The price of Shin Ramyun and Raccoon Ramen went up, and soon the price of Jin Ramyun also went up.
Chrysanthemum jjanggu and blue crab, which I have loved since I was little, are also going to be expensive.
In recent months, ramen and sweets prices have risen all at once.
Each company announces a price increase with a time lag, so it's a bit confusing which product will go up by how much, so I've summarized it briefly.
First, the average price increase rate by food company (in order of announcement).
Ramen.
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and sweets
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Ramen and confectionery are all raised at around 10%.
How about by product?
Although prices vary slightly by retailer such as large marts, convenience stores, and local supermarkets, prices before and after major product increases are generally as follows.
Ramen and sweets are per bag, and Choco Pie is per box.
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If you look at it, the price per product rises by 100-200 won.
Some companies have raised prices twice a year, while others have decided to raise prices for the first time in 9 years.
Haitai Confectionery raised its factory price in May and Nongshim from the middle of this month, and other companies will apply the increased price from next month.
I looked at food prices and asked a few questions.
Curiosity 1. What made it expensive?
The common reason that companies have put forward while raising prices is 'cost pressure'.
This means that the price of wheat flour and palm oil, which are used to make ramen and sweets, has skyrocketed, and the price had to be raised.
In fact, the price of raw and subsidiary materials such as wheat and palm oil soared in the first half of this year.
The Russian-Ukrainian war had the greatest impact.
India, a major wheat producer, suffered poor crops due to high temperatures, and Korea suffered an edible oil crisis due to the export ban of Indonesia, which accounts for 60% of the world's palm oil production.
As a result, the operating profit margins of food companies in the second quarter fell overall.
In particular, the domestic subsidiary of Nongshim made a loss for the first time in 24 years.
Sales increased, but operating profit fell unusually, resulting in a loss of 3 billion won.
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Almost all confectionery companies raised their product prices due to this cost increase.
As of today (29th), Crown Confectionery is the only place that has not yet announced a raise.
In terms of ramen, Nongshim and Ottogi, the No. 1 in the industry, raised their prices, while Samyang Foods, the 3rd largest company, raised the price of snacks, but did not touch the price of ramen.
Curiosity 2. Why wasn't Samyang Ramen served?
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While Nongshim posted a loss in the second quarter, Samyang Foods posted record-high earnings in the second quarter.
In the second quarter, sales of 255.3 billion won and operating profit were 27.3 billion won, up 92% from the same period last year.
Samyang was able to achieve good results thanks to the great influence of 'Buldak-bokkeum-myeon,' the all-time hit in the spicy ramen industry.
According to an insider in the ramen industry, Buldak-bokkeum-myeon was a so-called 'jackpot' in China and Southeast Asia.
When Buldak-bokkeummyeon was released, I remember tasting it once and was surprised at how spicy it was, but these days, various versions with less spicy taste have been released, giving me several options.
Samyang is doing well overseas as red chicken stir-fry is driving exports.
Exports account for an absolute 70% of sales, so the exchange rate has risen sharply.
Industry analysts say that Samyang did not immediately raise prices because the won-dollar exchange rate is expected to break through 1,400 won and reach 1,500 won.
Curiosity 3. Will the price rise further in the future?
Recently, international grain prices have been on a downtrend.
Grain prices have been stabilizing since June due to the resumption of exports to Ukraine, etc. Considering the time lag for international grain prices to be reflected in import prices, import prices are expected to stabilize from 4Q.
The price of palm oil imports, which had skyrocketed, also recovered as the Indonesian government eased export restrictions.
The World Food Price Index fell for the fifth month in a row.
In this atmosphere, the government recently invited executives from major food companies to hold a price stabilization meeting.
Although oil and grain prices around the world are stabilizing, he urged people to refrain from raising prices, pointing out that processed food prices are rising at a high level of 7-8%.
In particular, he pointed out that "if some companies' price hikes lead to hikes in the ride-sharing of others, it can increase the burden on people's livelihoods."
The problem is the exchange rate.
Even if the exchange rate is high, it is too high.
If the high exchange rate trend continues as it is now, the cost burden of imports will still be large even if the price of raw and subsidiary materials stabilizes for the food industry.
If the cost burden is not lowered, the effect will be directly reflected in consumer price hikes.
Another variable is that grain prices in major grain-producing countries may rise again at any time due to adverse weather conditions.
So, the bottom line is that the companies will see each other, but there is a possibility that the price of ramen and the price of sweets will go up from now on.
It would be burdensome to upload what you posted again, so you can raise the price only for products that you did not upload this time.
Since then, consumers have come to tighten their belts even tighter.
(Photo = Yonhap News)