In recent years, the food category in FMCG has seen weak growth, with the instant noodle segment particularly underperforming. However, recent data shows signs of recovery.

According to the latest data from Kantar Worldpanel's continuous monitoring of 40,000 urban Chinese households, instant noodles have been recovering since 2016, with the third quarter reversing the decline and achieving the first positive sales growth in recent years. Master Kong Holdings released its Q3 2016 (as of September 30) performance report. The report showed that its instant noodle products "continued to narrow the year-on-year decline in Q3 compared to the first two quarters, with a trend toward improvement." 1 Strong Performance of Premium Noodles from Master Kong and Uni-President Master Kong: Black and White Pepper Instant Noodles Surpass One Million Cases in March In the first half of the year, Master Kong launched creative new products—Black Pepper Steak Noodles and White Pepper Pork Rib Noodles. For the first time, the products combined the spicy flavor of pepper with rich, traditionally simmered broth, creating a buying frenzy. Master Kong mentioned in its performance report that the Black and White Pepper series quickly became popular due to its innovative taste and cool packaging design. After launching during the Spring Festival, it surpassed one million cases in March, and even in the off-season, it maintained good average monthly sales, becoming a viral hit among young people. Additionally, the Soup Master line was refreshed with new flavors and specifications, and in Q3 it continued its strong momentum with significant growth. Uni-President: Launched Three Major Brands in H1, with Tang Daren Maintaining Double-Digit Growth Uni-President stated in its financial report that it is actively positioning in the mid-to-high price instant noodle market above 5 yuan, using product innovation to meet consumers' increasing demands for quality and taste. In the first half of the year, it launched three new brands: "Duhui Xiaoguan," "Xiangban Yicheng," and "Manhan Yan," with different brands and price points to create a more complete and clearer positioning. Among them, in H1, "Tang Daren" maintained double-digit growth. In addition, recently, Uni-President capitalized on the momentum by launching a new flavor of Tang Daren—Korean Spicy Beef Noodle Soup. This shows that the strong performance of Tang Daren in H1 has led Uni-President to frequently expand its premium noodle offerings. Jinmailang: Yicai Yimian Receives Excellent Market Feedback Furthermore, Jinmailang's new product Yicai Yimian, launched last year, has also gained market recognition. According to official data, in the past year, in offline channels, Jinmailang mainly sold through convenience stores like 7-11, which was well received by white-collar workers and earned excellent market reputation. In online sales, Yicai Yimian's Tomato Egg Noodles were listed on platforms such as WeChat Mall, JD.com, and Tmall, with a 99% positive rating on JD.com. 2 Premium Noodles Rise Strongly The recovery of the instant noodle market should be credited to premium noodle products. Premium noodles are mostly imported products, characterized by high quality and high prices. Research shows that the premium noodle market has grown significantly. Kantar consumer data shows that the sales share of premium noodles is continuously rising. In the 52 weeks ending September 2016, the sales share of premium noodles reached 13.4%. The increasing penetration rate is the main factor driving the growth of premium noodles. Despite the overall decline in instant noodle penetration, premium noodle penetration has been steadily increasing. In the 52 weeks ending September 2016, 22.5% of urban households had purchased premium instant noodles, an increase of 1.6 percentage points compared to the same period last year. Taking Uni-President's Tang Daren as an example, in the 52 weeks ending September 2016, it contributed 77.3% of Uni-President's instant noodle sales growth. The rise of premium noodles also signifies a shift in consumers' dietary concepts. Instant noodles are no longer just a fast food for blue-collar workers, but also reflect consumers' pursuit of a higher quality of life. Whether every brand can profit from premiumization is not a one-size-fits-all answer. When choosing products, consumers are also influenced by factors such as brand value, packaging, and distribution. However, it is undeniable that premiumization is becoming a trend, and consumers are willing to pay for healthier, higher-quality products. At the same time, capturing the growing middle class through premium products is also a good thing. Kantar Worldpanel data shows that in the 52 weeks ending September 2016, nearly 30% of urban households with a monthly income above 9,000 yuan purchased premium instant noodle products. 3 Three Development Trends for Instant Noodles 1. The Trend of Premiumization in Instant Noodles is Becoming Increasingly Evident Earlier, Uni-President's General Manager Hou Ronglong publicly stated that within three years, the revenue share of high-margin products is expected to increase from the current 17% to 40%, which will help boost profit growth. Hou Ronglong said that the next three years are crucial, and Uni-President will "go all out." The launch of three major instant noodle brands in H1 is a 2.0 innovative product that embodies this strategy. Now, the trend of premiumization in instant noodles is becoming increasingly clear. In the face of a saturated industry, fierce competition, and low margins, premiumization has become a way for companies to break through, and consumers' increasing focus on health has also become a catalyst for premium instant noodles. The premium concept provides more room for price increases, which also offers opportunities for profit improvement for instant noodle companies in the fierce competition. 2. Positioning at the 5 Yuan Price Point, Building a 2.0 Brand Portfolio Whether it's Master Kong's Black and White Pepper Noodles, Uni-President's Tang Daren, or Jinmailang's Yicai Yimian, they have become the main brands in the above-5-yuan price range by grasping the trend of young consumers' preference for mid-to-high-end instant noodles, and have achieved rapid growth. To meet consumers' demands for branding, personalization, diversification, and premiumization, Master Kong and Uni-President have launched a series of innovative brands, forming a 2.0 brand portfolio. 3. Seeking High Added Value, Driving Growth Through Innovation Adhering to the strategy of "value marketing," gradually breaking away from the low-price, homogeneous competition, and seeking greater market opportunities through high added value, has been an important measure for Master Kong and Uni-President to drive long-term sustainable development through innovation in recent years. In the context of a weak economic environment, this is worth learning from for food companies. Partial content source: Kantar Worldpanel, compiled by: Food Business -END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Eighteen Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brands | 016 Distributor B2B Transformation | [Long press QR code to follow]