In 2014, there was a startling news item on a Chinese news site headlined: Have instant noodles past their peak? The output of instant noodles in 2014 was down 1.6% compared to 2013. The trend continued in 2015 and, while the industry saw slight increases in the following two years, it was a wake-up call for instant-noodle manufacturers.
Although a food invented in Japan 60 years ago, China is the largest market for instant noodles. The Chinese had become so enamoured of them they seemed to have become as unalienably Chinese as tea. However, the stagnant nature of sales shows that was not the case and looking at the reasons behind the sluggishness in the market can provide valuable insight into the social and cultural drivers of Chinese food consumption.
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By GlobalDataOne theory says the rise of instant noodles was partly caused by the mass movement of surplus rural labour to Chinese cities. Instant noodles became the favourite food of migrant workers. They were cheap and easy to prepare. Migrants have now accumulated enough wealth to move on to more healthy foods, causing pressure on instant noodle sales.
Then there is the appearance of bullet trains. Railroad stations and trains used to be major sales points for instant noodles, but with the shortening of train trips, the demand for instant noodles in that channel is decreasing as well.
And, more generally, against a backdrop of the many food scandals to hit China in recent years, an increasing number of consumers have actively sought out foods deemed healthier. While instant noodles are not unhealthy, they are surely not health food and, perhaps a little unfairly, have suffered.
In response, instant-noodle manufacturers have employed a number of strategies to regain consumer interest.
Long-time market leader Master Kong – which has a market share of 44.2% in 2017 – has launched two varieties based on Western flavours: black and white pepper steak.
Uni-President – number two in the market with a share of 19.4% – has been able to retain most of its market share with its Old Jar Pickles and Beef noodles (Laotan Suancai Niuroumian); ‘old jar’ referring to the ceramic pots in which Chinese pickles used to be fermented.
That long name linked a modern food to the culinary tradition. The shredded pickles were provided in a separate sachet, on top of the traditional sachet of powdered spices and a plastic sachet with beef paste. It was the top-selling instant noodle for several months after its launch. In fact, this product was partly inspired by the way many Chinese prepare instant noodles at home: adding some chopped vegetables or an egg to the boiling noodles, increasing the mouthfeel and the nutrition. My wife eats instant noodles for breakfast like this three or four times per week.
Uni-President’s success inspired Master Kong and other brands to launch their own noodles with a broad spectrum of dehydrated vegetables and meats, all marketed as healthier than the classic instant noodles.
Chinese food scientists have also taken up the challenge to enhance the nutritional image of instant noodles. One group is picking up the Chinese government’s idea to make potatoes the nation’s fourth staple foods (see my previous column) and is developing a recipe for instant noodles in which part of the wheat is replaced by potato.
An interesting newcomer has been Haoji, a producer of flavourings for instant noodles owned by Nestlé. Haoji launched its non-fried instant noodles in 2016. This product is marketed as a healthy product made from wheat, corn, buckwheat and potato sourced from high-altitude unpolluted areas; it is steamed, as opposed to fried, during the manufacturing process.
Amid this competition, Master Kong found itself once more forced to strike back and launched a high-end range of instant noodles, branded Suda Express Noodle Shop, in 2018. Suda means ‘quick arrival’ and refers to the fact the noodles can be ordered online and sent to your home. The noodles come with freshly prepared vegetables and meat, all separately packed to try to keep the ingredients as fresh as possible. The meat is no longer a piece of dehydrated meat, but succulent morsels packed with gravy. When you cook the noodles and add the other ingredients, the resulting bowl of noodles looks, feels and tastes like regular noodles served in a ‘noodle shop’.
In spite of those efforts to develop better-flavoured and more nutritious instant noodles, the most spectacular innovation came from another type of business. One entrepreneur opened a restaurant annex convenience store chain named Nonoodle (bufangbianmian in Chinese). You can purchase a wide range of instant noodles there and a few other snacks and drinks, but you can also eat your instant noodles in the dining space.
The English name Nonoodle is not a literal translation. In Chinese, instant noodles are called fangbianmian, ‘convenient noodles’. So, bufangbianmian literally means ‘inconvenient noodles’. The entrepreneur is suggesting the preparation to make the dry noodles ready for consumption is actually not that convenient. Why not let a ‘cook’ prepare the noodles of your choice for you? After the meal, you just go away, home, back to the office, continue shopping or whatever you intended to do.
The trick works, as long lines of young consumers can be seen at Nonoodles any time of the day. And once more this restaurant concept emulates the way many Chinese cook instant noodles at home. I can imagine a restaurant like this keeps a supply of vegetables that cook quickly, eggs, sliced sausages, etc., from which customers can make their pick, like they can at a Subway outlet.
A Nonoodle outlet seems like a great alternative for the monotonous sandwich shops in European cities. Instead of a mozzarella and tomato sandwich, you can order a bowl of chicken noodle with celery and egg. The bonus is that you do not need to pay extra for a drink – just drink the soup.
So where is China’s instanty noodles market leading to? That the catering industry is picking up the instant noodle as a business opportunity indicates the consumer profile is shifting from migrant workers and travellers to the growing segment of young, white-collar workers.
Unlike before, these consumers leave home after landing their first job. However, while enjoying their freedom, they loath cooking three meals a day. A typical quick meal out for them used to be a street side noodle stall. Now they have a hip alternative. This could stimulate instant noodle makers to upgrade the added ingredients like larger pieces of dehydrated vegetables, real slices of dried meat, garlic or ginger flakes, etc., making a pack of instant noodles even more resemble a pre-cooked meal.
