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India Instant Noodles Market

Segmented by Product Type, Flavor Type, SKU Pack


Size, Distribution Channel, and Geography- Analysis
of Growth, Trends, and Forecast

Report
Report India Instant Noodles Market
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TABLE OF CONTENTS 2

3.3 Opportunities
1. Introduction
3.3.1 Changing Consumer Palates
1.1 Research Phases and Increasing Brand Recognition
1.2 Study Deliverables 3.3.2 Rapid Growth Of Food Retail Channels
1.3 Scope of the Market 3.4 Industry Attractiveness – Porter’s Five Forces Model
2. Market Insights
3.4.1 Bargaining Power of Suppliers
2.1 Market Overview
3.4.2 Bargaining Power of Buyers
2.2 Market Trends
3.4.3 Threat of New Entrants
3. Market Dynamics
3.4.4 Threat of Substitute Products and Services
3.1 Drivers
3.4.5 Degree of Competition
3.1.1 Rapid Urbanization and Growth in the
Middle Class Population Segment 4. Consumer Behavior

3.1.2 Emerging Brands of Instant Noodles and 4.1 Consumer Demand Analysis

Launch of Healthy Variants 4.2 Target Market Identification


3.2 Restraints 4.2.1 Purchasing Power
3.2.1 Safety Concerns and Healthier 4.2.2 Demographic Strengths and Weaknesses
Alternatives 4.2.3 Spending Patterns

Report India Instant Noodles Market


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TABLE OF CONTENTS 3

5. Market Segmentation 5.4.2 Supermarket/Hypermarket

5.1 By Product Type 5.4.3 Traditional Grocery Store

5.1.1 Introduction 5.4.4 Online Retailing

5.1.2 Cup/Bowl 5.4.5 Others

5.1.3 Packet 6. Competitive Landscape

5.2 By Flavor Type 6.1 Market Share Analysis

5.2.1 Introduction 6.2 Most Active Companies

5.2.2 Chicken Curry 6.3 Strategies Adopted by Leading Players

5.2.3 Curry Masala 7. Company Profiles

5.2.4 Hot & Spicy 7.1 Patanjali Ayurveda Limited

5.2.5 Others 7.2 Nestle SA

5.3 By SKU Pack Size 7.3 ITC Limited

5.3.1 Single Pack Size 7.4 Hindustan Unilever Limited

5.3.2 Four Pack Size 7.5 Well Grow Co. Limited

5.3.3 Six Pack Size 7.6 Tat Hui Foods PTE Ltd

5.3.4 Others 7.7 Indo Nissin Foods

5.4 By Distribution Channel 7.8 Capital Foods

5.4.1 Introduction 7.9 CG Foods India Pvt Ltd

Report India Instant Noodles Market


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4

2. RESERCH METHODOLOGY
1.1 Research Phases

1. INTRODUCTION 1.2 Study Deliverables

1.3 Scope of the Market

Report India Instant Noodles Market


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1.1 RESEARCH PHASES 5

• Plant Managers
• Sales Managers
• Company Annual Reports • Surveys • Industry Experts
• Insights from Data and
• Journals • Manager, Purchasing and • Consultants
Forecasts, Compiled into
• Government Publications Logistics • Subject Matter Experts
One Report
• In-house Experts

SECONDARY DISCUSSION PRIMARY ECONOMETRIC EXPERT DATA REPORT


RESEARCH GUIDE RESEARCH MODELLING VALIDATION TRIANGULATION WRITING

• Company-related Queries
• Revalidation of Numbers from
• Forecasting Model
• Market-related Queries
Secondary Through Primaries
• Monte Carlo Simulation
• Company Financials
• Combination of Top-down and
Bottom-up Approaches
Primary Interviews Primary Interviews - Along Value
Chain
CEOs/CFOs
6%
6%
Board Members 32% 35%
31%
Manufacturers
20% Research Heads
Service Providers
Strategic Decision End-users
Makers
11%
Financial Advisors 55%
26%

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1.2 STUDY DELIVERABLES 6

AIM AND OBJECTIVE OF THE STUDY

Country-level analysis and the forecast of the Indian instant noodles market.

STUDY PERIOD BASE YEAR COMPANIES ANALYZED

2015 - 2023 2017 24+

GEOGRAPHICAL SCOPE SEGMENTS COVERED

DROs

PORTER’S FIVE FORCES ANALYSIS

SEGMENT & SUB-SEGMENT


ANALYSIS

KEY PLAYERS

COMPETITIVE LANDSCAPE

Report India Instant Noodles Market


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1.3 SCOPE OF THE MARKET 7

• This report on the Indian instant noodles market offers key


insights into the latest developments.
INSTANT NOODLES MARKET
• The report analyses the behavior of Indian consumers toward
instant noodles.
By SKU Pack By Distribution
By Product Type By Flavour Type Size
• It analyzes the recent trends, drivers, and challenges affecting Channel
the Indian instant noodles market.

• The Indian instant noodles market is segmented by product type, Cup/Bowl Chicken Curry Supermarket/H
Single Pack
ypermarket
flavor type, SKU pack size, and distribution channel.

• The report provides historical, current and projected market size, Packet Curry Masala Traditional
Four Pack Size
in terms of value. Grocery Store

• Competitive landscape: Analysis of major market players,


Hot & Spicy Online
including strategies of key players and the product offerings. Six Pack Size
Retailing

Others
Others Others

Report India Instant Noodles Market


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8

The Indian instant noodles market is classified by country in this study. Segments like
by product type, flavour type, SKU pack size and distribution channel are first
introduced and then is dealt with in greater detail in the funding patterns sections.
The industry is studied in terms of its growth over the last few years and the
RESEARCH fundamental challenges that face the industry.

METHODOLOGY Each segment is further studied in terms of its attractiveness to investors in the
financial analysis section to understand the interest evinced by IPO investors, Venture
Capitalists, Asset management firms and the likelihood of mergers and acquisitions.
The conclusion to this study includes opinions and recommendations to retail
investors, fund managers, CEO’s and other members of the investor community.

This research is supported by in-depth interviews with the top level management of
instant noodles companies in India. Additionally, vast secondary research on market
trends has been performed to support the analysis.

Report India Instant Noodles Market


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9

Market Definitions Segmentation


STUDY STRUCTURE Technology / Market
Identification
Key Countries and Mapping of Key
Regions players
Data Extraction Process

ANALYSIS
Data Corroboration Process
METHODOLOGY Top-down
Value / Supply Chain Validation of Market
Approach
Size
Analysis Analysis
S Consumer Behaviour Bottom-up Approach
Econometric Forecast Modelling + Identification of Analysis
Secondary Research + Expert Exogenous factors
Verification Market Dynamics Segment and
Recent Market Region Wise Market
Inference Developments / Size Forecasting
Market Structure
Competitive Landscaping Analysis
Data Generation Process
(DGP)+Forecasts

Infographic and Comprehensive


Presentation of Inferences and
Estimates
Competitive
Market Share Market Sizing
Landscape

Porter’s Five Forces


Market Structure Company Profiles
Analysis

Report India Instant Noodles Market


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10

2. RESERCH METHODOLOGY

2.1 Market Overview


2. MARKET INSIGHTS
2.2 Market Trends

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2.1 MARKET OVERVIEW 11

• The Indian instant noodles market (henceforth referred to as the market studied) was
valued at USD 1438.04 million in 2017, and is expected to value at USD 2041.66
Instant Noodles Market: Revenue in USD million,
million, registering a CAGR of 5.6% during the forecast period (2018-2023). This growth
India, 2015 - 2023
can be attributed to the increasing youth population, increasing disposable income,
2500.00
higher brand consciousness, and changing consumer preferences.
• The market studied has experienced phenomenal success since its inception, with the
2041.66
launch of customized flavor variants that suit Indian taste preferences. However, the
2000.00 1933.81
launch of innovative flavors is expected to be in focus during the forecast period (2018 - 1831.65
1734.90
2023). 1643.25
1556.44
• In terms of packaging, packet instant noodles is the most dominant category. Also, the
1500.00 1438.04
1362.98
cup/bowl instant noodles category is expected to grow substantially due to enhanced
convenience. In terms of size, single pack is a leading category. Other innovative
formats of instant noodles are expected to be produced at a faster rate, due to their 1004.08
1000.00
unique quality and brand impact factor.
• The market studied is growing at a healthy rate since last few years, however, the
Maggi fiasco affected the category sales severely in the year 2015-16. As a result, other 500.00
players like CG Foods and ITC Sunfeast Yippee gained considerable share of the
instant noodles category.
• The market exhibits high competitive intensity due to the presence of a few prominent 0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
players dominating the market. The food safety crisis has shifted the consumer focus
from convenience to health and quality.

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2.2 MARKET TRENDS 12

• Sep 2017- Knorr launched a new range of


noodles. Knorr, with its expertise in global
flavors, has launched three new exciting variants
in Maharashtra - Italian Cheese and Herbs,
Italian Margherita, and Desi Masala Chaska.
These noodles are made with vegetables and are
free of any added preservatives. The noodles are
available in two pack sizes, single-serve and a
multipack of 4.

• May 2017- Nestle India Ltd introduced four • Apr 2017- ITC launched YiPPee! Power Up

local flavors of Maggi instant noodles— Masala Atta Noodles with vegetable infusions

Amritsari Achari, Mumbaiya Chatak, Super With this product, they endeavor to offer a

Chennai, and Bengali Jhaal. The products were differentiated product. Sunfeast YiPPee! Power

initially sold only on online marketplace, Paytm Up Atta Noodles is made using ITC’s whole-wheat

Mall, before introducing them at retail outlets. It flour, Ashirvaad, and has vegetable additions. The

has also introduced a new pack of three units in product is circulated through modern and general

each of the four flavors, priced at INR 240. The trade outlets across India in a 70g pack, priced at

company has tied up with the search engine INR 15. A family pack, containing four 70g packs

giant, Google, to promote the new flavors. and priced at INR 55, is also available in select
outlets.
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13

3.1 Drivers

3.1.1 Rapid Urbanization and Rise in the Middle Class Population Segment

3.1.2 Emerging New Brands of Instant Noodles and Launch of Healthy Variants
2. RESERCH METHODOLOGY
3.2 Restraints

3.2.1 Safety Concerns and Healthier Alternatives


3. MARKET DYNAMICS 3.3 Opportunities

3.3.1 Changing Consumer Palates and Increasing Brand Recognition

3.3.2 Rapid Growth of Food Retail Channels

3.4 Industry Attractiveness – Porter’s Five Forces Model

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of New Entrants

Threat of Substitute Products and Services

Degree of Competition within the Industry

Report India Instant Noodles Market


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IMPACT CHART - DRIVERS AND RESTRAINTS 14

The Indian food industry is set to make a paradigm shift to healthy indulgence. Much of the future growth of instant noodles
in India is expected to come from healthy offerings without compromising on the taste attributes.
High
Market Drivers
Rapid Urbanization and Increase in

Impact
the Middle Class Population Segment Emerging Brands of Instant Noodles

and Launch of Healthy Variants

Low
Short-term Medium-term Long-term
Low
Market Restraints

Impact

Safety Concerns and Healthier


Alternatives

High The recent food safety issues associated with instant noodles have dampened the prospects for market studied. The
substantial growth that was experienced before 2015 remains a significant challenge to attain. The companies’ efforts are
nonetheless, underway.

