Nongshim has moved to cooperate on cosmetics development. It is unusual as a "beauty expansion" by a leading ramen company, but what has drawn the industry's attention is the timing. The move came immediately after third-generation Oner Shin Sang-yeol, a Nongshim executive vice president, was appointed as an inside director. Some in the industry see it as the opening salvo signaling the direction of new businesses under Executive Vice President Shin.
On the 26th, according to the retail and food industries, Nongshim recently began research and development (R&D) cooperation with cosmetics maker FICC, using collagen ingredients from the health functional food brand "Lifeill." The structure has Nongshim supplying the ingredients and the partner handling productization, expanding from "ingestible collagen" to "topical collagen."
Executive Vice President Shin is the grandson of the late Chairman Shin Chun-ho and the eldest son of Chairman Shin Dong-won. After being promoted to executive vice president in January this year, Shin has led the Future Business Office, overseeing investment, mergers and acquisitions (M&A), and global business strategy. On the 20th, Shin was appointed as an inside director at Nongshim's regular shareholders meeting, officially joining the forefront of management.
So far, Executive Vice President Shin has pursued the discovery of new businesses such as health functional foods and smart farms. However, cases that have led to visible results remain limited. As a result, the industry has been watching to see what Shin's first move would be after the inside director appointment.
Given this context, the collaboration unveiled this time also appears to be a card played in the process of expanding new businesses. Rather than a single product, it is a strategy to broaden business lines based on ingredients, interpreted as an intent to secure new growth drivers beyond the existing ramen- and snack-centered business structure.
A food industry official said, "Considering that the 'beauty business collaboration' was disclosed four days after the inside director appointment, it is indeed more about showing the direction of new businesses to the outside," adding, "It reads as a signal to put more weight behind a particular business among the new ventures that had been scattered." A retail industry official said, "Lifeill started as a new business from an in-house venture," and added, "From the perspective of the potential transition to an ingredient-based business, it seems they want to gauge whether functional ingredients held by a food company can expand into the inner beauty and beauty markets."
Nongshim's latest move also aligns with the broader trend in the food industry to diversify into beauty. Notably, CJ CheilJedang's health supplement subsidiary CJ Wellcare is maintaining an inner-beauty strategy while focusing on advancing functional ingredients, and hy (formerly Korea Yakult) is expanding its beauty business into inner-beauty and ampoule/skin-care products by using probiotic-based ingredients.
A Nongshim official said, "This collaboration is at the level of ingredient-based technology cooperation, so it is hard to view it as a separate entry into the cosmetics business," adding, "Lifeill is already a brand operated as a separate business unit. It was pursued as an extension of existing business."
In the industry, there is attention on whether Nongshim's beauty collaboration will take root as one pillar of a core new growth driver. A food industry official said, "Business expansion and diversification based on functional ingredients is a trend across the industry," but added, "To settle it as an actual business, they must establish brand, distribution, and revenue structure, so execution power to drive the new business will be crucial."
Lee Jong-woo, a professor of business administration at Ajou University, said, "Health functional foods and cosmetics have entirely different industrial structures and required capabilities, so a food company does not immediately secure competitiveness just because it has functional ingredients," adding, "However, as part of seeking new growth drivers, this move reflects an intent to gauge market reaction, and it appears to be a process of setting the direction for new businesses under the third-generation Oner system."