The "national food" instant noodles are truly in decline. Uni-President's 2016 performance report showed its revenue fell 5.1% year-on-year. Tingyi (Master Kong) reported that its turnover and net profit fell 8% and 21.1% year-on-year respectively, with instant noodle revenue down 10.34%. In addition to declining sales, the number of instant noodle companies is also shrinking. In Beijing, for example, there were up to 32 instant noodle brands in the 1990s, but now only one remains; the others have disappeared. Some industry experts believe the sales decline is mainly due to the portrayal of instant noodles as junk food, but more people see it as a natural result of social upgrading and changing consumer attitudes. Data from the China Instant Food Conference shows that last year, domestic instant noodle production totaled 36.249 billion packs, down 8.54% from the previous year; sales revenue was 49.091 billion yuan, down 6.75%. In the first eight months of this year, major instant noodle companies still failed to stop the decline, and the industry remains in deep adjustment. A report by Bain & Company and Kantar Worldpanel, "2016 China Shopper Report," also shows that domestic instant noodle sales fell 12.5% last year. The history of instant noodles in China is closely linked to personal growth. You might say you've never eaten pizza or egg tarts, but you've definitely eaten instant noodles. Let's look at the history of instant noodles in China. Industrial production of instant noodles in China began in 1970. Over the 30 years from 1970 to 2000, the industry advanced rapidly, with annual production rising from 2 million packs in 1970 to about 17.8 billion packs in 2000, ranking first in the world. In 2016, major instant noodle manufacturers produced 36.24 billion packs, with sales revenue of 51.169 billion yuan. I. Exploration Stage Instant noodle production in mainland China is generally considered to have started in 1964, when Beijing General Food Factory used duck oil to produce fried instant noodles by hand. In 1970, the first bag of fried instant noodles in China was born at Shanghai Yimin No. 4 Factory, using a high-pressure steaming and frying process with self-developed equipment, producing 0.02 billion packs (2 million bags) annually, marking the official start of instant noodle production in China. From 1978 to 1980, the Beijing Food Industry Research Institute and Beijing Instant Food Factory jointly developed a production line with a capacity of 1 ton per shift for non-fried instant noodles, using batch high-pressure cooking and far-infrared drying technology.

In 1970, the first bag of fried instant noodles in China was born at Shanghai Yimin No. 4 Factory. II. Initial Stage Shanghai Yimin Food Factory and Beijing Instant Noodle Factory imported a 5,000-pack-per-shift bagged fried instant noodle production line from Japan in 1980 and 1982, respectively. In the 1980s, over 100 production lines were imported from Japan nationwide, and more than 40 instant noodle equipment manufacturers emerged in Guangzhou, Shanghai, Wuxi, Zhengzhou, and other places. In 1986, Beijing Changping Great Wall Food Factory introduced a bowl-type instant noodle production line from Japan's Fuji Company. As instant noodles just entered the market, people began to learn about them. Due to the policy of subsidized grain and oil prices and product price controls, they were not widely accepted. Additionally, with lower living standards, consuming instant noodles was somewhat a luxury. The product specification was 100g per bag, with a retail price of 0.25 yuan per bag, plus 2 liang of grain coupons. The product range was single, all low-end instant noodles. Zhuhai Huafeng Food Company, established in the early 1980s, was once China's largest instant noodle manufacturer. Its Huafeng brand Sanxian Yimian (Three Delicacies Noodles) sold well nationwide in the 1980s. Before Master Kong and Uni-President entered the mainland market, Huafeng held an undisputed dominant position in China's instant noodle market. In the 1980s, Shanghai Guanshengyuan's Meiwei Rourong Noodles became a famous instant noodle brand. They tasted good, with paper packaging and a thin plastic layer inside to prevent moisture, unlike typical plastic-bag packaging, and are a memory for a generation. III. Transition and Development Stage In 1988, the state formulated the GB9848-88 quality standard for instant noodles, which standardized the varying quality and signaled a shift from profit through volume to profit through quality, reputation, and brand to win consumer loyalty.

  1. From 1987, China's grain and oil policies gradually liberalized, allowing free trade, and the planned management pattern of instant noodle production and operation was gradually broken. With improved living standards and purchasing power, and a faster pace of life, the advantages of instant noodles became evident. Instant noodles quickly spread from large and medium cities to towns and rural areas, with demand surging, leading to a nationwide boom in instant noodle production. During this period, state-owned food processing plants and grain systems began establishing instant noodle factories, and capable township enterprises also started construction. From 1989 to 1991, over 800 new production lines were added domestically.
  2. Foreign instant noodle groups saw the potential of the Chinese market and entered aggressively through wholly-owned or joint ventures. At the end of 1991, Taiwan's Ting Hsin Food Group set up its first instant noodle production line in Tianjin, launching the "Master Kong" brand in the mainland market with great success. Soon after, Taiwan's "Uni-President," Singapore's "Lucky," Indonesia's "Meishi" and "Yingduo," and Japan's "Demae Itcho" entered, producing high- and mid-range bagged, bowl, and cup instant noodles, achieving significant success.
  3. Zhuhai's "Huafeng," Shandong's "Longfeng," Hebei's "Hualong," Wuxi's "Zhongcui," Shaanxi's "Xiong Yiwu," Henan's "Nande," Guangdong's "Laili" and "Jinfeng," and Fujian's "Hongfa"—state-owned, collective, and private instant noodle manufacturers—all established factories and launched brands, leading to a wave of rapid development in national instant noodle production.

