Vietnam is now ranked 3rd largest consumer market for instant noodles, just after China and Indonesia.
Around 7 billion packs of instant noodles were eaten in the country last year, according to the World Instant Noodles Association (WINA). The latest survey by Nielsen Vietnam also showed that consumption has increased by 67%.
Presently, China is the world’s largest consumer of instant noodles, but the growth rate is tapering off as compared to Vietnam.
Indeed, a number of Vietnamese companies recorded a whopping 300% surge in the noodle export output. Instant noodles made in Vietnam are now sold in more than 40 countries worldwide.
Vietnam is home to about 50 local and foreign instant noodles producers. Masan Consumer, which makes Omachi and Kokomi noodles, saw revenue from packaged food, including noodles, rising 38.5% from 2019 to nearly Dong 6.9 trillion (US$302 million) last year. Sales of Omachi noodles rose 32%, and it claims to have 45% share of the premium noodle segment. Omachi is also the best-selling noodle brand in supermarkets. In addition, Masan’s Kokomi brand is the leader in the mid-end segment. Masan expects instant noodles and porridge products to grow double-digit for the whole year.
Meanwhile, foreign player like Japan-based Acecook posted sales revenue of Dong 11.5 trillion (US$510 million) last year, 1.6 times that of Masan Consumer’ packaged food sales. Acecook claims to command half of Vietnam instant noodle market share.
Smaller noodle producers also recorded steady performance with HCMC-based Vifon reporting Dong 200 billion (US$8.8 million) in revenue every month.
Latest data from WINA confirmed that COVID-19 pandemic has resulted in a sharp increase in consumption for instant noodles globally, with demand surging by 14.8% in 2020. In terms of regional consumption, Asia is the biggest consuming market representing 56.45% of overall demand. Southeast Asia region alone contributed 25.25% of total demand. Sales revenue from noodles is expected to increase to US$73.55 billion over the next 5 years from US$45.67 billion in 2020, according to recent report by Facts and Factors.
