Rice, Pasta and Noodles in Norway

PROSPECTS

Improved quality of private label products drives growth

Traditionally, private label products were considered a cheaper and lower quality alternative to branded goods. However, this has gradually changed as retailers have increasingly focused on their private label ranges.

Health and wellness-positioned products continue to grow in popularity

Rice, pasta and noodles faced a certain degree of pressure over the review period from the rising popularity of the low-carb trend, which encourages consumers to cut down on products high in carbohydrates, such as refined rice, instant noodles and dried pasta. However, manufacturers, and particularly private label producers, successfully managed to add value by expanding their assortment of health-positioned alternatives, mainly whole wheat, organic and gluten-free options.

Plain noodles and chilled pasta fit well with current trends

While dried pasta, rice and instant noodles are comparatively mature categories, plain noodles and chilled pasta are more modest in size, although they are starting to reach maturity. The two categories fit well with current packaged food trends.

COMPETITIVE LANDSCAPE

Private label expansion squeezes value brands

The private label players Norgesgruppen, Rema 1000 and Coop continued to gain share in rice, pasta and noodles over the review period. While value sales growth in 2018 was not as strong as at the beginning of the review period, private label still outperformed all the major branded players in most categories.

Orkla loses value share but remains the leading brand manufacturer

Although Orkla continued to lose ground to private label over the review period, the domestic packaged food giant continued to lead instant noodles thanks to its Mr Lee brand and rice thanks to its Toro brand, which also has a presence in the dynamic chilled pasta category. The company acquired both brands from Rieber & Søn in 2013.

Lantmännen Cerealia and Barilla lead dried pasta but struggle to add value

Lantmännen Cerealia and Barilla, the two leading brand manufacturers in the largest dried pasta category, continued to account for more than half of overall value sales in 2018. However, the two companies saw their shares decline on an annual basis throughout the review period as a result of rising demand for private label alternatives.

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