Pasta and noodles are somehow becoming the new staple food for middle-class Indian consumers. Indians have consumed tons of pasta during the pandemic. “Mithai and Namkeen Times” looks at how this everyday Italian fare is entering the ‘desi’ palate and how they are devouring it.
The pasta & noodles market consists of the retail sale of dried pasta, dried & instant noodles, chilled pasta, chilled noodles, ambient pasta, and ambient noodles. The Indian pasta & noodles market had total revenues of $1,132.2m in 2019, representing a compound annual growth rate (CAGR) of 25.1% between 2015 and 2019. Market consumption volume increased with a CAGR of 20.5% between 2015 and 2019, to reach a total of 375.7 million kilograms in 2019.
The pasta and noodles market is being driven by many favourable factors. Due to the hectic lifestyles, consumers are shifting toward RTD meals. Since pasta is a convenient and healthy product, the demand for pasta, particularly for products, such as vermicelli, fusilli, and macaroni, has been on the rise.
Pasta and noodles are the staple food of many countries, and they are consumed on regular basis. Noodles now have become a staple food in many cultures, such as European countries, The US, The Middle East, and Asia including Vietnam, Japan, Korea, and China. According to World Instant Noodles Association in 2018, the per capita consumption of noodles in Korea, Indonesia, and India was 74.6, 53.9, and 53 servings, respectively. The increasing consumption of noodles and pasta, coupled with the wide availability of these products in different flavours and packaging, through robust distribution channels, is strongly driving the market across the world.
The covid effect
Consumers have been gorging on pasta and noodles during this pandemic, in addition to salty snacks and biscuits. In fact, it is pasta that has seen the sharpest spike in consumption with volumes jumping nearly three-and-a-half times from 2,200 tons to over 7,600 tons during mid-2020. In volume terms, however, it is a fraction of the noodles market, where volumes expanded 27% from 58,000 tons to nearly 74,000 tons in the same period.
Snacking has seen significant growth during the last few months. All of this has been on the back of strong consumption gains by households. For example, 220 additional grams of noodles were bought by an average household. In fact, some brands outgrew their category growth. According to industry sources, ITC’s Yippee, for instance, is said to have clocked a growth of 50% during covid.
Dr. A.K. Tyagi, Executive Director, Haldiram Snacks Pvt Ltd, stated that covid 19 and subsequent lockdown created a demand pattern that differed from product to product. The Noodle and Pasta market showed significant growth in volume from 58,000 tons to nearly 74,000 tons with significant growth of approximately 27%.
He explained that the main reason for the significant growth of Pasta & Noodle Market had increased in-home consumption and better availability of these products in the market, as Government did cover Noodles, Pasta and Biscuits category in Essential Food Category.
Sarang Dongare, Director, E & S Food Technologies Pvt Ltd, agreed lambently that Covid-19 has caused many changes in our lives. But the major thing it has altered is our daily diet, as people have started consuming more packaged and ready-to-eat foods, in fact, they have been consuming pasta and noodles during the lockdown, in addition to salty snacks and biscuits, she said.
In fact, it is pasta that has seen the sharpest spike in consumption with volumes jumping nearly from 2,200 tons in mid-April to 7,600 tons in mid-July. In noodles market, volumes expanded from 58,000 tons to nearly 74,000 tons in the same period, informed Limbani.
But Tej K. Kuchroo, Dr.TK Food Consultants Pvt Ltd, voiced a slightly different view, he said that Pasta and noodle plants did not see much growth and demand but remained steady production-wise. Though this year, with the growing demand, there is more possibility of plant-wise expansion. At the production level, every year organized sectors produce around 3 to 4 tons per hour of pasta and for noodles approx. one ton per hour. The demand for noodles per year remains steady.
Nevertheless he explicated that during the pandemic, the growth of all FMGC products showed very good growth because most of the large sector companies in food processing had a strong distribution network. Consumers preferred packed food compared to loose products to avoid contamination. All small-scale business units were out of business. Due to convenience and easy availability, consumption went up. Other drawbacks were witnessed when the urban cities saw very low availability of daily supplies which pushed the consumers to prefer easy and convenient foods.
The Pasta/Noodle Domestic Market
The pasta and noodles market is highly fragmented, with many regional and international competitors operating in the market. Companies compete based on different factors, including product offerings, quality, taste, flavours, price, functionality, size, packaging, and marketing activities, to gain competitive advantage in the market. Key players are now focusing on social media platforms and online distribution channels for online marketing and branding of their products, to attract more customers. Major players focus extensively on providing consumers with innovative and exotic flavours as well as attractive packaging. Thus, sustainable competitive advantage through innovation is the main criteria for the growth of the market share of major players across the world.
