In the childhood memories of the post-80s generation, instant noodles were a "luxury food"; for the post-90s, they were "convenience food"; and for Generation Z, they are "unhealthy food". This shift in consumer perception reflects, to some extent, China's consumption structure upgrade and industrial iteration.

From the trend chart of China's instant noodle sales from 1970 to 2016:

From 1970 to 2003, China's instant noodle sales rose steadily with little fluctuation. From 2004 to 2016, China's instant noodle production experienced ups and downs, with declines in 2005, 2008, and 2014.

How is this change related to China's economic development, industrial iteration, and consumption upgrade?

1970-2003: Instant Noodles Evolve from "Luxury" to "Convenience Food"

Instant noodles were invented by Momofuku Ando, a Japanese of Chinese descent, in 1958. At that time, Japan was in the busy era of post-war reconstruction, and instant noodles greatly increased the speed of eating, allowing people more time for production and labor. Large-scale production of instant noodles in China began around 1980, during the early stages of reform and opening-up, and they quickly became popular in the market.

The development from 1980 to 2003 can be divided into two stages: the "luxury food" stage and the "convenience food" stage.

Post-80s Childhood: Instant Noodles as "Luxury Food"

In the early days of reform and opening-up, living standards were low. In 1985, the per capita disposable income of urban residents nationwide was 739.1 yuan per year, averaging only 61.59 yuan per month. Therefore, in the minds of many post-80s, instant noodles priced at 0.35 yuan or 0.5 yuan per pack were already a luxury. In many post-80s childhood memories, parents would only buy a pack of instant noodles when a child was sick or got first place in an exam.

Post-90s Childhood: Instant Noodles as "Convenience Food"

In 1992, China proposed developing a socialist market economy. With improved living standards and purchasing power, and a faster pace of work, the advantages of instant noodles became evident. They quickly spread from large and medium-sized cities to towns and rural areas, and market demand surged, leading to a nationwide boom in instant noodle production.

In 1995, the per capita disposable income of urban residents nationwide was 4,280 yuan per year, averaging 356.7 yuan per month. Therefore, in the childhood of many post-90s, instant noodles priced at 0.5 yuan, 1 yuan, or 1.5 yuan per pack were no longer "luxury" but "convenience food".

Instant Noodle Brands Consumed by Post-90s

At that time, instant noodle manufacturers nationwide formed a pyramid structure: a few famous Sino-foreign joint ventures at the top, well-known domestic brands in the middle, and local enterprises at the base.

From 2004 Onward: Instant Noodles Become "Unhealthy Food"

Before 2003, the instant noodle market was dominated by fried noodles. With the vigorous development of China's economy, people's lives transitioned from subsistence to moderate prosperity. In 2005, the per capita disposable income of urban residents nationwide exceeded the 10,000 yuan mark.

People became less sensitive to price changes and began to focus on dietary health. Meanwhile, snack foods that could replace instant noodles, such as small breads, dried steamed buns, Sachima, biscuits, and potato chips, had emerged.

Against this backdrop, in 2004, Wugu Daochang took the lead in proposing the concept of "Refuse Fried Food, Give Me Health", completely denying fried noodles. In the minds of many consumers, instant noodles became "unhealthy food".

As a result, China's instant noodle sales declined for the first time in 2005, from 48 billion packs in 2004 to 43.864 billion packs in 2005.

To reverse this situation, instant noodle companies in the Chinese market upgraded their product structures, innovating in seasoning packets, noodle blocks, and packaging forms. In 2006, sales rebounded, and in 2007, sales reached a historical high of 49.8 billion packs per year.

2013-2016: Four Years of Declining Sales

Starting in 2013, instant noodle sales declined for four consecutive years, and in 2016, sales fell below 40 billion packs.

Tencent's Information Visualization Lab believes that the reasons why instant noodles are being increasingly neglected by Chinese consumers include:

1. Upgrading of China's Consumption Structure

With rising incomes, people generally began to pay attention to concepts such as additives and genetically modified organisms (GMOs), gradually abandoning fried foods or those containing additives, and turning to foods with health concepts like milk and yogurt. For example, after 2013, the demand for yogurt and milk in China grew rapidly.

2. Industrial Iteration: The Impact of O2O Food Delivery on the Instant Noodle Market

In 2013, China's O2O food delivery industry entered a period of rapid development, with the number of online users of O2O in the catering industry exceeding 100 million. The convenience of instant noodles was replaced by the rapidly rising O2O food delivery industry. Now, consumers can order meals on their phones at home and enjoy delicious food quickly.

3. Changes in Consumer Travel Habits Also Affected Instant Noodle Sales

With the popularity of high-speed trains, bullet trains, and airplanes, travel time has been greatly shortened, and the function of instant noodles as a "travel essential" has been significantly weakened. Moreover, high-speed trains and bullet trains with strong sealing now prohibit the sale of instant noodles.

Against the backdrop of China's industrial and consumption structure upgrades, it is not only consumers who are gradually "abandoning" instant noodles; companies like Uni-President and Master Kong are also slowly withdrawing from the instant noodle market. In 2017, Luo Zhixian, chairman of Uni-President Group, made the statement that "Uni-President will exit the instant noodle market", and in 2018, Uni-President officially launched the concept of "life noodles".

Although instant noodles have gradually faded from people's lives, it is undeniable that they have become a mark of the times, forever remaining in the memories of several generations.

Source: Caijianjian - Tencent Finance (ID: qqckj2017)

-END-