Source | QinCe Consumer Research ID | wq365sxy Author | QinCe Consumer Research
Current Status of China's Instant Noodle Industry: Dual Pressure from Food Delivery and Pre-prepared Dishes Leads to Declining Instant Noodle Sales 1. The "Lazy Economy" Drives Steady Growth of China's Convenience Food Market In recent years, the scale of China's convenience food market has expanded steadily, with projections to exceed one trillion yuan by 2026, demonstrating strong market potential and development momentum. This industry encompasses instant noodles, frozen foods, pre-prepared dishes, self-heating foods, and ready-to-eat rice, catering to the fast-paced modern lifestyle while enhancing nutrition and taste through technological innovation, transitioning from "basic satiety" to a dual-driven model of "health + scenario." Data source: iiMedia Research, QinCe Consumer Research 2. The "Single-Person Economy" Creates Demand, with 65.5% of Consumers Preferring Instant Noodles For young people, the fast pace and high pressure of life have spurred the rapid development of the "single-person economy" and "lazy economy." When dining alone, over half of consumers choose convenience foods, as people increasingly pursue convenient, fast, and efficient lifestyles, further expanding the instant food market. Additionally, more than half choose to cook for themselves, indicating high consumer attention to healthy eating and food safety. Among commonly chosen convenience foods, 65.5% opt for instant noodles. Data source: iiMedia Research, QinCe Consumer Research 3. Food Delivery Market Exceeds 1.27 Trillion Yuan, "Pin Hao Fan" Forces Restructuring of Instant Noodle Market In recent years, the instant noodle market has been increasingly squeezed by pre-prepared dishes and food delivery. On one hand, after the pandemic, consumer life returned to normal, and instant noodle development reverted to its conventional track. On the other hand, competition with food delivery and new retail formats has intensified, with more abundant and diverse supply, continuous subsidies, and declining average order values, constantly redefining the role of instant noodles in consumers' daily lives. In 2024, China's food delivery market exceeded 1.27 trillion yuan, with 592 million users, meaning one in two Chinese netizens regularly orders food delivery. Meituan's "Pin Hao Fan" (average price 7 yuan), with its extreme cost-effectiveness, directly challenges the price anchor of instant noodles. Data source: China Industrial Internet Research Institute, QinCe Consumer Research 4. Interplay of Internal and External Factors, Instant Noodle Industry Recovers In 2020, instant noodle sales in China peaked due to pandemic-induced home demand, with annual sales reaching 46.3 billion packs. Subsequently, the industry entered a period of fluctuation and adjustment. In 2023, sales fell to 42.2 billion packs, a decrease of 4 billion packs in just three years, with a compound annual growth rate of -2.3%. This low point was a phased adjustment after the market returned to normal from pandemic-specific demand, and in 2024, sales showed a rebound. The fluctuating decline in instant noodle sales is influenced by multiple factors. On one hand, the rise of food delivery platforms such as Meituan, Ele.me, and Taobao Flash Purchase has diverted a significant amount of instant dining demand. On the other hand, limited consumption scenarios have further compressed market space, such as some high-speed rail stations stopping the sale of instant noodles. Additionally, instant noodles have long been labeled "unhealthy," and as consumer health awareness increases, the stereotype of "high oil, high salt, and many additives" has led some people to actively reduce consumption. These multiple pressures collectively result in fluctuating demand and sales decline under normal conditions. Data source: National Bureau of Statistics, China Beverage Industry Association, CIC Consulting, QinCe Consumer Research China Instant Noodle Development Trends: Health Upgrade, Mid-to-High-End Market Dominance 1. Instant Noodle Technology Upgrades, Health Becomes a New Trend In the past, consumers' main criticism of instant noodles focused on the "high oil" issue, directly related to the traditional fried noodle cake production process. In traditional processes, boiled noodles are shaped in palm oil at 150°C, combined with seasoning packets that are generally high in salt and oil, leading to the long-standing "unhealthy" label. However, the emergence of non-fried technology at the end of the 20th century brought a breakthrough for the industry—replacing frying with steaming to cook the noodle cake, then drying and shaping through microwave, vacuum, or hot air techniques, fundamentally solving the "high oil" pain point and providing healthier options. For example, "hot air drying," widely used in current non-fried processes, uses strong airflow to dry noodles, significantly reducing oil usage while creating more pores in the noodle cake, resulting in a chewier texture. 