Nongshim aims to triple ramyeon sales in U.S. by 2030

Nongshim Co. Chairman Shin Dong-won [Photo provided by Nongshim]

Nongshim Co. Chairman Shin Dong-won, who celebrated his second year in office on July 1, recently sent an email to employees in which he laid out the company’s new vision to triple U.S. sales to $1.5 billion by 2030 and become the No. 1 ramyeon maker in the U.S. market, according to the company on Thursday.

Nongshim plans to break ground on its third U.S. plant in 2025 to realize the vision. The company has been expanding its local sales network in the U.S. since 1984, when it opened a San Francisco office and a Los Angeles plant in 2005. In 2017, the company became the first Korean food company whose ramyeon brands available in all Walmart stores in the U.S.

During the Covid-19 pandemic, Nongshim ramyeon was recognized as an easy-to-prepare meal, and its brand received the world’s attention after the Academy Awards-winning film “Parasite” created a buzz with the making of “Jjapaguri,” a combination of Nongshim Chapagetti and Neoguri.

To meet the surging demand, Nongshim completed its second U.S. plant in 2022. In the first quarter of this year, the company posted record high earnings, with sales up 40.1 percent and operating profit up 604.1 percent on-year.

“Given the current growth rate and the market share gap with the No. 1 player, we believe Shin’s vision for the U.S. market is fully achievable,” said a Nongshim official.

Last year, Nongshim’s North American sales were $490 million, and its U.S. market share was 25.2 percent as of 2021, second only to Japan’s Toyo Suisan Kaisha (47.7 percent).

Shin has been at the helm since the 1980s, when Nongshim began expanding into overseas markets.

Shin has been pushing for a stronger presence in the domestic market as well. Through profitability improvement projects, Nongshim has reduced unnecessary costs across its operations and improved management efficiency to further boost profit margins.

In addition, the company has been promoting a “digital transformation project” that applies artificial intelligence (AI) and the Internet of Things (IoT) to business process.