The instant noodles market in India is set to grow from Rs. 1,300 crore (US$288 million) at present to around at least Rs. 3,000-3,500 crore (US$666 million to US$776 million) by 2015. With all the major FMCG companies eying slice of increasing pie, will maggi be able to maintain its market share which has been close to 90% last year but has fallen to 85% recently.
Yes It was obvious as Maggi is facing a lot of competition from various brands such as Foodles(horlicks, most prominent), Top Ramen, Smith and Jones, private brands like Food Bazaar Tasty Treat etc.
Also brands like Ching's secret have their own variants of noodles to offer in the market.
One more thing, sometimes market share can be a wrong indicator, AS the base is increasing with many players the share would definitely go down but if bottom lines are affected then its a problem.
Another reason, why many brands have come up is that indian consumer has become far more demanding and more open to instant food categories. No longer Indian consumer will be satisfied with maggi.And thats why we see maggi launching so many variants. But all the new brands which are coming up have strong marketing muscle power. We still remember ITC's bingo campaign. Will their marketing power overpower the age old trust shown by Indian consumer in Maggi.....only time will tell.
i want to ask one question, why nobody challenged maggi's numerno uno position till now. Maggi has been enjoying monopoly for quite sometime now. Or were there no profits in this industry, that's why nobody entered....
Foodles is an instant noodles from GlaxoSmithKline (GSK)which also has leading brand Horlicks. Foodles comes with the punch line of "Noodles without the 'No'": It is available only in the multi-grain and wheat variant, the product is being promoted as having higher nutritional value compared to other popular brands. The main unique selling proposition (USP) of Foodles is the vitamin-packed health-maker sachet that comes with the pack
Why nobody challenged maggi till now....reason could be the Indian consumer mindset towards instant noodles category.Till now Indian consumer was very conservative in their outlook towards this category but now Indian food habits are changing with country's young demographic profile, increasing family income, accelerating urbanization, the cosmopolitization of major urban centers, unprecedented interstate migrations, increasing number of working couples, time constraints, shortage of household help, global travel, increasing exposure to global cuisine and so on
So it means that it is a good opportunity for the Ready to eat food category not specifically instant noodles. Can sombody put sales figure of ready to eat category. This will help us anlyse how this is growing....
I could not find the exact sales figures but here are the market sizes for certain sub categories in the ready to eat category: Instant Noodles $288 million, Powdered soups (estimated market size: US$55 million), cooking pastes and purees (US$33 million), instant pasta (US$22 million) and ready-to-eat meals (US$17 million.....