Rice, Pasta and Noodles in Latvia

PROSPECTS

Convenience a key influence on demand

Convenience is proving to be a major driver of expansion in rice, pasta and noodles, as such products are quicker to prepare and cook than potatoes, a traditional source of carbohydrates in the Latvian diet. Moreover, manufacturers have increasingly looked to enhance the convenience offered by products such as rice through innovation.

Popularity of Asian cuisine presents opportunities for noodles

While noodles accounts for around a third of total rice, pasta and noodles value in Latvia, the category remains significantly underdeveloped. Sales are heavily biased towards instant noodles and products are positioned in terms of convenience rather than quality and relation to a particular cuisine.

Health trend influencing product development in pasta

Across rice, pasta and noodles, the health and wellness trend that is proving so influential in a range of packaged food categories is being felt most prominently in pasta. The category has seen the introduction of products such as Herkules protein fusilli, which contains wheat protein, OLU protein powder and pea protein powder and targets growing consumer interest in protein intake.

COMPETITIVE LANDSCAPE

Rimi extends lead

Having become the largest player in rice, pasta and noodles in 2014, Rimi Latvia tightened its grip on the category lead in the latter part of the review period as it continued to expand its product range and devote more shelf space to its offer across rice, pasta and noodles. Amongst the new rice products introduced by Rimi Latvia towards the end of the review period were Arborio and red rice.

Consolidation

Rice, pasta and noodles underwent notable consolidation towards the end of the review period, with the combined value share of the top six players increasing significantly between 2016 and 2018. The strength of the leading players was bolstered by new product development and an upmarket shift in demand supported by factors such as rising consumer health-consciousness and increasing interest in foreign cuisines.

Nestlé grows strongly in noodles

Nestlé was the fastest-growing player in 2018, as its Maggi brand expanded strongly in the noodles category. Maggi benefits from high levels of consumer recognition across product categories, with the brand leading value sales in soup, for example.

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