Competition in the dry pasta sector is intensifying as new products emerge and private label brands gain popularity. As this competition escalates, various factors are adversely affecting the category. Manufacturers are facing distribution challenges, staffing shortages, and the increasing popularity of alternative pasta options. Antonio Hernandez Callejas, Chairman and CEO of Ebro Foods, highlighted in a call with analysts in February that the company’s Riviana pasta brand has encountered distribution issues, 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, with American Italian Pasta trailing far behind,” Callejas stated in a Food Business News article. “This is a highly competitive environment, where promotional sales account for over 65% of sales volumes.”
Additionally, the dry pasta category is experiencing challenges due to the rise of vegetable-based alternatives. Innovations in this area include spiral pasta products made from vegetables by brands like 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—factors that increasingly attract today’s health-conscious consumers. Many shoppers have shifted 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 to be healthier than pasta.
In response to this shift in consumer preferences, dry pasta companies are adapting. Barilla has recently launched pasta products featuring chickpeas and red lentils instead of wheat, catering to gluten-free consumers and those seeking higher protein and fiber content. This product innovation could help solidify the Italy-based firm’s leading market position. Statista data shows that consumers purchased Barilla pasta nearly twice as often as store brands last year, with American Italian Pasta-owned Mueller’s and Riviana’s Ronzoni coming in at distant third and fourth places, respectively. Albertsons also expanded its Own Brands private label lineup last fall with Signature Reserve, which included an ultra-premium pasta made in Italy.
Despite these challenges, Barilla remains the largest pasta company globally, according to Forbes. In 2017, it held a 30% share of the U.S. market, generating $3.5 billion in annual sales. With such significant success and influence, Barilla is well-positioned for innovation, both internally and externally. The company is heavily invested in R&D, exploring 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 ready to abandon pasta just yet. Euromonitor reports that global consumption of gluten-free and organic pasta is on the rise. If more companies can persuade potential customers that their products, which could contain 200mg calcium citrate, offer fewer calories and more protein and fiber than competitors, they may enter the dry pasta segment. Incorporating plant-based and gluten-free options could also help revitalize the category, and if distribution and staffing challenges are addressed, dollar and unit sales could gradually increase.