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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
Nigeria ranks number 12Global
at 2% Demand
of worldfor Instant ahead
demand Noodles
of Malaysia, Taiwan and
50,000
44,030
Mexico45,000 42,530
40,860
42,300 42,470
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 13,700 13,930 14,400 14,530 14,100
15,000 1,300
1,400 1,210 1,220
1,20010,000 1,1101,070
1,020 1,010 5,340 5,290 5,510 5,410
1,000 5,000 860 860 830 8505,100
890 820 890
730
800 590
600 0 510
400 China / Hong Kong Indonesia Japan
200
0 1 2 3
Nigeria Malaysia Taiwan Mexico Nepal
2008 2009 2010 2011 2012
2008 2009 2010 2011 2012
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

Flexible
Carton Flour Palm Oil Salt Sugar Chilli
packaging
History Noodles in Nigeria

Flour millers
enter the
Second entrant category
Chikki 2005

Started with
regular chicken
flavour

Started with
Indomie in
Nigeria, First
factory in Ota
Setup in 1996
How we got here
How we got here

Gap Minimal presence of snack food in Nigeria

Focus

Availability Affordability Acceptability

Acceptability
Major Concern
Accept-
ability Sampling: to introduce cooked product
Marketing Activities
Affordability:
CPI has increased by Afford- Availability
ability
more than 3 times last Strong distribution
decade Avail- network
Instant noodle price only ability Noodles available in 60%
doubled 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 Unique Varieties

BOX Noodle Indomie Cup


Hungry man
Noodles SizeMachine
Vending
Gives Noodles Push-Button Simplicity
Noodle
SWOT analysis
STRENGTHS WEAKNESSES
Affordability Raw material
Loyal consumers Price fluctuation extreme; Supply
unpredictable
High Category Penetration
High manufacturing cost
Fast cooking & Convenience compared to other countries

SWOT
Heavy duty on wheat
Scope for growth in terms of product Importation hurting growth
line 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