Intro: According to a Japanese poll in the year 2000, "the Japanese believe that their best invention of the twentieth century was instant noodles." As of 2010, approximately 95 billion servings of instant noodles are eaten worldwide every year. China consumes 42 billion packages of instant noodles per year – 44% of world consumption – Indonesia, 14 billion; Japan, 5.3 billion, Vietnam 4.8 billion, USA 4 billion. Per capita, South Koreans consume the greatest amount of instant noodles, 69 per capita per year.Market analysis and trends: The Indian Noodle market has shown a constant growth in its market penetration with increasing customer base. The value sales growth of the noodle market was 26% in 2012 with sales to Rs38.2 billion. The market is expected to grow at a constant value CAGR of 18% over the forecast period. Pouch instant noodles has registered the highest current value growth of 30% in 2012.But the average unit price has increase by 7% in current value terms in 2012. Trends in Indian noodle market
Changing consumer lifestyles: Due to a tremendous change in the lifestyle of the modern man there has been a significant change in the food habits. Long working hours and more number of working women have decreased disposable time and thereby pushed up the demand for convenience foods and ready meals. Increasing number of nuclear families, rise in disposable incomes, young singles with little or no cooking skills, increasing awareness of healthy diets and increased interest in ethnic and international foods, represent additional factors that have a bearing on eating and food preparation habits. Increase in the per Capita disposable income: The per capita disposable income of the Indian customer has increased by over 20% from 2006 to 2013, and has been predicted to increase by more than 50% from 2013 to 2020.This is a clear indication that the demand for noodles will increase in the coming years.
Growing customer base: The emergence of instant noodles has added a new dimension to consumers’ meals. Today noodle is a common snack in most urban and semi-urban households being consumed not just by kids but by consumers across all age groups as an eating option beyond the mundane ones .While it continues to be a home snack, it is also increasingly being consumed at workplace, colleges, etc Geographically too, the appetite for instant noodles is growing with player s now eyeing the semi urban and rural markets. The category’s penetration n is low in India (~20 -25%), thus presenting a lucrative opportunity for growth.
Increasing competition: Competition in the instant noodle segment has intensified with many new entrants in the market. Players such as GlaxoSmithKline (Horlicks Foodles), ITC (Sunfeast Yippee noodles), Capital Foods and Hindustan Unilever launching new products in the market.Private label brands such as Tasty Treat by Future Group (Big Baazar retail chain) have also been launched an it is expected that many more private label brands may hit the market. Even though ‘Maggi’ continues to dominate the market with a share in excess of 75%,the entry of multiple brands and the increasing aggression of existing brands has taken away several percentage points from Maggi’s market share. Launch of new products and Aggressive marketing: There has been a increase in the launch of new products in the recent past accompanied with aggressive marketing campaigns. Maggi has launched an extensive campaign with their new product vegetable multigrain noodle. Top Ramen has changed its positioning with introduction of many new flaours. Tasty Treat increased its variants from two to five. Similarly, Foodles is stressing on the health aspect of its products. To kindle the consumer’s interest in the category and also cater to the diverse and changing tastes of the consumer, instant noodles brands constantly enhance their product offerings by adding new flavors. In addition to the classic Masala and Chicken flavors, a...
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