Nongshim is accelerating its global expansion this year by setting up a Russia unit.

Nongshim said on Tuesday it will establish a local sales unit, Nongshim Russia (Nongshim Rus LLC), in Moscow in June. It is the company’s first new unit in 1 year and 3 months since it set up a European unit in the Netherlands in March. The company plans to step up its push into Russia’s fast-growing instant noodle market and to establish a base to target the broader “Eurasian instant noodle market” covering the Commonwealth of Independent States (CIS).

Nongshim will target the premium instant noodle market in Russia. Mainstream instant noodle products there are mostly in the low- to mid-priced range of 70 to 100 roubles, or about 1,300 to 1,900 won. Nongshim will instead target the premium segment priced at 200 roubles or more.

Nongshim cited the growth potential of Russia’s instant noodle market as a reason for setting up the unit. Global market research firm Euromonitor forecasts the market will post annual average growth of more than 10 percent from 2021 to 2030 and expand to about $1.05 billion, or about 1.5 trillion won.

The company said it sees rising preference for Korean instant noodles in Russia, driven by a recent Korean Wave boom including K-pop and dramas. Russia’s imports of Korean instant noodles totalled $52 million last year, up 58 percent from a year earlier.

Nongshim’s Russia unit will be set up in the capital, Moscow. Nongshim plans to first target the western market, where more than 70 percent of Russia’s economic power is concentrated, and expand coverage to central and far eastern regions through local companies.

To expand its sales network, Nongshim plans to increase product listings at major nationwide retailers, including federal chains X5 and Magnit, and to identify key regional distributors to broaden consumer touchpoints. It also plans to build official brand stores on leading Russian e-commerce platforms, including Ozon and Wildberries, to complement the large Russian market through online channels.

Product supply is expected to come from an export-only plant in Busan’s Noksan area that is scheduled for completion in the second half of the year. Based on sufficient production capacity, Nongshim plans to increase supply of products preferred locally, including Shin Ramyun, Neoguri and Kimchi Ramyun. It will also quickly prepare trendy new products such as Shin Ramyun Toomba and Shin Ramyun Kimchi Fried Noodles.

It will also strengthen local consumer marketing in Russia. The company plans on-site promotions such as pop-up stores linked to major festivals and will actively use channels such as local social networking service Vkontakte to strengthen communication across online and offline.

The Russia unit will also expand its sales network to key CIS countries that are economically closely connected to Russia, including Kazakhstan and Uzbekistan, and serve as a key hub for targeting the Central Asian market.

A Nongshim official said, “Russia is a strategic location connecting Europe and Asia and an attractive market where instant noodle consumption is rising rapidly.” The official said, “Through the Russia unit, we will expand Nongshim’s territory not only in Russia but also across the CIS and achieve unit sales of $30 million by 2030.”