Expected to Record Largest-ever Overseas Sales in 2020

A Nongshim ramen factory in LA
A Nongshim ramen factory in Los Angeles

Nongshim is expected to record its biggest-ever overseas sales in 2020, becoming the world's fifth largest ramen company.

Nongshim said on Nov. 4 that its overseas sales are expected to grow 24 percent on year to reach US$990 million this year. The growth is driven by strong sales of "Shin Ramyun," the rising popularity of "Jjapaguri," and the COVID-19 pandemic.

Since the beginning of 2020, interest in and sales of Korean ramen have grown around the world. As COVID-19 spread rapidly to the United States and Europe, ramen consumption has soared in line with rising demand for instant and ready-made food. Nongshim flexibly responded to demand by running its production lines in the United States and China and increasing its export volume.

In the European market, the Korean ramen giant enjoyed remarkable growth in Britain, Germany and other countries. Nongshim steadily built up its sales network around major retailers such as Tesco, Morrison and Asda in the United Kingdom and Rewe and Edeka in Germany to meet local demand for instant noodles. Nongshim's exports to Europe in 2020 are expected to increase 30 percent from last year.

Nongshim's Shin Ramyun

The largest overseas market for Nongshim is the United States. Sales in North America are expected to be around US$326 million this year, up 28 percent from a year ago. The figure is expected to surpass sales in China. Nongshim USA is expected to beat Nongshim China to become Nongshim's largest overseas unit.

Among Nongshim products, Shin Ramyun and Shin Ramyun Black are the top contributors. In June, the New York Times chose Shin Ramyun Black as the world's best ramen. Then global travel website The Travel and Good Mythical Morning, a U.S. super-large YouTube channel, picked Shin Ramyun Black and Shin Ramyun as the world’s best ramen. They heaped praises on their taste and quality.

The Shin Ramyun brand is expected to post US$120 million in sales in the United States, up 26 percent from 2019. The brand's sales in overseas markets as a whole are expected to reach US$390 million, an increase of 30 percent. The ramen brand accounts for 40 percent of Nongshim's overseas sales.

The global ramen market is expected to reach US$41.2 billion in 2020, up 11.3 percent from 2019, according to a survey. The COVID-19 pandemic seems to have increased the consumption of instant noodles worldwide.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution