Talk" series, we aim to share stories about consumption that are closely linked to our wallets, alongside the ever-changing prices.

Ramen. Pixabay

As a series of premium ramen products priced around 2,000 won per pack have been launched, ramen prices have risen by 27% over the past five years. Ramen, once the symbol of affordable everyday food, is shifting away from low-price competition and moving towards a premiumization strategy that emphasizes quality and taste.

Ramen Prices Up 27% in Five Years

According to the National Data Office on January 11, last month's consumer price index for ramen was 127.55 (2020=100), up 7% from the same month last year. Compared to 2020, this represents a 27.55% increase. Looking at the monthly year-on-year growth rates, the increase remained in the 0% range from January to March last year, but surged to the 5% range in April. The upward trend continued in the 6% range, and in October, it reached a yearly high of 7.3%.

This trend is closely related to the recent wave of premium ramen launches. While ramen is known for being cheap and easy to prepare, the market atmosphere is changing as premium lines with enhanced broths, ingredients, and manufacturing processes are being introduced one after another. Although the premium ramen market temporarily slowed after President Lee Jaemyung cited "ramen priced in the 2,000-won range" as a prime example of high inflation in June last year, premium products continue to be in the spotlight as more consumers prioritize ingredients and quality over price.

Consumer response to premium ramen has been enthusiastic. Samyang Foods launched its premium ramen "Samyang 1963" in November last year. Despite being sold at 1,900 won-about 1.5 times more expensive than the standard Samyang Ramen-it surpassed cumulative sales of 7 million units within a month of its release. This figure exceeds 80% of the average monthly sales of Samyang Ramen (Original). The product is characterized by its use of beef tallow, which was used until 1989 before the "beef tallow crisis," to enhance the savory flavor of the noodles and the depth of the broth.

Premium Ramen Priced Around 2,000 Won Becomes Commonplace

Photo of a ramen display at a large supermarket in Seoul. Photo by Kang Jin-hyung aymsdream@

The food industry has previously experienced success with premium ramen launches. In 2011, Nongshim tested the potential of the premium ramen market by launching "Shin Ramyun Black," featuring a rich beef broth, at 1,600 won. Although domestic sales were temporarily suspended due to price controversy at the time, the product made a successful comeback by selling 6 million units within a month of its re-release in 2012. Nongshim has continued to expand its premium lineup, introducing "Shin Ramyun Gold" with a chicken-based broth on January 2 this year. The recommended retail price for Shin Ramyun Gold is 1,500 won at convenience stores.

As the price range for premium ramen continues to rise, even bagged ramen priced above 2,000 won has appeared. Currently, the most expensive premium ramen at convenience stores is Harim's "The Gourmet Artisan Ramen," priced at 2,200 won. In addition, Shin Ramyun Black is priced at 1,900 won, and Paldo's "Sangnamja Ramen" carries a price tag of 1,700 won.

"Difficult to Achieve High Profitability Domestically"

Pixabay

The food industry cites the limited growth potential of the domestic ramen market as the reason for the continued launch of premium ramen. The market has already reached saturation, and the spread of delivery and ready-to-eat meals has changed the consumption environment, making it difficult to achieve further growth through competition centered on low-priced products alone.

In its quarterly report last November, Nongshim stated, "The domestic ramen market is experiencing quantitative low growth due to changes in population structure and lifestyle patterns, and we are making every effort to achieve qualitative growth by enhancing product convenience and premiumization."

Due to the structural limitations of the domestic market, it is expected that the food industry will not only continue its premium ramen push but will also inevitably target overseas markets. Growth Research, a research firm, stated in its "Ramen Industry Report" released in May last year, "Ramen is a product representative of everyday food, and unlike other products, the government strictly controls prices, making it difficult to freely raise prices. Currently, ramen maintains a low unit price of around 1,000 won per pack, making it difficult to achieve high profitability."

The report continued, "Domestic companies will have no choice but to actively pioneer overseas markets in the future. The average selling price of ramen overseas is about 1.5 to 2 times higher than in Korea, so even selling a single pack abroad is more advantageous for profitability."