Rice, Pasta and Noodles in Asia Pacific

Delivery

This report comes in PPT.

Key Findings

Growth continues to be seen despite rising production costs

Value growth continued to be seen in rice, pasta and noodles in Asia Pacific in 2022 against a backdrop of rising production costs for manufacturers. Supply challenges during the pandemic have been exacerbated by the war in Ukraine and global inflation hikes, with costs of raw materials, energy/fuel and shipping increasing. While some of this has been passed on to the end consumer, stronger value growth was hindered by shoppers in many regional countries shifting to more affordable products.

Health consciousness continues to increase in the region

The pandemic increased consumers’ health and wellness awareness, which has had a negative effect in some countries on sales of instant noodles, considered to offer poor nutrition, being high in calories and salt, and greasy. South Korea’s Nongshim has introduced non-fried noodles as an alternative. In Pakistan, buckwheat noodles are becoming more popular, and brown rice is the preferred option for many who seek to increase their dietary fibre through the consumption of low-GI products. In Indonesia, a growing demand for rice alternatives like shirataki or konjac rice has been observed.

Asia Pacific consumers continue to prefer offline retail channels

In the region, offline retail channels continued to dominate sales in 2022, with small local grocers gaining further importance for consumer purchases of staple foods such as rice, pasta and noodles. E-commerce continued to make gains in the year, however, and in China, amid ongoing waves of COVID-19, group buying, a new form of shopping, developed quite rapidly and helped manufacturers to reach consumers during the lockdowns.

Indonesia and India will drive growth, with a slower performance expected in China

While China will remain the largest market, it will see much slower growth than Indonesia and India. Growth in China could depend on its ability to control the impact of COVID-19 variants. In Indonesia, the outlook for rice, pasta and noodles is positive, with rice and noodles especially being considered essentials and frequently consumed. In India, improving economic conditions are expected to continue to be reflected in consumers’ food choices, thus benefiting sales of packaged rice, pasta and noodles.