Cardi B and BTS Fuel U.S. Craze for Korean Fire Noodles

Samyang’s Carbo Buldak Noodles gain popularity worldwide
Loved by celebrities like Cardi B and BTS
Sales surged 71.45% from last year

The New York Times recently covered a story on the U.S. shortage of Samyang Carbo Buldak Nuclear Fire Fried Super Hot Spicy Noodle, a popular item selected by Kim Jeong Soo, Vice Chairman of Samyang Round Square.

According to Samyang Foods on the 22nd, The New York Times reported, “Though bulk carbonara ramen is sold at major U.S. retailers, including Amazon, Walmart, and Carrs-Safeway, as well as Korean grocery stores, the internet is filled with reports about the elusive noodles.”

The Buldak Noodles, often referred to as “fire noodles,” have become even more popular as they are frequently eaten by American rapper Cardi B and members of BTS.

The New York Times mentioned three significant reasons for the phenomenal popularity of Carbo Fire Noodles. First, despite being instant noodles, they break the mold by replicating the luxurious taste of Carbonara. Second, they allow for flexible recipe modifications. Most American consumers create their own or recommended recipes to achieve a taste that suits them.

Lastly, they cited the pink packaging as a reason. They analyzed that the product has gained popularity by transcending food and becoming a part of fashion culture.

According to the financial industry, food stocks are gaining tremendous popularity in overseas markets and showing strong performance. This is due to the expected benefits from currency exchange gains, as companies that have grown their overseas businesses, including exports, benefit from the exchange rates.

Among them, the stock price of Samyang, the company behind the Buldak Noodles loved by both domestic and foreign stars, is heating up.

According to the Korea Exchange, as of the 23rd, Samyang Foods closed at about $244, up 8.12% from the previous day. This represents a sharp increase of 71.45% compared to the $149 reached at the end of February.

The rally in Samyang Foods’ stock price was fueled by the rise in exchange rates, which effectively boosted growth. This is because the Buldak Noodles series, which is popular overseas, has a high export ratio and is reflected in sales profits.

According to industry sources, Buldak Noodles has a very steep growth rate of exports.

Samyang Foods’ noodle and snack exports reached about $502 million in 2022, up 56.24% from about $321 million in 2021, and recorded a whopping about $661 million in sales last year (2023), rapidly growing by 31.65% over the previous year.

Based on last year’s performance, Samyang Foods’ total sales amounted to about $995 million, of which exports accounted for about $674 million, constituting more than half, or 67.85%, of the total.

The growth in exports is expected to continue. The popularity of the new product, Carbo Buldak Noodles, continues as media outlets compete to report on its scarcity in the U.S.

In particular, a video featuring Keith Lee, a TikTok influencer with a massive following of 16.1 million, introducing the Carbo Buldak Noodles recorded explosive views, bringing significant ripple effects, and is expected to continue.

Kim Tae Hyun, an IBK Investment & Securities researcher, analyzed, “Until 2022, the original Buldak Noodles made up about 50% of Samyang Foods’ exported products, but last year it shrunk to around 40%. The diversification of exported products, such as Carbo Buldak Noodles, is a very positive factor in the potential for growth and sustainability in overseas markets.” Samyang Foods’ operating profit consensus (average estimate of securities firms) for the first quarter is estimated at $34.4 million, forming a dominant consensus that it will increase by 72.8% compared to a year ago.

Meanwhile, among the companies that actively operate overseas operations, Nongshim and CJ CheilJedang have seen fluctuations in their stock prices. They expect to gain foreign exchange profit due to the strong dollar.

Nongshim’s stock price has strengthened, rising about 13.65% since March. Experts note that while this increase may not seem significant, it is important because it follows a steady decline after announcing last year’s third-quarter results. Additionally, Nongshim is set to launch a new production line in its second U.S. factory in the third quarter of this year, which is expected to boost its overseas sales further.

Following this, CJ CheilJedang is expanding its local business by announcing the acquisition of Schwan’s, a U.S. frozen food company. Schwan’s recently announced the acquisition of Cosmos Foods, a U.S. kimchi manufacturer, and is jumping into kimchi production, boasting a diverse product lineup.