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Instant noodle market is warming up! The packaging and printing industry cheered
Release time£º2020-12-11 23:09:44


Today, the Chinese instant noodle market has heard a piece of encouraging news for the packaging industry. After four consecutive years of sharp decline, the Chinese instant noodle market finally stopped its decline in 2017, with sales increasing by 0.3%.
Take Master Kang, which accounts for 44.2% of the market share of instant noodles, as an example. In 2017, the instant noodle business realized a revenue of 22.62 billion yuan, an increase of 4.91% year-on-year. Prior to this, Master Kang's revenue has declined for three consecutive years, while its net profit has declined for four consecutive years. In 2016, the annual net profit was 177 million US dollars, a year-on-year decrease of 31%.
The rise and fall of instant noodles
Open the package, add the sauce and dehydrated vegetables, pour hot water, press the lid for three or two minutes, and open. As the busiest nation in the world, instant noodles sell well because they are the easiest to "cook" and the fastest to fill their stomachs. Since the 1990s, the turnover of instant noodles in China has been increasing for 18 consecutive years. In 2013, the total sales volume of instant noodles in mainland China and Hong Kong reached 46.22 billion packets, with an average of 1465 packets opened per second. The rise and fall of instant noodle packaging also reflects the floating of flexible packaging and food packaging in some aspects. However, since 2013, affected by multiple factors such as consumption upgrading, migrant workers returning to their hometown and hot takeout, China's instant noodle industry began to decline. By 2016, the annual sales of instant noodles in the mainland and Hong Kong had dropped to 38.5 billion packets. The revenue of Master Kang instant noodles decreased from $4.332 billion in 2013 to $3.239 billion in 2016. With the migration of the "cold winter", Master Kang and uni president, the two giants in the industry, began to sell their assets in recent years. In 2015, six well-known instant noodle enterprises closed down.
Still, in 2016, China sold nearly three times as many instant noodles as Indonesia, the second largest country. In fact, China's total instant noodle sales are roughly equal to Indonesia, Japan, Vietnam, India, the United States, South Korea and the Philippines combined.
The packaging affection of instant noodles
Fifty seven years ago, a Chinese Japanese named Ando Baifu invented the world's first instant noodles, which had a legendary start to a global food revolution. Ando Baifu is also known as "the father of instant noodles". Today, the total demand of instant noodles in the world has reached 102.74 billion copies per year, and China ranks first in the world with 44.4 billion copies.
As people in the packaging industry, we should thank the Chinese American Japanese Ando Baifu for this great invention, which has greatly boosted the demand for packaging. There are many kinds of instant noodles, such as cartons, bread bags, sauce bags, cooking bags, cups, bowls, etc.
In the past, due to the poor consumption ability, instant noodles were mostly packed in plastic bags. The cost of a package of convenient packaging was about 0.5 yuan. Now it is completely changed. In recent years, instant noodles packed in paper bowl and plastic bowl are popular among young people, which greatly improves the value of packaging and the amount of cartons.
The paper bowl is a multi-layer composite material, including heat-resistant plastic film, white cardboard, gray cardboard, printing paper and the outermost packaging plastic film. The cost of plastic bag packaging is several times higher. In addition, due to the large increase in volume, instant noodles in bowls are more convenient than those in bags, and the demand for cartons has also increased by two to three times.
New trend of instant noodle packaging market
Statistics show that the retail sales of China's instant noodle market increased from about 80 billion yuan in 2012 to 81.2 billion yuan in 2016, bringing about about 15 billion demand for the packaging market. According to the statistics of the "forecast report on the development prospects of China's instant noodle market in 2017-2022" released by the China Business Industry Research Institute, the Chinese instant noodle market may maintain a stable growth in the future (calculated by retail sales). It is estimated that the retail sales of China's instant noodle market will reach about 93.7 billion yuan in 2021, with a compound annual growth rate of about 2.9% from 2016 to 2021.
Data source: frost Sullivan, China Business Industry Research Institute
One encouraging sign for the packaging industry is that with the popularity of high-end instant noodles, instant cup noodles and convenient bowl noodles have increased significantly. In 2016, the retail sales and retail sales of convenient cup noodles and instant bowl noodles in China reached 38.3 billion yuan and 12.8 billion copies, accounting for 47.2% and 34.4% of China's total instant noodle market, respectively. Driven by the continuous increase of consumption capacity and higher demand of consumers for high-quality instant noodles, the growth rate of China's instant cup noodles and instant bowl noodles market will continue to be higher than that of China's bagged instant noodles market, and it is expected to grow at a compound annual growth rate of about 2.3% from 2016 to 2021.
In addition, a new trend began to appear among young people, and instant noodles with unique taste, personalized packaging and elegant packaging became a new growth point.
However, a noteworthy phenomenon is that the gross profit rate of Master Kang fell by 1.86 percentage points to 29.41% in 2017, affected by the price rise of main raw materials such as packaging paper. It can be seen that packaging is the key factor affecting instant noodle profits, which means that packaging plants with cost advantages will be more popular with instant noodle manufacturers.