Sales of instant noodles in the first quarter of 2023 decreased in units by 9.5% year-on-year

The reduction in consumer activity has also affected the fast food market, which usually grows during periods of crisis. In the first quarter of 2023, sales of such noodles decreased in units by 9.5% year-on-year. Producers attribute this to a recovery in demand after the hype. Suppliers still see potential for market growth, but experts believe it will be difficult to expand the consumer base.

Sales of instant noodles in Russian stores in the first quarter of 2023 decreased by 9.5% in physical terms year-on-year, follows from the NielsenIQ retail audit data provided by Kommersant’s Mareven Food Central (brands Rollton, BigBon and etc.). In monetary terms, sales of these products grew by 11% year-on-year, which is obviously due to an increase in average prices. Sales of all fast food products, including soups and second courses, for the first quarter in pieces decreased even more significantly – by 12.8% year-on-year, and in money terms increased by 3.9%.

The decrease in sales in volume terms is attributed by market participants to the end of the period of rush demand. Natalia Popova, Commercial Director of Mareven Food Central, says that Russian consumers began stockpiling food as early as 2020, which led to a 26% increase in sales of easy-to-storage instant foods in pieces, and 2022 was no exception to this trend. Now consumers are no longer in the mood to make large stocks, and sales volumes have returned to the levels of 2019 and 2021, the top manager notes.

The CEO of Natural Foods (brands of Bon Appetit, Euro Express, Food Like instant noodles) Natalia Nikolaeva points out that for some companies, sales of the category in 2022 grew at a triple-digit pace, which affects the comparison of current figures with last year. In addition, she adds, the market in the first quarter is traditionally affected by long holidays, and this year was also distinguished by the coincidence of the beginnings of Orthodox and Muslim fasts. In “Doshirak Rus” (brand Doshirak) “Kommersant” did not answer.

Mareven Food Central says that the largest growth in physical terms for the company in the first quarter was shown by the Petra brand, whose share increased from 2.4% to 4% year-on-year, while the share of Rollton remained at the level of 33 .7%, while BigBon increased by 0.04 percentage points to 8.9%. Petra’s production is localized by more than 90%, which makes the product less dependent on cross-border supply chains and global market conditions, allowing you to keep prices, the company explains.

According to NielsenIQ data, the biggest growth in the instant noodle market is shown by chains’ private labels (PLs). In the first quarter, their share reached 10.8% in real terms against 8.5% a year earlier. Lenta reported that sales of private label instant noodles in pieces grew by almost 50% in a year, and the share of private labels in the category exceeds 10%. The dynamics in Lenta is explained by the appearance in the assortment of imported instant noodles in briquettes, which is cheaper than in trays. X5 Group (Pyaterochka, Perekrestok), Magnit, Auchan and Metro Kommersant did not respond. Natalya Nikolaeva says that the interest of chains in launching private labels in the category has grown sharply after a period of rush demand in 2022.

Natalia Popova believes that sales of instant noodles will begin to grow again, including due to the “turn to the East and the perception of such products as the basis for the diet of people of different social strata.” According to her, in 2022, sales of instant noodles in Russia reached 14.6 servings per capita per year, which exceeds the figure for the United States, where 13 servings are eaten annually, but far from the volumes of Asia, where consumption is estimated at 45-90 servings per year. year. Stanislav Kaufman, the owner of the Kaufman brand agency, does not rule out that there is still potential for expanding the market for instant noodles. But promotion of the product among new consumer groups, for example, those who prefer cooking at home, will be required, which will be difficult to do, the expert points out.

Anatoly Kostyrev