Rice, Pasta and Noodles in Kenya

PROSPECTS

Instant noodles drives growth

Instant noodles remain popular as they provide consumers with opportunities to experience different tastes, as they are sold in a package that contains dehydrated noodles with a separate flavour sachet. Noodles come in different types, shapes and flavours and, hence, remain popular among people of all age groups, owing to the easy and convenient preparation technique.

Health-aware consumers drive innovation

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

Modern retailers dominate as the main distribution channel

Manufacturers in rice, pasta and noodles are expected to remain focused on modern retail distribution over the forecast period. This is because other channels do not have the scope to offer the huge varieties found in modern grocery retailers.

COMPETITIVE LANDSCAPE

International players compete with local players for value share

Local players in rice, pasta and noodles enjoy good distribution networks and lower costs of operation due to their long-standing presence. International players are looking to erode some of the local players’ value share by entering the competitive landscape through their local subsidiaries.

Local firms aggressively use promotions

Local players are carrying out promotions in order to drive sales and gain value share in rice, pasta and noodles. The most common is the percentage-off deal, such as buying a packet of rice and getting a packet of pasta from the same manufacturer for half the price.

Local players innovate to compete with international players

Local companies are expected to focus on innovation in the forecast period to ensure that international players entering rice, pasta and noodles do not erode their value share. Both local and international players are expected to focus on expanding their retail distribution to reach a larger customer base.

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