The instant noodle market is recovering! Bringing cheers from the packaging and printing industry

Release time:

2021-11-12

Today, there is an encouraging news from the packaging industry in the Chinese instant noodle market. After four consecutive years of significant decline, the market finally stopped its decline in 2017, with sales increasing by 0.3%.

Taking Kangshifu, who holds 44.2% of the sales share in the instant noodle market, as an example, in 2017, the instant noodle business achieved a revenue of 22.62 billion yuan, a year-on-year increase of 4.91%. Previously, Kangshifu's revenue had declined for three consecutive years, while its net profit had declined for four consecutive years. In 2016, its net profit for the entire year was $177 million, a year-on-year decrease of 31%.

The ups and downs of packaged instant noodles for large households

Open the packaging, add the sauce and dehydrated vegetables, pour hot water, press the lid down for three or two minutes, and eat. As the busiest nation in the world, instant noodles are popular because they are the easiest to "cook" and can quickly fill their stomachs. Since the 1990s, the revenue of instant noodles in China has been increasing for 18 consecutive years. In 2013, the total sales of instant noodles in mainland China and Hong Kong reached 46.22 billion packets, with an average of 1465 packets opened per second. The ups and downs of instant noodle packaging also reflect the fluctuations of soft packaging and food packaging in some aspects. However, since 2013, due to multiple factors such as consumer upgrading, the return of migrant workers, and the craze for takeout, the Chinese instant noodle industry has started to decline. By 2016, the annual sales of instant noodles in mainland China and Hong Kong had dropped to 38.5 billion packages. The revenue of Kangshifu's instant noodle sector decreased from $4.332 billion in 2013 to $3.239 billion in 2016. With the migration of the "cold winter", the two giants in the industry, Kangshifu and Tongyi, have started selling off their assets in recent years. In 2015, six well-known instant noodle companies had already gone bankrupt.

Nevertheless, in 2016, China sold nearly three times as many instant noodles as Indonesia, which ranked second. In fact, the total sales of instant noodles in China are roughly equivalent to the sum of Indonesia, Japan, Vietnam, India, the United States, South Korea, and the Philippines combined.