2. Instant Noodles Shift from "Affordable Fast Food" to "Quality Consumption" In recent years, consumer demand has shifted from "eating enough" to "eating well," with continuous premiumization of instant noodles. As residents' income levels rise, consumers' pursuit of instant noodle quality also increases. Instant noodle companies have successively launched health-oriented products to drive premiumization, including introducing non-fried foods, fresh-lock ingredients, and reducing oil and salt content. Since 2023, the average market price of instant noodles in China has been gradually rising, driven by the continuous R&D and production of mid-to-high-end instant noodles. Taking industry leader Master Kong as an example, in the past three years, Master Kong has launched new products such as "PREMIUM Preferred Cup," "Fresh Q Noodles," and "Special Te," all of which are mid-to-high-end instant noodles. Among them, "Special Te" is a high-end instant noodle launched this year in collaboration with Luo Yonghao, featuring a "single-basket boiling process," 0-oil healthy fresh-boiled instant noodles, with a high-end design and a price of 10 yuan per bowl. Data source: Founder Securities Research Institute, QinCe Consumer Research 3. Consumer Demand Shifts, Mid-to-High-End Products Become Main Growth Engine In recent years, Chinese instant noodle companies have continuously upgraded products in terms of noodle cakes, ingredients, and soup bases, with the penetration rate of mid-to-high-end products steadily increasing. Their sales scale has become the core driver of industry market growth. Data shows that from 2016 to 2020, the compound annual growth rate of mid-to-high-end instant noodles reached 17.1%, 4.2 times that of low-end products. From 2020 to 2026, it is predicted to remain at 11.6%, 4.8 times that of low-end products. This trend indicates that mid-to-high-end categories have become the core engine of industry growth, and the path toward mid-to-high-end in the instant noodle market is increasingly clear under market selection. Facing market pressure from food delivery and pre-prepared dishes, premiumization and quality enhancement have become key to breaking through in the instant noodle industry. Meanwhile, as national living standards continue to improve, leading companies are intensifying their premiumization strategies. Against the backdrop of steady national economic growth, China's instant noodle industry is accelerating its advancement toward high-end and health-oriented development. Data source: CIC Consulting, Founder Securities Research Institute, QinCe Consumer Research China Instant Noodle Competitive Landscape: Master Kong Leads with "One Superpower, Multiple Strong Players" 1. China Instant Noodles: One Superpower, Multiple Strong Players, Diverse Competition In 2025, China's instant noodle market has formed a highly concentrated "one superpower, multiple strong players" competitive landscape. The CR5 accounts for 84% of the market, with Master Kong holding nearly half of the CR5 market share. As the first brand to open the Chinese instant noodle market, Master Kong's "classic" products have become national instant noodles. With its single-category breakthrough, it has an unreplicable first-mover advantage and classic product series as a moat, firmly holding the top position. The instant noodle market is gradually shifting from traditional giant dominance to a diversified competitive landscape. In terms of competition, traditional leading brands Master Kong and Uni-President have seen their market shares contract year-on-year, while Baixiang, Jinmailang, and Samyang Group have shown growth. Differentiated positioning and scenario-based marketing reflect that the instant noodle industry is moving from "one big product fits all" to a new stage of refined competition in vertical tracks. Data source: Mashangying, QinCe Consumer Research. In the first half of 2025, the top ten best-selling instant noodle products showed a highly concentrated competitive landscape, all monopolized by the top five industry companies. Master Kong, with its iconic braised beef noodles and other classic products, firmly holds the top spot, while Uni-President and Baixiang occupy niche markets through differentiation strategies, such as Tang Daren series winning consumer favor with rich soup bases, and Baixiang satisfying satiety needs with large portion sizes. Notably, despite the stable position of traditional giants, the fire chicken noodle vertical segment has also successfully entered the top ten through precise positioning. This market structure indicates that in the mature instant noodle category, brand influence and product innovation together constitute the core competitiveness of enterprises. Future market competition will focus more on deep excavation of segmented consumption scenarios and value enhancement. Data source: Mashangying, QinCe Consumer Research 2. Enterprise Case: Master Kong's Mid-to-High-End Products Boost Gross Margin Data source: Company financial reports, QinCe Consumer Research After the pandemic in 2020, Master Kong's instant noodle business