noodles industry in india with market share
‘Growing Up’
The Instant noodles market in India is finally coming of age after over 25 years
The instant noodles category in India was, in a sense, created by Nestlé with the introduction of their Maggi brand in mid-1980s. The concept of ‘2-minute noodles’, positioned as a quick snack option for children, found acceptance with both the children and their mothers as well. Having built and nurtured the category’s evolution, the brand name “Maggi” almost became a synonym for the instant noodles category itself.
During the 1990s and 2000s, Maggi faced little competition. Despite the entry of players like Top Ramen (Indo
Nissin Foods) in 1991, Ching’s Secret (Capital Foods) in 1996, and Wai Wai (CG Foods) in 2005, Maggi continued to retain its dominant position.
However, in the past few years, we have seen consumer goods giants ITC (Sunfeast Yippee!), Glaxo-Smithkline
(Horlicks Foodles), and Hindustan Unilever Limited (Knorr Soupy Noodles) foray into this lucrative market with differentiated product offerings. These brands have brought a competitive intensity to the space. This market now also comprises private 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 increasing aggression of existing brands has taken away several percentage points from Maggi’s market share.
The category’s strong growth, and ever widening consumer acceptance, makes it a lucrative option for various players. The instant noodles market is estimated at ~INR 2200 crore (USD 402.7 million) and is projected to grow at a healthy annual rate of ~15% over the next few years.
There are several reasons behind the growth this category has realized, in India, some of which are mentioned below.
Changing consumer lifestyles - Over the years, the change in consumers’ preferences and eating habits, and their wider
The Instant noodles market in India is finally coming of age after over 25 years
The instant noodles category in India was, in a sense, created by Nestlé with the introduction of their Maggi brand in mid-1980s. The concept of ‘2-minute noodles’, positioned as a quick snack option for children, found acceptance with both the children and their mothers as well. Having built and nurtured the category’s evolution, the brand name “Maggi” almost became a synonym for the instant noodles category itself.
During the 1990s and 2000s, Maggi faced little competition. Despite the entry of players like Top Ramen (Indo
Nissin Foods) in 1991, Ching’s Secret (Capital Foods) in 1996, and Wai Wai (CG Foods) in 2005, Maggi continued to retain its dominant position.
However, in the past few years, we have seen consumer goods giants ITC (Sunfeast Yippee!), Glaxo-Smithkline
(Horlicks Foodles), and Hindustan Unilever Limited (Knorr Soupy Noodles) foray into this lucrative market with differentiated product offerings. These brands have brought a competitive intensity to the space. This market now also comprises private 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 increasing aggression of existing brands has taken away several percentage points from Maggi’s market share.
The category’s strong growth, and ever widening consumer acceptance, makes it a lucrative option for various players. The instant noodles market is estimated at ~INR 2200 crore (USD 402.7 million) and is projected to grow at a healthy annual rate of ~15% over the next few years.
There are several reasons behind the growth this category has realized, in India, some of which are mentioned below.
Changing consumer lifestyles - Over the years, the change in consumers’ preferences and eating habits, and their wider