Eliza Wong
Market Dynamics Shift in China’s Instant Noodle Industry
The competitive landscape of China’s instant noodle industry reveals stark contrasts as market leaders Uni-President Enterprises China (统一企业中国) and Tingyi Holding Corp. (康师傅控股) release their 2025 mid-year financial reports. While Uni-President celebrated a robust 10.6% revenue increase, Kangshifu faced a concerning 2.7% decline – its first mid-year revenue drop in five years. This divergence highlights evolving consumer preferences, strategic pivots, and fundamentally different approaches to navigating China’s rapidly changing FMCG market. The performance gap underscores how product innovation, diversification strategies, and operational efficiencies are reshaping the future of China’s instant noodle industry.
- Uni-President achieved 10.6% revenue growth to ¥17.087 billion while Kangshifu declined 2.7% to ¥40.092 billion
- Kangshifu’s instant noodle sales decreased by ¥350 million despite profit growth through cost optimization
- Both companies reported double-digit net profit increases through margin improvement strategies
- Contract manufacturing emerged as Uni-President’s fastest-growing segment at 159.5% growth
- Tingyi’s revenue decline marks a significant reversal after years of slowing growth momentum
Revenue Performance: Divergent Trajectories
The 2025 mid-year reports paint dramatically different pictures for China’s instant noodle giants. Uni-President Enterprises China (统一企业中国) reported total revenue of ¥17.087 billion, representing a healthy 10.6% year-over-year increase. This growth was powered by balanced expansion across their food and beverage divisions, demonstrating resilience in China’s competitive consumer goods market.
Uni-President’s Multi-Engine Growth Strategy
Uni-President’s diversified portfolio delivered consistent results across categories:
- Food Business: ¥5.382 billion revenue (8.8% growth, 31.5% of total)
- Beverage Business: ¥10.788 billion revenue (7.6% growth, 63.1% of total)
- Other Business: ¥916 million revenue (91.6% growth, 5.4% of total)
While the company didn’t disclose specific instant noodle sales figures, management highlighted strong performance from premium brands including “Tang Da Ren” (汤达人), “Uni-President Old Altar Pickled Cabbage Beef Noodles” (统一老坛酸菜牛肉面), “Qie Huang” (茄皇), and “Man Han Da Can” (满汉大餐). This brand-focused approach continues to resonate in China’s instant noodle industry where premiumization trends accelerate.
Kangshifu’s Unexpected Revenue Contraction
Tingyi Holding Corp. (康师傅控股) reported concerning results with total revenue declining 2.7% year-over-year to ¥40.092 billion – representing approximately ¥1.1 billion in lost sales. The contraction was particularly noticeable in their core categories:
- Instant Noodle Business: ¥13.465 billion revenue (-2.5%, 33.6% of total)
- Beverage Business: ¥26.359 billion revenue (-2.6%, 65.7% of total)
- Other Businesses: ¥268 million revenue (-16.7%)
This marks Kangshifu’s first mid-year revenue decline since 2019, signaling persistent challenges in China’s instant noodle industry. The company acknowledged “market pressure and product restructuring” without providing detailed explanations. Product category analysis reveals a mixed picture:
- Container Noodles: -1.3% decline
- Premium Bagged Noodles: -7.2% decline
- Mid-Price Bagged Noodles: +8.0% growth
- Snack Noodles: +14.5% growth
Profitability Analysis: Margin Improvements Drive Gains
Despite divergent revenue performance, both companies delivered impressive profit growth through strategic cost management and operational efficiencies. This paradox highlights how margin optimization has become critical in China’s competitive instant noodle industry.
Kangshifu’s Profit Surprise
Tingyi achieved remarkable profitability despite revenue headwinds:
- Gross Margin: Increased 1.9 percentage points to 34.5%
- Net Profit: ¥2.271 billion (+20.5% YoY)
Breakdown by division reveals successful margin strategies:
- Instant Noodles: Gross margin up 0.7 points to 27.8%, profit up 11.9% to ¥951 million
- Beverages: Gross margin up 2.5 points to 37.7%, profit up 19.7% to ¥1.335 billion
The company attributed these gains to product upgrades, pricing adjustments, favorable raw material costs, and improved operational efficiency – proving that profitability doesn’t always mirror top-line performance in China’s instant noodle industry.
Uni-President’s Profit Acceleration
Uni-President leveraged its revenue growth into even stronger profit expansion:
- Net Profit: ¥1.287 billion (+33.2% YoY)
- Gross Margin: 34.3% (+0.5 percentage points)
Segment profitability showed impressive momentum:
- Food Business: ¥189 million profit (+32.2%)
- Beverage Business: ¥1.579 billion profit (+25.6%)
- Other Businesses: ¥105 million profit (+190%)
The company’s overall margin improvement stemmed from production efficiencies at increased volumes and favorable raw material costs. Beverage margins showed particular strength at 39.4% (+1.4 points), while food margins slightly contracted to 26.8% (-0.4 points) – reflecting different competitive dynamics within China’s instant noodle industry and beverage sector.
