COVID-19 Stay-at-Home "Everyone Ate Shin Ramyun and Jjapagetti"... Ramen Sales Reach Record High

Record High 1.13 Trillion KRW Ramen Market in First Half of This Year, Online Sales Double
Double-Digit Growth for Shin Ramyun, Chapagetti, and More... Popularity of Bagged Ramen Rises Amid Increased Home Staying

[Asia Economy Reporter Lee Seon-ae] This year, as the novel coronavirus disease (COVID-19) swept across the country, changes occurred in the consumption of ramen, a representative national food. From February to March, when COVID-19 rapidly spread, domestic ramen demand sharply increased, and ramen companies including Nongshim operated their factories at full capacity to meet supply. Thanks to this special demand, the ramen market recorded its highest-ever performance. According to Nielsen Korea, the domestic ramen market in the first half of the year grew by 7.2% compared to the previous year, reaching approximately 1.13 trillion KRW, marking the largest half-year performance in history.

Amid the crisis, the market chose stability. Consumers selected market-leading brands with proven taste and quality, and distribution channels continued to order mainly popular products. In particular, Shin Ramyun, Chapagetti, and Ansungtangmyun demonstrated their true value. These products showed double-digit growth based on solid fundamentals and brand power that consumers trust. Additionally, with social distancing reducing outdoor activities such as outings and travel, sales of bagged ramen cooked at home increased.

Ramen Market Hits Record 1.13 Trillion KRW in First Half

According to the ramen market trend announced by Nongshim on the 20th, the ramen market showed significant growth due to increased consumption influenced by COVID-19. The domestic ramen market in the first half of this year reached about 1.13 trillion KRW, a 7.2% increase from the previous year, achieving the highest half-year record ever. This sudden growth in a ramen market that has been stagnant around the 2 trillion KRW level once again proved ramen’s characteristic as a ‘food strong in crisis.’

Moreover, as non-face-to-face (untact) consumption expanded, the number of consumers ordering ramen online also increased. Due to the nature of the product, ramen is mainly purchased at large supermarkets, nearby convenience stores, or supermarkets, so the online sales proportion is not large. However, as consumers shifted their grocery shopping online due to COVID-19, Nongshim’s online ramen sales also increased.

Based on its own shipment data, Nongshim stated that online channel sales accounted for about 40 billion KRW of domestic ramen sales in the first half of this year, nearly doubling compared to the previous year. Sales increased evenly across major domestic online channels, from social commerce to open markets.

Shin Ramyun, Chapagetti, and Others Show Double-Digit Growth

Due to the impact of COVID-19, the value of leading brands stood out more than ever in the domestic food market in the first half of this year. Representative brands in various sectors such as ramen, instant rice, tuna, and HMR (Home Meal Replacement) were chosen by consumers. In times of economic recession or disasters, consumers tend to reduce consumption risks by purchasing already proven popular products rather than new ones.

In the ramen market, steady sellers representing the market, centered on Shin Ramyun, demonstrated their true value. The domestic ramen market, stagnant around 2 trillion KRW, enjoyed a special demand due to COVID-19, with a concentration on popular Nongshim products such as Shin Ramyun, Chapagetti, Ansungtangmyun, and Neoguri.

Shin Ramyun’s sales in the first half of this year grew by 12.4% compared to the same period last year, Chapagetti by 23.2%, Ansungtangmyun by 34.9%, and spicy Neoguri by 28.4%, showing overwhelming superiority.

A Nongshim official said, “Not only consumers but also distribution channels such as large supermarkets, convenience stores, and supermarkets prioritized ordering Shin Ramyun, which sells best and has the highest turnover.” He added, “Nongshim operated its five domestic ramen factories at full capacity and adjusted production items to actively respond to demand.”

Bagged Ramen Increases While Cup Ramen Decreases

Demand for cup ramen in the ramen market has steadily increased every year. Its share rose from 33.2% in 2016 to 37.5% last year. This is due to the increase in single-person households and the normalization of convenience store use in the consumption environment.

However, this year the situation changed due to COVID-19. With social distancing measures such as working from home and delayed school openings greatly reducing outdoor activities, the sales share of cup ramen in the ramen market fell to 34.3% in the first half of this year.

As the number of people staying at home increased, ramen consumption naturally concentrated on bagged ramen. Bagged ramen is cheaper and comes in larger quantities compared to cup ramen, and can be cooked at home as a meal substitute, making it the first emergency food choice in crisis situations.

A Nongshim official said, “As the time spent at home increased, so-called ‘home cooking’ became routine, and ramen shifted from being a snack to being recognized as a meal or cooking ingredient.”

This content was produced with the assistance of AI translation services.