Rice, Pasta and Noodles in Algeria

PROSPECTS

Rice, pasta and noodles will benefit from the decline in consumer purchasing power, as consumers reach for cheaper staple items

Rice and pasta, which are considered essentials by Algerian households, is expected to continue witnessing steady growth over the forecast period, taking into account the expected growth in the population. Moreover, consumers’ hectic lifestyles and the demand for more convenient meal solutions will further support the growth as players respond through product innovations.

Innovations are expected over the forecast period, as brands respond to the needs of time poor-consumers

Significant players in rice, pasta and noodles in Algeria are expected to continue making efforts to launch more convenient products over the forecast period, expanding their consumer base and appealing to the rise of time-poor consumers in Algeria. Players are expected to offer further brands, product types and innovative packaging.

Growth is set to slow over the forecast period as rice faces maturity

Growth is expected to slow down over the forecast period, mainly due to the increasing maturity of rice in Algeria. Moreover, the ongoing economic crisis and the declining purchasing power of consumers is expected to lead to lower volume sales, as well as trading down to cheaper brands, reflected in the slowdown of value sales.

COMPETITIVE LANDSCAPE

Deoleo SA leads rice, pasta and noodles thanks to its strong performance in rice

In 2019, rice, pasta and noodles remained fragmented in Algeria. The Spanish player Deoleo SA’s leading position is due to its leadership in rice, where it offers a high-quality brand image and very competitive prices compared to domestic players.

Competition remains intense between domestic and international brands, particularly in rice

 Within pasta, domestic players lead without facing severe competition from international players who occupy a niche position with their premium brands targeting higher-income earners. However, when it comes to rice, competition between domestic and international players, in particular, Spanish brands, is more intense — several Spanish players as well as Uncle Ben’s recorded substantial sales value in Algeria.

Rice, pasta and noodles is dominated by economy brands, which are featured heavily in the widest distribution channel

As rice and pasta are considered staples in the Algerian diet, economy brands strongly dominate, covering a much larger consumer group compared with premium brands. Due to expense, premium brands only target the niche of higher-income consumers.

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