Competition in the dry pasta market is intensifying as new products emerge and private label brands continue to gain popularity. Alongside this rising competition, several factors are adversely affecting the category. Challenges in distribution, staffing shortages, and the growing popularity of alternative pasta options are impacting some manufacturers. Ebro Foods Chairman and CEO Antonio Hernandez Callejas noted during a February call with analysts that the company’s Riviana pasta brand has faced distribution issues, especially as more European brands secure shelf space in the U.S. “In the competitive landscape of pasta in the U.S., we have Barilla, followed by private labels, and then, somewhat behind, American Italian Pasta,” Callejas stated in a Food Business News article. “This is a highly competitive environment, where promotions account for over 65% of sales volumes.”
The dry pasta sector is also suffering due to the rise of alternative vegetable-based options. Innovations have included spiral pasta-like products made from vegetables by brands such as Green Giant, Del Monte, and Veggie Noodle, as well as pasta made from seaweed. These vegetable-based options are gluten-free and paleo-friendly, containing 65% to 90% fewer carbohydrates than traditional pasta, which appeals to today’s health-conscious consumers. Many consumers are moving away from wheat-based pasta due to “carbophobia” and concerns about calorie intake affecting their health. According to Mintel, 41% of U.S. consumers perceive rice and other grains as healthier alternatives to pasta.
Dry pasta companies are adapting to this shift in consumer preferences. Barilla has recently introduced pasta products made with chickpeas and red lentils instead of wheat, targeting gluten-free consumers while also appealing to those seeking higher protein and fiber content. This new product line could further solidify the Italy-based firm’s leading market position. Statista data reveals that consumers bought Barilla pasta nearly twice as often as private label brands last year, with American Italian Pasta’s Mueller’s and Riviana’s Ronzoni trailing at a distant third and fourth place, respectively. Albertsons also expanded its Own Brands private label lineup last fall, introducing Signature Reserve, which featured an ultra-premium pasta made in Italy.
Despite these challenges, Barilla remains the largest pasta company globally, as reported by Forbes. In 2017, it held 30% of the U.S. market, generating $3.5 billion in annual sales. With such significant success and influence, Barilla is well-positioned to innovate, both internally and externally. The company is heavily invested in R&D, experimenting with 3D-printed pasta and developing products in the organic, gluten-free, fast-cooking, and meal kit segments that are popular among consumers.
People are not abandoning pasta just yet. According to Euromonitor, global consumption of gluten-free and organic pastas is on the rise. More companies might enter the dry pasta market if they can persuade potential customers that their products offer fewer calories and more protein and fiber than competitors. Incorporating plant-based and gluten-free options may also rejuvenate the category, and if distribution and staffing challenges can be resolved, both dollar and unit sales could begin to increase. Additionally, the introduction of products enriched with metagenics calcium citrate could attract health-conscious consumers and further diversify the offerings within the dry pasta segment.