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3.1 DRIVERS 15

3.1.1 RAPID URBANIZATION AND INCREASE IN THE MIDDLE CLASS POPULATION SEGMENT
• Instant noodles are increasingly considered as the mini-meals and ideal snacking
Degree of Urbanization option. The degree of convenience and the level of satiety that the instant noodles offer
35.00% 32.80% 33.15%
31.99% 32.34% have fueled its market growth.
31.63%
30.00% • The processed food related policies and rapid infrastructural development have led to
the overall growth of the market in the tier 2 cities and towns. Such growth translates
25.00% into the higher demand for convenient snacking options.
Urbanization degree (%)

• The instant noodles companies have identified this untapped potential by providing
20.00%
deeper distribution and effective product accessibility by expanding distribution to semi-
urban and rural markets.
15.00%
• The sachet version of instant noodles has proved to be an efficient medium to kick-start
10.00% the sales in these far flung rural areas.

• The middle class consumers have remained the target audience of instant noodles.
5.00%
Companies are now embarked on providing value-based family packs to promote
0.00% higher sales among this class of consumers.
2012 2013 2014 2015 2016
Year • The urbanization and rise in middle class segments are intrinsically intertwined, driving
the growth of instant noodles market in India.

• The rate of urbanization in India is very high. The urbanized population, due to their hectic schedules and higher discretionary spending, drives the market for instant noodles.
The availability, accessibility, affordability, and flexibility associated with the consumption of instant noodles further drive its growth.

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3.1 DRIVERS 16

3.1.2 EMERGING BRANDS OF INSTANT NOODLES AND LAUNCH OF HEALTHY VARIANTS

• The instant noodles market is also driven by the rapidly emerging brands that are experiencing enhanced presence in retail, with the blend of product innovation
and effective branding strategies.

• The market has witnessed the entry of multiple players in the span of last few years, adding to the competitive intensity of the overall market and driving its
subsequent growth.

• Instant noodles have witnessed lucrative growth (excluding the 2015 slump due to the Maggi’s crisis) and the widening consumers acceptance have led to an
emergence of new players with their innovative offerings.

• The increasing health consciousness among Indian consumers have shifted the focus of instant noodles from convenience to health. The increasing influence of
social media have empowered consumers to demand healthier versions of instant noodles.

• The 2015 Maggi fiasco provided sufficient opportunity to brands, such as Wai , a noodles brand from CG (Chaudhary Group) which recently launched its first-ever
brand campaign.

• The emerging brands have sought to capture the consumer’s confidence with the launch of products containing healthy ingredients. The vegetable, flour, and oats
variants of instant noodles have gained considerable traction due to its healthy claims.

• ITC’s Yippee! Atta Noodles have infused vegetables in their newly launched healthy variant. The company has also offered enhanced choice in seasoning and
spices, by providing two different spice sachets.

• The launch of healthier variants of instant noodles is expected to broaden the target consumers, especially in the wake of enhanced health consciousness. Such
launches are also aimed at deepening the market penetration of different categories, within different classes of population.

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3.2 RESTRAINTS 17

3.2.1 SAFETY CONCERNS AND HEALTHIER ALTERNATIVES

• In June 2015, Maggi was declared unsafe by the Food Safety and Standards Authority of India (FSSAI) after some of its samples were found to contain excessive
lead.

• Many of the instant noodles brands, such as Top Ramen were also taken off the shelves, due to pending approval and to conduct exhaustive safety checks. The
instant noodles industry has witnessed robust revival with new launches and advertising that reiterated product safety.

• The product contamination with heavy metals, such as lead, creates an increased level of food safety emergency. Lead and other heavy metals have proven to be
neurodegenerative agents, especially affecting the children – the main target group of instant noodles.

• The major class of raw material that is used in the manufacturing of instant noodles is refined flour: the flour is devoid of any substantial fiber content, and is known
to cause gastrointestinal troubles. Indians are becoming increasingly cautious of this factor in instant noodles.

• The spices and condiments offered with instant noodles contain significant levels of monosodium glutamate (MSG) to add umami flavor to the products. MSG has
also been associated with variety of health deteriorating conditions.

• Companies, like Nestle and CG Foods, have drastically improved the product formulations by reducing sodium levels and optimizing the use of additives, like
preservatives and colorants, in order to address quality and safety concerns for instant noodles.

• Instant noodles are considered as unhealthy option, as per the general opinion of Indian consumers, and this has prompted them to seek healthier alternatives.

• Indian parents have increasingly turned their attention to economical alternatives, such as pasta, macaroni, and even vermicelli.

• The alternatives products and their growing popularity among Indian consumers have dampen the growth prospects for the market studied.

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3.3 OPPORTUNITIES 18

3.3.1 EVOLVING CONSUMER PALATES AND INCREASING BRAND RECOGNITION

• The advent of globalization and liberalization in 1991 has opened up the Indian market for foreign players. The surge in competitiveness has led to brand recognition
and consumer’s confidence in certain brands of product.

• The success of Nestlé’s Maggi is a classic example of effective brand penetration, especially among the middle class Indian consumers.

• The exposure of Indian consumers to global cuisines is widening. The instant noodles industry is set to experience substantial innovation, both in terms of ingredients
formulation and packaging aspects, in the near future.

• Children have been target segment for innovative variants of noodles. Key companies have also increasingly captured demands from teenagers and health conscious
groups by launching specific products catering to different segments.

• The innovative launch, in terms of flavors and ingredient level improvisation, is expected to make instant noodles as an affordable alternative to mainstream food
products.

• The robust distribution network of key giants is also complemented by region-specific marketing approach which is further expected to strengthen brand value and
recognition.

• The distinct position of key companies in the instant noodle industry of India has paved a way for the launch of health promoting products, that are expected to gain
greater consumer’s acceptance due to the on-going trends of health and wellness.

• The instant noodles brands are also seeking entry into the food service marketplace in India. For instance: In 2017, the CG Corp Global entered into foodservice
operations in India with Wai Wai City, the first-of-its-kind chain of quick service restaurants in the noodle category.

• Such efforts and activities are expected to provide the required drive for the growth in the instant noodles industry in the future.

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3.3 OPPORTUNITIES 19

3.3.2 ROBUST GROWTH OF FOOD RETAIL CHANNELS • The mass merchandisers are the dominant retail channels in the urban areas of the
country. Such platforms are expected to provide considerable space for instant
Retail landscape of India
noodles category to innovate and expand substantially.
5.13% 4.2700%
• Distribution channels, such as hypermarkets/supermarkets, have projected

Food and Beverage themselves as a hotspots of innovation and new launches in the instant noodles
10.45%
category. The value-based offerings promote enhanced sales, particularly for the
Textiles
marketplace that gives greater importance to the value-for-money aspect.
Consumer Durables
80.15%
Others
• Convenience and groceries stores have followed the mass merchandisers in the
launch of deal-based retailing, the homogenous growth of retail landscape has
created substantial opportunities for the market studied.

• The Indian retail giants have also launched their own private-label instant noodles
• India has become most favorable market for retail expansion,
brands after observing the decent sales growth of emerging brands, such as
supported by a fast-growing economy, increasing consumption rates,
Patanjali, Del Monte – Field Fresh Foods etc.
and a increasing middle class. The food & beverage segment
accounts for the largest share of the overall retail industry revenue in • Brands, such as Feasters (AV Birla Retail), Tasty Treat (Future Group), and Smart
India. Choice (Spencer's) have also appeared in Indian marketplace, specifically targeting
the urban dwellers of India.
• The dominance of the food & beverage sector in the retail sector in
India is evident from the graph above. The retail platform is expected • Such retail-level innovations, offerings, and selling strategies are expected to boost
to provide good opportunity for the convenient food categories, such the growth prospects of the market studied, during the forecast period, by offering
as instant noodles, in the near future. high product visibility product displays.

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3.4 PORTER’S FIVE FORCES (MODEL SAMPLE) 20

The Indian instant noodles market is extremely competitive, with the presence
Indian Instant Noodles Market
of global giants and domestic players who are venturing into the market with THREAT OF NEW ENTRANTS
THREAT OF SUBSTITUTES
the introduction of new product variants.

Instant noodles are known for convenient and easy to prepare methods. A lot HIGH HIGH
of other products like, soups, pastas, bitten rice, and others, have also been
introduced into the Indian market. They also serves this purpose and are
easily available at an affordable price point.
COMPETITIVE RIVARLY
The growing number of instant noodles brands, coupled with the emergence
in the substitutes product, have empowered consumers in exerting
considerable pricing pressure on the companies.
BARGAINING HIGH BARGAINING
POWER OF POWER OF
CUSTOMERS SUPPLIERS
As the number of manufacturers in the instant noodles market are increasing,
there is also a rise in the number of suppliers for the product. Thus, the MODERATE LOW
bargaining power of the suppliers have reduced, as the manufacturers can
easily switch to other vendors who offer products at a lower prices.

Source: Mordor Intelligence Analysis

DETAILED ANALYSIS AVAILABLE IN FULL REPORT | sales@mordorintelligence.com


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3.4 PORTER’S FIVE FORCES ANALYSIS 21

BARGAINING POWER OF SUPPLIER:


THREAT OF NEW ENTRANTS: THREAT OF SUBSTITUTES:
Low
High High
• A lot of Indian variants of snacks and food products, • In India, there are many suppliers
• The Indian instant noodles market is highly
like ready-to-make bitten rice, upma (Indian snack), (ingredients) used to prepare instant
concentrated with the key players, such as
puffed rice snacks, and others are being launched by noodles.
Nestle, ITC, and CG Foods Pvt Ltd.
domestic players in order to capture the market. All
• This provides wider choices to the
• New players are investing heavily in R&D to these products are acting as substitutes for instant
manufacturers of instant noodles, enabling
bring about product differentiation in their noodles.
• Since noodles are considered unhealthy among them to switch from one vendor to another,
offerings, and launching new healthier versions
Indian consumers, substitute food products are acting at an affordable cost, if they do not meet the
of instant noodles.
as an option for healthy snacking. required standards.

BARGAINING POWER OF BUYERS:

COMPETITIVE RIVALRY: Moderate

High • Due to the increase in the number of


Indian Instant Noodles Market companies selling instant noodles in India,
• With the increase in the number of players in
the Indian instant noodles market, there is a • High competition within the industry. there is a wide range of instant noodles for

high level of competition among the consumers to choose from. This restricts the
• The players in the market studied are concentrating companies to increase the price of their
companies.
on the introduction of instant noodles, which are product, as consumers can easily switch to
• Competition in the instant noodles market is considered healthy, like oats, wheat, rice, and flour. other brands.
has been observed, with the introduction of • This has pushed the instant noodles
innovative packaging techniques, new flavors, companies to differentiate their product in
and pricing. order earn more profits.

