Zhongxin Finance, February 17th (Zuo Yuqing) Instant noodles soaked in hot water, plus a ham sausage, used to be a cheap and delicious classic combination in the minds of many people.
Whether it is hard work on the road, working overtime or studying late at night, the aroma of instant noodles can always make people find a simple comfort.
However, with the rising cost of raw materials, instant noodle companies have begun to raise prices.
After 11 years, the "originator" of instant noodles announced a price increase
Recently, Nissin Foods, the Japanese instant food giant and known as the "originator" of instant noodles, announced that it will raise the ex-factory prices of its main instant noodles products in mainland China from March 1, 2022.
Affected products include: Hewei Cup Noodles, Demae Yicho (packaged, cup and bowl noodles), Nissin Spaghetti, Rawang, etc.
Before Nissin Foods, prices of many well-known Korean instant noodle brands such as Shin Ramen had risen sharply in August last year.
According to media reports, in October last year, the price of instant noodles in South Korea rose 11% year-on-year, the largest increase since February 2009.
Instant noodles in the supermarket.
Photo by Zuo Yuqing of China News Service
For the reason for the price increase, Nissin Foods explained that it was the pressure brought about by the unstable supply of raw materials and soaring prices.
"The last time Nissin Foods adjusted the prices of instant noodle products in mainland China was 11 years ago in 2011." Nissin Foods specifically pointed out in the notice.
Master Kong, a leading domestic instant noodle company, also stated in its 2021 interim report that rising international commodity prices will put pressure on the industry chain, and said that due to the year-on-year decline in gross profit and the year-on-year increase in the distribution cost rate, the profit attributable to the company's shareholders declined by 14.5% year-on-year.
According to a report released by Bank of America Securities recently, the ex-factory prices of Tingyi's main instant noodle products rose by more than 10% after the Lunar New Year, while the retail prices of UPC's main instant noodles also increased by about 12% after the new packaging was replaced.
According to media reports, a supermarket, Master Kong instant noodles, has been raised from 4 yuan to 4.5 yuan, an increase of about 12%.
Instant noodles on a supermarket shelf.
Photo by Zuo Yuqing of China News Service
However, for the price increase information, unified customer service said that there is no relevant situation.
Zhongxin Finance noticed that due to the different prices of instant noodles on the market side, many instant noodles in supermarkets did not show a price increase.
According to Zhu Danpeng, an analyst in the food industry, the rising cost of instant noodle companies is all-round and multi-dimensional, including raw material prices, labor costs, and management expenses.
"From the perspective of the entire industry side and the consumer side, this price increase should be benign, and the increase of about 10% is also within a reasonable range, and will not affect the marketing volume."
Why is instant noodles not so delicious?
Regarding the news of the rising price of instant noodles, many netizens commented, "The noodles have already become smaller, and some netizens said they "don't care". Consumer Xiao Yang (pseudonym) told Zhongxin Finance and Economics that he hadn't eaten instant noodles for a long time, "early last year. I bought a bag of five packs of braised beef noodles, and when I think about it again, it has expired.
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Since the instant noodles that were popular in China in the 1990s, they conquered the stomachs of people at that time with their fragrant taste. The aroma of instant noodles on the green train has become an unforgettable memory for countless people.
In the era of instant noodles, braised beef noodles has become the most classic flavor in the instant noodle industry, and Laotan sauerkraut beef noodles has also become a favorite of many consumers, but with the continuous upgrading of consumption, instant noodle giants seem to have failed to continue to capture consumers their stomachs.
"I used to think that the steaming instant noodles were really delicious, but after eating too much, I always felt greasy." Xiao Yang said that in addition to the taste, changes in transportation methods also affected her choice.
"Now that the high-speed rail is much faster than the green train, it is no longer necessary to make instant noodles on the train."
Instant noodles on a supermarket shelf.
Photo by Zuo Yuqing of China News Service
What has a greater impact on instant noodles is the rapidly developing takeaway industry and more diversified fast food products.
For example, the snail noodles that sold more than 50 billion yuan in one year have become the "popular style" in 2021 with their highly personalized taste.
In contrast, the results of instant noodle giants are more "dismal".
The 2021 interim performance report shows that Master Kong's instant noodle revenue declined by 14.67% year-on-year; Uni-President's food business revenue with instant noodles as the core decreased by nearly 500 million yuan year-on-year.
Although both companies attributed the reason to the "return to normality of consumer demand due to the easing of the epidemic".
However, since 2013, the instant noodle industry has been unable to conceal the overall trend of declining demand.
In the face of challenges, Master Kong and Uni-President have adopted a multi-price strategy, gradually strengthening the layout of high-end products, and trying to satisfy diversified consumption with multi-flavors and multi-standards.
At the same time, the two also pay more attention to marketing strategies, frequently join hands with well-known IP, and promote "creative cuisine" through new media in order to attract young consumers.
"As the demographic dividend of the entire new generation continues to superimpose, its consumption thinking and consumption behavior are forcing innovation, upgrading and iteration at the industrial end." Zhu Danpeng said.
How long have you been eating instant noodles?