Indonesia’s instant noodle players take off as global markets expand with rise of ‘super-premium’ packs: report

[SINGAPORE] Instant noodle brands from Indonesia are fierce, up-and-coming contenders within emerging markets, Macquarie noted in a Nov 12 report, with a 3 per cent to 5 per cent industry growth rate recorded in November 2025.

This is a leading range, compared with that of its Asian counterparts – China had a 2 per cent to 3 per cent growth rate, and the Philippines’ was in the low single digits.

Noting that noodles have been “long viewed as a daily necessity in mass consumer markets in Asia”, Macquarie said market dynamics have changed in recent years.

The food’s popularity has been “supported by the globalisation of Asian cultural icons”, resulting in noodle markets expanding across the US, Europe, the Middle East and Africa (EMA), the firm said as it referenced trends such as K-pop.

“In view of this popularity, existing noodles competitors in each country have upgraded their product portfolios by launching higher-end products, such as enhanced ingredients and the addition of meat packs,” it added.

Japan was the only country in the instant noodle market landscape whose growth rate exceeded Indonesia’s, at 6 per cent.

“We also see some premium/super-premium noodles outgrowing the overall market, especially those products featuring healthier and higher quality,” Macquarie said.

“This shift in consumption patterns has particularly benefited the dominant Japanese and Korean brands, which have focused on product innovation and cultivating a premium brand image.”

In Indonesia, 87 per cent to 90 per cent of the market share was occupied by the top two instant noodle producers: Indofood CBP and Wings.

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Compared with the same market across Asia, the top three players in China and Taiwan held market shares of 73 per cent and 75 per cent, respectively.

Japan’s three main players took up 75 per cent of the instant noodle market, based on November data from Macquarie.

The rise of Indonesian players in the instant noodle market came after the acquisition of instant noodle manufacturer Pinehill Group by Indofood CBP in 2020 for US$3 billion.

Pinehill is the largest noodle producer in the Middle East, serving Saudi Arabia, Egypt, Kenya, Turkey, Serbia and Morocco. It owns 12 manufacturing facilities in eight countries to serve a total addressable market of 550 million customers, the report noted.

It also manufactures and markets Indomie brand noodles across the Middle East, Africa and parts of Eastern Europe as well, the analysts said.

“The (Middle East) region offers a compelling combination of low consumption per capita and favourable macro as well as demographic fundamentals, in our view,” they added.

Top buys indicated in Macquarie’s report included Indonesian packaged food producer Indofood CBP, with a target price of 11,500 rupiah, and food and beverage company Universal Robina. The latter’s target price was set at 88 rupiah.

The upside for Indofood CBP was 33.7 per cent, and Universal Robina’s was 23.1 per cent.

The analysts, on the flip side, were cautious about Asian brands Nissin Foods and Uni-President China, with a neutral rating on both counters.

“Still, we believe the US tariff impact on Japanese noodle companies is muted, given that they import palm oil and other materials to produce in the US,” the Macquarie analysts said.

Indonesia was also the second-largest instant noodle market in the world in 2024 based on demand, recording about 14.7 billion servings consumed, indicated data from the World Instant Noodles Association.

It placed after the China and Hong Kong markets, with a combined demand of 43.8 billion.

The country’s per capita instant noodle consumption in 2024, at 51.7 servings, placed it fifth globally, beating Japan and Greater China with 47.8 and 30.9 servings, respectively.

Rising dominance in Asean markets

Demand for instant noodles in South-east Asia remains among the highest in the world. Thailand recorded 57.8 servings for its per capita instant noodle consumption, and Vietnam, 80 servings, indicated data from the World Instant Noodles Association.

“From 2020 to 2024, the compound annual growth rates (CAGR) (of such consumption for Indonesia and Vietnam) were 2.6 per cent and 2.7 per cent, outpacing the growth seen in mature markets such as South Korea and Japan by a significant margin,” the Macquarie report noted.

Among the top 10 markets, Indonesia and Vietnam both recorded a 4 per cent CAGR in per capita instant noodle demand from 2020 to 2024, ranking among the highest in the world.

The positivity around Asean instant noodle markets can be seen in Chinese food producer Uni-President’s moves in the region.

Research showed that Uni-President expanded into the flour, instant noodle and beverage sectors in Vietnam. In the Philippines, the company acquired Philippine 7-Eleven to further strengthen its sales network, in addition to setting up an instant noodle factory there.

“By integrating its operation centres and production bases in Thailand, Vietnam and the Philippines, Uni-President has established a regional sales network that covers South-east Asia,” Macquarie said.

South Korea rivals Japan in US market

Japanese noodle companies may have been pioneers in the US by building manufacturing facilities and localising the flavours and packaging to tap overseas markets.

But South Korea is not too far behind as a competitor in the US market, said Macquarie.

“We see Korean brands as the key market share gainer as we project Samyang and Nongshim’s market share increasing to 36.1 per cent in 2028 from 23.2 per cent – while Japanese and other Asian brands would be market share donors,” the analysts wrote.

Research from Macquarie showed that Korean ramen – once simply a government-regulated, domestic staple – is now becoming a “globally ascendant cultural phenomenon” driven by the Korean Wave, social media virality and favourable demographic trends.

“Companies with aggressive overseas expansion strategies, particularly Samyang Foods, are well-positioned to outperform competitors reliant on the stagnant domestic market, including Nongshim,” the analysts said.

In particular, Samyang is a “key consolidator” in the US, set to more than double its market share to 24 per cent in the next two years, said Macquarie.

“We believe premium instant noodles with strong product innovation will be the key driver for US market, and expect Samyang to be a key consolidator.”

Meanwhile, Chinese noodle brands are still “premature” and have presence mainly in Asian grocery retailer chains, the report said.

“We forecast the global instant noodles market to deliver a 2.4 per cent CAGR from 2026 to 2028, mainly driven by emerging markets in EMEA,” it added.

“US margins could widen as noodles gain more popularity amid an inflationary environment, while (the rise of) K-pop also pushes the rising adoption rate.”