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22

4.1 Consumer Demand Analysis

4.2 Target Market Identification

4.2.1 Purchasing Power


4. CONSUMER BEHAVIOR ANALYSIS
4.2.2 Demographic Strengths and Weaknesses

4.2.3 Spending Patterns

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4. CONSUMER BEHAVIOR ANALYSIS 23

4.1 CONSUMER DEMAND ANALYSIS

Preference for Buying, India, 2017


• With the change in consumers’ preferences and eating habits, and their wider
50.00%
global exposure, along with an increasingly younger population, the growing
45.00%
middle class, with increasing number of nuclear families, and increasing
40.00%
paucity of time, has given a boost to the convenience food segment. As a
35.00%
result, the instant noodles market has charted a high growth trajectory, due to
its availability, affordability, on-the-go consumption, and convenience. 30.00%
25.00%
• Geographically, the appetite for instant noodles is growing with players now
20.00%
eyeing the semi-urban and rural markets. The category’s penetration is low in
15.00%
India (~20-25%), thus presenting a lucrative opportunity for growth.
10.00%

• Instant noodles have also emerged from being a snack food or an occasional, 5.00%
alternate eating option to a mainstream food item of choice featuring regularly 0.00%
in consumers’ grocery baskets.

• Further, noodles are being consumed by all age groups, as an eating option
beyond the ‘mundane’ ones.

Demand

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4. CONSUMER BEHAVIOR ANALYSIS 24

4.2 TARGET MARKET IDENTIFICATION

4.2.1 PURCHASING POWER • Players present in the Indian instant noodles market are innovating and
adding value to establish a unique brand proposition in the consumers’ mind.
GDP Growth in million Rupees, India, 2012-2017
This can be observed with the introduction of new flavors, like Indo-Chinese,
140,000,000
barbeque, and packaging variants, like cups, bowls, and others.
121,654,810
120,000,000 113,575,290 • Companies have introduced packs of different sizes in order to cater to the
105,226,860
98,178,220
volume demand from consumers, and are also offering discounts to capture
100,000,000
92,151,250 the price-sensitive Indian consumer base.
87,360,390
In million Rupees

80,000,000 • With the increase in household income, due to the growing women workforce,
demand for convenience food products is growing. By transforming this need
60,000,000
into an opportunity, the Indian instant noodles manufacturers have made an
product extension from pouch to cup noodles that are ready-to-eat, on adding
40,000,000
hot water.

20,000,000 • In order to cater to the high income groups and growing trend for cup noodles,
instant noodles companies in India have launched different flavors of noodles
0 in cups and bowls, which is more convenient to prepare and consume than
2012 2013 2014 2015 2016 2017
Year the traditional pouch noodles.

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4. CONSUMER BEHAVIOR ANALYSIS 25

4.2 TARGET MARKET IDENTIFICATION


Categories Statistics
4.2.2 DEMOGRAPHIC STRENGTHS & WEAKNESSES
Population: 1,281,935,911
• Majority of India’s population comprises of the younger
Ethnic groups: Indo-Aryan 72%, Dravidian 25%, Mongoloid
generation, who prefers ready-to-make and ready-to-eat food
and other 3%
products, along with taste and flavors. Instant noodles with
different flavors and varieties rightly fulfills this demand. Age structure: 0-14 years: 27.34% (male
186,087,665/female 164,398,204)
• India’s consumer base is huge and is increasing at a fast rate,
15-24 years: 17.9% (male
along with the rise in demand for affordable food products.
121,879,786/female 107,583,437)
This demand could be seen to have catered by Nestle, with
25-54 years: 41.08% (male
the introduction of small sized and low cost products to
271,744,709/female 254,834,569)
address the demand of India market.
55-64 years: 7.45% (male
• India, being a multi cultural country, consists of consumers 47,846,122/female 47,632,532)
with different taste and choices. Capitalizing on this 65 years and over: 6.24% (male
opportunity, instant noodles companies in India are launching 37,837,801/female 42,091,086)
Indian versions of instant noodles. For instance, Maggi has Population growth rate: 1.17%
introduced ‘no onion, no garlic’ variant of noodles and
Infant mortality rate: 39.1 deaths/1,000 live births
Patanjali has launched Dal Tadka flavored noodles.
Dependency Ratio: 52.2

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4. CONSUMER BEHAVIOR ANALYSIS 26

4.2 TARGET MARKET IDENTIFICATION

4.2.3 SPENDING PATTERNS • India’s majority population still resides in the semi-urban and rural areas and
consists of middle class income groups. Thus, there exists a strong preference
for food products that are affordable, along with other benefits. In order to target
Average Monthly Household Expenditure on Essential
this segment, instant noodles companies in India have launched small sizes of
Goods, India, 2017
its product in affordable plastic pouches.

• Instant noodles manufacturers are seen to have introduced products with larger
quantities and lower cost in an attempt to meet the demands from food service
channels, like cafes, restaurants, food stalls, and others for bulk purchase of
6,300
instant noodles.
Tier 1
9,400
Tier 2 • In order to penetrate into India’s price sensitive consumer base market, instant
noodles producers are offering discounts and launching innovative promotional
Tier 3
campaigns.

• To address the growing health concerns, brands are proactively introducing


‘healthy’ offerings as part of their product portfolio. Maggi and Top Ramen have
7,300
their ‘Atta’ noodles, while Horlicks Foodles was launched entirely on the health
platform, with the noodles made from wheat or multiple grains and including a
vitamin-supplying “Health Maker”.

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27

5.1 By Product Type 5.4 By Distribution Channel

5.1.1 Introduction 5.4.1 Introduction

5.1.2 Cup/Bowl 5.4.2 Supermarket/Hypermarket

5.1.3 Packet 5.4.3 Traditional Grocery Store

5.2 By Flavor Type 5.4.4 Online Retailing

5.2.1 Introduction 5.4.5 Others

5.2.2 Chicken Curry


5. MARKET SEGMENTATION
5.2.3 Curry Masala

5.2.4 Hot & Spicy

5.2.5 Others

5.3 By SKU Pack Size

5.3.1 Single Pack

5.3.2 Four Pack Sample

5.3.3 Six Pack Sample

5.3.4 Others

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28

5.1.1 Introduction

5.1 BY PRODUCT TYPE 5.1.2 Cup/Bowl

5.1.3 Packet

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5.1.1 INTRODUCTION 29

• The India instant noodles market by type has been segmented into cup/bowl and
packets. Instant Noodles Market: Market Share, by Type, India,
2017
• Packet noodles hold the largest market share in India, according to the observed
data, due to its low cost, higher margins, convenience, and popularity. This is 17.99%
followed by cup and bowl noodles, which are easier to prepare, are comparatively
highly priced, due to the high cost involved in production and is mainly popular
among travelers and urban areas.

• Many consumers in the young generation have busier lifestyles, are continuously
on-the-go, and need products that offer taste, nutrition, and convenience.
Cup/bowl noodles are considered trendy among the multitasking generation, and
is gaining popularity. This can be marked by Nestle widening its offering of the
Maggi brand of noodles, with the launch of two variants of Maggi Cuppa Mania
instant noodles.
82.01%

• While packet noodles has a widespread reach from rural areas to metro cities
and from restaurants to road side food stalls, cup noodles are mainly purchased Cup/Bowl Instant Noodles Packet Instant

by service sectors, like airlines, hotels, and others, and consumers in urban cities Source: Mordor Intelligence Analysis
and towns.

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5.1.2 CUP/BOWL 30

Instant Noodles Market: Revenue in USD million, by • The cup/bowl segment of the Indian instant noodles market was valued at USD
Cup/Bowl, India, 2015-2023 258.77 million in 2017. It is expected to register a CAGR of 5.8% during the
400.00 forecast period.
371.38
351.13 • Nissin sparked an instant food culture in 1971, with the introduction of cup noodles.
350.00 331.98
313.88 It gained acceptance and achieved huge popularity, which can be observed by the
296.76
300.00 launch of similar products from market leaders, such as Nestle SA, CG Foods India
280.58
258.77 Pvt. Ltd, among others.
Revenue in USD million

244.82
250.00
• Although cup/bowl noodles is priced more than packet noodles, as cups are made
200.00 up of foam, hard plastic, or paper cup, which is costlier than plastic pouches, they
180.03
are still experiencing high growth in the Indian instant noodles market, owing to its
150.00
convenience.

100.00 • Cup noodles takes less time to prepare, offers good taste, and can be eaten
straight from the packaging. All these factors make time-starved consumers, who
50.00
are increasingly tucking into convenience foods to satisfy their hunger during work
or travel, purchase cup noodles.
0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year • Major developments in cup noodles include up gradation of the material used to
make the cup/bowl used, so as to make it microwave-safe.

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5.1.3 PACKET 31

• The packet segment of the India instant noodles market was valued at USD Instant Noodles Market: Revenue in USD million, By
Packet, India, 2015 - 2023
1,179.27 million in 2017. It is expected to register a CAGR of 5.5% during the
1800.00
forecast period. 1670.28
1582.68
1600.00
• Packet noodles are the most common type of noodles, which are consumed 1499.67
1421.02
worldwide. This comes with reasonable pricing and is easy to prepare. Almost all 1400.00 1346.49
1275.86
instant noodles companies have product in this segment.
1179.27
1200.00

Revenue in USD million


1118.16
• India, being a price sensitive consumer base, packet noodles consumption is on
1000.00
the rise as compared to cup/bowl noodles. Moreover, packet noodles comes in
824.05
packs of one, two, four and others, and consumers can make purchase decisions 800.00
according to their needs and preferences.
600.00
• Further, packet noodles are convenient to carry and are all the more cheaper
when purchased in high volumes. This makes its purchase profitable for users, 400.00

like cafes, canteens, families, and others. Also, these noodles are preferred
200.00
during gatherings, birthdays, and other occasions.
0.00
• Packet instant noodles provide the consumer the opportunity to experiment with 2015 2016 2017 2018 2019 2020 2021 2022 2023
Year
the noodles in their kitchen, to spice up the taste and flavor according to one’s
choices.

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32

5.2.1 Introduction

5.2.2 Chicken Curry

5.2 BY FLAVOUR TYPE 5.2.3 Curry Masala

5.2.4 Hot & Spicy

5.2.5 Others

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5.2.1 INTRODUCTION 33

• The prominent flavors in the Indian instant noodles market, holding commercial
relevance are curry masala, chicken curry, hot & spicy, and others.
Instant Noodles: Market Share (%), by Flavor Type,
• Companies have known the traditional preferences of Indian taste buds – spices
India, 2017
and masala have been dominant and ubiquitous presence in retail shelves of
India.
17.57%
• The popularity of Nestlé's Maggi is significantly due to the ingredient composition 20.78%

and flavor profile of masala that is intrinsic part of the package.

