The Global Surge of Samyang Foods’ Buldak: A New Turning Point for the K-Food Industry with a 44% Revenue Increase in Q3

The Korean food industry is seeking new growth drivers in the global market, and the Q3 performance of Samyang Foods (based in Seoul) vividly demonstrates the potential for K-Food’s international expansion. As of November 2025, the global instant noodle market is expanding at an average annual growth rate of 3.2%, reaching approximately $47 billion, with the premium segment showing a high growth rate of 7.8% annually. The increasing interest in Asian cuisine in Western countries, combined with the viral marketing effects of social media, is accelerating the overseas expansion of Korean food brands.

Samyang Foods’ Q3 2025 results concretely exemplify this trend. The company achieved a revenue of 632 billion KRW (a 44.0% increase from the same period last year), an operating profit of 130.9 billion KRW (a 49.9% increase), and a net profit of 110.2 billion KRW (an 87.2% increase), exceeding consensus estimates by 6.6% in revenue and 0.5% in operating profit. This success is not merely a triumph for one company but a testament to the global competitiveness of the Korean food industry. It is rare for Asian brands to successfully enter mainstream Western distribution channels, and Samyang Foods’ achievements are expected to serve as an important benchmark for other K-Food brands’ overseas expansion strategies.

Explosive Growth in the Chinese and U.S. Markets

Analyzing Samyang Foods’ regional performance, the growth in the Chinese and U.S. markets is particularly noteworthy. Chinese sales reached 184.6 billion KRW, increasing by 47% from the previous quarter and 70% year-on-year, while U.S. sales grew to 155.5 billion KRW, marking an 18% increase from the previous quarter and a 63% increase year-on-year. These figures indicate that Korean brands have reached a level where they can compete with local brands in the global noodle market. In China, the demand is so robust that sales outpace inventory replenishment, suggesting successful brand power and product differentiation.

The success factors in the Chinese market include increased penetration in second-tier cities and a rise in online sales as key drivers. The penetration rate in second-tier cities increased from around 50% in Q2, showing growth in Q3, with continued expansion of trading partners and strong growth in snack shop channels. This is interpreted as a result aligned with changing consumption patterns in China, such as the increase in single-person households, the spread of late-night dining culture, and the growing preference for spicy flavors, all supporting the growth of Buldak Bokkeummyun. Among products, while the original Buldak maintains steady growth, the notable rise of the carbonara flavor demonstrates the success of localization strategies.

The performance in the U.S. market is even more remarkable. In terms of channel sales composition, mainstream channels expanded to 64.9% from 59.3% in the previous quarter, while ethnic channels decreased to 24.7% from 29.8%. This indicates that Korean food is spreading beyond specific ethnic communities to mainstream American consumers. Walmart’s entry rate is in the high 90% range, and per-store sales are increasing at major retailers like Target and Kroger, with significant sales contributions starting from Q3 at Sam’s Club, which began stocking in June. Notably, despite a price increase in October, there was no price resistance, proving brand loyalty and product competitiveness.

In Europe, significant growth is also evident. European sales reached 52.5 billion KRW, marking an explosive growth of 49.8 billion KRW year-on-year. Sales increased quarter-on-quarter through network expansion, with particularly strong growth in the UK and steady growth in Italy, the Netherlands, and France. Although export volumes to Europe have decreased, this is a temporary phenomenon due to the transition from exports to direct corporate operations, expected to be completed by Q1 next year. This shift to a local corporate structure is anticipated to contribute to long-term margin improvement and enhanced market responsiveness.

Profitability Improvement and Production Capacity Expansion Strategy

Samyang Foods’ Q3 operating profit margin (OPM) was 20.6%, up 0.7 percentage points year-on-year but down 1.1 percentage points from the previous quarter. This reflects increased tariff costs and one-time expenses from the initial operation of the Miryang Plant 2. The cost ratio rose by 4.9 percentage points quarter-on-quarter and 2.2 percentage points year-on-year, due to tariff impacts and increased labor, depreciation, and manufacturing expenses from the Miryang Plant 2 operation. However, from Q4, operating profit margins are expected to improve significantly quarter-on-quarter due to the effects of price increases and increased operation rates at Miryang Plant 2.

In terms of selling and administrative expenses, there were several notable changes. Transportation costs decreased by 2.5 billion KRW quarter-on-quarter, due to reduced operating days from the suspension of weekend overtime at existing plants in July-August. Advertising expenses decreased by 6 billion KRW quarter-on-quarter, as there were no separate campaigns in Q3. Advertising expenses are expected to recover to Q2 levels in Q4. Conversely, commission fees increased by 5.6 billion KRW quarter-on-quarter, reflecting the variable nature of increased sales and outsourced service fees.

The effect of the price increase in the U.S. is particularly noteworthy. Most tariff costs are expected to be offset after the price increase, with no price resistance observed in major mainstream channels. Both sales and volumes in the U.S. increased in October compared to the previous month, confirming low price elasticity. This indicates successful positioning as a premium brand, suggesting potential for further price increases.

The operational status of the Miryang Plant 2 is also noteworthy. Currently, three bag noodle lines are operating in two shifts, and one cup noodle line is operating in one shift, with continuous improvements in plant operation rates and efficiency through workforce expansion. Although the initial goal was full capacity operation of cup noodles by year-end, plans were adjusted due to increased demand for bag noodles in China. As China can only be addressed with bag noodles, stabilizing bag noodle volumes by year-end is the priority. The increase in U.S.-bound volumes is expected to begin in earnest early next year. This production capacity expansion is a proactive investment to meet growing global demand and is expected to form the basis for future sales growth.

Samyang Foods’ success in the global instant noodle market offers several insights. First, the effectiveness of viral marketing through social media. Buldak Bokkeummyun became known overseas through the ‘Fire Noodle Challenge,’ naturally building brand awareness. Second, the balance of localization and differentiation. While maintaining Korean characteristics, a product lineup that suits local tastes was established. Third, the strategy of diversifying distribution channels. Starting from ethnic markets and expanding to mainstream channels was a successful phased approach. This successful model will serve as an important reference for other K-Food brands.

Looking ahead, Samyang Foods is expected to continue its robust growth in Q4. Profitability is expected to improve as the effects of price increases and production capacity expansion take full effect. In the long term, expansion into Canada, Mexico, and Latin America is also being considered, suggesting sustained growth momentum. However, tariff risks, exchange rate fluctuations, and intensified local competition are factors that need continuous monitoring. Overall, Samyang Foods’ success signals a positive breakthrough for the global expansion of the K-Food industry and presents a new growth paradigm for the Korean food industry.

*This analysis is intended for general informational purposes, and responsibility for investment decisions rests with the investor.