Vietnamese Ramen Market Explodes in Growth... "Second Highest Per Capita Consumption After Korea"

2019 Ramen Consumption 5.4 Billion
57 Per Person... 2nd After Korea
3 Domestic Companies Hold 70% Market Share
Korea's Paldo Ramen Ranks 10th

Photo by Getty Images Bank

[Asia Economy Hanoi Correspondent Jo Ara] Vietnam's instant noodle consumption is rapidly increasing. According to the World Instant Noodle Association (WINA) and KOTRA, Vietnam's instant noodle consumption in 2019 increased by 4.4% compared to the previous year, reaching 5.4 billion units. This ranks Vietnam 5th in the world, following China (41.45 billion units), Indonesia (12.52 billion units), India (6.73 billion units), and Japan (5.63 billion units).

During the same period, Vietnam's per capita instant noodle consumption was 57 units, the second highest in the world after South Korea (75 units). From 2015 to 2019, Vietnam's instant noodle market recorded a steady annual growth rate of 3.1%.

Vietnam's instant noodle consumption is estimated to have continued its upward trend last year as well. According to market research firm Kantar Worldpanel, due to the COVID-19 pandemic in early 2020, instant noodle consumption increased by 65% in urban areas and 27% in rural areas. KOTRA analyzed that "the growth of Vietnam's instant noodle market reflects consumers' tendency to choose convenient products that fit their work and lifestyle patterns."

Along with the market growth, the number of companies entering the market is rapidly increasing. It is estimated that there are 50 instant noodle manufacturers in Vietnam. Among them, three domestic companies?Vina Acecook, Masan, and Asia Food?account for 70% of the market. Among Korean companies, Paldo Ramen ranked 10th. Paldo Ramen entered Vietnam in 2006 and began full-scale production and distribution after completing a noodle factory in Phu Tho Province in the northern region in 2012, continuing its growth in Vietnam.

Meanwhile, besides Paldo, Korean food companies such as Orion and Daesang are also performing well in Vietnam. Orion's cumulative sales in Vietnam exceeded 2.2 trillion KRW last year. Orion first entered Vietnam in 1995 by exporting Choco Pie and established a factory in Ho Chi Minh City in 2006. In 2009, it built a second factory in Hanoi. Choco Pie, which holds nearly 70% market share in Vietnam's pie market, is a beloved product locally, even placed on ancestral ritual tables.

Daesang is aiming to become a comprehensive food company by diversifying its product lineup, including Miwon seasoning, soup-based compound seasonings, frying powder, chili sauce, and soy sauce. In September 2016, Daesang completed the acquisition of local fresh sausage processor Duc Viet Food, marking the start of its full-scale entry into the refrigerated and frozen meat market through the meat processing sector.

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