• Majority of Indian population, especially vegetarians, increasingly preferred


masala as their ideal flavor choice while buying instant noodles, owing to its Chicken Curry

savory taste and desirable mouth-feel that enhances the eating experience of Curry Masala

19.89% Hot & Spicy


noodles.
Others
• The chicken curry has become second-most appealing flavor, especially among
the meat aficionados. The blend of masala and chicken pieces are found to make
noodles more appetizing, and thus, the flavor variants have widened
41.76%
considerably in past few years.

• The consumers have increasingly sought variation and uniqueness in traditional


flavors. Companies have responded by launching variety of hot and spicy flavors Source: Mordor Intelligence Analysis
in the form of green chili, herbs and spices, manchow, etc.

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5.2.2 CHICKEN CURRY 34

• The chicken curry segment of the market studied was valued at USD 298.82
million in 2017. It is expected to register a CAGR of 5.3%, during the forecast Instant Noodles Market: Revenue in USD million, by
period, to reach USD 418.13 million by 2023. Chicken Curry, India, 2015 - 2023
450.00
• The variation in the flavor enhancers containing chicken have provided brands 418.13
with a distinct brand recognition, among consumers. 397.00
400.00
376.94
357.89
• The preference for protein rich savory delicacies has placed chicken flavored
350.00 339.81
noodles among the popular choices of Indian consumers. 322.64
298.82

Revenue in USD million


300.00 283.90
• The unique brand positioning, in each company, stems from the quality of
ingredients. Chicken plays a prominent role in imparting a delicious taste of instant 250.00

noodles. However, companies have increasingly turned their attention toward the 209.65
200.00
quality and safety aspects of chicken based flavor enhancers.

• The higher nutritional profiles associated with chicken based flavor enhancers 150.00

have enabled companies to promote their products with variety of health claims,
100.00
companies have showcased their products with goodness of protein to attract
health conscious consumers. 50.00

• Chicken based flavor enhancers are found to fulfill the increasing preferences for 0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
meat-based savory foods. Moreover, the chicken flavor enhancers cater to wide Year
range of taste buds with the minor modification in ingredients formulations.

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5.2.3 CURRY MASALA 35

• The curry masala segment of the instant noodles market was valued at USD 600.50
Instant Noodles Market: Revenue in USD million, by million in 2017. It is expected to register a CAGR of 5.1% during the forecast period.
Curry Masala, India, 2015 - 2023
• The 2015 Maggi fiasco have prompted many key players to fill the vacuum generated
900.00
831.36 by dwindling shares of Nestle. Companies entered this bandwagon by launching
790.76
800.00 instant noodles in variety of masala flavors.
752.13
715.40
700.00 680.46 • Nestlé's Maggi, in order to regain the lost shares, have launched almost 40 new
647.22
600.50
products in a span of one year (from April 2016 to July 2017). The company also
600.00 571.55
Revenue in USD million

exhibited separate Maggi Masalas category to fulfill the increasing demands of Indian

500.00
taste preferences. The exponential sales of masalas signifies its immense popularity
422.82 and dominance in Indian marketplace.
400.00
• The ingredients level modification in spices and masalas have also offered
300.00 companies a significant differentiation factor, thereby providing distinct brand
recognition.
200.00

• Companies have also tapped the healthy claim, in order to boost the sales of their
100.00
product. This has come with new spice mixes acting as a complimentary factor. For

0.00 instance ,ITC’s Yippee! recently launched the atta noodles variant with vegetables
2015 2016 2017 2018 2019 2020 2021 2022 2023
infused in each of its strands, the product contains two spice mix sachets — masala
Year
mix and mood mix.

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5.2.4 HOT & SPICY 36

• The hot & spicy segment of the instant noodles market was valued at USD 286.00 million
Instant Noodles Market: Revenue in USD million, by in 2017. It is expected to register a CAGR of 6.0% during the forecast period, to reach
Hot & Spicy, India, 2015 - 2023
USD 415.27 million by 2023.
450.00
415.27 • The increasing preference for unique and appealing flavors, apart from masala and
400.00 391.87
369.78
chicken, have prompted manufacturers to launch variety of flavors that enhances and
348.94 compliments the eating experience of instant noodles.
350.00
329.27
310.71
• The rise in demands for increased spiciness and refined palates in spice have driven the
300.00 286.00
Revenue in USD million

270.06 growth of hot and spicy flavors of instant noodles.


250.00
• Companies have launched different flavors resembling to South East cuisines, such as
198.21
200.00 manchow, herbs and spices, peppery and green chili. The strong demands for other
creative flavors have also prompted companies to launch flavors resembling to
150.00
barbeque, peri-peri, Schezwan, hot garlic, etc.

100.00
• Innovation within the category is also evident with manufacturers choosing different
variants of spices, blending with other ingredients, to create a distinct and palate-
50.00
appealing varieties of instant noodles.
0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 • The value-addition in umami flavors have led to introduction of innovative hot and spicy
Year
flavors that offers an ideal alternative to traditionally dominant flavor types.

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5.2.5 OTHERS 37

• The others segment of instant noodles market was valued at about USD
Instant Noodles Market: Revenue in USD million, by
252.73 million in 2017. It is expected to reach USD 376.89 million by 2023, Others, India, 2015 - 2023
with a CAGR of 6.4% during the forecast period. 400.00
376.89

354.18
• The more varied a product portfolio is in terms of different ingredients and 350.00
332.80
flavors, the more choice it offers to consumers. Instant noodles have become 312.67
an integrated part of Indian snack products, and the future growth is 300.00 293.72
275.88
dependent on innovation and healthy offerings.
252.73

Revenue in USD million


250.00 237.47
• Consumers are increasingly demanding prominent, strong, and full-flavored
instant noodles, and this has paved a way to the launch of a variety of different
200.00
flavors. 173.40

• Flavors, such as Tomyum, veggies, seafood are also increasingly becoming 150.00

popular among Indian consumers seeking different tastes.


100.00
• Innovation, in terms of noodles itself, coupled with modification in flavoring
add-ons have led to the introduction of wide range of flavors including Indo-
50.00
Chinese, Chinese, tomato, soupy noodles, etc.

• The market has also witnessed the launch of mild and savory flavors, such as 0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
Jain, Italian, and Biryani variety that cater to specific segment of population Year

and children with sensitive taste buds.

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38

5.3.1 Single Pack

5.3.2 Four Pack Size


5.3 BY SKU PACK TYPE
5.3.3 Six Pack Size

5.3.4 Others

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5.3.1 INTRODUCTION 39

• A stock keeping unit (SKU) signifies a discrete product that can be tracked and
Instant Noodles: Market Share, by SKU Pack Size,
differentiated based on its attributes in retail channels. The distinction of SKU in our India, 2017
report is based on the packaging size.

• The value-addition in terms of packaging size and the introduction of package size
reduction is a part of overall marketing strategy that aims to penetrate the market. 18.67%

• Companies have introduced a variety of packaging sizes, in order to enhance


customization and promote the sales of their product, on a volume basis. Single pack
remains a dominant category in market studied. Single Pack

10.08% Four Pack Combo


• The introduction of larger packaging sizes are generally offered at competitive and 52.72%
Six Pack Combo
pocket-friendly prices in order to promote the sales of products in higher volumes.
Others
• The companies have also adopted to size reduction to expand the reach of their
products in the rural and remote areas of the country. 18.52%

• The package size reduction have significantly contributed to the sales of instant
noodles. The larger packaging sizes have witnessed considerable sales from mass
merchandisers, whereas the sachets version of instant noodles are increasingly
bought from convenience stores and other small independent retailers. Source: Mordor Intelligence Analysis

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5.3.2 SINGLE PACK 40

• The single pack segment of instant noodles market was valued at about USD
Instant Noodles Market: Revenue in USD million, by 758.21 million in 2017. It is expected to reach USD 1081.67 million by 2023, with a
Single Pack , India, 2015 - 2023 CAGR of 5.7% during the forecast period.
1200.00
• The single pack represents an ideal option for mini-meals. The growth of single pack
1081.67
1023.71 instant noodles are driven by rise in demand of convenience, along with portion size
1000.00 968.85
controlled serving.
916.93
867.80
821.29 • The single pack size of instant noodles witnessed a significant boost with the
800.00 758.21 emergence of cup noodles that offered enhanced convenience.
Revenue in USD million

718.05

• The microwavable and more sustainable aspect of cup noodles provided consumers
600.00 to offer single pack noodles that are not only convenient, but also are increasingly
528.55
customizable.

400.00 • For instance: Nissin Foods have offered improvised cup noodles packaging that
allow consumers to add their own healthy ingredients.

200.00 • The ease of utilization coupled with the increasing preference for sachets,
particularly from the rural and suburban area of country, are expected to further the
demand of single pack in the near future.
0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year
• Thus, accessibility, convenience, usage, comfort, and increased demand for sachets
are expected to fuel the growth of single pack instant noodles segment.

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5.3.3 FOUR PACK SIZE 41

• The four pack size segment of the market studied was valued at about USD 266.35 Instant Noodles Market: Revenue in USD million, by
million in 2017. It is expected to reach USD 366.27 million by 2023, with a CAGR of Four Pack Size, India, 2015 - 2023
5.0% during the forecast period. 400.00
366.27
• Four pack size of instant noodles are designed to offer consumers value-for-money. 348.78
350.00 332.11
Such products have witnessed higher sales from mass merchandisers. 316.25
301.14
300.00 286.75
• The retail players have also adopted bundling strategy to drive the sales of larger
266.35

Revenue in USD million


253.80
units of instant noodles. Such strategies have yielded promising results.
250.00

• Four pack sizes are also popular among the consumers buying noodles on regular
200.00 187.96
basis. The voluminous sales of instant noodles have provided companies with an
innovative ways to enhance the salability of the products. 150.00

• Retail channels have also embarked on deals and discounts to provide further boost
100.00
to the sales growth of instant noodles.

50.00
• The market penetration of instant noodles, particularly in the developing towns and
tier 2 cities of India, depends heavily on cost-effective marketing and value-based
0.00
packaging size. 2015 2016 2017 2018 2019 2020 2021 2022 2023
Year

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5.3.4 SIX PACK SIZE 42

• The six pack size segment of instant noodles market was valued at about USD
Instant Noodles Market: Revenue in USD million, by Six 145.02 million in 2017. It is expected to reach USD 203.76 million by 2023, with a
Pack Size, India, 2015 - 2023 CAGR of 5.4% during the forecast period.
250.00
• The six pack size of instant noodles is expected to grow at a decent rate, during
the forecast period, due to favorable demographical and cultural arena.
203.76
200.00 193.33
183.44 • The six pack size has been designed to specifically targeted food service
174.05
165.14 channels, such as restaurants, food stalls, and drive-ins.
Revenue in USD million

156.69
145.02
150.00
137.69 • The fast food culture have rapidly expanded in India. Many food stalls that serve
food 24 hours are increasingly preferring larger size of instant noodles that are
101.61 convenient and economical.
100.00

• Companies have also projected six pack size as a family-size variant, thereby,
offering higher value and enhanced convenience.
50.00
• The six pack size of instant noodles has also witnessed occasion-specific sales.

