Nongshim, a leading food company in South Korea, has announced a price increase for 17 of its ramen and snack products, averaging a 7.2% rise. This includes Shin Ramyun, the top-selling ramen in Korea, whose price will rise by 5.3% from 950 KRW to 1,000 KRW. The price of other popular items like Shrimp Cracker and Chapagetti will also see notable increases.
This decision marks the first price hike by Nongshim in two and a half years since September 2022. It comes after the company had previously lowered prices in July 2023 in response to government pressure for price reductions. Nongshim cites the rising costs of raw materials, such as palm oil and starches, and a significant increase in the won-to-dollar exchange rate as reasons for the price adjustment.
This trend of “foodflation” isn’t isolated to Nongshim. Several other food industry players, including Paris Baguette, Tous Les Jours, and coffee franchises, have recently raised prices in response to soaring ingredient costs. For example, Baskin-Robbins and Compose Coffee have increased prices on Americano coffee due to rising coffee bean prices.
Amid such widespread price hikes, there’s speculation that other food companies might follow Nongshim’s lead in raising prices for their own products.