1、ab23 July 2025Global ResearchJapan Food SectorWhat Nielsen data says about the US instant noodle market(July 2025)Investors are concerned about weak overall demand and competitive environment for US instant noodle marketAt the FY3/25 results,Toyo Suisan announced bold price increases in the US from

2、July.While this should have raised expectations for margin improvement,the share price has remained static even after the results announcement.Toyo Suisan and Nissin Foods reported weak sales volumes of instant noodles in the US in Q4 FY3/25,falling 5%and at a mid-single-digit rate,respectively.With

3、 overall demand in the US instant noodle market sluggish and South Korean firms competing for share,the stock market seems to have reservations as to whether the boost from price hikes can be maximized.We have used the most recent Nielsen data to look at sales trends at Toyo Suisan,Nissin Foods,and

4、South Korean manufacturers.Toyo Suisans unit prices are starting to rise on price hikes,but a volume impact is also emergingFigures 1-2 track yoy changes in US sales volume as disclosed by Toyo Suisan and Nissin Foods,and as shown in Nielsen data.Although there are some retail chains that Nielsen do

5、es not cover,actuals and Nielsen data tend to correlate closely.Figure 3 shows weekly yoy changes in Nissin Foods and Toyo Suisans unit prices,based on Nielsen data.This data tracks instant noodle prices overall,for both bagged and cup noodle products,and as such it reflects a mix of prices.As the f

6、igures indicate,Nielsen data for Toyo Suisan sales volumes remain at a low level,with erosion of-1%both in April-June 2025 and in July.For Nissin Foods,sales volume continued to be weak,declining by-14%in April-June 2025 and by-13%in July.Among South Korean manufacturers,Nongshims sales volumes were