Ramen boom in Japan: Culinary happiness or bankruptcy crisis?

Ramen boom in Japan: Culinary happiness or bankruptcy crisis?

Yokohama, Japan - Ramen gastronomy in Japan reached a historical high in the 2024 financial year. According to information from Sumikai , the market volume of the sector is around 7,900 billion yen, which corresponds to about 45.8 billion euros. This represents a remarkable increase of 56 percent compared to the 2014 financial year. The boom in the ramen industry is primarily favored by the return of international tourists and the increased popularity in the locals.

The 50-sales 50 companies in the ramen segment operate an estimated 6,200 branches, which is a new high. The "eekei ramen" chain, which originates in Yokohama and combines strong brewing on pork base, is particularly high. In order to meet the big rush, some restaurants have introduced tickets.

cost and price pressure

Despite growth, however, the ramen industry sees itself exposed to considerable economic pressure. The increase in the manufacturing costs for ingredients and energy in particular burden small, individually guided ramen shops. According to an index, the raw raw material index for 2024 is around 129 points, with the cost pressure forces the operators to increase their prices. Especially in central Tokyo, ramen often costs over 1,000 yen, while many shops traditionally lay between 600 and 800 yen at prices.

A survey by Restaurant News Tokyo has also documented an increase in the insolvencies of ramen shops. In the period from January to July 2024, 49 bankruptcy were registered, which represents almost doubling compared to 53 cases in the previous year. The forecasts indicate that the number of bankruptcies could possibly achieve over 100 cases annually, which a record high since 2020.

price increase and ingredient costs

The main reasons for these developments lie in the increasing costs for important ingredients. The prices for pork and backfett rose by almost 20 percent in the year, which increases the economic burden on the ramen restaurants. In addition, rising energy costs are burdened, since ramen shops often have to heat their broth for 24 hours, the operating expenses considerably.

The price index for ramen ingredients was 113.5 in June 2024, which represents a further decline compared to the average of 2022. Causes about the preservation of ramen culture are growing, and it is increasingly necessary to take measures to maintain the quality and find a "fair price" for consumers.

Overall, there is a complex image of the ramen industry in Japan: While the boom is inspired by tourist interest and the expansion of successful chains, many smaller providers are under pressure, which could lead to an increasing number of bankruptcies.