Instant noodles soaked in hot water, coupled with a ham sausage, were once considered cheap and delicious classic pairings by many people. Whether it's toiling on the road, working overtime or studying late at night, the aroma of instant noodles always makes people find a simple comfort.
However, with the rising cost of raw materials, instant noodle companies have begun to increase prices.
After 11 years, the "originator" of instant noodles announced a price increase
Recently, Nissin Foods, a Japanese instant food giant known as the "originator" of instant noodles, announced that it will increase the ex-factory price of its main instant noodle products in Chinese mainland from March 1, 2022. Affected products include: Hewei cup noodles, 1-dic (packaged, cup-and-bowl noodles), Nissin pasta, Rawang, etc.
Before Nissin Foods, the prices of a number of 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 by 11% year-on-year, the largest increase since February 2009.
Instant noodles in the supermarket. Zhongxin Network Zuo Yuqing photo
As for why the price increase, Nissin Food explained that it was the pressure caused by the instability of the supply of raw materials and the soaring price. "The last time Nissin Foods adjusted Chinese mainland the price of instant noodle products was eleven years ago in 2011." Nissin Foods specifically pointed out in the notice.
Master Kong, a leading domestic instant noodle company, also said in the 2021 mid-year report that the rise in international commodity prices has put pressure on the industrial chain, and said that due to the year-on-year decline in gross profit and the year-on-year increase in distribution cost ratio, the profit attributable to shareholders of the company fell by 14.5% year-on-year.
According to a recent report released by Bank of America Securities, master Kong's main instant noodle products rose by more than 10% after the Lunar New Year, while the retail price of unified major instant noodles also increased by about 12% after replacing the new packaging.
According to media reports, a supermarket Master Kong barreled instant noodles has been raised from 4 yuan to 4.5 yuan, an increase of about 12%.
Instant noodles on the shelves of a supermarket. Zhongxin Network Zuo Yuqing photo
However, for the information of the price increase, the unified customer service said that there is no relevant situation. Zhongxin Finance noted that because the price of instant noodles on the market side is different, the instant noodles of many supermarkets have not shown a price increase.
In the view of Zhu Danpeng, a food industry analyst, the cost rise of instant noodle enterprises is all-round and multi-dimensional, raw material prices, labor costs, management costs, etc. "From the perspective of the entire industry end combined with the consumption side, this price increase should be benign, and the increase of about 10% is also within a reasonable range, which will not affect the marketing volume."
Why aren't instant noodles so fragrant?
For the news of the rise in the price of instant noodles, many netizens left a message that "the noodle cake has long become smaller, and some netizens said that they "don't care." Consumer Xiao Yang (pseudonym) told China News Finance that he had not eaten instant noodles for a long time, "At the beginning of last year, I bought a bag of braised beef noodles with five consecutive bags, and when I think about it again, it has expired." ”
Since the popular instant noodles in China in the 1990s conquered people's stomachs with a fragrant taste, the instant noodles on the green-skinned train have become unforgettable memories for countless people. In the era of instant noodles, braised beef noodles have become the most classic taste in the instant noodle industry, and laotan sauerkraut beef noodles have also become the favorite of many consumers, but with the continuous upgrading of consumption, instant noodle giants seem to have failed to continue to grasp the stomachs of consumers.
"I used to think that the steaming noodles were really delicious, but after eating too much, I always felt greasy." Xiao Yang said that in addition to the taste, the change in transportation mode also affected her choice. "Now that high-speed rail is much faster than green-skinned trains, it is no longer necessary to make instant noodles on trains."
What has hit instant noodles even more is the rapidly growing takeaway industry and more diversified fast food products. For example, snail powder, which sells more than 50 billion yuan a year, has become a "hit" in 2021 with a very personalized taste.
In contrast, the results of the instant noodle giants are relatively "dismal". According to the 2021 interim performance report, the revenue of Master Kong's instant noodles fell by 14.67% year-on-year; the revenue of the unified food business with instant noodles as the core decreased by nearly 500 million yuan year-on-year.
Although both companies attributed the reason to "the easing of consumer demand due to the epidemic and the return to normalcy". However, since 2013, the instant noodle industry has been difficult to hide the overall trend of declining demand.
In the face of challenges, Master Kong and Unity have adopted a multi-price strategy, gradually strengthened the layout of high-end products, and strived to meet diversified consumption with multiple tastes and specifications. At the same time, the two also pay more attention to marketing strategies, frequently holding hands with well-known IP, and promoting "creative cuisine" through new media in order to attract young consumers.
"With the continuous superposition of the demographic dividend of the entire new generation, its consumption thinking and consumption behavior are forcing the innovation, upgrading and iteration of the industry." Zhu Danpeng said.