Japanese Giant Captures 40% of Vietnam’s Instant Noodle Market
According to Nikkei, since the COVID-19 pandemic, instant noodles have become increasingly popular in Vietnam. Acecook, a Japanese instant noodle manufacturer, is leading the market due to its long-standing presence and diverse product portfolio.
In 2023, Acecook sold approximately 3.3 billion packs of noodles in Vietnam, capturing about 40% of the market share. This figure is equivalent to nearly 60% of the annual instant noodle consumption in Japan.
“Due to inflation, instant noodles have become an affordable option that still guarantees a tasty meal,” said Hiroki Kaneda, CEO of Acecook Vietnam.
Hảo Hảo is Acecook’s well-known brand, and the packs of noodles priced at around 4,500 VND are the best-selling products. Recently, higher-end products, ranging from 5,000 to 15,000 VND with more “toppings,” are also performing well.
According to Acecook, sales of premium products have increased by 30-50% this year compared to last year. With a bowl of pho in the city costing up to 40,000-60,000 VND, even premium instant noodles are considered a budget option.
Acecook entered the Vietnamese market about three decades ago and quickly expanded its production capacity to meet the growing demand. The company now has 13 domestic factories, including partner facilities. Acecook plans to bring two more factories into operation by 2027.
Competition among manufacturers also contributes to the growing consumption. Masan Consumer, Acecook’s rival in Vietnam, is focusing on a premium product development strategy.
Masan has launched Omachi-branded hot pot products priced at over 100,000 VND per pack. The unique selling point of these hot pot noodles is that they come in self-boiling packaging, requiring no external heat source.
Ms. Nguyen Truong Kim Phuong, Marketing Director at Masan Consumer, shared at a shareholder meeting that the Omachi hot pot noodles elevated the instant noodle experience, offering a meal that is “both delicious and fun.”
Despite the persistent perception that instant noodles are unhealthy in Vietnam, Masan is working to change this stigma, especially targeting consumers who frequently dine out. With 13 food production factories, including instant noodle facilities nationwide, the company plans to open four more factories in the near future.
Vietnam’s Instant Noodle Consumption to Surpass 10 Billion Packs per Year by 2030
According to the World Instant Noodles Association, global instant noodle consumption reached 120.2 billion packs in 2023, a 13% increase compared to 2019. The pandemic lockdowns led to a surge in demand for instant noodles consumed at home.
Even as pandemic restrictions eased, instant noodle consumption continued to rise as people became accustomed to a convenient, easy-to-prepare, and affordable meal option.
In Southeast Asia, instant noodle consumption reached 34 billion packs last year, a 22% increase compared to 2019, accounting for approximately 30% of global consumption. Vietnam alone consumed 8.1 billion packs of instant noodles last year, a 49% increase compared to 2019.
Source: Visual Capitalist
On a per capita basis, Vietnam has overtaken the world in instant noodle consumption with 83 packs per person per year, up from 57 packs per person per year in 2019.
Hiroki Kaneda predicted: “Vietnam’s instant noodle consumption will surpass 10 billion packs per year by 2030.”
Southeast Asia is the primary driver of the global instant noodle market. Among the top 10 consuming countries in 2023, four are from this region.
In Southeast Asia, instant noodle packs typically weigh around 60 grams, which is 30-40% less than in Japan. Since people often eat two packs at once or as a snack between meals, the number of packs consumed is expected to increase.
Notably, local brands dominate each domestic market. Examples include Mama in Thailand and Lucky Me in the Philippines. Indonesia is the largest market in Southeast Asia, with annual instant noodle consumption reaching 14.5 billion packs.
Mark Wakeford, head of investor relations at Indofood, Indonesia’s largest instant noodle company, stated that the rural market in the country is expected to continue expanding. More and more villagers are turning to instant noodles as a cheap and convenient meal, especially during breaks from working in the fields.
To meet the growing global demand for instant noodles, companies are accelerating their expansion overseas. Acecook currently exports Hảo Hảo instant noodles and pho to about 40 countries.
The CEO of Acecook Vietnam affirmed: “Vietnam will become the group’s export hub.”
Reference: Nikkei Asia
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