VietnamCredit
VietnamCredit About Us Cafe€redit Contact Us API
Login Register
0
USD
Go to cart
Checkout
A glance at Vietnam’s instant noodle market

A glance at Vietnam’s instant noodle market

Saturday 16, 10 2021
In 2020, Vietnam is the country with the third highest consumption of instant noodles in the world. According to the latest survey by market research company Nielsen Vietnam, the consumption rate of instant noodles during the Covid-19 outbreak in Vietnam increased by 67%.

Global instant noodle market

The outbreak of the COVID-19 pandemic has led to border closures and social distancing measures in countries around the world. Most consumers have turned to home-cooked meals and stored dry food in their homes.

As a result, the demand for instant noodles has also increased due to their convenience, variety of flavors, product lines and affordable prices.

According to statistics of the World Instant Noodles Association (WINA), the global demand for instant noodles in 2019 increased by 3.45% over the previous year, while that in 2020 increased by 14.79% over 2019. Under the impact of the COVID-19 epidemic, the demand for hoarding and consumption of instant noodles have grown strongly.

World Instant Noodles Association

Besides, according to the market research report by Facts and Factors, global instant noodle sales are expected to increase from 45.67 billion USD in 2020 to 73.55 billion USD in 2026, and the average annual revenue growth will reach 6%/year in the period 2021-2026.

Statistics of the World Instant Noodles Association (WINA) also shows that the Asian market has the largest consumption of instant noodles, especially Northeast Asia (China, Korea, Japan), which accounts for 56.45% of total global consumption in 2020. Following is Southeast Asia with 5 main consumption markets including Indonesia, Vietnam, Philippines, Thailand and Malaysia accounting for 25.24%.

World Instant Noodles Association

Due to the epidemic, people have had to work remotely via electronic devices. Accordingly, the rising trend of convenience foods along with people's work-from-home schedules is expected to open up new revenue growth opportunities for the global instant noodle market.

Regarding distribution channels, the global instant noodle market can be subdivided into supermarkets, convenience stores, online retail and others. In particular, supermarkets are forecasted to hold the largest market share in the period 2021-2026 due to increased investment in this system combined with factors such as product shelves, information boards and other items which bring about exciting shopping experience for consumers, thereby boosting sales.

Although Asia currently has the largest consumption capacity in the world, its annual demand growth rate is not high, below 17% (except Vietnam). Between 2022 and 2026, Europe is expected to be the market with the highest annual growth rate, from 15% to less than 50% (depending on the country).

Thus, the potential for developing instant noodle business in both domestic and international markets is quite high.

Vietnam’s market

In 2020, Vietnam is the country with the third highest consumption of instant noodles in the world, after China (Hong Kong) and Indonesia.

According to the latest survey by market research company Nielsen Vietnam, the consumption rate of instant noodles during the Covid-19 outbreak in Vietnam increased by 67%. There are currently about 50 companies producing instant noodles in Vietnam, both domestic and foreign.

Many other international brands have also been entering Vietnam’s market to take advantage of preferential import tax rates from trade agreements that Vietnam participates in. However, this makes the Vietnamese market very rich, providing many choices for consumers both in terms of product types and prices.

In terms of export potential, in 2020 and 2021, the instant noodle industry plays an important role in helping people “survive” through the pandemic. In particular, when the epidemic situation in many countries was complicated, a Vietnamese company's noodle exports increased by 300%. Currently, Vietnamese instant noodles have been exported to more than 40 countries around the world.

noodle industry

To export this item, businesses need to prepare the necessary procedures and documents for customs declaration, including: commercial invoice, packing list, booking confirmation, sales contract, business registration license, certificate of food hygiene and safety, registration for testing noodle products or instant noodles, self-declaration of products, certificate of free sale, and health certificate because most instant noodles products contain ingredients of animal origin, so businesses need to register for animal sampling and quarantine.

Source: Ministry of industry and trade

Compiled by VietnamCredit

You may also like

Vietnamese manufacturers struggling to find alternative raw materials
Tuesday 25, 02 2020

Vietnamese manufacturers struggling to find alternative raw materials

China is the "world factory", an important link in global production and...
The Asia - Pacific textile industry affected by the Covid-19 pandemic
Thursday 22, 10 2020

The Asia - Pacific textile industry affected by the Covid-19 pandemic

According to the International Labour Organization (ILO)’s recent research,...
402
413
+84 981861066