Nongshim Expands Snack Lineup to Revive Struggling K-Snack Exports

While K-food continues to gain global popularity with growing exports of instant noodles and other products, Korean snacks remain notably sluggish. In response, Nongshim (004370.KS), the dominant player in Korea's snack market, is expanding its business through new product launches to improve performance.

According to industry sources on Wednesday, Nongshim filed trademark applications for snack-related brands including "Basakchuri" and "Nongshim Basakchuri Gotui" earlier this month. Over the past year, the company has filed trademarks for various snack brands including Neoguling, Crunchco, Nurungji Pop, Melon Kick, Pangbro, and Bread Bro. "We are filing trademarks for various product concepts to expand our snack business next year," a Nongshim official said.

Nongshim has significantly strengthened its new snack product lineup this year. In April, the company launched Melon Kick, the first new addition to its "Kick series" in approximately 50 years following Banana Kick. In August, it introduced Wasabi Shrimp Chips, a new product in the Shrimp Chips series. Wasabi Shrimp Chips sold 1.8 million bags within two weeks of launch, while Melon Kick is now being sold in North America following strong domestic reception.

Other new products launched this year include Dried Pollack Snack in Gochujang Mayo flavor, three Cleopatra varieties, and Potato Chips in K-Yangnyeom Chicken flavor. Unlike existing products, Nongshim also launched Nurungji Pop in April through original equipment manufacturing (OEM). "This year alone, we launched nine new snack products, the most since the 1980s," a Nongshim official said.

In its "Vision 2030" announced earlier this year, Nongshim declared a "dual-core" strategy to develop snacks as its second core business alongside instant noodles. At an investor relations meeting last month, the company stated, "Snacks represent the largest segment of the global processed food market and have significant potential. We are reviewing plans to establish overseas production bases and pursue partnerships with capable local companies."

Nongshim's snack business has underperformed compared to other categories such as instant noodles. While the company's revenue from instant noodles and beverages increased 5% and 4.8%, respectively, in 2024 compared to 2023, snack revenue declined 2.4%. In the first three quarters of this year, snack revenue reached 381.2 billion won, up only 0.9% from 377.8 billion won in the same period last year, lagging behind instant noodles' 5.4% growth. Domestic market share for instant noodles rose from 56% in 2023 to 56.3% in 2024, but snack market share fell from 32.7% to 32.5%.

The struggles of Nongshim and the broader K-snack industry are reflected in export statistics. According to Korea Customs Service data, K-food exports rose 7.0% year-on-year in the January-November period, with most categories showing growth including instant noodles (21.4%), ice cream (20.8%), bread (13.7%), and seaweed (13.3%). However, among K-food categories, only confectionery and soju exports declined, falling 1.9% and 9.6%, respectively.

"In the snack market, consumers tend to stick with familiar products, and global players like Nestlé, PepsiCo, and Mars have strong positions, making new market entry difficult," an industry official said. "Unlike K-instant noodles, which compete on spicy flavors, K-snacks lack a clear distinctive characteristic. For the time being, aggressive investment will be essential to penetrate global markets."