South Korean brand Samyang Foods sets its sight on Indonesia market growth

South Korean food manufacturer, Samyang Foods, will be investing 3.412 billion Won into its subsidiary, Samyang Foods Indonesia. The investment aims to expand sales of the Indonesian company by establishing a sales corporation there, and has an predicted date of April 30 by which the acquisition is expected to complete, according to media reports.  The report added that Samyang Foods said that Indonesia accounts for 30% of exports in Southeast Asian markets.

Considering Indonesia’s predominant Muslim population, Samyang Foods obtained the Indonesian Ulama Council halal certification for its products in 2017. Ever since, Samyang Foods has exported only MUI certified products, pushing its presence in the local Indonesian market and increasing its customer base.

Indonesia is among the top consumers of instant noodle markers. According to Vantage Research’s paper published, in 2022 Asia Pacific was seen to be leading the global Instant Noodles Market and will continue to lead worldwide during the forecast period. This augmentation can be attributable to the surge in demand for convenience food products by the working population base in developing countries such as China and India.

China is followed by Japan, Indonesia, Vietnam, India, the Republic of Korea, Thailand, and the United States. Asia Pacific captured the lion share in 2021 and is projected to retain its position over the forecast period. This can be attributed to the existence of a significant number of Instant Noodles industry companies and the high adoption rate owing to government measures that stimulate this industry in this region. The growth is primarily due to the increasing collaborations.

The growth can be attributed to rapid urbanisation, technological advancement, an increase in investment by developing countries. The global market revenue stood at a value US$50.7 Billion in 2021 and is expected to grow to exhibit a Compound Annual Growth Rate (CAGR) of 5.5% during the forecast period said the Vantage Market Research, in a report, titled "Instant Noodles Market Size, Share & Trends Analysis Report”.

In December last year, Samyang Foods also said it will establish new departments dedicated to overseas sales and logistics to strengthen its global business in 2023, according to Korea Times. The article also said that  Samyang Foods will be reorganized from 85 teams in six divisions to 86 teams in eight divisions.

Meanwhile, late last year Samyang Foods announced that it will participate as the main sponsor of BTS permission to dance on stage – Las Vegas, commemorating the 10th anniversary of the launching Buldak, Korean noodles with secret spicy sauce. The team created a Buldak promotional booth which was operated during the BTS Permission to Dance on Stage – Las Vegas period.

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