Recently, prices have been hard to control,
In an era of high inflation, even ramen prices are rising?The distribution industry’s 'ultra-low-priced PB ramen' strategy
and the price of ramen, known as 'a meal for the common people,' is also rising one after another.
Amid this situation,
the strategy adopted by the distribution industry is
'Ultra-low-priced PBPrivate Brand (PB) ramen'.
This is a choice to reduce the price burden felt by consumers,
and also a strategic move to encourage customers to return to stores.
PB ramen involves direct involvement of the distributor from planning to production and distribution.
Because the distributor is directly involved in the structure,
there is an advantage of being able to lower the price much more than regular brand products.
This PB ramen is gaining increasing popularity among consumers at major distribution channels such as Emart, Homeplus, Lotte Mart, CU, and GS25.
How well is it selling?
For example, at Emart, PB products
such as No Brand 'Ramyeon Hangureut' and 'Jjajang Hangureut' are enjoying great popularity.
The prices are about 456 won and 556 won per pack, respectively.
Looking at the monthly sales volume, about 396,000 units were sold in January this year,
and this steadily increased to 595,000 units in May.
Since its launch in 2016, the cumulative sales of the 'Ramyeon Hangureut' series have exceeded 12.5 million units,
In January this year, 'Geonmyeon Original Flavor' and 'Seafood Flavor' were also newly introduced.
The price for each is 745 won, which is slightly higher than previous products,
but they are still considered affordable.
Homeplus is also seeing success with its PB ramen
'Lee Chunsam Jjajang Ramen', which was launched in 2022.
The initial launch price was 500 won,
but it was adjusted to 575 won in November last year.
Nevertheless, about 300,000 units are still sold every month.
This product reduced costs by including only noodles and liquid soup, without a separate flake soup,
and it is drawing attention as a case where sales were driven by display alone, without any marketing.
Lotte Mart has also strengthened its PB ramen lineup.
'Yorihada Beef Ramen' and 'Bulmat Jjajang Ramen'
are each being sold at 598 won,
and from January to May 25 this year, PB ramen sales
increased by 5% compared to the same period last year.
Like Emart and Homeplus,
Lotte Mart also explained that this is a "strategy to maximize cost-effectiveness (performance relative to price)",
and stated that it is responding to the needs of consumers looking for inexpensive products amid high inflation.
Convenience stores are also seeing a PB ramen boom
Not only supermarkets but also convenience stores are actively introducing PB ramen.
At CU, 'Deuktemramyeon' launched in April 2021 is a representative product.
The price is 480 won, and as of June this year, sales increased by 37.5% compared to the same month last year.
The cumulative sales exceeded 7 million units, and the annual sales growth rate is also on the rise.
The share of CU PB ramen in total ramen sales is
3.8% in 2022 →
4.4% in 2023 →
It is gradually increasing to 5.0% in 2024.
GS25 is showing a similar trend.
The share of PB ramen at GS25 was 11.5% in 2022,
16.5% in 2023,
and has risen to 17.7% this year.
At the end of last year, GS25 also launched a PB cup ramen called 'Myeonwang'.
The weight is 22% higher than regular cup ramen, and the price is set at 990 won.
Cumulative sales have now exceeded 1 million units.
Why is the distribution industry focusing on ultra-low-priced PB ramen?
The reason distributors are focusing on ultra-low-priced PB ramen, even at the cost of reducing margins,
is not simply about selling ramen itself.
These products have strategic value beyond just 'a pack of ramen'.
For example, if a consumer visits the store saying, "This ramen is cheap!",
there is a higher chance they will also purchase other daily necessities or food items together.
It will serve as a kind of 'bait product'.
With more consumers trying to cut spending due to ongoing high inflation,
PB ramen is becoming a practical alternative.
As the price of a single pack of ramen is once again reshaping the distribution industry,
there is growing attention on how this ultra-low-priced strategy
will impact the broader cost of living.
-
Edit Maeng Jiae mjiae@asiae.co.kr
-
Reporter Seo Jiyeong zo2zo2zo2@asiae.co.kr
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
![[Culture Interview] "Unifying the Fragmented Music Market... Super Fans Are the Next Competitive Edge"](https://cwcontent.asiae.co.kr/asiaresize/304/2026042817051344090_1777363513.jpg)