Rice, Pasta and Noodles in Kenya

PROSPECTS

The wheat and rice shortage is set to lead to an increase in prices

Kenya faced a wheat shortage in 2019, which led to many farmers abandoning their crops. Kenya consumes an estimated 1 million tonnes of wheat annually, and the drought in the country has caused a deficit of at least 750,000 tonnes.

Pasta is getting healthy as parents and busy consumers demand nutritional benefits

Kenya has a well-connected young population who are increasingly putting pressure on players to provide nutritional products. Instant noodles and some types of pasta, for example, have come under pressure for containing little to no nutritional value.

Instant noodles continues to drive growth

Instant noodles remains popular in 2019, providing consumers the opportunity to indulge in a wide variety of different tastes. Each instant noodle product is sold in a package that contains dehydrated noodles with a separate flavour sachet.

COMPETITIVE LANDSCAPE

Local players innovate to compete with international players

Local players have carried out promotions to drive sales and gain value share in rice, pasta and noodles. The most common promotion is the percentage-off deal; buying a packet of rice and getting a pack of pasta from the same manufacturer, for half the price.

Mjengo Ltd promotes Dawaat Rice to win an Agribusiness Excellence Award

Dawaat Rice maintained a very active social media presence during 2019, allowing it to gather insights and ideas from consumer feedback, to inform its future strategies. Social media was part of a broader business strategy that led to Dawaat Rice owner, Mjengo Ltd, winning the preferred rice brand of the year award, handed out by the Agribusiness Excellence Awards.

Indomie retains its top share, offering price-efficient products and engaging promotions

International player, Indomie, owned by Indofood Sukses Makmur, led rice, pasta and noodles in 2019, with its popular instant noodle offering. Indomie appeals to families through products that offer great value, with a 70g pack of five suiting families who buy in bulk to save on costs.

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