Historical Context and Growth Trends
Examining multi-year patterns provides deeper insight into the current state of China’s instant noodle industry. Both companies have navigated shifting consumer preferences and economic headwinds with varying success.
Tingyi’s Gradual Slowdown
Kangshifu’s 2025 decline represents the culmination of a four-year slowdown:
- 2022 H1 Growth: +7.97%
- 2023 H1 Growth: +7.04%
- 2024 H1 Growth: +0.7%
- 2025 H1 Growth: -2.7%
This pattern is particularly evident in their core instant noodle division:
- 2022 H1: +6.49%
- 2023 H1: +2.97%
- 2024 H1: -1.0%
- 2025 H1: -2.5%
The consistent deceleration suggests structural challenges in maintaining market position within China’s evolving instant noodle industry rather than temporary setbacks.
Uni-President’s Resilient Performance
Uni-President demonstrated stronger momentum through the same period:
- 2021 H1: +10.1%
- 2022 H1: +7.2%
- 2023 H1: +4.5%
- 2024 H1: +6.0%
- 2025 H1: +10.6%
The 2025 acceleration suggests successful adaptation to changing market dynamics in China’s instant noodle industry. Their strategic emphasis on premium noodle brands and explosive growth in contract manufacturing (¥671 million revenue, +159.5% YoY) demonstrates effective portfolio diversification beyond traditional categories.
Category Breakdown and Growth Drivers
Beyond instant noodles, both companies revealed important trends in complementary categories that influence their overall performance in China’s competitive FMCG landscape.
Uni-President’s Beverage Strength
The company’s beverage division (63.1% of total revenue) showed balanced growth:
- Tea Beverages: ¥5.068 billion (+9.1%)
- Juices: ¥1.821 billion (+1.7%)
- Milk Tea: ¥3.398 billion (+3.5%)
- Coffee and Bottled Water: Undisclosed
This diversified beverage portfolio provides stability amid fluctuations in China’s instant noodle industry. The company’s “strategic alliance contract manufacturing” deserves special attention – this ¥671 million segment grew 159.5% year-over-year, leveraging Uni-President’s production infrastructure and R&D capabilities to serve third-party brands.
Kangshifu’s Beverage Challenges
Tingyi’s beverage division (65.7% of total revenue) faced significant headwinds:
- Ready-to-Drink Tea: -6.3%
- Bottled Water: -6.0%
- Juices: -13.0%
- Carbonated Drinks: +6.3%
The widespread declines in key categories suggest broader challenges beyond China’s instant noodle industry. The growth in carbonated drinks provides limited consolation given the scale of declines elsewhere. These results indicate potential brand positioning or distribution issues requiring strategic attention.
The Future of China’s Instant Noodle Industry
Both companies acknowledged significant shifts coming to China’s instant noodle industry and broader FMCG sector. Their forward-looking statements reveal strategic priorities for navigating evolving consumer demands.
Uni-President’s Growth Roadmap
Management emphasized three key focus areas:
- Value Leadership: Prioritizing high-quality, affordable products
- Health Innovation: Developing healthier formulations and premium offerings
- Emotional Connection: Creating products with strong lifestyle appeal
Their contract manufacturing expansion indicates confidence in leveraging production capabilities beyond owned brands – a potential game-changer in China’s asset-intensive instant noodle industry. The company explicitly stated: “Emerging channels’ diversified layout creates new growth momentum for the group.”
Kangshifu’s Transformation Imperative
Tingyi acknowledged substantial challenges ahead:
- Complex Economic Environment: Anticipating continued market volatility
- Health-Conscious Consumers: Rising demand for nutritious, high-quality products
- Brand Relevance: Strengthening consumer trust and connection
The company outlined a four-pillar response strategy focusing on product innovation, channel optimization, trust building, and consumer engagement. Successfully executing this transformation will be critical for Kangshifu’s position in China’s instant noodle industry.
Strategic Implications for China’s FMCG Sector
The contrasting performances of these instant noodle giants reveal broader truths about China’s rapidly evolving consumer goods market. Uni-President’s growth demonstrates the power of diversification beyond traditional categories – particularly their contract manufacturing business which now represents 3.9% of total revenue. Meanwhile, Kangshifu’s profit growth despite revenue contraction shows how operational excellence can partially offset market share challenges in China’s competitive instant noodle industry.
Investors should monitor several critical indicators moving forward: product innovation pipelines in the premium noodle segment, margin sustainability amid commodity price fluctuations, and successful implementation of channel strategies targeting China’s fragmented retail landscape. The coming year will test whether Kangshifu’s profit-focused approach can translate into revenue recovery, and if Uni-President can maintain momentum across its diversified portfolio. Consumer behavior analysis suggests health-focused innovation will become increasingly important in China’s instant noodle industry as demographic shifts accelerate.
For industry stakeholders, these results underscore the importance of agility in product development, efficiency in operations, and diversification beyond core categories. The next evolution of China’s instant noodle industry appears to favor companies that balance traditional mass-market products with premium innovations while developing alternative revenue streams. Track these companies’ quarterly reports for early signals of strategic shifts and monitor emerging competitors disrupting this space with novel business models and products.
