'Due to COVID-19, the world stayed home'... Both the US and Korea ate Shin Ramyun at home

Record 1.13 Trillion KRW Domestic Ramen Market in H1 This Year, Online Sales Double
Shin Ramyun, Chapagetti See Double-Digit Growth... Bagged Ramen Popular Amid Stay-at-Home Trend
New York Times Names 'Shin Ramyun Black' the World's Most Delicious Ramen

[Asia Economy Reporter Lee Seon-ae] The consumption of ramen has surged due to the COVID-19 pandemic. As staying at home became a trend with social distancing measures, the demand for ramen skyrocketed. In particular, Nongshim's Shin Ramyun has gained soaring global popularity, elevating the status of K-food (Korean food wave).

Explosive Increase in Ramen Consumption

According to the ramen market trends for the first half of this year announced by Nongshim on the 22nd, the ramen market showed significant growth as ramen consumption increased due to COVID-19. The domestic ramen market in the first half of this year reached approximately 1.13 trillion KRW, a 7.2% increase compared to the previous year, achieving the highest half-year performance ever recorded. This sudden growth in a ramen market that had been stagnant around the 2 trillion KRW mark once again proved ramen's characteristic as a 'food strong in crisis.'

Additionally, with the expansion of non-face-to-face (untact) consumption, the number of consumers ordering ramen online also increased. Due to the nature of the product, ramen is mainly purchased at large supermarkets, convenience stores near homes, 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.

Bagged ramen also gained popularity. With outdoor activities greatly reduced due to social distancing measures such as working from home and school delays, the sales proportion of cup noodles in the ramen market fell to 34.3% in the first half of this year. On the other hand, consumption concentrated on bagged noodles. Bagged noodles are cheaper and come in larger quantities compared to cup noodles, and can be cooked at home as a meal substitute, making them 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 concept to becoming a meal or cooking concept."

As Expected, Shin Ramyun... Number One Ramen in Both the U.S. and Korea

Shin Ramyun demonstrated its steady seller value. The domestic ramen market, stagnant around 2 trillion KRW, enjoyed a special demand boost due to COVID-19, with most sales concentrated 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," adding, "Nongshim fully operated its five domestic ramen factories and adjusted production items to actively respond to demand."

Shin Ramyun also proved its value as K-food in the U.S. market. The New York Times introduced Shin Ramyun Black as the 'premium version of Shin Ramyun,' praising its rich beef broth with seolleongtang seasoning, appropriate spiciness, the combination of sliced garlic and large mushroom pieces, and the chewy texture of the noodles.

This evaluation was conducted by the New York Times Wirecutter team, who received recommendations for the best ramen from seven food experts including chefs, writers, and critics, and ranked 11 selected ramen products based on tasting scores. The Best 11 ramen included 4 Korean ramen, 6 Japanese ramen, and 1 Singaporean ramen.

Following Shin Ramyun Black, Nongshim's Chapaguri (Chapagetti + Neoguri, 3rd place), Shin Ramyun Dry Noodles (6th place), and Shin Ramyun Bowl (8th place) made the rankings, drawing attention. Among the 11 products, four Nongshim brands were the only Korean products to rank, upholding the pride of Korean ramen.

'Chapaguri' became famous through the Oscar-winning film Parasite and was praised for its balance of the sweetness of black bean sauce and the spicy seafood flavor. 'Shin Ramyun Dry Noodles' were described as having a chewier and healthier taste compared to other products due to air-dried noodles. The bowl-type 'Shin Ramyun Bowl' sold in the U.S. was noted as the most popular cup noodle version of Shin Ramyun in Korea, convenient for microwave cooking, with thin noodles and spicy broth leaving a strong impression.

A Nongshim official said, "The good evaluation of Nongshim brands in the fiercely competitive U.S. ramen market directly reflects the status of Korean ramen," adding, "Based on Nongshim's overseas business competitiveness boasting superior taste, quality, and production systems, we will continue to raise the popularity of K-food in the global market."

Spreading Korea's Spicy Flavor Worldwide

Nongshim first exported overseas in 1971. At that time, Nongshim exported its popular domestic ramen, Beef Ramen, to the U.S., mainly targeting the Korean-American market. After steadily pioneering the market for over a decade, major Nongshim brands such as Neoguri, Ansungtangmyun, Chapagetti, and Shin Ramyun successfully settled in the 1980s. In 1984, Nongshim established a sales office in San Francisco, and in 1994, it founded its first overseas corporation, the U.S. branch in LA.

Twenty-four years after establishing a corporation in the U.S. market, Nongshim's mainstream market sales surpassed those of the Asian market. Last year, the mainstream market share was 62%, overwhelming the Asian market's 38%. Expanding sales to local large markets such as Walmart was effective.

The breakthrough in targeting the mainstream market was the deal with Walmart. Shin Ramyun was first sold at Walmart in 2013, starting with test sales in seven stores, marking the beginning of the Walmart deal.

A Nongshim official said, "Walmart is known for its strict product verification, and if a product fails the test sale, it can never be listed," adding, "They even check the company's management status, so only a few products among countless global brands are listed at Walmart," describing the situation at the time.

Thanks to direct transactions with Walmart, Nongshim became the first in the industry to complete listing in all Walmart stores across the U.S. in 2017. Starting from over 4,000 large Walmart stores, they completed product listings even in small and medium-sized markets in small towns.

The fact that Shin Ramyun is listed in all Walmart stores indicates that Shin Ramyun's brand power is recognized on the global stage. In fact, the food products sold nationwide at Walmart in the U.S. include global brands such as Coca-Cola, Nestl?, Pepsi, Kellogg's, and Heinz. Shin Ramyun is recognized as a brand standing shoulder to shoulder with these global brands in the U.S. market.

Being chosen by the world's top distribution company became Shin Ramyun's greatest competitive advantage. Subsequently, Shin Ramyun also achieved the milestone of being the first ramen to be listed in major government institution stores such as the U.S. Department of Defense and the Capitol.

A Nongshim official emphasized, "If we expanded our sales network mainly in the western U.S. and Korean-American markets for over a decade after starting the LA factory in 2005, now we have established a distribution network across the entire U.S., including eastern metropolitan areas, northern Alaska, and Pacific Hawaii," adding, "Shin Ramyun has now joined the ranks of global products recognized and purchased first by American consumers beyond the Korean community."

Meanwhile, Nongshim exports ramen to about 100 countries worldwide, including China, the U.S., Japan, Southeast Asia, and Europe. Shin Ramyun is a representative K-food spreading Korea's spicy flavor globally, generating approximately 760 billion KRW in annual domestic and overseas sales.

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