"Due to Cost Burden, Prices Will Eventually Rise" Nongshim to Increase Ramen and Snack Prices After Chuseok

Average Price Increase Rate: Ramyeon 11.3%, Snacks 5.7%

[Asia Economy Reporter Eunmo Koo] Nongshim announced on the 24th that it will raise the ex-factory prices of its major ramen and snack products by an average of 11.3% and 5.7%, respectively, starting from the 15th of next month.

This is the first time Nongshim has increased ramen prices since August last year, and snack prices since March this year. Nongshim stated that since April, due to international conflicts and inflation, raw material prices have surged and exchange rates have risen, intensifying cost burdens. In particular, after domestic suppliers raised their delivery prices from the second quarter of this year, Nongshim's manufacturing cost burden has further increased. In fact, the delivery prices of most raw materials such as wheat flour and starch have risen.

A Nongshim official explained, "Considering the impact of ramen and snack prices on consumer prices, we have internally endured cost increase pressures by promoting cost reduction and management efficiency, but the situation became urgent enough to record losses domestically in the second quarter, making price adjustments essential. Especially, due to the increase in delivery prices from suppliers, raising ramen and snack prices became urgent, but taking into account the stabilization of consumer basket prices, we postponed it until after Chuseok."

The items to be increased after Chuseok include 26 ramen brands and 23 snack brands. The price increase rates for major products based on ex-factory prices are 10.9% for Shin Ramyun, 9.9% for Neoguri, 6.7% for Saewookkang, and 5.9% for Kkul Kkwabaegi. Accordingly, the price of Shin Ramyun, which is currently sold at an average of 736 won per pack in large supermarkets, is expected to be adjusted to about 820 won, and the price of Saewookkang is expected to rise from 1,100 won to about 1,180 won. Actual selling prices may vary by retail store.

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