A salesperson prepares a bowl of instant noodles at a food fair in Beijing in September. [Photo by Dafei/For China Daily]
Fan Xianguo, chairman of Jinmailang Mianpin Co, said, "The consumption of instant noodles will be stable in terms of quantity, but a market worth about 50 billion yuan in China could be triggered due to the improvement in the quality of instant noodles."
Fan attributes the company's growth to its precise awareness of consumers' changing needs.
To dispel consumers' fears that eating instant noodles is unhealthy, it uses special freezing and steaming techniques to make its products taste more like freshly-cooked dishes, and also adds some fried ingredients, including scrambled eggs with tomatoes, and shredded pork with green pepper.
"Moreover, we will diversify our sales channels and offer different products to consumers in different regions," he said. For example, in airline lounges, Jinmailang has offered its non-fried noodles whose taste is closer to those that are freshly cooked to business travelers requiring both convenience and quality.
Fan said, "Jinmailang has also expanded its sales to South Korea, bringing Chinese flavor to overseas markets, which has been extremely popular," adding that the company sells 4,800 units a day of Sichuan-style instant noodles with sesame sauce at its South Korean convenience stores.
Xue Enyuan, executive director of convenience store chain Bianlifeng, said that from January to October, daily sales of instant noodles at each of its stores on average rose by of 128 percent year- on-year. Bianlifeng sells seven brands of noodles, including products from Japan and South Korea.
Xue said more Chinese consumers are increasingly willing to try new products or those of niche brands. The company's stores have been introducing new brands, one of the most popular being instant noodles that feature the soft drink Sprite among their ingredients. The recipe for these noodles, which initially sold well online and were later introduced to physical stores, was developed by film star Huang Lei.
"This product sells very well in our stores," he said. "'Star effect' may be one reason, but the other main one is young consumers' curiosity and pursuit of products that are well-known online."
He said that compared with traditional flavors, many well-known and high-end products sold online by different manufacturers have proved to be extremely popular with consumers, as they have added more variety to the instant noodle market.
"In the past, who would have thought about adding Sprite to the seasoning of noodles? Would the flavor produced be a nice surprise or a total disaster? I'm sure many consumers bought it for the first time out of curiosity, " he said.
Xue said that the pace of life quickening, people are becoming increasingly reluctant to cook. Moreover, due to an increase in the number of those who are single, more consumers are looking for 'food for one'.
"Instant noodles cater to consumers' demand for speed and convenience and are just right for one person," he said, adding that the potential for the market is huge.
Ma, from Roland Berger, said the market has become increasingly diversified. On the one hand, there is a large group of people who need to eat conveniently and cheaply, but on the other, some middle-income or young consumers require healthy products with a better taste.
"It is less likely that single-flavor products will cater to all consumers across China," he said. "To retain business, it is critical for instant noodles makers to continue innovating and upgrading their products, whether they be noodles, toppings, soups, the method of production, or design of the bowls and cups."
He added that nearly 60 percent of the sales among several major domestic brands now come from medium and high-end products, but they will have to continue innovating to expand.
"There is great potential for them in making products with flavors tailored specifically for different regions and groups of consumers," Ma said.