nigeria noodle industry
DESCRIPTION
Nigeria Noodle IndustryTRANSCRIPT
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Instant Noodles Industry
in Nigeria
and and
Related Issues
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Invented in 1958 by Momofuku Ando Founder Nissin foods (Brand - Ramen)
Worldwide over 100 billion packs of instant noodles were consumed in 2012
Demand from china comprises 44% of the worldwide demand
Nigeria ranks number 12 at 2% of world demand ahead of Malaysia, Taiwan and
Mexico
Instant Noodles
Global Demand for Instant Noodles
42,53040,860
42,300 42,47044,030
30,000
35,000
40,000
45,000
50,000
Global Demand for Instant Noodles
1,400
1,2101,110
860
510
1,600
1,070
860
590
1,670
1,220
1,020
830730
1,790
850 820
1,900
1,300
1,010890 890
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nigeria Malaysia Taiwan Mexico Nepal
Global Demand for Instant Noodles
2008 2009 2010 2011 2012
Unit: 1 Million Packets (Bags/Cups)
Estimated by World Instant Noodles Association (WINA)
13,700
5,100
13,930
5,340
14,400
5,290
14,530
5,510
14,100
5,410
0
5,000
10,000
15,000
20,000
25,000
30,000
China / Hong Kong Indonesia Japan
1 2 3
2008 2009 2010 2011 2012
Unit: 1 Million Packets (Bags/Cups)
Estimated by World Instant Noodles Association (WINA)
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Nigeria Instant Noodles Market
Very high category penetration of 60%
Market size 250,000 tonnes (2012)
Translates to more than USD 600mn
Dominated by Indomie more than 70% share
Lower penetration in North More traditional way of living
Source: Nielsen
Lower penetration in North More traditional way of living
Total investment by all players (Naira 68bn or USD $ 425 mn)
Over 20,000 people employed
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Instant Noodles-Related Industries
Noodles
Carton Flour Palm OilFlexible
packagingSalt Sugar Chilli
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History Noodles in Nigeria
Second entrant Chikki 2005
Flour millers enter the category
Started with Indomie in Nigeria, First factory in Ota Setup in 1996
Started with regular chicken flavour
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Gap Minimal presence of snack food in Nigeria
Focus
Availability Affordability Acceptability
How we got here
How we got here
Acceptability
Affordability:
CPI has increased by
more than 3 times last
decade
Instant noodle price only
doubled
Acceptability
Major Concern
Sampling: to introduce cooked product
Marketing Activities
Availability
Strong distribution
network
Noodles available in 60%
retail outlets
Avail-
ability
Afford-
ability
Accept-
ability
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Scope for Growth
Lots of innovation in the instant noodles market worldwide
Indomie tried with box noodles, but was unsuccessful
Currently Indomies Hungry Man Size; Biggest noodle block
to be sold commercially
Cup Noodles Vending Machine
Gives Noodles Push-Button Simplicity
Innovative Flavours Unique Varieties
BOX Noodle Indomie Hungry man Size Noodle
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WEAKNESSESSTRENGTHS
SWOT analysis
Affordability
Loyal consumers
High Category Penetration
Fast cooking & Convenience
Raw material
Price fluctuation extreme; Supply unpredictable
High manufacturing cost compared to other countries
SWOT
THREATSOPPORTUNITIES
Scope for growth in terms of product line
Heavy duty on wheat Importation hurting growth prospects
Lift of ban on importation
SWOT
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Conclusion
Government support Ban on importation
Scope for growth in terms of variations offered
Industry can compete at the world level
State of the art factoriesState of the art factories
Innovation (210gms and Box Noodles)
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Baba Indomie
Mr Haresh Aswani (MFR)
MD, Nigeria
Tolaram Group
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Thank YouThank You