From South Korea to the U.S. and Beyond: Nongshim's Ramen Success Story

South Korean ramen brand, Nongshim, is making significant strides in the U.S. market as it experiences a 24% growth in its U.S. subsidiary last year. The company's Shin Ramyun Black was even named the world's best ramen by the New York Times in 2020. With this success, Nongshim has started exploring the possibility of establishing a third plant in the United States, as the current production capacity of its U.S. factories is 80%.

 

Shin Ramyun is driving Nongshim's growth in the U.S., with sales of the product rising by 32% and 20% for Shin Ramyun Black last year. Nongshim's premium strategy, which sets the brand apart from competitors, has resonated with American consumers looking for a more substantial meal compared to other ramen options on the market.

 

 

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Major U.S. retailers, such as Wal-Mart, Kroger, and Sam's Club, have all experienced significant growth in sales of Nongshim products. The company aims to overtake Japan's Toyosuisan in the U.S. market and become the top ramen brand within a few years. Nongshim's U.S. market share was 25.2% as of 2021, trailing behind Toyosuisan at 47.7%.

 

Nongshim's success in the U.S. market is attributed to its differentiation strategy, which focuses on maintaining the authentic taste of Korea rather than imitating local products. The company also seeks to position ramen as a premium food item, similar to spaghetti and pasta, rather than just a low-cost option.

 

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Following its growth in the U.S., Nongshim is now turning its attention to the Latin American market, with Mexico as its primary target. The Mexican market, with a population of 130 million and an estimated annual ramen market of $1 billion, is currently dominated by Japanese low-cost ramen brands. Nongshim sees high growth potential in Mexico due to the country's love for spicy flavors, as well as the successful online integration of Shin Ramyun recipes with local dishes like Mexican stew "Birria."

 

 

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To accelerate its entry into the Mexican market, Nongshim established a dedicated sales organization last year. The company plans to introduce exclusive products tailored to Mexico's food culture and regulations, aiming to become a top-three brand within a few years.

 

Nongshim's commitment to preserving its unique Korean flavors and premium positioning has undoubtedly contributed to its success in the U.S. ramen market. As the company continues to expand its presence in North America and beyond, its growth trajectory shows no signs of slowing down.