Noodles in The Philippines

NOODLES IN THE PHILIPPINES
Euromonitor International
February 2015
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Sales of Noodles by Category: Volume 2009-2014 ...................................... 3

Sales of Noodles by Category: Value 2009-2014 ......................................... 3
Sales of Noodles by Category: % Volume Growth 2009-2014 ..................... 4
Sales of Noodles by Category: % Value Growth 2009-2014 ........................ 4
Sales of Instant Noodles by Leading Flavours: Rankings 2009-2014 .......... 4
NBO Company Shares of Noodles: % Value 2010-2014 ............................. 5
LBN Brand Shares of Noodles: % Value 2011-2014 .................................... 5
Distribution of Noodles by Format: % Value 2009-2014 ............................... 5
Forecast Sales of Noodles by Category: Volume 2014-2019 ....................... 6
Forecast Sales of Noodles by Category: Value 2014-2019 .......................... 6
Forecast Sales of Noodles by Category: % Volume Growth 20142019 ............................................................................................................. 7
Forecast Sales of Noodles by Category: % Value Growth 2014-2019 ......... 7
Passport

HEADLINES
Total volume sales of noodles grow by 5% in 2014 and current value sales by 8% to PHP27.2
billion
Increasing variations in flavour are seen in noodles in 2014
Snack noodles sees the highest retail volume growth in 2014 at 8%, but with minimal actual
increase
Unit prices of noodles continue to see a slow rise alongside increasing product and flavour
variety
Monde Nissin Corp and its Lucky Me brand retain the lead in noodles in 2014
Retail volume growth is expected in noodles at a 4% CAGR during the forecast period
TRENDS
In 2014, sales of noodles in the Philippines continued to grow in volume and value terms.
Increasingly penetrating noodles in the Philippines are Asian-inspired speciality flavours, not
just from the Philippines but from neighbouring Asian countries too. Aside from the product
offering of local brands being seen as expanding in terms of flavour offerings, imported
noodles are also gaining more consumer awareness.
Continuing at 5%, total volume growth seen in noodles in 2014 was marginally slower than
the CAGR growth of the review period. This may be because of the continued view of
categories such as cups/bowl and pouch instant noodles as lower-priced food options, and,
with the improving Philippine economy, Filipinos are more able to buy higher-priced
alternative food products. Growing awareness of the health and wellness trend may also have
negatively affected growth of noodles, which consumers continue to associate with health
hazards, as noodles are not a fresh but a processed food product.
The fastest retail volume growth in 2014 continued to be in snack noodles. This may be
attributed to the relative maturity of other types of noodles, while snack noodles remains
young and unexplored, with very limited numbers of players and available brands. Despite
displaying the fastest volume growth, low actual volumes showed only a minimal actual
increase.
The average unit price of noodles increased by 3% in 2014. Noodle manufacturers needed to
regulate their price increases, especially for instant noodles as these are products primarily
patronised for their low prices. Increasing the price by too much may lose customers from the
mass market base.
The ranking of popular instant noodle flavours remained relatively stable and unchanged over
the review period. At the top spot remains soy sauce & calamansi (the local lime), followed by
chicken in second place and beef in third. Soy sauce & calamansi is the preferred flavour for
pouch instant noodles. These flavours have continued to occupy the top positions and it has
yet to be seen if the evolving number of available flavours of instant noodles will change the
rankings.
Many Asian-inspired flavours have appeared in noodles in the Philippines. Notable new
flavours which have been launched include the Philippine-inspired line of Pancit ni Mang
Juan, taking flavours of local dishes and infusing them into pouch instant noodles.
Passport
Unpackaged noodles remain popular especially in wet markets in the Philippines where they
are weighed and bought. In particular, plain noodles continue to be sold thus, especially with
the benefit of lower prices and the consumers ability to buy them in smaller quantities,
sometimes for use just on the same day.
For instant noodles, distribution remained relatively unchanged over the review period. Being
an easy-to-store product for sale, instant noodles can be found everywhere from large retail
distribution outlets to independent small grocers and convenience stores.
COMPETITIVE LANDSCAPE
Monde Nissin Corp retained its dominance in noodles in the Philippines with a 60% retail
value share in 2014, particularly because of its strong position in instant noodles. The
established brand name as well as continuous flavour innovations have worked for this
company and allowed it to maintain its lead. This same company also saw the biggest
increase in actual value sales in 2014.
The strategy implemented by companies in the review period of introducing larger pack sizes
in instant noodles seems not to be picking up with all players. Aside from other players
possibly not having the economies of scale for this, it is also possible that this strategy has not
gained massive support from consumers either.
What appears to be more successful is the continued introduction of Asian speciality flavours
into noodle product lines. With the continuously growing interest in flavours from Asian
