Rice, Pasta and Noodles in Turkey

PROSPECTS

Dried pasta continues to dominate as an inexpensive and filling meal solution for time-restrained consumers

Demand for rice, pasta and noodles continued to increase in 2019 due to rising urbanisation, and the increasing number of workers and students searching for practical, filling and inexpensive meal solutions that do not require a great deal of preparation time. The category continued to be dominated by the affordable dried pasta, benefiting from its long shelf life, and adaptability to a variety of dishes, while producers have attempted to add some dynamism to dried pasta in various formats such as fettuccine and fusilli.

Interest in rice continues to wane in favour of pasta

While rice remains a fairly popular product in Turkey as it used in many local dishes, interest waned over the review period with only marginal recovery in retail volume growth experienced in 2019. Rice is priced more highly than pasta and rising inflation has only further driven up its unit price, placing it out of reach for lower-income consumers.

Dynamic growth for instant noodles, supported by demand for convenience, innovation and exciting flavour options

The niche of instant noodles continued to record dynamic retail volume growth as a result of expanding distribution within traditional grocery retailers such as independent small grocers, offering greater availability. They continue to be appreciated by younger demographics living in urban areas, especially students, despite their higher unit price compared to other staples such as rice and pasta.

COMPETITIVE LANDSCAPE

Price-sensitive consumers look for cheaper options for staples, supporting private label’s rising popularity

Private label has a particularly strong presence in rice and is continuing to gain value share within pasta, resulting in the overall leadership of BIM Birlesik Magazacilik which offers its Bim line and benefits from its owner’s expanding distribution network, allowing it to reach a wider audience. Many Turkish consumers are price-sensitive when it comes to rice and pasta as they are staple products that they frequently use in their cooking; they therefore appreciate the lower prices offered by discounters and other grocery retailers through their private label lines, particularly in light of an economic slowdown and rising inflation.

Indofood dominates instant noodles investing in its brand and the category

Indofood Sukses Makmur Tbk PT continued to dominate instant noodles in 2019, by making further investments in its Indomie brand. It accomplished this through greater availability by approaching a higher number of independent small grocers in urban areas to stock its products, running advertising campaigns and offering attractive discounts.

Reis continues to lose share in rice despite attempts to expand target audience

With private label strengthening its hold over rice in 2019 due to the higher unit price of this product compared to pasta, brands such as Reis are attempting to reach a wider audience by expanding their distribution to discounters by offering consumers who frequent this channel favourable prices. Turkish consumers are gradually switching to cheaper types of rice, such as Rona, as younger consumers do not have the time, budgets or inclination to prepare a traditional pilaff using high-quality rice.

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