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According to data from the World Instant Noodle Association (WINA), during the two years hit by the Covid-19 pandemic, consumption of instant noodles in Vietnam skyrocketed.
Vietnam overcame India and Japan to become the third largest instant noodle consuming country in the world in 2020, with 7 billion packages (up 29%). Last year Vietnam consumed more than 8.5 billion packages of instant noodles (up 22%). In terms of growth rate, no market in the top 10 surpassed Vietnam.
According to the Korean Herald, Vietnam has surpassed South Korea in terms of consumption of instant noodles per capita. On average a Vietnamese person eats about 87 packages of instant noodles per year compared to 73 packages in Korea.
Vietnam currently has about 50 companies producing instant noodles, including domestic and foreign enterprises. For many years, the market has been in a "tripod” position, led by Acecook with Hao Hao instant noodle brand, followed by Masan Consumer (a member of Masan Group JSC) with Omachi and Kokomi brands, and Asia Food with Red Bear brand. In recent years, Uniben with 3 Mien brand, has "attacked" the market very strongly to become the fourth formidable "player".
Officially put into operation in 1995, Acecook has successfully built the Hao Hao instant noodle brand to become the most popular instant noodle brand in Vietnam, occupying the largest market share of the domestic instant noodles. In 2021, Acecook's revenue of instant noodles was VND12,263 billion, up 6% and after-tax profit of VND1,367 billion, down 28%.
Meanwhile, thanks to the huge ecosystem in Vietnam, especially the system of supermarket and convenience stores WinMart/Winmart+ with thousands of selling points, Masan Consumer's instant noodle products have a great advantage in distribution.
According to VNDIRECT Securities Company's report, Omachi instant noodles dominate the high-end segment with 45% market share. In 2021, Masan Consumer's instant noodle sales reached VND 8,800 billion, up 28% and equivalent to 72% of Acecook's revenue.
Ranked fourth in the market, Uniben achieved revenue of more than VND 3,400 billion, up 12% last year.
Despite the high demand, revenue of the 3rd-place instant noodle producer- Asia Food - in 2021 fell by 4% to more than VND 5,500 billion. The company made a profit of only VND 14 billion last year.
Asia Food, Safoco and Colusa-Miliket are the instant noodle producers that recorded a decrease in revenue last year.
Once the "symbol" of a long-standing instant noodle product in Vietnam, associated with the memories of many Vietnamese, Miliket instant noodles' position has decreased significantly. In 2021, Miliket's revenue was VND 571 billion, down 7%.
Korean instant noodles are gaining popularity in the Vietnamese market, especially among young people following the Hallyu wave bringing Korean culture into Vietnam through movies, music and Korean dishes.
Mai Lan