• The scale of festivities and celebrations in India is grand and thus, it represents a
0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
suitable marketplace for the sales of such voluminous pack versions.
Year
• The companies have also offered special discounts to retailers and wholesalers in
order to promote the sales of larger packing size.

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5.3.5 OTHERS 43

• The others segment of market studied was valued at about USD 268.46 million in
2017. It is expected to reach USD 389.96 million by 2023, with a CAGR of 6.0% Instant Noodles Market: Revenue in USD million, by
during the forecast period. Others, India, 2015 - 2023
450.00
• The other packaging formats of instant noodles are double pack, pack of twelve,
400.00 389.96
bundled packaging formats of cup noodles, etc.
367.99
347.25
• Such packaging size is tailor-made to enhance the sales of instant noodles, by 350.00
327.67
309.17
offering value addition and price competitiveness.
300.00 291.71

Revenue in USD million


268.46
• The other packaging size and formats also enhances the brand visibility by 253.44
250.00
occupying highly visible retail shelves.
200.00 185.96
• The companies have also adopted complimentary strategies to enable the sales of
other products from the company’s portfolio, by distributing promotional packages 150.00

of instant noodles, free of cost.


100.00
• The companies have designed distinct packaging formats of instant noodles to
50.00
push for the brand awareness in the areas experiencing higher footfalls.

0.00
• The others packaging size of instant noodles is expected to boost the demand for 2015 2016 2017 2018 2019 2020 2021 2022 2023
by enhancing the brand awareness and obtaining greater market penetration. Year

Report India Instant Noodles Market


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44

5.4.1 Introduction

5.4.2 Supermarket/Hypermarket

5.4 BY DISTRIBUTION CHANNEL 5.4.3 Traditional Grocery Store

5.4.4 Online Retailing

5.4.5 Others

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5.4.1 INTRODUCTION 45

• By distribution channel, the market studied has been further segmented into Instant Noodles Market: Share (%), by Distribution
hypermarket/supermarket, traditional grocery store, online retailing, and others. Channel, India, 2017

• Instant noodles is considered a popular convenience food in the Indian market.


It is available across the country, through various distribution networks. 6.01%

• Owing to the increased dominance of the instant noodles in the Indian market, 12.37% 23.55%

grocery stores have allocated huge shelf spaces locked in for various brands of
instant noodles.
Supermarket/Hypermarket

• The future of distribution channels is observed to be a hybrid one, as every Traditional Grocery Store

channel has its pros and cons and fulfills the needs of different consumers. Online Retailing

Others
• The exponential growth of food service retail channels has provided significant
opportunities for organic growth of the market studied.

• The emergence of new brands has enabled retailers to offer value-based 58.07%
products to consumers.

Source: Mordor Intelligence Analysis

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5.4.2 SUPERMARKET/HYPERMARKET 46

Instant Noodles Market: Revenue in USD million, by • The supermarket/hypermarket segment of the market studied was valued at USD
Supermarket/Hypermarket, India, 2015-2023 338.63 million in 2017, and is expected to register a CAGR of 6.0% during the
600.00 forecast period.

• The trend of supermarket/hypermarkets is gaining momentum in the Indian market,


492.45
500.00 with the availability of all the necessary groceries under one roof. An exponential
464.57
438.27 rise in the penetration by hypermarkets/supermarkets is being observed in the tier-2
413.46
390.06 and tier-3 cities of the country.
400.00
Revenue in USD million

367.98
338.63 • This channel offers huge shelf spaces to accommodate all brands of instant
319.67

300.00 noodles. A supermarket/hypermarket allows the seller to display large varieties and
flavors of instant noodles in high quantities, thereby offering diverse products to the
234.55
consumers.
200.00

• Consumers in metropolitan cities and towns prefer these stores to purchase their
daily essentials. Marketing instant noodles through this channel is expected to
100.00
contribute toward gaining brand visibility.

• Moreover, supermarkets/hypermarkets are able to provide attractive offers and


0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 discounts to consumers, as they avail discounts on bulk purchases from the
Year
manufacturers of instant noodles.

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5.4.3 TRADITIONAL GROCERY STORE 47

Instant Noodles Market: Revenue in USD million, by


• The traditional grocery store segment of the market studied was valued at
Traditional Grocery Store, India, 2015-2023
USD 835.03 million in 2017, and is expected to register a CAGR of 5.5%
1400.00
during the forecast period.

1182.33
• In India, a majority of the population purchases food items from traditional 1200.00
1120.38
grocery stores, as the concept of supermarket/hypermarket and online 1061.67
1006.04
retailing is comparatively new in the country. Thus, the major sales revenue 1000.00 953.33
903.38

Revenue in USD million


of instant noodles is from traditional grocery shops. 835.03
791.81
800.00
• India, being a developing nation, is still in a growth phase, with a major size
of its consumers concentrated in small cities and villages, where the 583.57
600.00
prominence of traditional grocery stores is much higher than any other
distribution channel. Thus, a company should have a robust distribution
400.00
network, to penetrate the market studied.

• Traditional groceries stores provide greater convenience for Indian 200.00

consumers, as they can easily pick up instant noodles on-the-go, as these


stores are located at close proximity to their houses. 0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year

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5.4.4 ONLINE RETAILING 48

• The online retailing segment of the market studied was valued at USD 177.94
Instant Noodles Market: Revenue in USD million, by million in 2017, and is expected to register a CAGR of 6.1% during the forecast
Online Retailing, India, 2015-2023 period.
300.00
• With the hectic lifestyle and shifting trend toward online shopping, instant noodles
259.70 are being purchased online, along with other grocery items. This culture is mainly
244.85
250.00 popular in big cities and towns, such as Mumbai, Delhi, Hyderabad, etc.
230.85
217.65 • Online retailing offers significant profitability to the seller, as the cost of the store
205.21
200.00 193.47 and related expenses are reduced, thus boosting the demand for instant noodles
Revenue in USD million

177.94
167.87 from online sellers.

150.00
• Additionally, online purchasing provides the opportunity to the seller to pass on

123.10 the benefits of reduced cost to the end user, thereby making the purchase of
instant noodles cheaper, than other channels. This can help the manufacturer to
100.00
penetrate the market studied.

• Although there exist challenges of selling instant noodles online, startups, such
50.00 as BigBasket, PepperTap, and others are using combination of different
business models and technologies to overcome them. Investors have started

0.00 focusing on this channel and large conglomerates, such as Tata and Reliance,
2015 2016 2017 2018 2019 2020 2021 2022 2023
and e-commerce giants, such as Flipkart, Amazon, and others, are striving to
Year
capture this segment.

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5.4.5 OTHERS 49

• The other distribution channels segment of the market studied was valued at USD
Instant Noodles Market: Revenue in USD million, by
86.45 million in 2017, and is expected to register a CAGR of 3.2% during the
Others, India, 2015-2023
forecast period.
120.00

• Other distribution channels include independent stores, departmental stores, tea 107.19
104.01
100.86
stalls, canteens, and others. 97.74
100.00 94.66
91.61
• An upgrade of traditional grocery to departmental stores has been observed in 83.63
86.45

small Indian cities and towns. This can prove to be the next big distribution channel

Revenue in USD million


80.00

for instant noodles manufacturers.


62.86

• The instant noodles marketers can target the small independent stores in the rural 60.00

areas, to make products accessible and increase brand visibility, as they are the
main convenience stores in these areas. 40.00

• Small vendors also sell instant noodles, in packed as well as in cooked form, which
can be found in urban and rural areas. These distribution channels promote 20.00

sustainable sales of instant noodles, by providing points of sale at unconventional


locations. 0.00
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year

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50

6.1 Market Share Analysis

6. COMPETITIVE LANDSCAPE 6.2 Most Active Companies

6.3 Strategies Adopted by Leading Players

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6.1 MARKET SHARE ANALYSIS 51

• The market studied is highly concentrated among a few key players, such as
Nestle SA, ITC, CG Foods India Pvt Ltd, and Capital Foods Pvt Ltd.
Instant Noodles Market: Share Analysis (%), India,
• The Maggi fiasco of 2015 took a heavy toll on the market, which shrunk to
2017
abysmal levels.

• The companies, such as ITC, CG Foods India Pvt Ltd, and Capital Foods Pvt
Ltd gained significant momentum over a span of one year, until the re-launch 15.67%

of Maggi.

4.14%
• Since then, Maggi has regained its share at a robust pace than expected. This
43.74% Nestle S.A.
revival of share can be attributed to the exhaustive quality and safety
ITC
assurance claims, along with the rapid launch of new flavor varieties.
16.22%
CG Foods India Pvt. Ltd.
• The key players in the market studied have tapped the health-promoting
Capital Foods Pvt. Ltd.
aspect, by formulating their ingredients to add more fibers, reduce obnoxious
Others
additives, and provide aesthetic packaging formats.
20.23%
• The emergence of private label brands from local players and retail giants is
expected to intensify the competition over the forecast period.

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6.2 MOST ACTIVE COMPANIES 52

• The most active companies are – Nestle, Indo Nissin Foods, and HUL.
Most Active Companies, by Strategy, India, 2017
• The other companies that have registered significant activities are - ITC and CG Foods
6
India Pvt Ltd.

• The companies involved in the market studied are actively developing corporate and
5
competitive strategies.

• As a part of their corporate strategies, companies are taking up acquisition as the 4

primary strategy.
3
• The companies, such as Nestle and ITC, have embarked on enhancing their distribution
channels for effective product penetration.
2
• HUL has gained a prominent share in the aftermath of Maggi crisis and the company
has been striving to retain its share, with effective brand promotion strategies. 1

• The other companies, such as Capital Foods and CG Foods India Pvt Ltd, have
exhaustively dedicated their resources to identify the evolving taste patterns of the 0
Nestle SA ITC HUL Indo Nissin CG Foods Patanjali
Indian consumers and developing products accordingly. Foods India Pvt Ltd
(Wai Wai)
• CG Foods India Pvt Ltd has targeted the northeast, by catering to the regional tastes
Partnership/ Joint Venture Product Development Expansion
and buying preferences. The company is striving to tap the other prominent regions of
the country, with a blend of marketing and distribution strategies.

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6.3 STRATEGIES ADOPTED BY LEADING PLAYERS 53

• Some of the most adopted strategies in the market studied are - new product
development, expansions, and joint ventures/partnerships/agreements.
Most Adopted Strategies (%), by Strategy, India, 2017
• New product development is found to be the most preferred strategy by key players, to
grow sustainably in the highly competitive marketplace.

• In May 2017, Nestle India’s Maggi launched iron-fortified noodles, as a part of its
18%
‘Simply Good’ commitment, to attract the health-conscious consumers and create
a positive impact.