Over the last few years, pasta seems to have turned into the signature Italian dish for millions in India, especially among the urban middle classes. Eating pizza and burgers, once considered the epitome of aspirational eating and the sign of a cosmopolitan palate, appear to be on the wane. Indigenous variations on the pizza, created with inventive toppings on naan or kulcha bread, may still be popular in parts of the country but, of late, the humble pasta is turning out to be the rising star in the firmament of international cuisine for Indian consumers.
Indians are moving beyond Maggi—and so has Maggi itself. Consumers have regularly sought variety and convenience from the comfort of their homes.
Yet it has been observed that there is very little demand in packed form. The reason why there is less demand for short-cut pasta is packed form is because it comes in a lesser quantity. If we speak of short-cut pasta products, the maximum demand comes for vermicelli or semia in packed form, said Kuchroo.
The companies that are interested in setting up pasta units should consider spending a good amount in marketing and promotion and manufacture short and long-cut Pasta from hard wheat. There are not many national companies that are seriously looking into pasta production. There is actually only one company that has been showing presence pan India is ‘Bambino’s’ and ITC Yippee Noodles.
“I think the cost in marketing and hard wheat semolina not easily available, thus deprive entrepreneurs to launch national-wide distribution. It is my personal opinion that as the bank does not provide funds for marketing and promotion, the Indian entrepreneurs refrain from investing in this category”, assessed Kuchroo.
When we see the prospect of expansion and distribution, to launch the products on all India-level, the logistics, and transportation pose another high degree expenses. Considering the size of our country, India is vast in its area and the cost of transportation becomes high for FMGC products. It is not easy to compete with regional players. Even large sector companies have not adopted proper set-up region-wise manufacturing facilities to make the products available at competitive rates.
Pasta and noodles types and marques in India
There are two qualities of pasta available in India and each category has demand in its core sector. Most of the five-star and good fine-dining restaurants normally buy Durum-based pasta with special shapes. Better quality of this product is available from Italy and Turkey, while Indians prefer soft wheat products as most Indians gulp and do not chew. All the companies who have set up plants in India produces soft wheat pasta, said Kuchroo.
“But nowadays due to this pandemic situation, people have started being more concerned about their diet and have started opting for the healthier version of premium pasta. Hopefully, in coming years we can expect more of our Indian pasta brands as well”, said Sarang.
According to Dr. Tyagi, noodle pasta is still considered an international cuisine whereas India in every region has a rich heritage when it comes to food. Noodles & pasta are consumed as a change from routine and not as a staple food. Hence in India, in addition to National Brands, we have many regional brands also due to change in taste habits.
As pasta was introduced elsewhere in the world, the acceptance of the same is still not yet prevalent in India. People in India prefer traditionally having pasta rather than going for Al-Dante taste. So, for such a population, retail brands come very costly compared to the ones available in bulk. Also, the production of the premium pasta for the retail market costs more than the pasta produced in bulk.
Pasta and noodles products have bulk demand and are being consumed by street-food stalls and now we can see the preference in rural India too. The easy availability of such products from nearby grocery added with affordability has increased the consumption. The pasta/noodles being versatile in nature can be mixed with vegetables and other edible products.
Tej Kuchroo added that along with pasta/noodles, there is another product in the pasta category that is seeing increasing demand and that is ‘Spaghetti’. In coming years it will be a much sought-product.
Both instant noodle and short-cut pasta products come under the pasta range. In earlier days both these products were made by the cottage industry. Both these products came from China and were used by them as staple food. When pasta entered the Italian market, is here where the industrial products and manufacturing processes on large scale were developed. Pasta adopted extruded technology.
In the manufacturing process, the flour (semolina) of fine mesh is transported to a vacuum mixer where 35% of the moisture is maintained in the mixer. The batter is then passed through an extruder which is placed in a double jacket where chilled water is circulated to control the desired temperature inside the screw. The batter is compressed through a specific die to give it the desired shape and is cut to size by a rotating cutter. The product is passed through a continuous dyer where the product is exposed to controlled humidity and temperatures. The final product takes three to five hours of drying time depending upon the technology used.
