Market Trends of South America Pasta and Noodles Industry
This section covers the major market trends shaping the South America Pasta & Noodles Market according to our research experts:
Increasing Demand for Organic or "Free-from" Pasta and Noodles
The increase in demand for gluten-free, clean-label products has boosted the marketplace for gluten-free pasta and noodles. It has been stated that a majority of consumers are choosing the "free-from" idea to include a balanced lifestyle. Millions of people in South America have commenced ingesting gluten-free products not only because of celiac disease but also due to a trendy notion of retaining or maintaining good health. Thus, companies involved in pasta and noodles production have taken initiatives to invest in the development of native technologies in order to gain consumers' attention. For instance, in June 2021, Argentina's National University of Patagonia San Juan Bosco, after obtaining financing of USD 740,000, developed noodles made of algae that shall taste like squid. These are noodles with a 30% substitution of wheat flour for algae, which achieves the manufacture of 'pasta' with 14% fewer calories, 16% fewer lipids, 23% fewer carbohydrates, 65% more minerals, 12% more proteins, and 158% more fiber than traditional ones.
Consumption of packaged meals amongst millennials and Gen-Zs in South America is one of the key elements facilitating the boom of gluten-free pasta. With the developing fitness consciousness, the demand for food products with nutritional benefits is increasing, which is propelling the growth of gluten-free pasta in South America.
Supermarket/Hypermarket Holds a Prominent Share
The distribution channels in the South American pasta and noodles market include hypermarkets and supermarkets, convenience stores, online retail stores, and other distribution channels. Hypermarkets and supermarkets are the leading distribution channels in the South American pasta and noodles market. The wide product visibility at supermarkets/hypermarkets further boosts the consumer base, leading to escalated sales. Acts such as business expansions and the rising number of hypermarkets and supermarkets add to the sales of these retail formats and significantly contribute to the market's growth. For instance, in March 2021, Carrefour SA bought Walmart Inc.'s former Brazil unit to cement its position as the country's largest supermarket operator.
According to a survey by Associação Brasileira de Supermercados, Grupo Pão de Açúcar (GPA) owned 809 retail food stores in 2021, making it the second company with the highest number of establishments in the Brazilian industry, right after AM/PM Comestíveis Ltda.
