The pasta market is buzzing
Last year’s drop in real wages also led to a few percent decline in volume sales in the pasta market.
This article is available for reading in Trade magazin 2024/6-7
“A weaker sales performance in the first half of the year gradually picked up in the second half. It was an interesting trend that brands outperformed private labels in this bad period. We have tried to realise further cost savings in production – in energy efficiency, packaging or logistics, in order to increase our competitiveness”,
says Norbert Káhn, deputy CEO of Gyermelyi Zrt.
“The news about the lower quality of Ukrainian raw material has led to a rise in demand for reliable domestic products, with consumers consciously seeking products with the Hungarian Product trademark, made from domestic reliable quality ingredients”,
explains Csaba Mándy Jr, owner and managing director of Mary-ker Pasta Kft.
Krisztina Kovácsné Nagy, head of sales and marketing at Família Tészta Kft.:
“Our experience is that oversupply is one of the key factors influencing retail processes, the main reason for which is transforming consumer behaviour and a decline in purchasing power”.
Efficiency increasing is key
Soós Tészta Kft. exclusively uses Hungarian ingredients and works with reliable partners only. Brigitta Soós, head of sales and quality assurance:
“We didn’t really feel that anything changed because of the mandatory price discounts. Soaring inflation is obviously not benefiting anyone, as it is leading to higher costs for everyone. We have tried to mitigate this with more efficient production”.
Róbert Rácz, sales and marketing director of Izsáki Házitészta Kft.:
“Consumption has shifted towards smaller-sized products and pastas with lower egg content. This process already started years ago with transforming consumption habits, but the current economic situation has accelerated it. With our 500g products we have switched to 5x100g or 2x250g formats inside the box”.
Traditions and special pastas
No significant change is noticeable in pasta types. Traditions are strong: 4- and 8-egg pastas remain the biggest segment. Shrinkflation has largely avoided this category, but promotional awareness and interest in smaller sizes has increased. There is a tendency to buy less at a time, with consumers increasing the number of purchases rather than the size of the basket, so it is very important to make good offers more often.
“More and more consumers are looking for healthy pasta varieties, such as wholemeal pasta, durum pasta, pasta made from oat flour or pulses. Customers are more open to special pastas in both flavour and ingredients – coloured pasta, herb pasta, egg-free and vegan pasta”,
says Tamás Bozó, sales manager of GOF Hungary Kft.
For people with egg allergies and those following a vegan diet, the company offers its Avena Gofit gluten-free oatmeal pastas. At Gyermelyi the share of premium traditional Gyermelyi pasta – made with fresh eggs – continued to grow the most, but sales of the Vita Pasta durum range also augmented. At the same time lower egg content and egg-free pasta sales were down.
Noodles in the soup
As the price of eggs continues to rise, from time to time reaching unbelievable heights, Mary-ker Pasta Kft. has launched its long-planned durum soup noodles. The company has put it on the market in three formats, in 200g retail and 3kg HoReCa size, further expanding the Don Francesco durum pasta family. In terms of marketing, they are looking to strengthen primarily in the online space. As in previous years, Izsáki Házitészta Kft. is preparing to enter the market with new formats. In addition to the new innovations, they are also changing the packaging materials, to make the appearance of some of their product lines more uniform and to strengthen the Izsáki brand name. They will continue with their Cook Outdoors promotion. The company is planning to introduce Erős Pista flavoured pinch noodles by including a sample packed with other products.
Success in the spirit of health
One way to strengthen brands is to develop healthy and functional pasta varieties. Examples include gluten-free oat pasta and vegan pasta, which GOF Hungary rolled out last year. Now almost all domestic retail chains sell one of the company’s oat pasta products. Customers are starting to get to know and like them.
Família Tészta believes that dealing with the current market situation requires creative thinking and excellent sales teamwork. Consumers can be influenced primarily by innovations and various activities. It is especially the younger generation that is keen to try innovative pastas, special formats and products that appeal to them. The company can satisfy these needs with its Família pasta and Pasta del futuro brands. For them innovation is essential and this is reflected in successful products such as their 4- egg pastas made with turmeric, which belong to the Pasta del futuro brand. //
Good innovations also work well in the frozen noodle segment
The category of quick-frozen semi-finished noodles was in stagnation last year, according to Dr Valeria Gergely, the owner of Gergely Gasztronomi Kft. There is a shift towards private label products and promotional activities in this segment. This makes the position of branded products more difficult, but the expert believes that brands can remain successful with innovation work and promotional activities.
“Our company has successfully launched several innovations in recent years. The Gergely giant dumpling range has since become a hit in the market, but I could also mention our gluten-free dumplings, gluten-free baked goods or lactose- and sugar-free products”,
says Gergely Gasztronomi Kft.’s owner. //
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