5.1 The Industry
5.1.1
Definition of the Industry
Food and
Beverages (F&B) is the industry term refers to all food and beverages needs
for the consumer. The industry is a complex, global collective of diverse
businesses that supply much of the food energy consumed by the world
population. The industry has grows
tremendously and bring a lot of revenues to our countries. Food and beverages
consist a huge variety of products and processes, complex fragmented market
segment, numerous of companies and manufacturers and many other characteristics
that build up the industry. The industry come with wide variety categories of
food , they consist of frozen food, instant food, fresh and raw food materials,
process food and canned food, process drinks, yogurt drink, milk and other
products are manufactured, distributed, imported and marketed to consumers,
retailers, catering services and other manufacturers.
5.1.2
Shape of the Industry
Instant noodles are
immensely popular around the world, with 92 billion servings consumed globally
last year. For Malaysia, 1.3 million packets of instant noodles are sold each
day with a total of consumption 1.2 million serving for the year. The driving
forces that boost the markets include low cost, wide variety choices, minimal
cooking time and changing of lifestyle. Changing
of busy lifestyles include increased working time, growing number of working
women with no cooking skills, less time at home, demanding on convenience foods
and changing of buying behavior has propel the instant noodles market growth as
Asian food. Market research of Global Industry Analysts, Inc. reported that
Asia-Pacific represents the largest regional market for instant noodles
worldwide. Maggi which dominates the market has also become synonymous with
instant noodles. It can be say that no people do not know about this brand as
it has become a term describing instant noodle use by Malaysian.
5.1.3
Development of the Instant Noodle Industry
In modern
urban area, the rise of instant food products demand in Malaysia is growing
with the population’s affluence and changing of lifestyle.
As we
know, the very first instant noodles were created and marketed in Japan under
the brand name Chikin Ramen by Momofuku Ando, on August 25, 1958. It was
consider as a luxurious food due to the cost of instant noodles which cost for
35 Yen. In 1971, Nissin introduced the cup noodles, which that the instant
noodles are inside a waterproof polystyrene cup
and cook with boiling water . “The Japanese believe that their best
invention of the twentieth century was instant noodles” , the result shown in
the Japanese poll carried out in 2000. In
2010, approximately 95 billion servings of instant noodles are eaten worldwide
every year. China consumes 44% of world consumption which is 42 billion
packages of instant noodles per year. Below shows the pie chart on the
percentage of instant noodles consumption in certain countries.
In Malaysia, noodles is expected to
register a strong 10% increase in current value sales in 2011 to reach RM 1.1
billion. Noodles remain a staple food type in the Malaysian cuisine. In
particular, instant noodles is a major part of the diet of many consumers, and
sales are projected to reach RM1 billion in 2011. 
1. The
chart shows the percentage of Instant Noodle Consumption Analysis worldwide in
2010. [Source : http://instantnoodles.org/noodles/expanding-market.html]
2. The pie chart at the right hand side
show the numbers of instant noodles demand of worldwide in 2005. The result
clearly shown that China and Hong kong occupied the largest portion whereas
Indonesia came in the second highest demand of instant noodles.
In recent years, as the health concern arose, instant
noodles manufacturers have tried to introduce low-MSG seasonings, as well as
new processes that do not require frying for the noodles.
5.2
The Marketplace
5.2.1
Current Condition of the Marketplace
According
to the sources of current market growth for the Noodles industry in Malaysia,
the Malaysia instant noodle industry is dominated by Maggi and thus the Maggi’s
company, Nestle (M) Bhd led noodles with a 39% share of retail value sales in
2010. This was due to the overwhelming popularity of Maggi noodles,
particularly in cups/bowl instant noodles and pouch instant noodles. In
addition to strong brand equity and affordable price points, Maggi’s products
become the favourite of instant noodle among Malaysian. The market of instant
food is currently in advance stage while competing with other existing brand in
the market.
5.2.2
Changes in Marketplace
Noodle
industry is the current new trend of ready meal in Malaysia that has evolved
through the exact application of innovative marketing. Instant noodles are
selling and available in shopping malls, hypermarkets, distributors,
convenience shops and wholesalers. Consumers are prone to spend on these
products due to its minimal cooking time and easy to store. In the past, people
consume for instant noodle occasionally whereas people nowadays consume with at
least four to five packets in a month. The changing of busy lifestyle has
affect on the demand of instant noodles. According to the statistics of consumption
of instant noodles in Peninsular Malaysia made by Malaysian Industrial
Development Authority (MIDA), the number of instant noodle rising tremendously
by each year, amount of packets sold out each day rising from 180 thousands in
1975 until 1.3 million packets in 2011, the amount is surprisingly high. This
means that Malaysian has take instant noodles as the perfect solution in all
kinds of daily-life situations, providing late-evening snacks, and overtime or
emergency meals. In the past, people are tend to cook and prepare the meal at
home or dine out, as time pass by, along with the development of country,
people have less time to cook or may be no cooking skill at all, and they
search for the best solution to solve their hunger. So, instant noodles have
become indispensable in our lives.
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