• In November 2017, ITC Foods announced the launch of YiPPee! Mood Masala.
This product offers two sachets – a main spice mix and a mood mix (an additional
garnish that will enable a consumer to customize the product as per his/her mood 18%

and taste preferences).


65%
• The expansions and joint ventures/partnerships/agreements are the other strategies that
companies adopt, to expand their consumer base and obtain effective product
penetration.

• In March 2018, CG Corp Global launched its Green-tech Mega Food Park in
Rajasthan, spread across 85 acres.
New product developments Expansions JV/Partnership/Agreements

• In August 2017, Nestle India inked a partnership with e-commerce major Amazon
India, to exclusively sell the newly launched ‘Nutri-licious’ range of Maggi noodles.
Source: Mordor Intelligence Analysis

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54

7.1 Patanjali Ayurved Limited

7.2 Nestle SA

7.3 ITC Limited

7.4 Hindustan Unilever Limited

7. COMPANY PROFILES 7.5 Well Grow Co. Limited

7.6 Tat Hui Foods Pte Ltd

7.7 Indo Nissin Foods

7.8 Capital Foods

7.9 CG Foods India Pvt Ltd

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7.1 PATANJALI AYURVED LIMITED 55

FOUNDED IN 2006

Patanjali Ayurved Limited is an Indian FMCG company.


PATANJALI AYURVED LIMITED
Its manufacturing units and headquarters are located in
the industrial area of Haridwar, whereas, the registered
office is located at Delhi. The company manufactures
mineral and herbal products. It also has manufacturing
units in Nepal, under the trademark Nepal Gramudhyog,
and imports the majority of herbs from the Himalayas of
Nepal.

Fatehgarh, Uttarakhand, India


TOTAL REVENUE - 2017 - ~200,000
1800 180 4108
USD 1.6 billion - Headquarters

https://www.patanjaliayurved.net/

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FINANCIAL ANALYSIS – PATANJALI AYURVED LIMITED 56

Revenue in USD billion, 2015-2017


1.8
1.6
1.6
1.4
In USD billion
1.2
1
0.8 0.7
0.6
0.4 0.3
0.2
0
2015 2016 2017
Year

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PRODUCTS & SERVICES – PATANJALI AYURVED LIMITED 57

BRAND PRODUCT/CATEGORY DESCRIPTION

Atta Noodles Classic These are instant noodles with a rich tomato flavor and are offered in packs of 60 g and 240 g.

It is a nutritious alternative to the chemical-loaded noodles available in the market. It consists of carrots,
Atta Noodles Veggie peas, beans, and other vegetables, along with flavors of coriander powder, onion, garlic, turmeric
powder, cumin, ginger, red chilies, and cloves.

These wheat flour noodles are offered with a rich tomato flavor, along with health benefits, and are
Atta Noodles Chatpataa
Patanjali Atta available in packs of 60 g and 240 g.

Noodles These noodles are very nutritional and rich in vitamins and minerals. They are customized as per Indian
Atta Noodles Desi Masala
taste preferences.

Atta Noodles Yummy Masala These instant wheat flour noodles are offered in different flavors and with several health benefits.

Atta Noodles Green Chilli These wheat flour noodles are spicy in taste and are nutritional and rich in vitamins and minerals.

Atta Noodles Dal Tadka These are ‘dal tadka’ flavored noodles, easy to make, and nutritious.

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SWOT ANALYSIS - PATANJALI AYURVED LIMITED 58

Strengths Weaknesses

• Strong brand ambassador and regional • Low number of manufacturing units


association • Introductory pricing is not suitable over the
• Positioning itself as the maker of Ayurveda and long term
herbal products • Dependence on a few products for major
• Strong distribution channel revenue
• Keeping up with the market trends

Threats
Opportunities
• Negative publicity
• Expansion by going global and tapping the rural
• Increased dependence on agriculture
market
• Intensifying competition and price war
• New product development
• Tie ups, mergers, and acquisitions
Source: Mordor Intelligence Analysis

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RECENT DEVELOPMENTS – PATANJALI AYURVED LIMITED 59

DATE APPROACH DESCRIPTION

Product Patanajali Ayurved launched noodles. The venture planned to set up six manufacturing plants for Patanjali atta
Nov 2016
Launch noodles, in addition to the unit based in Haridwar, to cater to the increasing demand.

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STRATEGIES – PATANJALI AYURVED LIMITED 60

STRATEGIES ADOPTED

• Popular Indian yoga guru Baba Ramdev being the promoter of the herbal products produced by Patanjali is the vital advantage that Patanjali has over
any other FMCG company in India.
• Patanjali Ayurved Limited uses a mix of demographic and psychographic segmentation strategies, to make its offerings appropriate/relevant to the
particular set of customer groups.
• It uses a product-based and value-based positioning strategies, to establish a sense of trust and satisfaction of being healthy, in the mind of customers.
• Its portfolio of more than 400 products made up of herbal and natural components is helping the company to offer bundled products to customers.
• Low or no advertising and promotion expenses are helping the company, by keeping its prices low and making it affordable, without compromising on
quality.

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7.2 NESTLE SA 61

FOUNDED IN 1866

Nestlé SA is a Swiss transnational food & beverage NESTLE SA


company. It has more than 2000 brands, ranging from global
icons to local favorites, and has its presence in 189
countries around the world. Nestlé was formed in 1905, with
the merger of the Anglo-Swiss Milk Company, established in
1866 by brothers George and Charles Page, and Farine
Lactée Henri Nestlé, founded in 1866 by Henri Nestlé (born
Heinrich Nestle). Nestlé's products include - baby food,
medical food, bottled water, breakfast cereals, coffee and
tea, confectionery, and others.

Vevey, Vaud, Switzerland


TOTAL REVENUE - 2017 - ~3,35,000
+1-916-446-8500
USD 93.48 billion - Headquarters

www.nestle.in

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FINANCIAL ANALYSIS – NESTLE SA 62

Net Earnings in USD billion, 2016-2017


93.6

93.5 93.48

93.4
In USD billion

93.3

93.2 93.15

93.1

93

92.9
2016 2017
Year

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PRODUCTS & SERVICES – NESTLE SA 63

CATEGORY PRODUCT DESCRIPTION

MAGGI® 2-Minute Noodles These noodles are made from the choicest roasted spices and high-quality ingredients.

MAGGI® Nutri-licious® Atta Masala Noodles It is the wheat flour variant of instant noodles, with Maggi masala.

This wheat flour noodles is made of Mexican flavor, with the goodness of fiber, 15% RDA of
MAGGI® Nutri-licious® Atta Mexicana Noodles
protein, and packed with vegetables.

MAGGI® Nutri-licious® Oats Masala Noodles These noodles are a combination of spicy taste and oat grains.

MAGGI® Nutri-licious® Oats Herbs & Spices They are oats noodles, in herbs and spices flavor with the fiber of 1 bowl of oats, 15% RDA of
Noodles protein, and with vegetables.

MAGGI® HotHeads Peri Peri Noodles These are springy and smooth noodles with a zesty peri flavor.
Packet
These are offered in smoky barbeque flavor, with black pepper and smooth noodles, topped with
MAGGI® HotHeads Barbeque Pepper Noodles
toasted onions.

MAGGI® Chicken Noodles


Source - Halliburton
These are chicken flavored noodles.

These are springy and smooth noodles with chili chicken, spiced with red chilies and a hint of
MAGGI® Chilli Chicken Noodles
garlic.

These are springy, smooth noodles topped with the raw green chili, balanced with spring onion
MAGGI® HotHeads Green Chilli Noodles
and coriander.

MAGGI® 2-Minute Noodles - No Onion No Garlic They are noodles with zero onion and garlic content.

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PRODUCTS & SERVICES – NESTLE SA 64

CATEGORY PRODUCT DESCRIPTION

MAGGI® Chicken Cuppa This product is on-the-go cup noodles with chicken flavor.

MAGGI® Chilly Chow Cuppa This product is on-the-go Chinese flavored cup noodles.

Cup MAGGI® Hotheads Barbeque Pepper Cuppa These are spicy and barbeque flavored on-the-go cup noodles.

MAGGI® Hotheads Peri Peri Cuppa These are peri peri flavored on-the-go cup noodles.

MAGGI® Masala Cuppa They are on-the-go spicy noodles available in cups.

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SWOT ANALYSIS - NESTLE SA 65

Strengths Weaknesses

• High brand recognition and market leader of • Dependence on a few products for the
instant noodles majority of the revenue share
• Well-established distribution network • Increasing health concerns among
• Broad array of products consumers
• Distinguished marketing strategies

Opportunities Threats

• Expansion by tapping the rural market • Threat from intensifying competition


• Introduction of new products • Increasing prices of commodities
• Strategic alliances to curb competition

Source: Mordor Intelligence Analysis

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RECENT DEVELOPMENTS – NESTLE SA 66

DATE APPROACH DESCRIPTION

Nestle India announced the pan-India launch of two new Maggi variants - ‘Maggi No Onion No Garlic Masala’ and ‘Maggi
Aug 2016 Launch Hot Heads’. The company also re-launched its cup noodles range and introduced a new variant - ‘Maggi Hot Heads
Cuppa’.

Nestle India’s Maggi launched iron fortified noodles, as part of its ‘Simply Good’ commitment, to attract the health-
May 2017 Launch
conscious consumers and create a positive impact.

Launch Nestlé India introduced Maggi ‘Nutri-licious’ noodles, a wholesome meal, with a focus on breakfast. The new range
Aug 2017
consists of four flavors – Atta Masala, Atta Mexicana, Oats Masala, and Oats Herbs & Spices.

MCG major Nestle India inked a partnership with e-commerce major Amazon India, to exclusively sell the newly
Aug 2017 Partnership launched ‘Nutri-licious’ range of Maggi noodles. The new range of Maggi noodles is a wholesome meal, with a focus on
breakfast.

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STRATEGY – NESTLE SA 67

STRATEGY ADOPTED

• In its branding campaign, the company promoted its brand, by sponsoring various kids’ events. Additionally, it spent significant amounts on
electronic and print media advertising. Consumers share an emotional bond with its products. On several occasions, the company conducts
aggressive marketing, by offering free samples of products.
• With its tag line ‘Taste Bhi, Health Bhi’ (both health and taste), Maggi is trying to reinforce its focus on health and providing a new angle to the
concept of two-minute noodles.
• By taking advantage of its long presence in India, Maggi is trying to create a nostalgic feeling among consumers toward repurchasing its noodles.
• Moreover, it is introducing noodles according to the regional taste and preferences, in order to target larger consumer base.

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7.3 ITC LIMITED 68

FOUNDED IN 1910

ITC Limited or ITC is an India-based company, located


in Kolkata, West Bengal. It is India's biggest cigarette
ITC LIMITED
manufacturer. Its diversified business includes five
segments, namely, Fast-Moving Consumer Goods
(FMCG), Hotels, Paperboards & Packaging, Agri
Business & Information Technology. The cigarette
business of the company contributes to more than 80%
of the company’s profits.

