The competitive landscape in South Korea’s instant noodle industry is intensifying as major players, Samyang Foods and Nongshim, make strategic moves to secure control over critical soup base production.
Samyang Foods is set to acquire local sauce maker GnF for 60 billion won ($43 million), a deal that would mark the company’s first major merger and acquisition since its establishment in 1961. GnF, a key supplier of powdered seasonings to top food companies, posted 41.7 billion won in revenue last year, and its acquisition is viewed as a way for Samyang to strengthen its in-house production of soup bases and improve cost efficiency, particularly in response to rising global demand for its products.
In a parallel move, Nongshim Holdings announced its acquisition of Sewoo, another local sauce maker, for nearly 100 billion won. Sewoo has long been a key supplier of soup ingredients for Nongshim’s popular Shin Ramyun. The acquisition will enhance Nongshim’s in-house capabilities, providing more control over the quality and efficiency of its production processes.
As demand for Korean ramen surges internationally, both companies are looking to secure their supply chains amid global market pressures and increasing quality standards. These acquisitions reflect a broader trend in the food sector where vertical integration is becoming crucial to maintain production stability and prevent technology leaks. The soup base market is critical not only for ramen but also for other products like frozen foods, driving the need for greater control over ingredient sourcing.