Rice, Pasta and Noodles in Vietnam

PROSPECTS

Nutrition and food safety drive new product developments within instant noodles

Amongst the various categories within rice, pasta and noodles in Vietnam, noodles accounts for the largest share and is the most active in terms of marketing activities and new products being launched. Historically, instant noodles were positioned as a quick source of energy or as a product to be used during emergencies; however, instant noodles that are being developed have added ingredients and flavours to cater to the demands of consumers, eg Masan Consumer Corp launched its Omachi instant noodles cup with real meat sticks in 2018, to improve the taste of its product and to add more calories and nutrients.

Changing perceptions

On the back of rising food safety concerns, category players have also proactively communicated their production methods to assure health-conscious consumers, eg Acecook Vietnam organised factory tours to educate its customers about the technology it uses to ensure food safety and product quality. Over the forecast period, as consumers become more affluent and educated, nutrition and food safety are expected to play bigger roles in driving product innovation and marketing efforts within rice, pasta and noodles, and manufacturers are expected to shift the existing perception of instant noodles from being a convenience food to one that has nutritional value for consumers.

Packaged and branded rice post the fastest growth within rice, pasta and noodles in Vietnam

Rice is a must-have staple in Vietnamese cuisine and is consumed daily by the locals. A majority of the rice consumed by Vietnamese consumers consists of unpackaged rice sold in stores and rice that is grown and harvested for consumption in rural areas.

COMPETITIVE LANDSCAPE

Local players dominate rice, pasta, and noodles in 2018

Local players have historically accounted for the majority value share within rice, pasta and noodles, and 2018 was no different in this respect. The number of players in the category is high, with local manufacturers such as Safoco Foodstuff, Masan Consumer Corp, Asia Foods Corp and Uniben being amongst the more-prominent players.

Acecook Vietnam continues to lead noodles

Over the forecast period, Acecook Vietnam is expected to maintain its leadership of instant noodles. Acecook Vietnam is a Japanese company and has been in the Vietnamese market for a long period of time – consumers associate its brands with product quality.

Niche areas to increase in importance

Over the forecast period, Acecook Vietnam is expected to continue to lead noodles and to further consolidate its category position. The presence of niche instant noodle brands may be more prominent over the forecast period, given the popularity of brands such as Samyang in the region over the review period on the back of spicy Korean food trends, but these are unlikely to lessen the lead that Acecook Vietnam has built up.

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