(Image source: Photo.com)
Recently, the news that Master Kong's instant noodles are about to increase in price has aroused widespread concern. It is reported that on May 16, a dealer in South China revealed that the price of Master Kong's instant noodles is about to be adjusted, and the manufacturer's salesman has begun to verbally notify the dealer to warm up before the price increase. At the same time, a distributor in the northwest region also confirmed the news and said that the main reason for the price increase was the increase in the cost of raw materials.
According to people familiar with the matter, the price increase will cover the "full line of products" of Master Kong's instant noodles, from bags to barrels, without exception. The reason for the price increase is the "formula upgrade" claimed by Master Kong. Although Master Kong has not officially announced the specific magnitude and schedule of the price increase, it has set off a lot of waves in the market.
Mr. Hu, a staff member of a supermarket in Taizhou, Zhejiang, said that the purchase price of Master Kong's instant noodles has risen by about 0.4 yuan per barrel, and the barrel of Master Kong's instant noodles in the store has risen by 0.5 yuan.
In this regard, some netizens commented: "I didn't buy much, and the price increased, do you want to drive the remaining fans to unify?" That reunification is going to be numb with laughter!" Are instant noodles so popular now? There will be a price increase across the board, although I haven't eaten instant noodles for a long time, but you are preparing to starve us to the rhythm of the workers. "It's over! In the past, I didn't have money and used to say that I would eat instant noodles, but I can't afford to eat instant noodles in the future. ”
In recent years, with the rapid development of the mainland's economy, people's pace of life has gradually accelerated. This fast-paced lifestyle has given birth to the development boom of "lazy economy" and "stay-at-home culture", and has also led to the rapid development of the convenience food industry, among which the instant noodle industry has particularly benefited. Because of its fast and convenient characteristics, instant noodles have become a convenient choice in many people's busy lives and have been widely welcomed.
In 2020, China ranked first in instant noodle consumption
In 2020, the consumption of instant noodles in mainland China reached 46.35 billion servings, accounting for 40% of global instant noodle consumption, far exceeding that of other countries.
The high-end instant noodle layout of China's instant noodle enterprises
As a leading enterprise in the instant noodle industry, Master Kong and Uni-President have launched high-end instant noodle products such as Express Noodle Restaurant and Manhan Meal. Their product concept is to change people's perception of instant noodles through richer and more solid ingredients, so that it can transition from the "low-end, unhealthy, and lack of nutrition" emergency food of the past to the daily food of the family. Subsequently, more and more companies began to enter the high-end instant noodle market. Since 2016, high-end instant noodles in mainland China have gradually attracted the attention of consumers.
Market share of major brands in the instant noodle market in 2020
In the instant noodle market, the two brands of Master Kong and Uni-President occupy a dominant position, and the industry concentration is too high, showing a trend of brand monopoly. In the future, companies that are unable to upgrade their products will continue to lose market share. According to Nielsen data, the overall sales volume of the instant noodle industry in 2020 increased by 0.1% year-on-year, and the sales increased by 4.7% year-on-year, according to which it is estimated that the overall sales of the instant noodle industry in 2020 will be 63.7 billion yuan. Master Kong's sales were 29.5 billion yuan, with a market share of 46.3%, ranking first in the market; The revenue of the unified instant noodle business was 9.055 billion yuan, accounting for about 14.2%. The two brands alone, Master Kong and Uni-President, occupy 60.5% of the market share.
According to the analysis of industry insiders, the instant noodle market will face the challenge of satisfying consumers' health concepts in the future, and will also experience competition in channels and categories, as well as competition to attract consumers' attention. In the era of consumption grading, consumer demand for instant noodles will not disappear. Therefore, when instant noodle brands compete for market share, they need to be flexible in responding to market changes in addition to competing products and services.
Zhu Danpeng, an analyst of China's food industry, said that the biggest challenge facing instant noodles in the future is that it is difficult to innovate and upgrade iteratively. Innovation includes scenario innovation, product innovation, model innovation, and overall supply chain innovation, which is quite difficult. In terms of upgrading and iteration, although the current instant noodle companies are doing well, there is still a certain gap with the needs of the new generation of consumers. Therefore, instant noodle companies need to accelerate the speed of innovation and product iteration, as well as improve product quality, otherwise future growth will still be challenging.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on the Development Prospect Forecast and Investment Strategic Planning of China's Instant Noodles Industry" by the Prospective Industry Research Institute
At the same time, the Prospective Industry Research Institute also provides solutions such as industrial big data, industrial research reports, industrial planning, park planning, industrial investment, industrial mapping, smart investment promotion system, industry status certificate, IPO consulting/fundraising and investment feasibility study, and specialized and special new small giant declaration. To quote the content of this article in any public information disclosure such as prospectus and annual report, formal authorization from Qianzhan Industry Research Institute is required.
More in-depth industry analysis is available in the [Prospective Economist APP], and you can also communicate and interact with 500+ economists/senior industry researchers. More enterprise data, enterprise information, and enterprise development are all in the [Qichamao APP], the most cost-effective and most comprehensive enterprise query platform.