neighbours, these flavours are appearing not just in noodles but also in other packaged food
products in the Philippines.
As well as flavours from outside the country, those from inside the Philippines are also
interesting. A key product launch of the review period was Pancit ni Mang Juan by Universal
Robina Corp. The infusion of Filipino favourites into instant noodles has succeeded in the
country. This may have benefited as well from noodles actually taken as a meal by lowerincome consumers, where the flavour of a full meal may be an attractive selling point for these
customers.
While local competition heavily dominates instant noodles in the Philippines, an advantage of
international brands and manufacturers is that they compete instead in terms of the products
they bring in, such as cup noodles imported from Asian neighbours. While local
manufacturers also try to infuse their products with Asian flavour variations, imported brands
bring in instant noodles from countries like Korea. This goes alongside the continued
fascination of Filipinos by their exposure to Korean and Japanese culture through television
shows and music.
Generally, instant noodles in the Philippines is dominated by economy brands which compete
for sales based not just on price but also on flavour. Premium brands, on the other hand,
consist mainly of imports, which battle for value share mostly on the basis of the authentic
flavours they bring in, straight from the country the flavours come from.
The only significant packaging innovation observed over the review period continued to be the
offering of instant noodles in larger pack sizes, supposedly offering better value for money.
This has yet to pick up and succeed in the Philippines. This aside, no other packaging
innovation has been observed.
Passport
Passport
PROSPECTS
Noodles will continue to succeed in the Philippines with positive growth prospects over the
forecast period. Not just a snack but also a low-cost meal alternative for lower-income
consumers, noodles will continue to enjoy the patronage of these consumers as long as price
levels are maintained and any increase is controlled and not too drastic.
The increase in value growth will be seen to slowly decline over the forecast period, despite
maintaining positive growth rates and increasing actual value sales of noodles in the
Philippines. This may be attributed to increasing purchasing power as a result of the improved
economy, whereby consumers will have the ability to purchase higher-priced meal
alternatives. Another factor is the maturity of noodles, where the question also is whether
much more can be done with the large presence of variants and flavours.
Instant noodles is expected to show a better performance than noodles overall throughout the
forecast period. This may be attributed to the continued convenience of this product and,
especially with the increasingly busy lifestyles of Filipinos, this is expected to remain as a
quick food option.
Unit prices of noodles are expected to decline at -1% CAGR in constant terms over the
forecast period. Manufacturers are likely to make an effort to control any increases so as not
to lose the largely mass market consumer base.
Distribution is not expected to change over the forecast period as noodles are widely
distributed in various distribution outlets nationwide in the Philippines.
Companies can be expected to continue to try different innovations in noodles, and not just in
terms of flavours or packaging, so as to keep figures growing. Measures will be put in place to
keep prices low. While Pancit ni Mang Juan, launched in the review period, is far from failing,
volume sales remain negligible and innovations that will change the course of noodles in the
Philippines have yet to be seen.
CATEGORY DATA
Table 1
Sales of Noodles by Category: Volume 2009-2014
tonnes
Chilled Noodles
Frozen Noodles
Instant Noodles
- Cups/Bowl Instant
Noodles
- Pouch Instant Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
2009
2010
2011
2012
2013
2014
149,924.8
8,262.7
158,755.1
8,593.2
168,902.3
8,979.9
178,946.6
9,428.8
188,958.2
9,947.4
198,247.0
10,643.8
141,662.2
18,700.8
110.5
168,736.1
150,161.9
19,542.4
122.6
178,420.1
159,922.4
20,324.1
136.7
189,363.1
169,517.7
21,035.4
149.7
200,131.8
179,010.7
21,666.5
162.3
210,787.0
187,603.3
22,208.2
174.6
220,629.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Sales of Noodles by Category: Value 2009-2014
PHP million
2009
2010
2011
2012
2013
2014
Chilled Noodles
Frozen Noodles
Instant Noodles
- Cups/Bowl Instant
Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
Passport
17,667.0
2,711.9
18,876.6
2,874.7
20,292.3
3,090.3
21,743.7
3,337.5
23,240.6
3,564.4
25,117.6
3,906.6
14,955.0
1,619.2
13.7
19,299.8
16,001.9
1,675.8
15.2
20,567.6
17,202.0
1,751.2
18.1
22,061.6
18,406.2
1,838.8
19.9
23,602.4
19,676.2
1,941.8
21.7
25,204.1
21,210.9
2,069.9
23.7
27,211.2
Table 3
Sales of Noodles by Category: % Volume Growth 2009-2014
% volume growth
Chilled Noodles
Frozen Noodles
Instant Noodles
- Cups/Bowl Instant Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
Table 4
2013/14
2009-14 CAGR
2009/14 Total
4.9
7.0
4.8
2.5
7.6
4.7
5.7
5.2
5.8
3.5
9.6
5.5
32.2
28.8
32.4
18.8
58.1
30.8
Sales of Noodles by Category: % Value Growth 2009-2014
% current value growth
Chilled Noodles
Frozen Noodles
Instant Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
Table 5
2013/14
2009-14 CAGR
2009/14 Total
8.1
9.6
7.8
6.6
9.4
8.0
7.3
7.6
7.2
5.0
11.7
7.1
42.2
44.1
41.8
27.8
73.7
41.0
Sales of Instant Noodles by Leading Flavours: Rankings 2009-2014
ranking
Soy Sauce & Calamansi

