The instant noodles market is projected to grow at a CAGR of 5.23% from a market value of US$45.889 billion in 2020 to attain a market value of US$65.558 billion by the end of 2027.
In Japan, instant noodles first appeared. They are now a staple in the diets of numerous nations throughout the world. Instant noodles rank second in importance to staple food products in satisfying the world's appetite for food. Consequently, the market demand is expected to increase during the forecast period due to the rising popularity of instant noodles and changing dietary consumption habits. The growing adoption of modern living conditions owing to urbanization and the shift from the traditional model of food preparation has further given rise to a surge in market growth during the tenure of the forecast period.
The availability of instant noodles in the packets and cups packaging format has increased their purchase globally with the increased consumption of ready-to-eat convenience food products.
This is mainly attributed to the adoption of a busy schedule by a large number of individuals at the global level. The growing health concerns regarding the consumption of unhealthy fast foods have led to the manufacturing of instant noodles from whole wheat, rice, and oats apart from refined flour, further providing an impetus in spiralling the market growth during the forecast period. Refined flour lacks fibre, clogs the system, hinders digestion, lowers metabolism, and frequently causes weight gain, tension, migraines, headaches, and constipation. Due to its adverse health effects, it is recommended to take refined flour food products in moderation. Hence, the wide availability of instant noodles food products by companies worldwide has increased their product portfolio, resulting in the generation of high revenues and satisfying a range of consumer demands globally. Additionally, with the growing trend of food fortification, instant noodles are being fortified with calcium, Vitamin B1, and Vitamin B2, among other essential nutrients beneficial for maintaining good health. Hence such initiatives will further propel the market demand in the forecast period. Furthermore, the growing trend of organized retail is augmenting the sales of instant noodles with the construction of hypermarkets and supermarkets, convenience stores, and shopping malls, further contributing to the market growth over the next five years.
On the basis of geography, APAC is estimated to hold a significant market share in the global instant noodles industry. This is mainly due to the fact that more than 50% of instant noodles are consumed in the countries of the Asian region. According to the World Instant Noodles Association statistics in 2019, the top three countries with the per capita consumption of instant noodles are Korea, Nepal, and Vietnam. Instant noodles have gained popularity and are forming a part of American and European diets, with many different and popular varieties of noodles sold in these regions. On the other hand, it is projected that the consumption of instant noodles with growing demand will increase in the Middle East and Africa due to the growing population, showing market growth opportunities during the forecast period.
On the basis of broth variety, the market is segmented into chicken, pork, beef, seafood, and vegetables. The consumption of chicken meat is estimated to create significant market growth opportunities in the regions of the Middle East, where chicken meat is preferred over other meat products.
The market is expected to propel in the forecast period owing to the growing demand for meat and meat products, fueling the market demand with soaring demand for food. Additionally, the growth in per capita income is further increasing the market demand where affluent customers, especially in countries such as Saudi Arabia from the Middle East, are willing to pay more for luxurious meat products fed with high-quality feed. Furthermore, favourable government support for increasing domestic chicken meat production is further increasing the market demand during the forecast period. Moreover, high consumer preference for locally-produced fresh meat is providing high growth prospects for the instant noodles market to proliferate in this region over the next five years. Many producers are working on producing fresh meat to generate high revenues from this group of individuals.
The local chicken meat production is estimated to grow from 600 000 MT in 2016 to reach 700,000 MT by 2019 to achieve 60% self-sufficiency in chicken meat production (source: USDA). The government of Saudi Arabia is focused on surging chicken meat production by the end of 2020 to meet food security goals. For this, the country is investing in high amounts to expand poultry production and attain high economies of scale. Also, implementing a unified biosecurity system for reducing mortality rates is being practised to increase domestic production. Furthermore, in order to reduce high production costs, the government is offering subsidies for animal feed, in addition to providing interest-free loans and rebates for the purchase of particular poultry equipment. Yellow corn, soybean meal, distillers’ dried grain with solubles (DDGs), corn gluten feed, and sorghum lie in animal feed products eligible for subsidies. Furthermore, the government supports establishing new chicken farms, further increasing domestic meat production and fueling the market demand in the forecast period.
Furthermore, because of the growing demand for meat due to the agricultural limitations, the countries in the Middle East regions are primarily dependent on imported foods owing to water shortages and a lack of land suitable for growing crops. A shift in the dietary consumption patterns from a carbohydrate-based to a protein-based diet is further increasing the demand for meat in the region. The shifting of consumption patterns is mainly attributed to the growing urbanization, adoption of a busy lifestyle, increasing popularity of big modern retail formats, and the presence of multinational food companies in the region, further increasing future growth prospects of the popularity of convenience foods. Furthermore, the surge in per-capita income is further adding to the growing demand for imported animal food. Hence, the meat products like chicken meat will serve as broth for instant noodles, further surging the market growth opportunities in the region. The GDP per capita increased from USD19,879.298 in 2016 to USD23,338.963 in 2018 (source: The World Bank).
Key Developments in the Market:
COVID-19 had a significant impact on the global instant noodles market. Amid the pandemic, the increased indoor time has sparked at-home cooking and led customers to look for various snacking options. Additionally, consumer stockpiling of ready-to-eat foods further supplemented the market. The growth in the e-commerce segment further added impetus to the market growth.
|Market size value in 2020||US$45.889 billion|
|Market size value in 2027||US$65.558 billion|
|Growth Rate||CAGR of 5.23% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Broth Variety, Packaging, Distribution Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||PT Indofood Sukses Makmur Tbk, Nissin Foods Holdings Co., Ltd, Nestlé, Ajinomoto Co., Inc., Campbell Soup Company, ITC Limited, Unilever, Maruchan, Incorporated, Mr Lee's, WhatIF Foods|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the instant noodles market size by 2027?
A1. The instant noodles market is projected to reach a market size of US$65.558 billion by 2027.
Q2. What is the size of the global instant noodles market?
A2. Instant Noodles Market was valued at US$45.889 billion in 2020.
Q3. What are the growth prospects for the instant noodles market?
A3. The instant noodles market is projected to grow at a CAGR of 5.23% over the forecast period.
Q4. Which region holds the maximum market share of the instant noodles market?
A4. The Asia Pacific is estimated to hold a significant market share in the global instant noodles industry.
Q5. What factors are anticipated to drive the instant noodles market growth?
A5. The growing popularity of instant noodles with evolving dietary consumption patterns is escalating the market demand in the forecast period.
PT Indofood Sukses Makmur Tbk
Nissin Foods Holdings Co., Ltd
Ajinomoto Co., Inc.
Campbell Soup Company
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