"Prices Rise and Exports Surge"... Ramen Boils Again

Nongshim's Q1 Estimated Sales at 698.4 Billion KRW, Up 10.1% YoY
Ottogi Also Rises 8.4% to 727.5 Billion KRW... Samyang Foods Expected to Increase by 25%
Recovery in Export and Overseas Sales Combined with Price Increase Effects

[Asia Economy Reporter Eunmo Koo] Domestic ramen companies such as Nongshim, Ottogi, and Samyang Foods are expected to start the first quarter of this year on a strong note. This is because overseas market sales, which had slowed due to COVID-19, are rising again, and the positive effects of last year's price increases are also being reflected, raising expectations for good performance.

According to financial information firm FnGuide on the 26th, Nongshim's estimated sales for the first quarter of this year are 698.4 billion KRW, expected to grow 10.1% compared to the same period last year. Operating profit for the same period is also expected to increase by 19.2% to 33.7 billion KRW.

Ottogi is also projected to achieve sales of 727.5 billion KRW in the first quarter, an 8.4% increase from a year ago, with operating profit rising 16.4% to 58.4 billion KRW. Samyang Foods is expected to record sales of 174.9 billion KRW, a 25.0% increase year-on-year, and operating profit of 21.5 billion KRW, a sharp 50.0% increase during the same period.

On the 15th, ramen was displayed at a large supermarket in downtown Seoul. With rising recognition through Korean dramas and movies, ramen is gaining global popularity. According to the industry, Nongshim's cumulative overseas sales of Shin Ramyun in the third quarter have surpassed domestic sales. Samyang Foods' overseas sales accounted for 57% of total sales last year. Photo by Mun Ho-nam munonam@

The increase in exports and overseas sales appears to have driven the performance improvement of the three ramen companies. Since the domestic market has its limits, each company’s strategy to use overseas markets as a new growth engine is proving effective. Although Samyang Foods’ exports to China slowed somewhat due to the Beijing Olympics and the resurgence of COVID-19, exports to regions outside China are expected to show steady growth, led by ‘Buldak Bokkeummyeon’ in the United States, Indonesia, Malaysia, and Thailand.

Nongshim’s overseas sales, centered on the United States, are showing growth, and with the second U.S. factory starting full operation at the end of this month, it is expected to respond quickly to both main products and new products in the ramen market. Eunju Shim, a researcher at Hana Financial Investment, predicted, "With the expansion of production facilities to meet local demand in the U.S., steady growth is expected to continue throughout the year."

According to the Korea Customs Service, domestic ramen exports in the first quarter of this year amounted to 181.98 million USD (approximately 226.3 billion KRW), a 15.9% increase from the same period last year (156.97 million USD). In particular, March exports reached 71.58 million USD (approximately 89 billion KRW), setting a new monthly export record. This is the first time ramen exports have exceeded 70 million USD per month, surpassing the previous record of 66.66 million USD set in December last year.

Price increases are also expected to be a positive factor in improving performance. The three ramen companies all raised prices last year. Nongshim increased domestic ramen prices by an average of 6.8%, and in the fourth quarter raised prices in the North American market by 5%. Ottogi raised Jin Ramen prices for the first time in 13 years, increasing domestic ramen prices by an average of 11.9%. Samyang Foods also raised prices by an average of 6.7%. A Nongshim official said, "Along with the effect of price increases, the increased demand for soup ramen during the winter seems to have influenced the improvement in first-quarter performance."

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