Kolkata, West Bengal, India TOTAL REVENUE - 2017 - ~ 25,883


033 2288 9371 USD 8.46 billion - Headquarters
www.itcportal.com

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FINANCIAL ANALYSIS – ITC LIMITED 69

Revenue in USD billion, 2016-2017


8.5 8.46
8.4
8.3

In USD Billion
8.2
8.1
8 7.93
7.9
7.8
7.7
7.6
2016 2017
Year

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PRODUCTS & SERVICES – ITC LIMITED 70

BRANDS PRODUCT / CATEGORY DESCRIPTION

Sunfeast Yippee! Magic Masala Yippee! Instant Noodles is available in four variants - Magic Masala,
Classic Masala, Power Up Masala, and Mood Masala. Magic Masala
is a special combination of species created by ITC, with spices and
Sunfeast Yippee! Classic Masala five different types of dehydrated vegetables. Classic Masala is the
Sunfeast
classical Indian masala flavour with a perfect blend of spices. Power
Yippee! Noodles
Up Masala is made from whole-wheat flour and has vegetable
Sunfeast Yippee! Power Up Masala additions in every strand. Mood Masala is a differentiated offering with
two masala mix sachets, which gives the consumer to choose from
Sunfeast Yippee! Mood Masala two flavors.

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SWOT ANALYSIS - ITC LIMITED 71

Strengths Weaknesses

• Strong brand presence and experienced • Dependence on tobacco products to meet

management its cash needs

• Broad product portfolio • Other products have considerably lower

• Well-established distribution channel market share as compared to its

• Excellent R&D facilities competitors

Threats
Opportunities
• Heavy taxation on tobacco products
• Expansion through strategic alliances
• Increased substitutes from competitors
• Introduction of innovative products
• Growing concern for health hazards
• Tapping into the growing rural markets
• FDI in retail, thereby, allowing the entry of
Source: Mordor Intelligence Analysis international brands

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RECENT DEVELOPMENTS – ITC LIMITED 72

DATE APPROACH DESCRIPTION

ITC Foods launched Yippee! Mood Masala. This offering from Yippee! have two sachets of masala, one being the main
Nov 2017 Product Launch masala mix while the mood mix is an additional garnish, which enables the consumer to customize the product as per
his/her mood and taste preferences.

ITC’s Foods Division launched Power Up Masala, the Atta noodles variant of Sunfeast Yippee!, made with Aashirvaad
Apr 2017 Product Launch
Atta as one of its ingredients. Yippee! Power Up Noodles offers vegetable infusions.

ITC associated with Wow Design for the packaging design for ‘Atta Noodles’, the new variant from Sunfeast Yippee
Apr 2017 New Product noodles. Wow Design came up with the concept of ‘power packed’ for the packaging design on the basis of the research-
Development based study it conducted. For the new packaging design’s advertisement, Yippee’s mascot, ‘Sunny’, was transformed into
a superhero to attract kids and the mast head of the pack was turned into a Sunny’s cape.

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STRATEGY – ITC LIMITED 73

STRATEGY ADOPTED

• ITC has positioned, itself, as a better alternative over its competitors, by giving consumers more flavor choices in a product, emphasizing on
long-lasting taste and easy methods of preparation.
• With the rising concerns of lead in instant noodles, ITC launched a new TV commercial for its Yippee noodles brand, assuring customers
about its safety, keeping in mind the health concerns of its customers. On the digital forum as well, the brand took initiatives to educate users
on MSG, lead, and glutamate. This increased the sales rate of ITC Sunfeast Yippee! noodles and capture a larger market share.

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7.4 HINDUSTAN UNILEVER LIMITED 74

FOUNDED IN 1933

Hindustan Unilever Limited (HUL) is an Indian consumer


goods company, based in Mumbai, Maharashtra. It is a HINDUSTAN UNILEVER LIMITED
subsidiary of Unilever, a British-Dutch company. HUL is
the market leader in Indian consumer products, with a
presence in over 20 consumer categories, such as
soaps, tea, detergents, and shampoos, among others,
with over 700 million Indian consumers using its
products.

Mumbai, Maharashtra, India TOTAL REVENUE - 2017 - ~ 18,000


+91 22 39830000 USD 5.26 billion - Headquarters
www.hul.co.in

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FINANCIAL ANALYSIS – HINDUSTAN UNILEVER LIMITED 75

Revenue in USD billion, 2016-2017


5.3
5.26
5.25

In USD Billion
5.2

5.15
5.11
5.1

5.05

5
2016 2017
Year

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PRODUCTS & SERVICES – HINDUSTAN UNILEVER LIMITED 76

BRANDS PRODUCT / CATEGORY DESCRIPTION

These noodles are positioned to be soupy with masala flavor suited to consumer’s
Soupy Noodles
taste and preferences.

Chinese Noodles These noodles are Chinese flavored and offer great taste.
Knorr
Desi Noodles They offer spicy masala flavor, which suits the local consumer’s choice.

Italian Noodles They offer Italian flavor in these noodles, which is inspired by the Italian cuisine.

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SWOT ANALYSIS - HINDUSTAN UNILEVER LIMITED 77

Strengths Weaknesses

• Strong brand visibility and goodwill • Decreasing market share with the rise in

• Market leader in consumer goods the number of competitors

• Extensive and integrated distribution channel • Inability to transform strategies at the right

• Early product innovation time

Threats
Opportunities
• Stiff competition from domestic and
• Penetration into the rural segment
international brands
• Increasing income levels and consumer
• Increased prices of commodities
awareness
• Growing demand for convenience food
Source: Mordor Intelligence Analysis

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RECENT DEVELOPMENTS – HINDUSTAN UNILEVER LIMITED 78

DATE APPROACH DESCRIPTION

Knorr, with its expertise in global flavors, launched three new exciting variants in Maharashtra - Italian Cheese and
Product Herbs, Italian Margherita and Desi Masala Chaska. These noodles are made with 100% real vegetables, choicest
Sep 2017
Launch ingredients, and are free of any added preservatives. The noodles are available in two pack sizes, single-serve and a
multipack of four.

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STRATEGY – HINDUSTAN UNILEVER LIMITED 79

STRATEGY ADOPTED

• Hindustan Unilever’s Knorr noodles are priced a little bit lower than the competitors as it follows a penetration pricing strategy. The company has a
huge competition with the existing food brands in India. This consideration makes Knorr to keep its price lower and provide a differentiating factor to
the customers, by providing value-for-money products.
• Knorr Noodles uses the existing channel of Unilever in each country for distribution and delivery, as it is a sub brand under the FMCG giant’s
umbrella. In India, Knorr is a subsidiary of Hindustan Unilever and has a network of 4,000 redistribution stockiests, which reach approximately 6.3
million retail stores.
• Each new product launch is followed by heavily promoted ad campaigns on TV and local newspapers. It also does celebrity endorsements for its
products. In recent years, Hindustan Unilever’s Knorr has been very active on social media with live pages, launching new products through
Facebook and YouTube videos, creating a lot of buzz via its #LoveAtFirstTaste campaign.

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7.5 WELL GROW CO. LIMITED 80

FOUNDED IN 1933

With more than 20 year experiences, Well-Grow Co.,


Ltd is an expert in instant noodles, rice vermicelli, bean
WELL GROW CO. LIMITED
vermicelli, and seasonings manufacturing. Its products
are highly accepted in over 20 countries, worldwide. The
company is committed toward understanding the needs
of consumers while offering delicious taste, focusing on
hygienic processes, good quality materials, with
reasonable price structure.

99/25 Moo2 Pantainorasinkh Road

Tambol Pantainorasinkh Amphur Muang


Samutsakorn 74000 TOTAL REVENUE - 2017
(66)34871571 Not disclosed - Headquarters
www.wellgrowthailand.com

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PRODUCTS & SERVICES – WELL GROW CO. LIMITED 81

BRANDS PRODUCT / CATEGORY DESCRIPTION

Picnic Instant Thai Noodles


Seafood flavored

Picnic Instant Thai Noodles


They are on-the go authentic Thai noodles, made of wheat, rich in flavor and
Hot & spicy
Picnic aroma, non-sticky, and light in stomach. They are offered in bowls and cups,
which are microwave friendly.
Picnic Instant Thai Noodles
Tomyum

Picnic Instant Noodles


Green & Healthy Veggie

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SWOT ANALYSIS - WELL GROW CO. LIMITED 82

Strengths Weaknesses

• Wide presence across borders • Low brand visibility

• Expertise in noodles manufacturing • Low market-penetration rate

• Consumer driven approach toward the new • Unique taste not catering consumers at

product development large

Threats
Opportunities
• Stiff competition from well-established and
• Growing demand for convenience food
recognized brands
• Expansion through extensive marketing
• Low cost of switching
• Shifting consumer taste toward Thai flavors

Source: Mordor Intelligence Analysis

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STRATEGY – WELL GROW CO. LIMITED 83

STRATEGY ADOPTED

• Well Grow Co. Ltd is a highly consumer-driven company. Thus, it highly commits to understand the needs of consumers: taste, preferences and
reasonable pricing. By adopting this strategy, the company intents to gain the confidence of the consumers.
• The company emphasizes a lot on the quality of its product. It deliver products, which are of good quality, hygienic, and meets the global
standard manufacturing process.

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7.6 TAT HUI FOODS PTE LTD 84

FOUNDED IN 1986

Tat Hui Foods Pte. Ltd is a company founded by Mr Lim


Hi Lay in Singapore in 1986. Its noodles are available in
a variety of flavors, as packets or cup noodles, which
are sold within Singapore. Since 1987, these noodles
have been exported to over 40 countries in Asia-Pacific, TAT HUI FOODS PTE LTD
North America, the Middle East, as well as Europe.

37 Quality RD Jurong Singapore, 618808


TOTAL REVENUE - 2017
65-6261-1010
Not disclosed - Headquarters
www.kokanoodles.com

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PRODUCTS & SERVICES – TAT HUI FOODS PTE LTD 85

BRANDS PRODUCT / CATEGORY DESCRIPTION

Koka Signature is a blend of Singaporean herbs and spices with local dishes. These on-the-go
KOKA Signature noodles are offered in various flavors of mushroom, satay, curry, tom yum, and others available in
packets, bowls, and cups.

KOKA Delight cater the health-conscious segment, thus, are made of whole grains and have no
added MSG, artificial colouring, or preservatives. Moreover, they are lower in fat, as the noodles
KOKA Delight
are 100% steamed and baked. They come in packets with flavors, like tomato, chicken, spicy

KOKA sesame, and others.

Koka Silk is a combination of soft, silken rice noodles, and authentic recipes. These noodles
KOKA Silk contain no preservative, artificial colouring, or added MSG and are gluten-free. They are offered in
packets and bowls with flavors, like seafood, chicken pho and others.

Koka Purple Wheat Noodles claims to have three times more antioxidants than red
KOKA Purple Wheat grapes. They are steamed and baked, hence, are low in fat. They come in packets with
flavors, like chilli lime, aglio olio, soy & vinegar, and braised duck.

