Japanese food giant Nissin Foods Holding is pushing its premium instant noodle offerings in the Americas in line with its goal to achieve $7 billion in revenue by 2030, an ambitious 36% increase from the current fiscal year.
The Americas, which include the United States, Brazil, and Mexico, represent Nissin’s second-largest market, generating 29% of its total operating profit share in 2023, just behind Japan. To support this strategy, Nissin also announced a $228 million investment in a third U.S. factory in South Carolina, expected to begin operations by August 2025.
We will make aggressive marketing investment and strategic spending in the Americas as we aim for growth in the 10% range
Nissin Foods Chief Financial Officer Takashi Yano
this year.
Nissin’s shift towards premium products, marketed as a more affordable alternative to restaurant ramen, began around 2019 amid a challenging price war with its competitors. This strategic move helped Nissin’s U.S. unit achieve its first net profit in Q3 2022.
However, the outlook for 2024 is uncertain.
Nissin faces stiff competition from Toyo Suisan, the parent company of the Maruchan brand, which currently has a 60% share of the U.S. instant noodle market. Toyo Suisan plans to increase its California plant’s capacity by 20%, signaling intensified competition.
Rei Ihara of UBS Securities Japan predicts a challenging market landscape as these expansions unfold.
“We will make aggressive marketing investment and strategic spending in the Americas as we aim for growth in the 10% range this year,” said Nissin Foods Chief Financial Officer Takashi Yano in a statement.