In the case of noodles, wheat flour, or a combination of the required ingredients are mixed with water and pushed through the roller extruder to form a sheet of required thickness, and the sheet is cut into noodles by roller cutter and steamed. In the case of ‘Hakka Noodles’, the product is dried or combed in the required shape, passed through a fryer, and packed. What you see is most of the noodles are fried noodles. In our opinion, Ching’s is the branded dried noodle. In coming years dried noodles will show consumption growth.
While Dr. Tyagi said that the main process is the same except one additional process of pre-gelatinization of instant Pasta by way of steaming and frying.
Sarang explained that the Instant Noodles and the pasta business go hand in hand with the dry pasta. Even though the shelf life of the instant past is less than the dry pasta, people prefer it more often due to its minimum cooking time.
Also, the process of making instant products from the main product is mostly different for many of the food products. But for the instant pasta and noodles, the process is somewhat similar except for the steaming process which is included in the production of instant pasta. Rest the taste and textures of both the product is rather similar.
Machinery market
Pasta and noodle-making business in India is the profitable venture of the era because of its versatility, composition, low cost, and ease of preparing it at the consumer’s end. Depending on the local interest, one can also manufacture instant noodles, macaroni, spaghetti, pasta, etc. This way, the business has diversified opportunities in the expansion.
Noodles are the most popular and always in demand kind of item in India. The inherent blandness makes them suitable for different types of edible items such as sauces, topping, flavorings, etc. enabling vermicelli, noodles, pasta to be used as the basis of different dishes with infinite variations. Almost every household uses noodles in their day-to-day life for regular snacking. Apart from this, restaurants, cafes, food chains, canteens, street food stalls, etc. are frequently buying noodles and preparing them in different forms. Also, the product has immeasurable export potential in the Asia-pacific region.
Though its consumption in India is low, its production has increased in recent past years. With the increase in consumption of pasta and noodles due to Covid-19, there is an increase in machinery demand for the same. Many renowned businesses are shifting to Pasta industries which have led to the increased demand for the most efficient and best pasta machine, informed Sarang.
However, Dr. Tyagi said, “I don’t think so, because we have enough capacity of making Noodle and Pasta in the country and period of lockdown was 4-5 months only. After unlocking of the lockdown period, the demand for these products has been stabilized.”
Conclusion
In 2020, pasta and noodles have seen higher growth than in any other year of the review period, mainly due to COVID-19. During the lockdown to prevent the spread of the virus, when people had to spend more time at home, they cooked for themselves more.
Pasta and noodles are some of the most popular carbohydrates in the food industry. Wheat is the prominent ingredient of both products. Pasta is consumed along with few vegetables, cheese, and meat. Noodles are added to soups and casseroles. These are available in fresh, preboiled, steamed, and dried variants. There are several types of pasta available based on their size and shape such as – Spaghetti, Rotini, Penne Rigate, Macaroni, and many others. Based on the product, the market is classified into Dried Pasta & Noodles, Ambient Pasta & Noodles, and Chilled Pasta & Noodles.
The demand for pasta and noodles are significantly high as they are the staple food of various countries including Italy, China, Japan, and Korea. As these are easily prepared and require less time, these have placed themselves on the instant food list. Several multi-cuisine and local restaurants are the prominent drivers of the market. Moreover, pasta and noodles have a good shelf life and surged the demand in the market. Also, health and wellness pasta has gained attraction owing to its high-fiber, gluten-free, low carbohydrate variants.
Pasta/Noodles saw the sharpest spike in consumption in India between mid-April and mid-July when much of the country was in lockdown due to the covid-19 pandemic. During this 12-week period, consumption volumes jumped three-and-a-half times, from 2,200 tonnes to more than 7,600 tonnes. A recent report by market research company IMARC estimates that the sales value of pasta last year was $391.5 million (around Rs. 2,888 crores now) in India. Among the factors it lists for the popularity of the dish are rising urbanization and the changing lifestyle of a younger demographic, leading to a spike in demand for ready-to-eat products.
In its packaged form, pasta can be cooked easily and in large quantities, both of which would have been a blessing during the days of the lockdown People’s earlier inertia of can and cannot cook seems to have gone down. Apart from being adaptable concerning the toppings and sauces that can be added to it, pasta is also an easy route for vegetarians to add an international dimension to their taste buds.
With so many brands of pasta being locally produced, it’s no longer an aspirational food and it is not at all surprising to see by the attempts of street food vendors to experiment with pasta. People need variety, and eating instant noodles can get very monotonous beyond a point.