Hong Kong-based Nissin Foods has entered into a joint venture (JV) agreement with Nissin Asia to form Australia Nissin Foods and expand its overseas market presence. The JV company will primarily focus on importing and selling instant noodles, snacks, cereals and other food products in Australia and New Zealand.

Upon incorporation, Australia Nissin Foods will be owned 51% by the Group and 49% by Nissin Asia.

Kiyotaka Ando, executive director, chairman and CEO of Nissin Foods, says: “The establishment of Australia Nissin Foods represents a significant milestone in our Group’s international outreach, strengthening our presence in the Australian and New Zealand markets.”

“Building on the strategic acquisition of ABC Pastry, which diversifies our product portfolio, this joint venture will reinforce our market position in these two markets.”

“It will also broaden the revenue streams of the Group over time. By capitalizing on a series of strategic M&A initiatives, we are enhancing operational efficiency and better aligning with evolving consumer preferences.”

The Group will contribute AUD1,020,000 (HK$5,232,600) (US$673,018) in cash to the Australia Nissin Foods’ share capital, which will be financed from the Group’s internal resources. The JV company will become a “non-wholly-owned” subsidiary of the Group and its financial results will be consolidated into the Group’s consolidated financial statements.

Tapping regional potential

The instant noodle markets in Australia and New Zealand have experienced growth in recent years. In Australia, demand rose from 420 million servings in 2019 to 500 million in 2023, achieving a CAGR of 4.5%, says Nissin Foods.

Meanwhile, in New Zealand, demand went up from 90 million to 110 million servings, with a CAGR of 5.1%. Both the regions outperformed the corresponding global CAGR of 3.1%.

According to Nissin Foods, this growth trend will continue to rise as the populations of Australia and New Zealand grow. This will be driven especially by Asian migration to these countries, which presents sufficient opportunities for expanding the instant noodles market.

Additionally, Nissin Foods believes that Nissin Asia, which provides managerial or support services to its subsidiaries which manufacture and sell instant noodles in Thailand, Indonesia, Singapore, Cambodia and Malaysia, will play a vital role in strengthening the distribution and expansion of the products in Australia and New Zealand.

Last year, Nissin Foods USA launched its cup noodles that blend ramen with breakfast flavors, including pancakes, maple syrup, sausage and eggs.