Innovation, the major driving force for any industry's sustainable development, is the only way for the instant noodles industry to overcome new challenges that arise from rapid economic development and higher consumer demands.

Innovation, the major driving force for any industry's sustainable development, is the only way for the instant noodles industry to overcome new challenges that arise from rapid economic development and higher consumer demands.?[File Photo]

Tan Bin, vice director of the Cereals and Oils Research Office under the Academy of State Administration of Grain, said that the world's instant noodles industry has undergone three major phases for innovation over the past 50 years, namely noodles innovation in the late 1950s after the instant food was invented in 1958; innovation of seasoning packs between the 1960s and 1990s, during the industry's rapid growth with great attention paid to convenience and taste; and innovations centered on raising the added-value of the products since 2000, with a greater focus on nutrition, safety and taste.

Statistics from the Flour Product Branch of the Chinese Institute of Food Science and Technology (CIFST) show that China has become the world's largest producer and seller of instant noodles. In 2011, the country produced a total of 48.4 billion instant noodles packets, with overall sales amounting to 55.8 billion yuan (US$8.86 billion). The industry is growing towards large-scaled integration, and the number of producers dropped from more than 800 to roughly 80 during the ten year time span between 2000 to 2010.

In the "12th Five-Year Development Plan for the Food Industry" released late last year, the plan clearly stated that sales of instant noodles shall reach 100 billion yuan (US$15.9 billion) by the end of 2015. However, Meng Suhe, secretary-general of CIFST, said that China has a lot to do, appraising the current situation before it can achieve this goal.

Liu Lihua, an official from global market research firm Neilson, said, "Presently, China's instant noodles market is undergoing upgrading and adjustment. Under the background that the price will continue to hike in the forcible future, noodle makers should bring about more new products and occupy the high-end market for further development, in addition to raising the product price and reducing packaging specifications. This [innovation] is the real powerhouse for the industry's sustainable development."

Meng said, "As the world's largest producer of instant noodles, we can tap the possibility of creating an industrial system with Chinese characteristics to differentiate us from the other countries and regions such as Japan, South Korea, Europe and the U.S.. There will be greater potential for development if industrial innovation could be conducted in line with rich Chinese culinary culture to suit consumer taste."

Tingyi, as the industry's leader, has taken Chinese characteristics as the cut-in point for industrial innovation. It has exerted great efforts to draw on the essence of the profound Chinese culinary culture and develop new products based on systematic studies of the production techniques and flavors of local noodles.

In 2008, Tingyi established a special institute to carry out all-round and systematic studies on traditional food and culinary culture. Yang Qianhui, director of the institute, believed that the rich local culinary culture could inspire numerous great ideas for new products. Also at Tianyi's Central Research Institute, there is a professional team conducting in-depth studies on raw materials, including pickles, as well as processing techniques and storage methods.

Tingyi's efforts were rewarded with a diverse range of new products that became hugely popular across the country, from its Northeast China stew flavor, authentic Shanghai flavor, to non-fried silver silk noodles for Guangdong consumers.

Tingyi's pioneering spirit also brought the initiatives of other big companies into full play by introducing customized and healthier products into the market. Uni-President staged its highly-popular pickles flavor noodles, Nissin made a hit with its sea food cup- noodles in South China, and Nong Shim is focused on non-fried buckwheat noodles.

Tan estimated that low salt and low fat are not only important aspects in the healthy strategy, but signifies the trend of the industrial development and product innovation. This is also what Tingyi has been striving to achieve throughout the past years.

Tingyi's innovation efforts have earned it lucrative growth. Within six years from 2006 to 2010, its compound annual growth average is nearly 30 percent. It's now ranked No.1 in China by taking 57 percent of the market share.

The company has taken the initiative to launch technological innovation, which it regards as the DNA of its further development. Its new plant in Tianjin, developed with a total investment of 1.8 billion yuan in 2007, boasts 24 production lines with advanced techniques and equipment. The plant alone has a staggering annual output of 4.8 billion packs of instant noodles, with each production line being able to make 500 packages per minute.

In 2004, Tingyi also introduced the Total Productive Maintenance (TPM) system to enhance production efficiency, save energy and reduce carbon dioxide emission. Its subsidiary in Chongqing Municipality, with the implementation of the TPM system, is now able to save 40,000 tons of water, 200,000 kilowatt-hours of electricity, and 30,000 tons of steam annually. The COD discharge rate is up to standard, and keeps lowering year-by-year.