Lucky instant noodles, a brand invested by a Singaporean food company, entered China in the late 1980s and established several food companies domestically, mainly targeting the low- and mid-range market. With its unique taste and price, it quickly captured the mainland instant noodle market. Nanjiecun instant noodles, also known as Beijing instant noodles, were loved by people of all ages in the 1990s. Produced by Nanjiecun Instant Noodle Factory, they were one of the best-selling brands in the 1990s. IV. Rapid Development Stage With the diversification of instant noodle varieties and various forms of advertising, people truly accepted instant noodles. Many regarded them as essential for travel and daily life, and the market experienced unprecedented prosperity.

  1. Competition during this period was mainly among foreign companies like "Master Kong," "Uni-President," "Meishi," "Yingduo," and "Lucky" for the mainland market. They broke the low-end product structure with exquisite packaging, chewy and refreshing noodles, and unique flavors, stepping directly into the mid- and high-end instant noodle segment. They primarily used imported noodle-making equipment from Japan, Taiwan, and South Korea.
  2. Instant noodles became an important support for China's food industry restructuring, with an average annual growth rate of 70%. For a long period, each company had its own product positioning, either mid- to high-end urban markets or mid- to low-end rural markets, with competition focusing on product quality improvement, product structure adjustment, price adaptability, and marketing strategies. In just five years from 1989 to 1994, instant noodle production lines exceeded 1,500, and the market emphasized brand, quality, taste, and production date. Market demand was strong, leading to rapid development and competition. Domestic instant noodle equipment manufacturers reached over 20.

Beijing Meishi Food Co., Ltd., a wholly foreign-owned enterprise, entered the Chinese market with plans to develop the mid-range instant noodle market based in Beijing. Once ranked among the top three in China's instant noodle market and a well-known brand in the consumer goods market, Meishi had a glorious period. However, from 1998, its market began to shrink. By 2001, cumulative losses in China exceeded 50 million yuan, and investors finally lost interest, filing for bankruptcy with the court. Master Kong entered mainland China in 1991 and launched its first bowl of "Braised Beef Noodles" on August 21, 1992, which was well received and recognized by consumers. The classic Master Kong Braised Beef Noodles have accompanied many people for over 20 years. V. Fierce Market Competition Stage After the rapid development stage, by the end of 1995, there were over 1,000 instant noodle manufacturers nationwide with more than 2,000 production lines. Lines with a capacity of 100,000 to 160,000 packs per shift became common, while those with 30,000 to 50,000 packs per shift were gradually phased out. From 1994 to 2000, annual production was approximately 8.8 billion packs (1994), 12 billion (1995), 15 billion (1996), 15.5 billion (1998), 16.5 billion (1999), and 17.8 billion (2000). The national instant noodle industry formed a pyramid structure: a few famous Chinese and foreign companies at the top, well-known brands in the middle, and local companies at the base. "Non-fried" Wugudaochang was founded in 2004 and officially launched in October 2005. In its first month, sales reached 6 million yuan, and it peaked in 2006 with annual sales exceeding 1 billion yuan, with monthly sales growing at 30%, becoming the "Chinese Enterprise Growth Champion" that year. With its unique product positioning, Wugudaochang broke into the traditional fried instant noodle market and quickly became a consumer favorite. In 2008, with the slogan "This sour and refreshing feeling, unbelievable," Uni-President 100 Laotan Sauerkraut Beef Noodles became famous overnight across the country. From 150 million yuan for a single product in 2008 to 4 billion yuan in 2012, the growth rate reached an astonishing 2,500%, becoming an industry myth and a classic marketing case. When Uni-President launched Laotan Sauerkraut in 2008, it also introduced a new product, Tang Daren (Soup Master). Laotan Sauerkraut was a traditional main dish with a relatively low price, while Tang Daren was priced at 7.5 yuan, which was very high at the time, almost double the price of Laotan Sauerkraut. For five years, Tang Daren showed little movement. However, in 2015, Tang Daren jumped to 500 million yuan in sales, entering the ranks of major products and firmly holding the top position in the high-end segment. Baixiang Dagu Noodles, produced by Baixiang Group, combine instant noodles with traditional nourishing bone broth, innovating the "bone-based noodle" nutritional field. Within 8 months of launch, sales reached 60 million packs, and within a year, sales exceeded 100 million packs. VI. Deep Adjustment Stage In recent years, declining sales due to reduced migrant populations, the rapid growth of online fast food squeezing the space for instant noodle categories, and lingering consumer trust issues from long-term negative information have put pressure on the industry. Under these three pressures, leading companies have seen sales decline, and media voices predicting the decline of instant noodles have grown louder. The encirclement and squeeze from the macro environment have instead awakened industry peers who were previously engaged in fierce competition. They have begun to focus on cultivating their own advantageous brands, forming differentiated competition, and jointly launching consumer education and public science campaigns... The entire industry is gathering positive energy for transformation and value enhancement, and the instant noodle market is showing signs of recovery. Jinmailang, which follows Master Kong and Uni-President in market share, launched "Yicai Yimian" (One Dish, One Noodle) in 2015, using innovative vacuum freeze-drying technology to turn fresh stir-fried dishes into vegetable patties, replacing traditional seasoning packets, breaking the bottleneck of instant noodles lacking nutrition, and creating a new category. In 2016, Master Kong's boldest innovation was "Black Pepper, White Pepper," which for the first time stepped out of its traditional classic "red" packaging and brought fashionable "white + black," achieving great success. Source: Food Board, New Retail The 2017 (3rd) FMCG + Internet Conference will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecology," inviting 1,000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to jointly explore a new chapter of cross-industry integration! Registration is hot, with only 50+ tickets left... Long press the QR code below or click "Read Original" to register. Click the links below to review the highlights of the first and second FMCG + Internet Conferences: 2016 " FMCG + Internet " Summit Forum -END-