After seeing dynamic pandemic-related growth in 2020 due to home seclusion and foodservice closures, rice, pasta and noodles slipped into decline a year later as consumers used up stockpiled goods and were eating out more. However, 2022 saw a return to positive growth, which is expected to continue over the forecast period. These products offer convenient, easy-to-cook and affordable meal solutions, with the latter criterion particularly important against a backdrop of rising inflation rates.
This report comes in PPT.
With consumers still spending more time at home than before the COVID-19 pandemic, due to the enduring popularity of flexible working patterns, appreciation for staple foods offering convenience and versatility remained strong in 2022. A growing demand for foods that reduce the amount of time and effort required for meal preparation and which can be used in a wide variety of recipes also helped to sustain demand for rice, pasta and noodles.
Private label is a force to be reckoned with in rice, pasta and noodles, accounting for a third of retail value sales at a regional level. Rice, noodles and pasta are seen as relatively generic, with many consumers believing there is little difference in quality between products. Retailers have successfully taken advantage of this by keeping up with the latest trends as well as introducing premium private label lines and organic and gluten-free products, while always looking to maintain their price advantage over branded offerings.
COVID-19 accelerated the move to e-commerce due to home seclusion, but this distribution channel’s share still remains relatively limited, at 5% in 2022. Store-based retail still dominates, led by supermarkets (41%), hypermarkets (25%) and discounters (17%), while convenience retail (4%) and small local grocers (6%) play relatively minor roles.
Rising inflation in 2022, which is expected to continue into 2023, is likely to impact consumers’ decision-making in the forecast period. In times of crisis, some consumers like to save money by opting for simpler affordable products, which should serve most areas of rice, past and noodles well in the immediate future. Nevertheless, players will continue to premiumise as they look to attract consumers, either with more upmarket products or health-orientated options.
NOTE: Couscous, polenta and quinoa are excluded from staple foods.
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