Consumers buy instant noodle more than one time each month

A survey by Kantar Worldpanel showed that instant noodles are one of the most regularly bought fast-moving consumer goods, about 18 times a year on average. 

This means that consumers buy instant noodle products more than one time each month.

The market has grown by 8 percent in value and 3 percent in quantity in urban areas, higher growth rates than 2016. However, the rural market saw decreases in both value and quantity.

Nguyen Huy Hoang from Kantar Worldpanel said that the Vietnamese instant noodle market can grow further, so it is attracting foreign investors who sell in urban areas and want to expand in rural areas.

In urban areas, foreign brands are holding market share of 60 percent. Acecook alone holds 50 percent of market share. 

Domestic brands are dominating the rural market with 60 percent of market share.

Joining the Vietnamese market in 1993, the Japanese manufacturer provides 3 billion packages of noodles each year.

Acecook Vietnam became well known among Vietnamese consumers in 2000 with the launch of Hao Hao brand. 

For many years, Hao Hao has been seen as the ‘instant noodle King’ in the mid-end market segment. The brand has a high recognition level in Vietnam, known to 100 percent of consumers.

Hao Hao products have been the best-sellers of Acecook, bringing 60 percent of revenue for the company.  

Acecook reported 5 percent growth rate in revenue in the first half of 2017 in comparison with the same period last year. 

Besides Hao Hao, the manufacturer also has many other brands, including Mien Phu Huong (for vermicelli), Pho De Nhat (pho – noodle soup), Bun Hang Nga (soft noodles) and Hu Tieu Nhip Song (noodle with beef), which witnessed 7-12 percent growth rates.

Joining the market after Acecook, Masan Consumer has made a big leap. It is called a ‘rising star’ with market share increasing from zero percent to 21 percent in 2012, to 25 percent in 2015 and 24 percent in 2016.

With Omachi brand targeting the high-end market segment and Kokomi and Sagami targeting the lower end, Masan’s products are diverse which has helped it stay firmly in the second position in the market. 

Asia Foods with Gau Do (red bear) and Trung Vang (golden egg) brands hold 10 percent of the domestic market.

Unable to compete with Acecook and Masan in the high-end market, Asia Foods targets most low and mid-end consumers. The reasonable strategy plus the high budget for advertisements (VND150 billion) have helped Asia Foods gain the third position in the market.

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Thanh Lich