World’s second largest instant noodles market posts first demand fall in 5 years

Indonesia, the world's second-largest market for instant noodles, experienced its first decline in demand in five years, according to a recent report by the World Instant Noodles Association. The drop in sales can be attributed to reduced purchasing power due to price increases caused by currency depreciation and higher raw material costs.

Despite this setback, cup-type noodles have continued to expand in Indonesia, and the overall instant noodles market is still expected to see further growth. The association noted that consumers have become more frugal and selective in their spending, even during deflationary conditions, and that cup-type noodles and mid- to high-priced bag-type noodles are expected to regain momentum through various initiatives.

These include expanding into regional cities, entering new channels like e-commerce, and launching new products. Global demand for instant noodles reached over 124 billion servings last year, up 0.7% from the previous year. The top five markets are China/Hong Kong, Indonesia, India, Vietnam, and Japan, with the U.S. in sixth place, followed by the Philippines, Thailand, South Korea, and Nigeria.

The industry faces a more challenging cost environment due to changes in U.S. trade policy, heightened tensions in the Middle East, and weaker export sales linked to geopolitical risks and rising input prices. These pressures are expected to continue influencing manufacturers' procurement and pricing strategies in the coming year.