Chicken
Beef
Seafood
Chili
2009
2010
2011
2012
2013
2014
1
2
3
5
4
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Source:
Passport
Table 6
NBO Company Shares of Noodles: % Value 2010-2014
% retail value rsp

Company
Monde Nissin Corp
Universal Robina Corp
Nissin-Universal Robina
Corp
Zest-O Corp
SM Retail Inc
Indofood Sukses Makmur
Tbk PT
Nestl Philippines Inc
Supervalue Inc
Others
Total
Source:
2011
2012
2013
2014
58.7
16.9
5.5
59.3
16.8
5.5
59.7
18.2
5.4
59.9
18.5
5.4
59.9
18.6
5.5
4.3
0.4
0.2
3.9
0.4
0.2
2.3
0.4
0.2
2.0
0.4
0.2
1.9
0.4
0.2
0.4
13.6
100.0
0.4
13.6
100.0
13.7
100.0
13.6
100.0
13.5
100.0
Table 7
LBN Brand Shares of Noodles: % Value 2011-2014
% retail value rsp

Brand
Lucky Me
Payless
Nissin
Quick Chow
SM Bonus
Indomie
Tekki
Maggi
SM Bonus
Others
Total
Source:
2010
Company
2011
2012
2013
2014
Monde Nissin Corp

