There is still potential in pasta

In spite of being a traditional food in the bigger half of the world, pasta is also truly a product of the 21st century. Pasta has also benefited from the growing popularity of health trends. However, the domestic market shows stagnation. Concentration has been continuous in both domestic production and retail of pasta, with many smaller manufacturers closing down in recent years. Concentration in retail is partly due to the expansion of hyper market and supermarket chains. – Unfortunately, decline in domestic demand has reached pasta as well, breaking a long positive trend– says Norbert Káhn, sales director of Gyermely Zrt. However, pasta is less effected by recession than many other categories, as it is a modern and healthy food. Pastas made with eggs still dominate the domestic market, accounting for 80 percent of total sales. Durum products account for 10 percent of the market. In the opinion of Péter Gnám, sales director of Soós Tésztaipari Kft., average price dropped in the fourth quarter as a result of intense price competition and this is still the trend. Demand for private labels and smaller size units is growing, Ferenc Sárik from Cerbona Zrt. agrees that sales have been stagnating in terms of quantity since April 2008, though Cerbona has expanded its sales. János Puskás, sales director of Família 1997 Bt is proud of the growth they have achieved in sales. He hopes that pasta will continue to remain popular even in times of recession. Péter Gnám does not see consumers turning to pasta as a result of the crisis. Ferenc Sárik is sure that the crisis is not having a substantial effect on the market of pasta. Shape is a more important factor for pasta than it is for other food products, because different shapes result in different flavours. Classic shapes continue to dominate the market with their respective market shares remaining quite stable. Five leading shapes still account for 60 percent of total sales. – Pasta is playing an increasingly important role in catering – emphasises Péter Gnám. In fact, pasta has become on the most essential ingredients in catering. The increasing popularity of Mediterranean gastronomy also promotes the consumption of pasta. Apart from price, cooking characteristics are becoming increasingly important for HoReCa units. Pasta is seen as still having a lot of potential, because it can be used in so many ways, many of which are still neglected. At the same time, pasta is a cheap ingredient which allows restaurants to achieve a substantial margin, while serving premium quality dishes. Looking at the two Pasta Wednesdays organised so far, we can see that most restaurants prefer to make traditional Hungarian dishes, with these accounting for 70 per cent of all pasta seen on menus. In the opinion of János Puskás, price is the primary consideration for most Hungarian restaurant owners and this is why the manufacturer of the pastas served is not printed on menus. Ferenc Sárik does not agree with this criticism. According to Norbert Káhn, the dominance of pasta made with four eggs remains unbroken. The durum segment has failed to produce the growth which was originally expected of it. The market share of pastas made without eggs has reached 10 percent as a result of recession, but this trend is slowing down. Pastas with a lower egg content like Donna Pasta are becoming more popular, owing to their high quality in spite of lower price. The Vita Pasta durum product line has also been expanded. Gyermelyi has begun to work on functional innovations. Spéter Gnám does not expect to see major innovations by Hungarian manufacturers, because traditional consumer preferences are so strong. No true innovations are foreseen by János Puskás either, although he thinks that flavoured pastas might cause a surprise this year. Per capita consumption of pasta is still lower in Hungary than in Western Europe, which means there is still potential for growth.