Samyang Foods Leading with Buldak, Now Aiming for the '1 Trillion Won Club'

Driving Growth with Core Business of Buldak Sauce
'Buldak' Brand Continues Growth Amid Domestic and International Popularity
On Track for First Ever 1 Trillion Won Sales Since Establishment This Year

Samyang Foods is aiming for its first-ever annual sales of over 1 trillion KRW this year by leveraging its spicy "Buldak" brand, following the success of "Buldak Bokkeummyeon" with the introduction of "Buldak Sauce."

Samyang Foods 'Buldak Sauce'

According to the Financial Supervisory Service's electronic disclosure system on the 10th, Samyang Foods' sales from sauces and seasoning materials last year amounted to 29.087 billion KRW, a 36.3% increase compared to the previous year (21.344 billion KRW). Sales of sauces and seasoning materials, which were around 9.658 billion KRW in 2019, have grown by more than 200% in three years, supported by positive responses in both domestic and international markets. During this period, the proportion of the sauce and seasoning materials business in total sales also increased from 1.8% to 3.2%.

The growth of the sauce and seasoning materials division is driven by "Buldak Sauce." Samyang Foods first introduced Buldak Sauce in 2018 in response to requests to sell the liquid seasoning separately from Buldak Bokkeummyeon. Since the official launch of Buldak Sauce, Samyang Foods has expanded the lineup by adding Original, Carbo Buldak Sauce, Buldak Mayo, and more, while actively pursuing collaborations with dining establishments and exports to grow the sauce business. The market has responded enthusiastically to Buldak Sauce, with domestic and international sales last year increasing by 31.5% and 43.4% to 17.1 billion KRW and 11.9 billion KRW, respectively.

As the market responds to Buldak Sauce, the company is also accelerating its sauce business. Vice Chairman Kim Jung-soo clearly stated at the year-end group management conference that the mid-to-long-term goal is to enter the global top 100 companies in the stock sector, emphasizing strengthening the sauce division alongside the noodle business as core operations. Samyang Foods views sauces as essential consumer goods less affected by economic fluctuations. When dining out decreases during a recession, household demand increases, and when dining out rises during a boom, the usage of sauces by dining establishments also increases, providing dual benefits.

Samyang Foods plans to focus on expanding market influence by developing new Buldak Sauce products suitable for various consumer eating situations and cooking sauces. The company stated, "We have stably entered the business-to-consumer (B2C) sauce market through a table sauce lineup focused on versatility and turnover. Moving forward, we will continue to expand our market influence by launching products that create trends through innovative attempts."

Samyang Foods 'Buldak Bokkeummyeon'

Another positive factor is the steady performance of Buldak Bokkeummyeon, which laid the foundation for the success of Buldak Sauce. Accounting for about 70% of total sales, Buldak Bokkeummyeon was launched in 2012 emphasizing a much spicier taste than existing ramen. It has continuously generated demand domestically and internationally, fueled by the popularity of various challenge videos online. Notably, its successful localization in markets such as China with "Mala Buldak Bokkeummyeon," the Americas with "Habanero Lime Buldak Bokkeummyeon," and the Middle East with "Masala Buldak Bokkeummyeon" is considered a key factor in its ongoing success. Thanks to the strong performance of Buldak Bokkeummyeon, the noodle and snack division's sales last year reached 855.3 billion KRW, a 36.6% increase from 626.1 billion KRW in 2021.

With the continued strong sales of the Buldak brand through both Buldak Bokkeummyeon and Buldak Sauce, Samyang Foods is now within reach of achieving its first-ever 1 trillion KRW in sales this year. According to financial information provider FnGuide, Samyang Foods is expected to record sales of 1.0395 trillion KRW this year, a 14.4% increase from last year. Operating profit is also projected to exceed 100 billion KRW, rising 25.6% to 113.5 billion KRW.

Jang Ji-hye, a researcher at DS Investment & Securities, commented, "Buldak Bokkeummyeon is a growing product that captivates the global MZ generation, attracting fans through consumption patterns of K-pop stars like BTS." She added, "If the newly operational Miryang factory, which started this year, actively responds to the increasing global demand, continuous growth is expected."

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