revenue declined slightly, with slowing growth, mainly due to the continuous squeezing of the domestic instant noodle industry's living space and increasing external shocks. Master Kong's strategy is to achieve profitability by upgrading major products and expanding product lines. On one hand, it balances taste, convenience, and price, maintaining its "national staple food" essence. On the other hand, it actively optimizes product structure and launches more high-end products. Today, consumers' pursuit of health and quality has reshaped demand logic, diluting cyclical impacts. The industry as a whole, due to the structural differentiation between high-end and low-price volume sales, is not entirely driven by a single cycle. From the results, high-end products have been extremely well received. Many young people mention that "Yupin Shengyan" has the "gold content of eating big pieces of meat," and crayfish noodles have become "the hidden king of instant noodles for students, perfect for late-night snacks." Some even feel that "Master Kong's ingredients have realized childhood dreams." In recent years, behind Master Kong's "three consecutive gross margin increases," it is not simply relying on sales expansion as in the early days, but through optimizing product structure and launching more mid-to-high-end products, enhancing profitability. For example, "Yupin Shengyan" and "Suda Mian Guan" use large chunks of beef. Although priced higher, consumers are still willing to pay, achieving profitability through product structure optimization and expanding more substantial profit margins. Another example is the Fresh Q Noodles launched in 2024, a new product in the non-fried track, with industry-leading innovative technology that gives the noodles a "just-cooked" texture while meeting health needs, becoming a new favorite among young people. Modern consumer demands have increased and become more diverse. They not only seek satiety but also expect better nutritional combinations, flavor innovation, and even more emotional value. The gradual long-term increase in category unit prices is the best example. Data source: Company financial reports, QinCe Consumer Research 3. Enterprise Case: Uni-President China's Big Product Strategy Pays Off! Four Products in TOP 10 Uni-President focuses on incubating and cultivating high-quality big products, with remarkable results. Among them, classic products such as Laotan Sauerkraut Beef Noodles, Tang Daren, and Man Han Da Can have long been market benchmarks, while the "Qie Huang Series," heavily promoted in the past two years, has performed outstandingly. According to the company's annual report, since its launch in 2020, this series has achieved a compound annual growth rate of over 100%. Strong product strength is further reflected in sales. In the first half of 2025, among the top 10 best-selling instant noodle products, Uni-President occupied four spots, fully confirming the market competitiveness of its high-quality big products. While incubating new products, Uni-President also continuously iterates and upgrades its core mature products to precisely align with changing consumer demands: Tang Daren underwent its first comprehensive upgrade in 16 years, launching the "Mini Cup" series, precisely targeting the "small cravings, small hunger" segmented consumption scenario; Laotan Sauerkraut Beef Noodles strengthened its "authentic flavor" label, with market performance continuing to recover; Braised Beef Noodles added real meatballs, further consolidating the "classic braised flavor" consumer perception. In 2024, Uni-President's instant noodle business revenue increased by 300 million yuan year-on-year, directly confirming the commercial effectiveness of its "big product cultivation + old product upgrade" dual-wheel drive strategy. Data source: Company financial reports, QinCe Consumer Research 4. Enterprise Case: Baixiang Breaks Through! Baixiang's 15% Market Share Narrows Gap with Uni-President for Second Place Baixiang's market share in instant noodles has steadily risen from 12% to 15%. The "earthen pit sauerkraut" incident exposed at the 3.15 Gala in 2022 not only significantly impacted the entire instant noodle industry but also created a key opportunity for Baixiang to "break through and rise." Leveraging reliable domestic product quality and a series of conscientious business practices, such as employing special groups, Baixiang successfully accumulated massive traffic and consumer recognition, with growth momentum continuously released. From a market performance perspective, Baixiang's pace of catching up with Uni-President has accelerated over the past two years. In the past two years, Uni-President's market share has shown a downward trend, while Baixiang has maintained strong growth, with the market gap continuously narrowing and approaching. According to the latest data this year, although Uni-President barely holds the second-place position, the market share gap with Baixiang has narrowed to a nearly negligible level. Data source: Mashangying Data, QinCe Consumer Research