Nongshim Co., South Korea’s leading instant noodle maker is aiming for the top noodle spot in the US. The Korean food company will begin operations on its second plant in the US next month, raising its annual production capacity from the current 500 million to 850 million units. The firm is aiming to double its sales in North America by 2025 as well as make a strong Mexican market entry soon, Nongshim said on March 17.
The new plant is based in Rancho Cucamonga, where it founded the first US plant in 2005, 66 kilometers east of Downtown Los Angeles. The new factory will meet increasing demand for Nongshim's instant noodles in the US – as the Korean snack food is booming in the US, the firm has sent packages of noodles meant for the Korean market to the US to address a supply shortage.
Nongshim aims to achieve more than a 20% growth rate per year in North America, increasing annual sales in the region to $800 million by 2025, an official at the company said.
Nongshim's sales in North America
Unit: million dollars
* The figure for 2022 is a sales target
Source: Nongshim
The US is the sixth-largest country by instant noodle consumption with more than 5 billion units a year. As Korean food becomes more and more popular, Nongshim’s US market share has recently jumped to mid-20% from 15% in 2017. Its sales in North America also surged from $254 million in 2019 to $395 million in 2021, up 55.5%.
Nongshim’s premium instant noodle Shin Ramyun Black is leading the company's sales in the US. Despite its price, sixfold that of its Japanese rival products, Shin Ramyun Black’s US sales increased by 25% to $32 million last year. The Korean company ranks third in the US instant noodle market following Japan's Toyo Suisan and Nissin foods.
Nongshim is also planning to enter Mexico by targeting consumers who like spicy food. The instant noodle market of Mexico reaches $400 million and is dominated by low-priced Japanese products. The Korean firm is aiming to join the top three in the Mexican instant noodle market within five years. It set up a sales team dedicated to the Mexican market early this year and has already prepared products with a long-term plan for expansion into Latin America.
The firm founded its first overseas plant in Shanghai in 1996. Since then, it has focused on global expansion while operating six factories worldwide. The company plans to ramp up the overseas sales proportion from the current 40% to 50% in a few years, the Nongshim official said.
“I dream of making Nongshim the global No. 1 instant noodle company although the founder might have been satisfied at No. 5,” said Shin Dong-won, the chairman and heir of the late founder Shin Choon-ho, during his inauguration ceremony last August.
Write to Jong-Kwan Park at
pjk@hankyung.comJihyun Kim edited this article.
