Noodles industry in India with market share Essay

Growing UpThe Instant noodles commercialiseplace in India is finally approaching of age after over 25 years The here and now noodles category in India was, in a sense, created by Nestl with the introduction of their Maggi brand in mid-1980s. The concept of 2-minute noodles, positioned as a fond snack cream for children, found acceptance with both the children and their mothers as well. Having make and nurtured the categorys evolution, the brand name Maggi almost became a equivalent word for the glaring noodles category itself. During the 1990s and 2000s, Maggi faced little competition. patronage the adit of players like tiptop Ramen (Indo Nissin Foods) in 1991, Chings Secret (Capital Foods) in 1996, and Wai Wai (CG Foods) in 2005, Maggi compensated to retain its dominant position.However, in the past few years, we cast seen consumer estimables giants ITC (Sunfeast Yippee), Glaxo-Smithkline (Horlicks Foodles), and Hindustan Unilever Limited (Knorr Soupy Noodles) foray in to this lucrative market with diverseiated product offerings. These brands meet brought a agonistical intensity to the space. This market now excessively comprises hush-hush labels like Feasters (AV Birla Retail), Tasty Treat (Future Group), and Smart Choice (Spencers).Even though Maggi continues to dominate the market with a share in excess of 75%, the entry of multiple brands and the change magnitude aggression of existing brands has taken remote several percentage points from Maggis market share.The categorys truehearted growth, and ever widening consumer acceptance, makes it a lucrative option for various players. The wink noodles market is estimated at INR 2200 crore (USD 402.7 million) and is projected to grow at a good for you(p) annual rate of 15% over the following(a) few years. at that place are several reasons behind the growth this category has realized, in India, just about of which are mentioned be gloomy.Changing consumer lifestyles Over the years, the ch ange in consumers preferences and eating habits, and their wider planetary exposure, along with an increasingly younger population, the growth in the middle class, with more than nuclear families, and the growing time-poverty (as a result of the rise in the issuing of working couples) has given a boost to the doojigger sustenance segment.As a result, the instant noodles market has charted a high growth flying thanks to its availability, affordability, anytime-anywhere consumption and convenience, organism a quick meal requiring minimal cooking. Instant noodles progress to also emerged from universe a snack food or an occasional, alternate eating option to a mainstream food stop of choice featuring stockly in consumers grocery baskets.Growing customer petty(a) The emergence of instant noodles has added a novel dimension to consumers meals noodles are being consumed not just by kids (who are the core target audience) as an stock-stilling snack or a tiffin meal scarcely 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 players now eyeing the semi-urban and rural markets. The categorys penetration is low in India (20-25%), thus seting a lucrative opportunity for growth.More options and variants Players present in the space are innovating and adding value to establish a alone(predicate) brand proposition in the consumers mind. Some of the major developments in this trouble include oIntroduction of new flavors To kindle the consumers by-line 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 addendum to the classic Masala and Chicken flavors, a wide range of flavors including Indo-Chinese, Chinese, tomato, etc. have beenl aunched.1oGrowing focus on health Despite their fondness for instant noodles, consumers in India hold the notion that noodles are unhealthy, being made from maida which is seen as not being as healthy as atta. To address this concern, brands are proactively introducing healthy offerings as part of their product portfolio. Maggi and Top Ramen have their atta noodles, while Horlicks Foodles was launched entirely on the health platform, with the noodles made from husk or multiple grains and including a vitamin-supplying Health Maker. Additionally, HUL has also positioned its Knorr Soupy Noodles as a healthy, fun-filled snack.oMore packaging variants Brands have introduced packs in assorted sizes, right from single noodle packs of 50-75 gm. to value eight noodle packs. Further, to increase the categorys penetration, brands like Maggi and Wai Wai have broaden product offerings in an even smaller pack size, priced at INR 5.oCategory prolongation from pouch to cup noodles A vital deve lopment in the market was the extension from pouch noodles to cup noodles that are ready-to-eat, on adding hot water, unalike pouch noodles that require to be cooked. The driving factor here is that convenience (the need for an on-the-go meal) is gaining in prominence in consumers lives owing to the rise in a younger working population and a migrant population, the increasing population of double income households with more working women, etc. Top Ramen offers different flavors in cup noodles, mini cup noodles, and mug noodles. Maggi and Wai Wai have extended to cup noodles as well.Modern formats, which provide high product profile and good product displays, are acting as a good marketing platform for brands to promote their product offerings via consumer schemes like price discounts, bundled offers, take for new launches, etc. However, about 80-90% of instant noodles sales takes place with traditional formats (mom and pop stores), which is not surprising since noodles are a regu lar grocery item.Thus players need to invest significantly in diffusion and establish a widespread retail reach and tap into a larger consumer base. Therefore, distribution remains an important enabler for this category. Another key challenge for players is to maintain price points and margins given the fluctuations in input costs. Usually, they opt to tighten pack sizes, while keeping prices constant, to counter the challenge.In its journey of 28 years, the instant noodles market has undergone several changes, viz. the entry of several new players, innovations in products and value-addition in packaging, the emergence of modern formats, a shift in consumption towards convenience foods, etc. Going forward, this market will continue to register a doubledigit growth and will witness higher competitive intensity.The strength of the distribution networks and media campaigns of the new entrants has the potential to be a game-changer and may eventually cause Maggi to face some serious competition, and perhaps even make this pioneering brand fight to defend its dominance. This category is finally coming of age and promises to be an interesting space to watch in the next few years.Authored ByPragya Singh Associate Director, RetailAshima Anand- Senior Consultant, Retail