Higher sales and profit have been reported by Chinese instant noodle makers after being back to business from a three year hiatus.
A 7.5% increase instant noodle sales in the first half of the year has been recorded by data analytics firm, Nielsen Holdings Plc.
The Chinese Institute of Food Science and Technology revealed the surprising increase in sales after the institute analyzed sales data from 22 of China’s major instant noodle makers.
According to the World Instant Noodles Association, there is an increase in terms of volume for about 34.44 units last year after dipping for three consecutive years. Ries Consulting meanwhile shares that total consumption of instant noodles in China was 40.25 billion units in 2018.
There has obviously been a change in the market perspective about instant noodles. It is no longer perceived as a cheap food alternative for migrant workers and students. It has also redeveloped itself as a healthy and delicious food product especially for people who hardly have time to cook to which World Federation of Chinese Catering Industry consultant Bai Wei agrees.
Majority of them have completely innovated their products to go back to a more natural flavor, focusing very well on health. Two major brands Tingyi (Cayman Islands) Holding Corp and Uni-President China Holdings Ltd have made the said move.
Media reports say that Tingyi’s ready-to-eat high-end instant noodle product lines registered an 11% increase in sales last year because it is considered to be more healthy and tastes quite differently.
According to Nielsen data, Tingyi’s instant noodle products had a 47% market share in China in 2018. The same brand launched a line of new products like pork stomach instant noodles with black pepper in order to cater to consumers varying tastes.
Meanwhile, Uni-President has specialized in high-end product lines for different scenarios. Their product Kaixiaozao’s preferred market has been concentrated on people going for picnics but who are still wanting healthy products with a choice of flavors.
Uni-President Yang Shouzheng reveals that instant noodle makers are expected to see another sales spurt because of the increasing demand from people aged between 15 and 25 years old. He said that the shift to go for a more healthy choice become a primary consideration because of the consumer’s lifestyle and work-life schedules.
Amidst the present challenge of rapid development of online food delivery, instant noodle brands still find away to thrive in the market.
Tungyi’ made a 15% increase in profit growth in the first half of 2019. Meanwhile, Uni-President revealed close to 40% gross profit in the first half of 2019.
Meanwhile, Beijing-based film maker Zhang Yang expressed how he liked that some brands are promoting instant noodles and connect them with local cuisines. She says it was such a comfort to eat such products when he is working far away from home. She liked that it was cheaper and more accessible than food deliveries.
