Sales of white-broth noodles nosedive

By Lee Hyo-sik

The popularity of white-broth ramyeon is falling rapidly as increasing numbers of people return to red-broth instant noodles.

Ramyeon used to be all spicy, red-broth instant noodles here till the summer of 2011. But in the latter half of last year, some ramyeon makers introduced white-broth products, which became an instant hit. Paldo introduced Kkokkomyeon, based on a chicken broth, starting a nationwide fad for white-soup ramyeon.

But the alternative taste trend was short-lived and as sales of Kkokkomyeon and other white-soup ramyeon began to fall sharply this year, Shin ramyeon manufactured by Nongshim and other red-broth noodles flew off the shelves.

The comeback of spicy, red-soup ramyeon has largely benefited Nongshim, the country’s leading instant noodle maker. The company has maintained its market dominance for years, thanks to its key product, Shin ramyeon, which means very spicy.

In contrast, Samyang and Paldo, which temporarily increased their market shares thanks to their white-broth products, have lost a growing number of consumers to their larger rival.

According to market researcher AC Nielsen, Tuesday, the three white-broth instant noodles _ Paldo’s Kkokkomyeon, Samyang’s Nagasaki Jjamppong and Ottogi’s Gismyeon _ accounted for only 2.7 percent of ramyeon sold here in August, down from 3.3 percent a month earlier.

Thanks to its flagship product Shin ramyeon and other spicy instant noodles, Nongshim’s market share rose to 67.9 percent in August, up sharply from 59.5 percent in December when the popularity of white-soup products was at a peak.

But Samyang saw its shares drop to 12 percent August from 16.1 percent eight months earlier.

Paldo has been hit hardest because sales of Kkokkomyeon have plunged. The company accounted for only 8.6 percent of the local market last month, down from 12.9 percent in December.

``The consumer frenzy over white-broth instant noodles died down because many consumers returned to the red soup-based ramyeon. We always believed that the popularity of white-broth ramyeon was temporary,’’ a Nongshim spokesman said.

He said that red-chili soup rameyeon will continue to be the most popular with consumers. ``Regardless of the color of the soup, we will make an all-out effort to develop and introduce products that consumers want.’’

In April, Nongshim launched a new red-soup ramyeon called Jinjja Jinjja, which means ``really really’’ in English. The product has been popular both at home and abroad, the spokesman said.

But Samyang is not ready to give up its business strategy focusing on white-broth instant noodles, adding it is too early to paint a bleak outlook because it is always possible for them to make a comeback.

``It is true that the popularity of white-broth instant noodles has waned in recent months. But as we approach the winter season, consumers will look to them again,’’ a Samyang spokesman said.

``Last month, we introduced a new version of Nagasaki Jjamppong containing blue crab. It has received positive consumer reviews. We expect its sales will continue to head upward toward the year’s end,’’ he said.