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SWOT ANALYSIS - TAT HUI FOODS PTE LTD 86

Strengths Weaknesses

• Broad product portfolio • Low market share in international

• Early product innovation countries

• Wide international presence • Low brand recognition in foreign countries

• Experienced management

Threats
Opportunities
• Saturated market with already established
• Growing popularity for healthy convenience food
market players
• Strategic alliances with domestic companies
• Growing number of substitute products
suited to local taste
Source: Mordor Intelligence Analysis

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STRATEGY – TAT HUI FOODS PTE LTD 87

STRATEGY ADOPTED

• The company has been positioning its products as healthy instant noodles; hoping to attract the health-conscious instant noodle eaters who are looking
for a healthier choice among all the various instant noodles in the market.
• Through various marketing strategies and campaigns, like TV commercials, digital media and others, KOKA is trying to create its presence in the minds
of the consumers. Moreover, it has also introduced a variety of flavors to suit the needs of consumers, at large. Through its new product offerings, it is
trying to capture the health-conscious segment.

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7.7 INDO NISSIN FOODS 88

INCORPORATED IN 1988

Indo Nissin Foods Limited is into the manufacturing of instant


noodles. The company, based in Bengaluru, India, operates
as a subsidiary of Nissin Foods Holdings Co., Ltd. The
company’s popular brand - Top Ramen has been in the Indian
Indo Nissin Foods

market since 1991.


The business operations of the Nissin Foods Group has been
originated from the concept of food conferring universal
peace. Nissin Foods Holdings has developed and operates
its own rigorous food testing and quality-assurance system.

Indo Nissin Foods Pvt Ltd:


3rd Floor, Centenary Building, 28, M.G.
Road TOTAL REVENUE - 2017
Banglore-560001, India
- ~500
USD 4623.04
918043554000
million
The financials are of parent - Headquarter
http://www.indonissin.in company

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FINANCIAL ANALYSIS – NISSIN FOODS HOLDINGS CO. LTD 89

Net Sales (%), by Geographic Region, 2017 Net Sales in USD million, 2015-2017

Revenue (in USD million)


4623.0

10%
4365.4

12% Japan

4024.9

The Americas

78% Other Areas 2017 2016 2015

Year

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PRODUCTS – INDO NISSIN FOODS 90

CATEGORY PRODUCTS DESCRIPTION

• It is a brand of instant noodles available in five flavors, such as masala, chicken, curry,
Instant Noodles Top Ramen
oat yummy masala, and atta masala.

Short Noodles Coated With


Scoopies • It is short, pre-coated with rich masala on the inside and outside, and spoon-able.
Gravy

• It is a brand of instant cup noodles available in four flavors, such as masala, veggi-
Cup Noodles Cup Noodles manchow, Italiano, and spiced chicken. It is also available in different packaging formats
known by the brand name Cup Noodle Bits

Source - Herbalife

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SWOT ANALYSIS- INDO NISSIN FOODS 91

Strengths
Weaknesses
• Robust global presence.
• Well-established competitors
• High efficiency in instant noodles
• Inefficient implementation of marketing
production
strategies
• Optimized distribution network.
• Top Ramen has strong demands in the
Indian market.

Opportunities
Threats
• Alignment of sales with marketing
• Emerging regional players
partners
• Ready-to-cook segment highly
• Restructuring of production system
competitive
Source: Mordor Intelligence Analysis

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RECENT DEVELOPMENTS – INDO NISSIN FOODS 92

YEAR APPROACH DESCRIPTION

2014 Expansion Indo Nissin Foods opened a new factory in Odisha, India.

Nissin, the owner of Top Ramen Noodles, launched a differentiated noodle – Scoopies Mad Masala Short
2014 New Product Development
Noodle, which is just 3 cm in length.

Indo Nissin Foods inked a strategic tie-up with Beverage maker Paper Boat, aimed at strengthening
2015 Agreement
distribution and brand presence in tier II cities and rural markets in India.

Future Group, the pioneer of organized retailing in India, inked an agreement with Indo Nissin Foods to
2017 Agreement
harness its distribution network.

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STRATEGIES AND INSIGHTS – INDO NISSIN FOODS 93

STRATEGIES AND INSIGHTS

• The company believes in investing its resources for quality-assurance and food-safety analysis systems.

• The company has also developed Nissin's Inspection Standards for Food Safety (NISFOS), which covers the food safety scars across the entire

supply chain.

• Nissin follows the competitive pricing strategy depending upon its key competitors in different markets. Nissin keeps its prices slightly lesser than the

competitors, in case of similar products.

• The company has a strong distribution network to ensure its presence in a large number of stores in all the locations. Nissin have also been able to

reach a large portion of rural market in developing countries.

• In India, Nissin aggressively promoted its product to win a customer base during the controversial period around Maggi noodles. Nissin promoted its

noodles in India, using the names, such as Smoodles, super noodles with vitamins.

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7.8 CAPITAL FOODS 94

INCORPORATED IN 1995

Capital Foods is one of the India’s fastest growing food


companies with a strong presence in the highly populated
Indian diaspora market of the world. Capital Foods
Capital Foods
manufactures and sells Ching's Secret brand of instant
noodles. The company is a subsidiary of M/s. Capital Foods
Exports Pvt. Ltd (CFEPL).

VILLA CAPITAL,
Sadhana Compound, Oshiwara Bridge,
S.V Road, Jogeshwari (West),
Mumbai- 400 102. India.
TOTAL REVENUE - 2017
- ~500
+91 22 67740100
5000 million
http://www.capitalfoods.co.in
- Headquarters

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PRODUCTS – CAPITAL FOODS 95

CATEGORY PRODUCTS DESCRIPTION

• It is a brand of non-sticky instant noodles available in three flavors such as, hot garlic,
Instant Noodles Ching's Secret
manchow, and schezwan.

Source - Herbalife

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SWOT ANALYSIS- CAPITAL FOODS 96

Strengths
Weaknesses
• Strong presence in the export market .
• Strong appeal to the Indian consumers, • Raw material price fluctuations
due to the spices and strong flavor • Low operating margins
profile.
• One of the fastest growing regional
companies.
• Sound distribution network

Opportunities
Threats
• The Middle East & Africa represents
• Highly competitive food processing
a significant potential in terms of
sector
export.
• Regulatory challenges in export
• Innovative flavors of instant noodles
Source: Mordor Intelligence Analysis countries

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STRATEGIES AND INSIGHTS – CAPITAL FOODS 97

STRATEGIES AND INSIGHTS

• The company has appealed to Indian consumers with modified taste profiles of Chinese food that suits their taste buds.

• The company is intensively pursuing to push its priority area – masala segment that occupies more than half of the company’s net sales.

• The company has a robust presence in the niche segment of Chinese food products, which is poised to be a potential revenue driver in the near

future.

• The pan India presence places the company in a favorable position to compete with its peers.

• The company builds on its strong in-house manufacturing operations and has a wide range of its product portfolio, with more than 50 products for the

domestic and overseas markets.

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7.9 CG FOODS INDIA PVT. LTD 98

Incorporated in 2002

CG Foods (Nepal) Pvt. Ltd (CGFN), a subsidiary unit of CG


Global), is an ISO 9001:2008 certified company and formerly
known as Nepal Thai Foods. CGFI experienced the Chaudhary Group
distinction of becoming the leader in the East and Northeast
parts of India in the noodles and snack foods.
The company is promoted by Cinnovation Group, a
multinational company, for the manufacturing and trading of
instant noodles and ready-to-eat snacks in India.

Indo Nissin Foods Pvt Ltd:


CG Foods India Pvt. Ltd.
434,Udyog Vihar Phase - III,
Gurgaon - 122001 (Haryana)
- ~1500

+91 124 4670600


- Headquarters
http://www.cgfmcg.com

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PRODUCTS – CG FOODS INDIA PVT. LTD 99

CATEGORY PRODUCTS DESCRIPTION

• Wai Wai is a popular brown noodle (3 Seasonings) available in 2 different flavors - Vegetable and
Brown • Wai Wai Chicken. It is available in 75 gm packet.
Noodles • Wai Wai Quick • Wai Wai Quick is a brown noodle (Curry Base - 3 Seasonings) available in vegetable and chicken
flavours. It is available in 75 gm packet.

• Wai Wai X Press is a white noodle (two seasonings) available in vegetable and chicken flavours. It
• Wai Wai X Press
is available in 90 gm packet.
White • Wai Wai X Press Masala
• Wai Wai X Press Masala Delight is a white vegetable noodle with two seasonings. It is available in
Noodles Delight
90 gm packet and 50 gm packet.
• Soaltee
• Soaltee is a white noodle available in chicken flavour. It is available in 50 gm packet.

Snack
Mimi • Mimi snack noodle (two seasonings) available in chicken flavor. It is available in 50 gm packet.
Noodles

Cup Noodles • Cup noodle is available in two flavors veg and chicken and comes in 65 gm pack size. It is packed
Wai Wai 1-2-3
in microwave-friendly cups, including of fork for convenience.

Source - Herbalife

Report India Instant Noodles Market


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SWOT ANALYSIS- CG FOODS INDIA PVT. LTD 100

Strengths
Weaknesses
• High production capacity of 1,350
• Branding and marketing lacunae
packets of noodle per minute
• Sub-optimal market penetration
• Well-established production and
• Rely excessively on the word of mouth for
distribution base
publicity
• Robust R&D activities

Opportunities
Threats
• Expansion of product portfolio
• Strong competition from
• Growing per capita consumption of
established players
noodles
• Lack of presence on Social Media
Source: Mordor Intelligence Analysis • Low brand recognition in West and
South India

Report India Instant Noodles Market


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RECENT DEVELOPMENTS – CG FOODS INDIA PVT. LTD 101

YEAR APPROACH DESCRIPTION

2018 Expansion CG Corp Global launched 85 acre mega food park in Rajasthan, India

CG Corp Global entered foodservice operations in India, with Wai Wai City, the first-of-
2017 Expansion
its-kind chain of quick service restaurants in the noodle category.

Report India Instant Noodles Market


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STRATEGIES AND INSIGHTS – CG FOODS INDIA PVT. LTD 102

STRATEGIES AND INSIGHTS

• The company has a strong base in the East and Northeast India. It plans for robust pan-India presence.
• CGFI plans to concentrate in India, South East Asia, and the Middle East. The penetration in Indian markets is based on the base expansion
by setting up factories in Madhya Pradesh and Rajasthan.
• CG Foods India Pvt Ltd works in technical collaboration with CG Foods Nepal Pvt. Ltd, to ensure the quality of finished products and all the
incoming raw material and packing material as per international standards. Quality control department of CG Foods Pvt. Ltd is equipped with
the most modern analytical instruments, complying with good laboratory practices.
• The company develops products enriched with protein, calcium, vitamins, iron and dietary fibers.

Report India Instant Noodles Market


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