Instant noodles have always been one of the essential artifacts for workers working overtime and travelers because of their cheap price, simple and easy to eat and long shelf life, but recently, master Kong, Unity, Nissin and other instant noodle companies have collectively announced a price increase for their noodle food, and even once appeared on Weibo hot search. People can't help but sigh, the freedom of Cherry has not yet been realized, is the freedom of instant noodles also on the agenda?
It is reported that Master Kong raised the barrel noodles from 4 yuan to 4.5 yuan, and the price of unified bagged instant noodles was adjusted from the original 2.5 yuan to 2.8 yuan, while Nissin made a collective price increase of about 180 instant noodles at one time, with the maximum increase of 12%.
In addition to the reasons for the rise in prices, it is reported that the reason for the collective large-scale price increase of instant noodle giants is related to the sharp rise in raw materials.
Instant noodles are mainly flour, palm oil, sugar, etc., and the raw materials required for instant noodles have risen to varying degrees recently, of which palm oil has reached a staggering 65.8% year-on-year increase in 2021, and there is a trend of continued rise. The rise in the price of raw materials is bound to lead to a decline in the profits of its business.
Master Kong in 2021
Business revenue fell by 14.67% year-on-year, unified food business revenue fell by 15% year-on-year, and other domestic companies that mainly focused on instant noodle business such as Keming Food also experienced a certain proportion of revenue decline.
In addition, another reason for the decline in the instant noodle business to varying degrees and the overall decline in corporate profits is the impact of the takeaway industry. The rise of the takeaway industry has greatly enriched the category of everyone's working meals, and also allowed everyone to have more delicious options in addition to instant noodles. And takeaway is not only better in taste, more choice, but also equally convenient. In terms of price, taking the more common Lanzhou ramen and plate noodles in the north as an example, the price of a ramen or plate surface is about 15 yuan, and if the platform subsidy price is included, it will be lower. Although the price of instant noodles seems to be much more expensive, it is two to three times the amount of instant noodles, and a ramen noodle can be eaten, so the price is basically flat. The most crucial point is that the same is pasta, compared to instant noodles, whether it is ramen or plate noodles, the taste is not the same. In addition, the taste of instant noodles is more single, and I want to eat it once in a while, but the category of takeaway is much richer, with all kinds of food, special snacks, and even hot pot can be satisfied. In the face of a larger amount, better taste, and a richer choice of takeaways, will you still choose instant noodles?
Sales stagnation or even a sharp decline has led to a decline in the profits of the business of instant noodle companies, so it is not surprising to increase the "unit price" to stop the loss.