Why instant cup noodles are selling fast in Korea

High market prices, single-person households fuel consumption

By Ko Dong-hwan

Instant cup noodles are selling faster than their packet counterparts in Korea, with market observers highlighting that the rise in sales is more than just a food trend.

The cheaper prices of cup noodles compared to packet noodles indicate that consumers today are shifting toward more affordable picks. An increasing number of single-person households in the country is apparently contributing to this trend as well.

Last year, the country saw domestic sales of instant cup noodles surpass 1 trillion won ($680 million) for the first time. Global market analyst Euromonitor estimated that this year’s figure could be at almost 1.39 trillion won — equivalent to approximately 1 billion cup noodles sold. The popularity of cup noodles has surged, compared to 2014 when its annual sales logged only 674 billion won.

Market indicators are shared by the country’s major noodle makers. Ottogi saw annual sales of its signature cup noodle products Jin Jjambbong and Kimchi Ramen rise by 31.1 percent and 28.2 percent on average, respectively, from 2020 until 2023.

Meanwhile, Samyang Foods, with its global hit Buldak series, saw the figures for Buldak original flavor cup noodles and carbonara flavor cup noodles jump by 8 percent and 28 percent, respectively, during the same period.

Nongshim also saw rising sales for its signature cup noodle Kimchi Cup Ramen, which increased by 12.6 percent during the same period. The company’s other top sellers Shin Ramen and Yukgaejang Bowl Noodle Soup recorded a 5.9 percent and 9.1 percent rise during the same period, respectively.

The consumption trend is also influencing the marketing strategies of local convenience stores, where most people buy cup noodles. GS Retail, operator of GS25, said that cup noodles have accounted for nearly 80 percent of the brand’s entire noodle sales this year, including the company’s private-brand products. BGF Retail, which runs CU, and Korea Seven, a Lotte Group subsidiary that operates 7-Eleven, also released their private-brand cup noodles earlier this year.

Notably, cup noodles are also selling at a faster pace than packet noodles. According to Euromonitor, domestic sales of packet noodles showed a year-on-year growth of 10.4 percent in 2022 and 4 percent in 2023. Cup noodles showed 15.7 percent and 7.4 percent during the same period.

Although the speculated domestic sales of packet noodles this year are still higher than cup noodles with over 1.8 trillion won, market analysts said domestic market shares of cup noodles and packet noodles have shown opposite outcomes throughout the past years.

Compared to 2020, cup noodle sales have increased to 36 percent this year from 33 percent, while packet noodle sales have dropped to 63 from 66 percent.

The growing number of single-person households in Korea is considered to have fueled sales of cup noodles over packets. While cup noodles are designed for a single meal, packets are more favored by those eating in groups.

Statistics Korea said earlier this month that single-person households make up the majority of household types at 30 percent, in 15 Korean cities as of 2022, including Seoul and Daejeon. The report added that the rest of the cities and provinces in the country will also show the same trend by 2052.

Surging market prices across restaurants and retail food products are also considered to have contributed to cup noodles’ popularity. While the price of each cup noodles is below 2,000 won and even below 1,000 won in discount store chains, many popular dine-in meals are nowadays priced at around 10,000 won.

According to a current market price index regularly updated by the Ministry of the Interior and Safety, the price of "bibimbap" (bowl of steamed rice with various ingredients and a spicy pepper paste) as of November was 11,192 won. Kimchi "jjigae" (hot pot) was at 8,192 won and a roll of "gimbap" (steamed rice rolled with mixed ingredients) was at 3,500 won.

“People are spending less. Extended shadows of the slow economy and the ongoing political fiasco in the country are further freezing domestic consumption,” an official from one of the major noodle manufacturers said. “In this context, this is a boon for cup noodles.”