Nongshim (004370.KS), South Korea's leading instant noodle maker, said Thursday it will establish a local sales subsidiary, Nongshim Rus LLC, in Moscow, Russia in June this year. The new entity comes one year and three months after the company set up its European unit in the Netherlands in March last year. Nongshim aims to tap the Russian ramen market while building a Eurasian base covering the entire Commonwealth of Independent States (CIS) region.
The company said it decided to establish the unit after recognizing the growth potential of Russia's local ramen market. According to Euromonitor, a global market research firm, Russia's ramen market is projected to expand to approximately $1.05 billion by 2030, posting an average annual growth rate of around 10% from 2021. Driven by the recent Korean Wave, demand for Korean ramen has also surged, with Russia's Korean ramen imports jumping 58% year-on-year to $52 million last year.
Nongshim plans to differentiate itself from the mid-to-low-priced products (approximately 1,300 to 1,900 won) that dominate the local market and focus on the premium segment priced around 3,000 won. The company will first target western Russia, where more than 70% of the country's economic output is concentrated, before expanding to central and Far Eastern regions through local partners. To broaden its distribution network, Nongshim will increase product listings at major Russian retailers such as X5 and Magnit, while establishing official brand stores on local e-commerce platforms including Ozon and Wildberries.
Products for the Russian market will be manufactured at the company's export-only plant in Noksan, Busan, which is scheduled for completion in the second half of this year. Nongshim plans to increase supply of locally popular products including Shin Ramyun, Neoguri and Kimchi Ramyun, and will also quickly introduce new products such as Shin Ramyun Toomba and Shin Ramyun Kimchi Stir-fry. The company will also strengthen local marketing by operating pop-up stores tied to major Russian festivals and actively utilizing local social media channels such as VKontakte.
Nongshim plans to expand its sales network to key CIS countries with close economic ties to Russia, including Kazakhstan and Uzbekistan, and leverage the Russian unit as a strategic base for entering the Central Asian market. Nongshim Chairman Shin Dong-won previously said, "We are planning to establish a local subsidiary in Russia this year and considering expansion into the CIS region."
"Russia is a strategic hub connecting Europe and Asia and an attractive market where ramen consumption is rapidly increasing," a Nongshim official said. "Through the Russian unit, we will expand Nongshim's territory and achieve subsidiary revenue of $30 million by 2030."