The instant noodles market place is projected to grow at a CAGR of 5.08% from a market value of USD42.291 billion in 2019 to attain a market value of USD56.946 billion by the end of 2025. Instant noodles were originated in Japan. Today they are incorporated in the diet of many different countries of the world, hence, it holds an important position in satiating the global demand for food after staple food products. The growing popularity of instant noodles with evolving dietary consumption patterns is escalating the market demand in the forecast period. The growing adoption of modern living conditions owing to the urbanization and shift from the traditional mode of food preparation has further given rise to a surge in the 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 increase in the 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 spiraling the market growth during the forecast period. This is because of the fact that the consumption of food products made from refined flour is bad for health leading to nutrient-deficient food products. Also, the sole consumption of these food products leads to certain digestive issues, harming the health of an individual. Due to its negative 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 have increased their product portfolio, further resulting in the generation of high revenues and satisfying a range of consumer demands at the global level. Additionally, with the growing trend of food fortification, the 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, the top three countries as per the per capita consumption of instant noodles are Korea, Nepal, and Vietnam, according to 2019 estimates. 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 African region due to the growing population, showing market growth opportunity during the forecast period.
The present COVID-19 scenario is known to cause no negative impact leading to hampering the growth of the global instant noodles market in 2020, this is mainly due to the fact that noodles serve as one of the staple food products like cereals and other fruits and vegetables, especially for the Asian countries and is considered important as essential food items. The consumption of noodles is quite prevalent in Asian culture.
On the basis of broth variety, the market is segmented into the 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 region 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 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 in order 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 in order 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, the implementation of a unified biosecurity system for reducing the mortality rates is being practiced 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 lies in the current list of animal feed products eligible for subsidies. Furthermore, the government is supporting the establishment of new chicken farms, further increasing domestic meat production and fueling the market demand in the forecast period.
Furthermore, the growing demand for meat due to the agricultural limitations, the countries in the Middle East regions are dependent mostly on imported foods owing to water shortage and lack of land suitable for growing crops. A shift in the dietary consumption patterns from a carbohydrate-based to 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).