Universal Robina Corp
Nissin-Universal Robina
Corp
Zest-O Corp
SM Retail Inc
Indofood Sukses Makmur
Tbk PT
Zest-O Corp
Nestl Philippines Inc
Supervalue Inc
59.3
16.8
5.5
59.7
18.2
5.4
59.9
18.5
5.4
59.9
18.6
5.5
2.3
0.4
0.2
2.3
0.4
0.2
2.0
0.4
0.2
1.9
0.4
0.2
1.6
0.4
13.6
100.0
13.7
100.0
13.6
100.0
13.5
100.0
Table 8
Distribution of Noodles by Format: % Value 2009-2014
% retail value rsp
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
2009
2010
2011
2012
2013
2014
100.0
100.0
45.7
100.0
100.0
45.8
100.0
100.0
46.0
100.0
100.0
46.3
100.0
100.0
46.9
100.0
100.0
47.3
2.0
0.2
2.0
0.2
2.1
0.2
2.2
0.2
2.2
0.2
2.3
0.2
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Retailers
-- Health and Beauty
Retailers
-- Mixed Retailers
-- Other Non-Grocery
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:
Passport
4.4
39.1
54.3
4.9
38.7
54.2
5.3
38.4
54.0
5.5
38.5
53.7
5.8
38.7
53.1
5.9
38.9
52.7
12.5
12.0
11.0
11.0
10.5
10.2
41.8
42.2
43.0
42.7
42.6
42.5
100.0
100.0
100.0
100.0
100.0
100.0
Table 9
Forecast Sales of Noodles by Category: Volume 2014-2019
tonnes
Chilled Noodles
Frozen Noodles
Instant Noodles
- Cups/Bowl Instant
Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
2014
2015
2016
2017
2018
2019
198,247.0
10,643.8
207,245.3
11,417.8
215,805.1
12,259.6
224,666.8
13,102.7
233,889.9
13,957.1
243,530.2
14,845.2
187,603.3
22,208.2
174.6
220,629.8
195,827.5
22,708.5
187.0
230,140.8
203,545.4
23,150.6
199.1
239,154.7
211,564.1
23,641.1
211.4
248,519.3
219,932.8
24,177.7
223.9
258,291.5
228,685.0
24,761.0
236.8
268,527.9
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 10
Forecast Sales of Noodles by Category: Value 2014-2019
PHP million
Chilled Noodles
Frozen Noodles
Instant Noodles
- Cups/Bowl Instant
Noodles
Plain Noodles
Snack Noodles
Noodles
2014
2015
2016
2017
2018
2019
25,117.6
3,906.6
26,006.8
4,120.5
26,848.9
4,362.4
27,708.3
4,605.6
28,566.8
4,850.7
29,457.0
5,106.0
21,210.9
2,069.9
23.7
27,211.2
21,886.3
2,110.3
24.8
28,142.0
22,486.5
2,145.1
25.7
29,019.7
23,102.7
2,179.8
26.7
29,914.8
23,716.0
2,216.2
27.6
30,810.6
24,351.0
2,254.2
28.5
31,739.7
Source:
Passport
trade sources
Table 11
Forecast Sales of Noodles by Category: % Volume Growth 2014-2019
% volume growth
Chilled Noodles
Frozen Noodles
Instant Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
Table 12
2014/15
2014-19 CAGR
2014/19 Total
4.1
6.4
4.0
2.4
5.7
4.0
4.2
6.9
4.0
2.2
6.3
4.0
22.8
39.5
21.9
11.5
35.6
21.7
trade sources
Forecast Sales of Noodles by Category: % Value Growth 2014-2019
% constant value growth
Chilled Noodles
Frozen Noodles
Instant Noodles
Plain Noodles
Snack Noodles
Noodles
Source:
2014/2015
2014-19 CAGR
2014/19 TOTAL
3.1
5.3
2.7
1.7
3.3
3.0
3.2
5.5
2.8
1.7
3.7
3.1
17.3
30.7
14.8
8.9
20.2
16.6
trade sources

Noodles in The Philippines

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Noodles in The Philippines

Caricato da

Copyright:

Formati disponibili

NOODLES IN THE PHILIPPINES