Raising Prices Boosts Sales... Revival of China's 'Doomed' Ramen Market

Direct Hit from the Rise of Delivery Platforms
5.8% Growth in the First Quarter Year-on-Year

The ramen market in China, which had once been on a downturn, is regaining momentum.

On August 18, Sina Finance reported, "Ramen consumption, which was once considered 'doomed' due to sustained declines in consumption volume, is now showing signs of growth again."

The ramen market in China is regaining momentum. Xiaohongshu.

Market stagnation due to the rise of delivery platforms

According to the World Instant Noodles Association (WINA), annual demand for ramen in mainland China and Hong Kong reached 46.22 billion units in 2013. However, with the emergence of food delivery platforms, the ramen market took a direct hit. In 2014, companies such as Meituan and Baidu Waimai entered into a subsidy competition, which led to rapid market expansion. As a result, ramen sales fell to 41.45 billion units in 2019, and between 2020 and 2023, sales volume dropped by as much as 4 billion units.

Starting in 2024, the ramen market began to pick up. According to Chinese market research firm iiMedia Research, last year the size of the Chinese ramen market reached 184.99 billion yuan (approximately KRW 38.3465 trillion), a 7.9% increase compared to the previous year. In the first quarter of this year, it continued to grow 5.8% year-on-year.

Kangshifu Holdings, one of China’s leading ramen companies, recorded business revenue of 13.733 billion yuan (about KRW 2.8471 trillion) in the first half of this year, up 2% year-on-year. Tingyi also posted an increase of 4.7%, with revenue of 5.634 billion yuan (roughly KRW 1.168 trillion).

Reduction of delivery platform subsidies... Value-for-money ramen gaining attention

Kangsu Cup Noodles from China. Xiaohongshu.

Rising prices and product premiumization have been cited as reasons behind the ramen market’s revival. In 2024, Kangshifu raised the price of its bagged noodles from 2.5 yuan (approx. KRW 518) to 3 yuan (approx. KRW 621) and its cup noodles from 4 yuan (approx. KRW 830) to 5 yuan (approx. KRW 1,000). According to Kangshifu's earnings report for the first half of this year, premium bagged ramen accounted for 38.3% of total sales. Kangshifu’s premium ramen sales reached 5.259 billion yuan (about KRW 1.0901 trillion), up 3.3% compared to the same period last year. Tingyi's bagged noodles also posted double-digit growth. Notably, Kangshifu gained popularity with premium ramen priced around 12 yuan (about KRW 2,500), and Tingyi launched noodles priced at 17.48 yuan (about KRW 3,600).

Industry insiders have pointed out that as delivery platform subsidies have been reduced, consumers are turning their attention back to cost-effective ramen. A series of food safety incidents involving so-called "ghost kitchens" operating from non-existent addresses and vendors using expired ingredients have caused some consumers to abandon delivery platforms. Media commented, "Rather than choosing a dish of unknown origin, people are opting for a bowl of ramen with a clearly labeled ingredient list."

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