South Korea’s ramen exports have hit a record high, surpassing $100 million every month for the first time. The rise is attributed to the increased awareness of Korean ramen in the global market through dramas and movies and the steady popularity of Samyang Foods’ Buldak Ramens worldwide.
According to Korea Customs Service export and import trade statistics on May 19, the value of ramen exports reached $108.6 million last month, up 46.8% from $73.59 million in the same period the previous year. The increase is the highest in one year and 11 months since May 2022, when it was 49.3%. It is also 16.9% higher than the previous record of $92.91 million in February.
The value of Korean instant noodle exports has increased yearly for nine years from 2015 to last year. Based on the export performance, the industry expects this year to be the biggest for the 10th consecutive year. Some predict that this year’s exports will surpass the $1 billion mark and reach $1.1 billion. Last year, the value of instant noodle exports was $952.4 million, and the value of instant noodle exports from January to April this year was $378.86 million, an increase of 34.4% year-on-year. The weight of exports also increased by 27.5% to 94,431 tons.
Since the pandemic, demand for instant noodles has steadily increased. From $467 million in 2019, South Korean instant noodle exports have grown double-digit annualized. Yearly growth rates include 29.2% in 2020, 11.7% in 2021, and 13.5% in 2022.
A significant portion of ramen exports is accounted for by Samyang Foods’ Hot Chicken Flavor Ramen, also known as ‘Buldak Ramens.’ In the first quarter of this year, ramen exports from South Korea reached $270 million, while Samyang Foods’ noodles-snack business recorded exports of $211 million (286 billion won) during the same period.
Samyang Foods makes all of its exports in South Korea, so its stock price jumped so much after the company reported earnings on Jan. 16 that were well above the average of market expectations. In the first quarter of this year, Samyang Foods reported consolidated sales of $285 million (385.7 billion won) and operating income of $59 million (80.1 billion won), up 57% and 235% year-on-year, respectively.
Samyang Foods also reported that overseas sales accounted for 75% of its total sales in the first quarter of this year, a significant increase from the first quarter of last year (64%). The company’s market capitalization reached $2.5 billion (3.4 trillion won), surpassing the 3 trillion won mark for the first time.
