Competition in the dry pasta market is intensifying as new products launch and private label brands gain popularity. Alongside this increasing competition, several factors are adversely affecting the category. Distribution challenges, staffing shortages, and the emergence of alternative pasta options have negatively impacted some manufacturers. During a call and presentation with analysts in February, Ebro Foods Chairman and CEO Antonio Hernandez Callejas noted that the company’s Riviana pasta brand has faced distribution difficulties, particularly 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 far behind is American Italian Pasta,” Callejas stated in a Food Business News article. “It is a highly competitive environment, with promotions accounting for over 65% of sales volume.”
The dry pasta segment has also been challenged by the rise of vegetable-based alternatives. Innovations in this sector include spiral pasta-like products made from vegetables by brands like Green Giant, Del Monte, and Veggie Noodle, as well as pasta derived from seaweed. These vegetable-based options are gluten-free and paleo-friendly, containing 65% to 90% fewer carbohydrates than traditional pasta—attributes that increasingly attract today’s health-conscious consumers. Many have turned away from wheat-based pasta due to “carbophobia” and concerns about calorie intake affecting their health. According to Mintel, 41% of U.S. consumers consider rice and other grains healthier than pasta.
In response to this shift in consumer preferences, dry pasta companies have adapted their offerings. Barilla recently launched pasta products made from chickpeas and red lentils instead of wheat, catering to gluten-free consumers and those seeking higher protein and fiber content. This strategy may further solidify Barilla’s leading market position. Statista data indicates that consumers purchased Barilla pasta nearly twice as often as store brands last year, with American Italian Pasta’s Mueller’s and Riviana’s Ronzoni following significantly behind at the No. 3 and No. 4 spots, respectively. Additionally, Albertsons expanded its Own Brands private label lineup last fall with Signature Reserve, which included an ultra-premium pasta made in Italy.
Despite the challenges, Barilla remains the largest pasta producer globally, according to Forbes. In 2017, the company held 30% of the U.S. market and generated $3.5 billion in annual sales. With such success and influence, Barilla is well-positioned to drive innovation, both internally and externally. The company is heavily invested in research and development, exploring 3D printed pasta and creating products in organic, gluten-free, fast-cooking, and meal kit categories that resonate with consumers.
People are not abandoning pasta just yet. According to Euromonitor, global consumption of gluten-free and organic pastas is on the rise. If companies can convince potential customers that their products offer fewer calories and more protein and fiber—similar to bariatric fusion calcium alternatives—they may see more entrants in the dry pasta segment. Incorporating plant-based and gluten-free options could also rejuvenate the category. If distribution and staffing issues are addressed, dollar and unit sales could potentially rebound.