Instant Noodles Industry

in Nigeria
and
Related Issues

Instant Noodles
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
Instant ahead
Noodles
Nigeria ranks number 12Global
at 2% Demand
of worldfor
demand
of Malaysia, Taiwan and
50,000

Mexico45,000

42,530

40,860

42,300 42,470

44,030

40,000
35,000
30,000

Global Demand for Instant Noodles

25,000
1,900
2,000
1,790
1,80020,000 1,6001,670
1,600 1,400
15,000
1,400
1,220
1,210
1,20010,000
1,000 5,000
800
0
600
400
China / Hong Kong
200
0
1
Nigeria

1,300

13,700 13,930 14,400 14,530 14,100

1,1101,070
1,020

1,010

890
860 860 830 8505,100

510
Indonesia
2
Taiwan
Mexico
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012

Malaysia

5,410
5,290 5,510
820 890
730
590

5,340

Japan
3
Nepal

Unit: 1 Million Packets (Bags/Cups)

Unit: 1 Million Packets (Bags/Cups)
Estimated by World Instant Noodles Association (WINA)
Estimated by World Instant Noodles Association (WINA)

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
Total investment by all players (Naira 68bn or USD $ 425 mn)
Over 20,000 people employed

Source: Nielsen

Instant Noodles-Related Industries

Noodles
Carton

Flour

Palm Oil

Flexible
packaging

Salt

Sugar

Chilli

History Noodles in Nigeria

Second entrant
Chikki 2005
Started with
regular chicken
flavour

Started with
Indomie in
Nigeria, First
factory in Ota
Setup in 1996

Flour millers
enter the
category

How we got here

How we got here
Gap Minimal presence of snack food in Nigeria
Focus
Availability

Affordability:
CPI has increased by
more than 3 times last
decade
Instant noodle price only
doubled

Affordability

Acceptability

Acceptability
Major Concern
AcceptSampling: to introduce cooked product
ability
Marketing Activities
Affordability

Availability

Availability
Strong distribution
network
Noodles available in 60%
retail outlets

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

Innovative Flavours
BOX Noodle

Unique Varieties
Noodles
Vending
Indomie Cup
Hungry
man
SizeMachine
Gives Noodles Push-Button Simplicity
Noodle

SWOT analysis
STRENGTHS

WEAKNESSES

Affordability

Raw material

Loyal consumers

Price fluctuation extreme; Supply

unpredictable

High Category Penetration

Fast cooking & Convenience

High manufacturing cost

compared to other countries

SWOT
Scope for growth in terms of product
line

Heavy duty on wheat

Importation hurting growth
prospects
Lift of ban on importation

OPPORTUNITIES

THREATS

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 factories
Innovation (210gms and Box Noodles)

Baba Indomie

Mr Haresh Aswani (MFR)

MD, Nigeria
Tolaram Group

Thank You