Instant Noodles Market

Instant Noodles Market Growth and Forecast (2023-208):

The Global Instant Noodles Market size is estimated to grow at a compound annual growth rate (CAGR) of 6% during the forecast period of 2023–2028 to reach USD 73 billion by 2028 from 53 billion in 2022.

Market Overview:

Instant noodles are pre-cooked noodles made of wheat, oat, or rice flour that have been steamed, dried, and packed with flavoring powder. They’re usually soaked in hot water before they’re eaten. It is a quick snack that is loved by millions. They come in many flavors and serving sizes. There is heavy competition in the market, and like most major markets, COVID-19 had a major impact on it. Instant noodles are growing rapidly in popularity thanks to consumer acceptance and the millennial population.

Recent developments in the Instant Noodles Industry:

• Marico Ltd. entered the instant noodles market in February 2021 by launching Saffola oat-based noodles called Oodles brand. This move aligns with the company's goal of strengthening its position in the healthy, ready-to-cook snack category and appealing to a wider range of customers by using healthier alternatives for the noodle to increase its share in the Instant noodles market.

REPORT COVERAGE:

Instant Noodle Market Drivers:

Convenience factor:

Instant noodles or ramen are very easy to prepare and taste quite delicious. They are a perfect convenience food alternative for the busy working class, college students, and busy mothers. Convenience foods like instant noodles are perfect for a busy lifestyle and are a major driving factor for the instant noodles market. Instant foods are known and meant to be convenient. Cost factor: Instant noodles are very cheap, which puts them in the bracket of affordable, tasty food alternatives. Cost is a deciding factor for any product and is a market driver for instant noodles. Cost especially comes into the picture when Asian countries are targeted with a larger working middle-class population. Variety, Instant noodles come in hundreds of flavors and types, so consumers have plenty of options to choose from. Consumers also have the option to choose from different textures, flavors, types, and seasonings, both vegetarian and non-vegetarian. Hence, it drives the market.

Market Restraints:

Health factor:

Generally, instant noodles are not very healthy, with a shift towards a healthier lifestyle. Instant noodles brands also need to come up with healthier options that are also affordable in the market. Instant noodles brands are trying to tackle this by introducing new products in the market that are more nutritious, but this increases the cost.

Less opportunities for new entrants:

The instant noodle market is dominated by key players, so room for new entrants is very slim, which leads to a saturated market. New and innovative brands are unable to survive due to the existing cutthroat competition in the market.

Impact of COVID-19 on the Instant noodles market:

When COVID-19 hit, people stockpiled non-perishable foods and essentials, especially instant foods, which directly impacted the sales of the Instant noodles market. Instant noodles are the most popular form of instant food available in the majority of markets. So while COVID had a positive impact for a short duration on the instant noodles market as there was a surge in sales. During and after the pandemic, people were still very reliant on instant food such as instant noodles, especially since the restaurants were closed down, which changed consumer behavior and made them lean towards the Instant noodles market. Instant Noodle brands are trying to maintain the demand they had during the COVID period.

Opportunities in the Instant noodles market:

New flavoring that suits the palate of a wider consumer base; for instance, some people may prefer fish-flavored noodles with more variety. People who like spicy or have very low spice tolerance have very limited options in the market.

Healthier options to keep up with the rising demand of health-conscious customers for a greater market share in the sector. After COVID-19, people are becoming more and more health conscious and are making changes in their lifestyles.

Instant Noodles Market Segmentation Analysis:

By Type:

• Chicken
• Vegetable
• Seafood
• Others

The vegetable instant noodles market has had the dominant shares in the past few years. For instance, in the Indian market, vegetable noodles are the most popular type of instant noodles.

Raw Material:

• Oats
• Rice
• Wheat
• Others

The oats segment is gaining traction over the shares of the market. Noodles are made from base flour, usually refined wheat flour or rice flour, because of the cost factor.

Packaging:

• Bag
• Cup

Packaging is a major factor of consideration when it comes to any product. Instant noodles are popular in two forms of packaging. Bags have a bigger market share, generally for home use. Bag form usually just requires hot water and can be eaten directly from the cup, with a really convenient and ergonomic design.

Distribution Channel:

• Supermarkets/Hypermarkets
• Speciality Stores
• Convenience stores and online retail

The supermarkets/Hypermarkets segment is leading with the prominent shares of the market. A major portion of sales is earned through supermarkets, as the urban population buys instant noodles along with groceries in bulk.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

Asia Pacific has prominent shares of the market. Because of developing countries and markets like India and Indonesia, with an increasing population of working-class consumers, more and more consumers are buying instant noodles as a quick and tasty meal alternative. Asia-Pacific is estimated to be worth USD 44.38 billion. Following Asia Pacific, North America is leading with the highest shares of the instant noodles market.

Key players in the Market:

Major Key Players in the Global Instant Noodles Market are

• ITC Limited
• Nestle
• Unilever plc
• Nissin