'K-Ramen' Round 2... Real Battle in Overseas Markets [K-Ramen 60th Anniversary]

Expanding Markets in the US, Southeast Asia, and Russia
Riding the K-Content Wave, Sales Volume and Revenue Show Strong Growth
Leading the Competition with Facility Investment and Strengthened Sales Efforts

Ramen, which has been loved as a 'national food' beyond being the soul food of the common people for over half a century, is now captivating consumers in overseas markets as the vanguard of 'K-food.' Scenes featuring ramen in K-content such as movies, dramas, webtoons, and short-form videos have been introduced worldwide, garnering great interest from locals. Considering the improved performance overseas, major domestic ramen companies are expanding local production lines or increasing export and marketing shares, putting effort into the 'second round of serious competition.'

A citizen visiting a large supermarket in Seoul is selecting ramen. [Image source=Yonhap News]

Nongshim Expands Its Reach Based on the U.S. Market

According to industry sources on the 1st, major companies such as Nongshim, Samyang Foods, Ottogi, and Paldo are reorganizing their portfolios by expanding production lines or increasing export volumes in overseas markets where ramen is gaining attention. The company that stands out is Nongshim. Last year, its overseas sales reached $1.243 billion (about 1.64 trillion KRW), accounting for 37% of the company's total sales. In particular, in the U.S. market, flagship products led by 'Shin Ramyun' have gained great popularity, aiming to become the number one in the local ramen market share. According to market research firm Euromonitor, Nongshim's market share in the U.S. was 25.2% in 2021, ranking second after Japan's Toyo Suisan (47.7%). After overtaking Japan's Nissin in 2017 and moving up from third place, it has been narrowing the gap with the leader.

Nongshim early recognized the growth potential of overseas markets and established factories in Shanghai in 1996, Qingdao in 1998, and Shenyang in 2000. In 2005 and last year, it set up its first and second factories in the U.S., respectively. It also established sales corporations in countries such as Japan and Australia. After exporting ramen to Los Angeles since 1971, it shifted its strategy to directly operate businesses locally.

Thanks to the establishment of the second U.S. factory, Nongshim recorded local sales of $490 million (about 650 billion KRW) last year. Shin Dong-won, chairman of Nongshim, expressed his ambition, saying, "We will achieve $1.5 billion in sales in the U.S. by 2030 and become the number one in the local ramen market share." To achieve this, the company plans to start building a third U.S. factory around 2025. Additionally, to expand the ramen market into Latin America, it has newly established a dedicated sales organization targeting Mexico, which has a population of 130 million and an estimated annual ramen market size of $1 billion.

A Nongshim official said, "We have set a goal to grow into one of the top three brands locally in Mexico within a few years through active sales and marketing activities."

Strengthening Local Corporations to Enhance Competitiveness

Samyang Foods increased its recognition overseas with the explosive sales of Buldak Bokkeum Myun, launched in 2012. The company's overseas sales in the noodle snack sector nearly doubled from 360.6 billion KRW in 2020 to 602.7 billion KRW last year. More than 70% of its overseas sales come from the Buldak brand, making it the top contributor to exports. Currently, Samyang Foods does not have any ramen production plants overseas and produces all export volumes domestically. Its export value increased from $100 million in 2017 to $400 million last year, accounting for about 50% of South Korea's ramen export value. Recently, it has accelerated market penetration by establishing local sales corporations. Starting with Japan in 2019, it set up corporations in the U.S. and China in 2021, and added one in Indonesia in April this year.

A Samyang Foods official said, "We plan to increase the proportion of local corporations in overseas sales to 70% by 2025."

Unlike its domestic success with Jin Ramen, Ottogi's ramen business overseas has not shown outstanding results compared to competitors. This is because the company focuses on the domestic market and evenly promotes other business sectors such as sauces and processed foods, not just ramen. Its overseas ramen business operates mainly in Vietnam and North America. However, considering the increasing proportion of overseas sales, the company plans to strengthen its overseas business. Recently, it established 'Ottogi Food America' under its U.S. corporation 'Ottogi America Holdings.' This move is interpreted as a step toward not only selling products but also considering production in North America.

Additionally, Paldo has two overseas ramen business corporations in Russia (Koya and Dosirak Rus) and one in Vietnam (Paldo Vina). In Russia, Paldo's 'Dosirak' has been the number one local cup noodle brand for several years, holding a market share of 60%. Paldo Vina, established in Vietnam in 2006, introduced 'Kore No,' a Korean-style ramen that is boiled rather than just poured with hot water, unlike local ramen, gaining popularity. The Paldo Vina factory in Hanoi produces Kore No and other products, exporting them not only to Vietnam but also to nearby countries such as Taiwan, China, Thailand, Cambodia, the Philippines, and Myanmar.

A Paldo official stated, "The currently operating northern factory cannot meet local demand, so we plan to build a new factory in southern Vietnam in the first half of next year. Once the new facility is ready, we plan to expand exports to countries such as the U.S., Europe, Australia, and Singapore."

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