The Japanese firm, which first developed instant noodles, sold its interests for RMB450m (US$70m) to Jinmailang to expand its Chinese business through local subsidiaries.
According to Euromonitor International, China's instant noodle market is worth RMB92bn (US$14.4bn), with Nissin’s low-single-figure market share seeing slow progress in gaining share over recent years.
According to Nissin financial statement earlier this year, its Chinese cup noodle sales were rising mainly in areas where its products had been newly introduced, as well as the eastern and southern areas of China where they are popular with younger consumers.
Li Yujing, a senior analyst at Mintel, told China Daily that the country’s instant noodle market had dropped in value over the past two years as consumers have become more health conscious. This, Li said, was the most likely reason behind Nissin's shift in strategy toward selling more of its own products.
She said there has also been a growing preference for foreign brands of instant noodles, particularly in the larger cities such as Beijing and Shanghai, which also bodes well for Nissin.