According to Pulse by Maeil Business News Korea,

Instant noodles are leading the craze for Korean food around the world, threatening some Japanese noodle makers that have dominated the global instant noodle market for years.

According to sources from the Korean food industry, exports of instant noodles from four major Korean instant noodle makers-Nongshim Co., Samyang Foods Co., Ottogi Corp. and Paldo Co.-totaled 2.32 trillion won ($1.75 billion). That’s more than about 1 trillion won for dumplings, some 900 billion won for lavers and about 200 billion won for kimchi.

Korean instant noodles are now being served from rest areas in Jungfrau in Switzerland and in the Himalayas to the southernmost tip of South America in Chile’s Punta Arenas. Even Samoa in the South Pacific, about 2.5 million cups of Nongshim‘s Yukejang instant noodles were sold last year.

“Locals here have increasingly liked our cups of noodles since the 1990s when they first learned about them from Korean fishermen working on fishing boats,” a Nongshim official explained.

Data from global market research firm Euromonitor show that the annual consumption of instant noodles by country in 2022 was topped by China, consuming 22.95 trillion won worth of instant noodles, followed by Japan at 6.89 trillion won, Indonesia 4.38 trillion won, the U.S. 2.72 trillion won and Korea at 2.67 trillion won. The U.S., is believed to be the most competitive market for major instant noodle makers as there are no domestic manufacturer.

In 2021, Nongshim, the top instant noodle maker in Korea, accounted for 26 percent of the U.S. instant noodle market, behind Japanese giant Toyo Suisan Kaisha Ltd., which accounted for 48 percent of the market. Nongshim overtook Nissin Food Products Co. in 2017 to become the second-biggest seller.

“Our goal is to take over the top spot in the U.S. instant noodle market hopefully in the coming years,” said a Nongshim official.

Long-established Japanese instant noodle makers seem to have noted the growing popularity of Korean instant noodles in the U.S. and in other markets. Earlier this year, Japan’s largest instant noodle company, Nissin Food, sparked controversy with its new stir-fried noodle product due to its resemblance in concept and packaging to a popular Korean instant noodle, Buldak Ramen.

Launched in 2012, the Buldak instant noodles has been one of the most popular Korean instant noodles among global consumers and the top noodle brand at Samyang Foods. Buldak played a key role in Samyang Foods becoming the first Korean food company to top $400 million in exports last year.

“The launch of similar products to Korean ones by Japan’s largest instant noodle maker is a testament that shows the global attention being paid to Buldak noodles,” said one industry insider.

In the U.S., Japanese instant noodles sell at about half the price of Korean instant noodles. Nongshim’s Shin Ramyun goes for around $1.50 per pouch and Shin Ramyun Black for about $2.50 at U.S. supermarkets. Toyo Suisan’s flagship product, the number one instant noodle in the U.S. market, sells for about $0.50 per pouch. Compared with the Japanese noodle, Shin Ramyun sells at three times the price, and Shin Ramen Black at five times the price.

“People here say that Japanese noodles tend to be bland, so many Americans have added toppings to the noodles, but Shin Ramyun is good as it is, without any additional toppings, even though it’s more expensive,” said Professor Jang Jae-ho at Seoul National University after his recent research into the U.S. food market. Shin Ramyun Black was chosen as the world’s most delicious instant noodle in 2020 by The New York Times.

Korean instant noodles have seen sales rise in overseas markets largely thanks to the popularity of the Korean pop culture. In 2020, Nongshim’s Chapaghetti and Neoguri grabbed a lot of attention worldwide after the award-winning movie “Parasite” showed scenes of combining the two products, called “Chapa-guri.” YouTube videos featuring Jimin, V and Jungkook, members of the K-pop super band BTS, enjoying some Buldak noodles also helped the brand expand its reach beyond just China and Southeast Asia and into the U.S., Europe and South America, analysts note.

Nongshim plans to build a third factory in the U.S. in the near future as its second plant, which started operations in May, is already running at full capacity. “Overseas instant noodle sales may overtake domestic sales this year as domestic companies are increasing their production outside Korea,” said an industry insider.






By Pulse

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Source: Pulse by Maeil Business News Korea (Apr. 13, 2023)