Rice, Pasta and Noodles in New Zealand

PROSPECTS

Health and wellness driving performance

Health and wellness concerns among consumers was the key trend influencing value growth within rice, pasta and noodles in 2018. Natural alignment between these trends and rice was the key driver behind overall value growth, while more muted alignment in noodles and pasta failed to contribute significantly to the overall performance.

Rice the strongest performer

Rice continued to record strong value growth in 2018, with growth up on the value CAGR observed during the review period. Rice remains a staple item in most households, and aligns with consumer health and wellness preferences, which has been further enhanced by increasing sales of brown rice, which is viewed favourably due to its high level of fibre and protein.

Health and wellness preferences driving growth in pasta

Similar to rice, pasta remains a staple meal ingredient for New Zealanders, and enjoys high levels of market penetration, with dried pasta more popular due to its convenience association. While fresh pasta aligns with consumer health and wellness perceptions, its lack of association with convenience trends, and limited SKU count mean that dried pasta is dominant within pasta overall.

COMPETITIVE LANDSCAPE

James Crisp Ltd continues to lead

Due to the strength of the performance of rice in 2018, the high level of sales share held by rice, and the strong performance of the company within rice, James Crisp Ltd continued to lead rice in 2018. Enjoying a high level of market penetration and strong distribution, the company has focused on leveraging health and wellness and convenience trends, with it focusing on developing its microwavable single-serve offering to cater to time-poor consumers, with the high unit price of these products driving value sales growth for the company.

San Remo continues as the strongest pasta player

San Remo Pasta Ltd held is ranked in second place in rice, pasta and noodles overall, but leads pasta through its San Remo brand. Enjoying high levels of market penetration and strong distribution through supermarkets, the company engaged in less discounting than competing brands such as Diamond and the respective private label lines of retailers, and positioned itself with slightly higher price points than its competitors.

Nestlé leads noodles, but facing strong competition

Nestlé New Zealand Ltd continued to lead noodles in 2018, due to its dominant position within instant noodle pouches, while also performing strongly in instant noodle cups. However, strong competition in instant noodle cups, with new product development activity from competitors focused on delivering Asian flavour influenced products, has meant that the cups continued to outperform pouches, meaning that the dynamics of noodles are changing, and as such Nestlé’s value share within noodles fell in 2018.

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