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The Instant Noodles Market is projected to increase by USD 4,819.91 million from 2022 to 2027. The market is estimated to grow at a CAGR of 3.77% between 2022 and 2027. In 2017 the market size was valued at USD 20,402.35 million.
The increasing demand for regional and ethnic flavours is a major factor driving market growth. The demand for regional and ethnic flavours in instant noodles is growing significantly with the increasing expatriate population base in most major countries. The rising demand for Asian cuisine in the food service sector, through the increasing number of noodle shops, has been encouraging retailers to stock a wide variety of noodles, making the product more readily available to consumers. Furthermore, the preferences for instant noodles are evolving among consumers; especially the young population is eager to experiment and constantly seek different products. Manufacturers strive to meet such demand through product innovation, brand extension, and the introduction of new brands. Continuous product development and innovation are essential for any industry, including the global instant noodles market, to remain sustainable.
This market is segmented by type into fried and non-fried. The fried segment will contribute 40% to the growth of the market. The segment is expected to witness moderate growth during the forecast period due to the rising concerns about consuming high-fat foods. According to the United States Department of Agriculture (USDA) regulation, oil-fried instant noodles should not have fat content higher than 20% of total weight. Therefore, consumers who are pursuing healthy diets would not buy these products owing to their high-fat content.
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The rising number of strategic acquisitions and partnerships is notably driving the market growth, although factors such as fluctuating raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
Trend
The rising number of strategic acquisitions and partnerships is a prominent trend that will positively influence market growth. Manufacturers actively collaborate with raw material suppliers to facilitate uninterrupted supply and partner with distributors to ensure a steady market for their products.
With strategic acquisitions, manufacturers can broaden their product portfolio and improve operational capabilities. Instant noodles manufacturers have formed several strategic alliances to expand their market presence. Thus, a rising number of strategic acquisitions and partnerships are expected to drive the growth of the market during the forecast period.
Challenge
Fluctuating raw material prices will be a major challenge impeding market growth. The growing gap between supply and demand in recent years has increased the costs of raw materials considerably over the years. Raw materials such as wheat (the main ingredient), aluminium, paper, and plastics (for packaging) have volatile prices based on their availability.
The manufacturing cost of packaging goes up with any rise in the price of raw materials such as plastic and this leads to lower profit margins for vendors. Furthermore, to remain competitive in the market, manufacturers are experimenting with low-cost substitutes, which might compromise the quality of the product. Also, raw material suppliers can increase prices based on demand, which increases the manufacturing cost. All these factors are expected to hinder the growth of the global instant noodles market during the forecast period.
Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Instant Noodles Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The instant noodles segmentation by distribution channel consists of offline and online. Various types of offline channels are hypermarkets, supermarkets, and grocery and convenience stores. Organized retailing, which includes hypermarkets and supermarkets as two of the major offline distribution channels of instant noodles. One of the major factors expected to drive the growth of the segment is the expansion of hypermarkets and supermarkets across the world. In July 2019, Tesco, one of the leading supermarkets based in the UK, announced its plan to open 750 convenience stores in Thailand by 2022. As these retailers have a global presence, they help in improving the visibility of vendor products and increase the demand for such products. Consumers can choose from a wide range of products in retail stores based on parameters such as price and quality. These stores are convenient for individuals who prefer the traditional way of shopping.
The instant noodles segmentation by type consists of fried and non-fried. The market share growth of the fried segment will be significant during the forecast period. The fried segment consists of the noodles that are placed in a metal mold and fried in the oil at 284 F-320 F for a minute or two. Fried noodles have significantly less moisture content than non-fried noodles. One serving of fried noodles typically contains approximately 0.70 oz of fat. The segment is expected to witness moderate growth during the forecast period due to the rising concerns about consuming high-fat foods.
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The fried segment was valued at USD 16,397.37 million in 2017 and continued to grow until 2021. Due to the high-fat content and low moisture content, fried instant noodles are highly susceptible to lipid oxidation and require a high number of preservatives to be added. Therefore, consumers who are pursuing healthy diets would not buy these products owing to their high-fat content. These factors may hinder the growth of the segment during the forecast period.
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APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The per capita disposable income in the countries of APAC is expected to increase during the forecast period, along with the rate of urbanization. These two factors will be the major contributors to the growth of the instant noodles market in the region during the forecast period. Also, the growing number of new product launches to suit local tastes is driving market growth in the region.
The outbreak of COVID-19 hampered the business of instant noodle vendors operating in APAC, such as Yippee, Chings Secret, Knorr, Wai-Wai, MyKuali Penang, and others. However, there was a demand for instant noodles in this region as governments eased online delivery norms, which is expected to drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Instant Noodles Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.77% |
Market growth 2023-2027 |
USD 4,819.91 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.29 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Indonesia, India, and Japan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Nestle SA, Ajinomoto Co. Inc., Baixiang Food Co. Ltd., Toyo Suisan Kaisha Ltd., Acecook Vietnam Joint Stock Co., Capital Foods Pvt. Ltd., Mareven Food Holdings Ltd., Nongshim Co. Ltd., Ottogi Co. Ltd., Thai President Foods Public Co. Ltd., Uni President Enterprises Corp., Nissin Foods Holdings Co. Ltd., PT INDOFOOD SUKSES MAKMUR Tbk, ITC Ltd., CG Foods (India) Pvt. Ltd., Kohlico Brands UK Ltd., Mamee Double Decker Sdn. Bhd., Tat Hui Foods Pte. Ltd., Campbell Soup Co., and Unilever PLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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