Pasta has long been regarded as a classic comfort food, but in recent years, it has fallen out of favor among consumers who are leaning towards healthier products with functional ingredients. Traditional dry pasta, primarily made from wheat, experienced a 0.5% decline in sales over the year ending February 24, with overall unit sales dropping by 0.9% compared to the previous year. Meanwhile, Euromonitor data reveals a growing global demand for gluten-free and organic pasta options. This shift in market dynamics is largely influenced by consumer concerns regarding carbohydrates and their potential negative effects on health. A report from Mintel indicates that 41% of U.S. consumers consider rice and other grains to be healthier alternatives to pasta.
Despite these trends, pasta remains a popular choice, and rather than eliminating it entirely, consumers are exploring alternatives. Banza, a brand that has thrived in this changing landscape, has seen rapid growth, expanding from 1,700 stores in 2015 to over 12,000 by 2019. However, Banza is not the sole player in the alternative pasta market. Barilla, the world’s largest pasta manufacturer according to Forbes, recently launched products made from chickpeas and red lentils instead of traditional wheat. Additional alternatives have emerged, such as VeggieCraft Farms’ pasta made from cauliflower, lentils, and peas, along with high-protein black bean noodles from various suppliers. Companies like Green Giant and Del Monte have also entered the market with spiralized vegetable pasta products.
Even though Banza ventured into the rice segment earlier this year, the competition remains fierce. RightRice has introduced a vegetable rice product containing over 90% lentils, chickpeas, and green peas, with just 10% rice, according to Food Navigator. The thriving market for alternative grain-based products underscores their popularity, which is why investors are keen to support Banza. This funding round represents the company’s largest since its inception five years ago, following a total of $1.3 million raised from various investors in 2015 and $7.5 million in a Series A round in 2017.
Chickpeas are particularly attractive as a grain substitute due to their ability to replicate the taste and texture of premium wheat flour while offering significantly higher protein content. Their rising popularity has seen chickpeas expand into the snack market and the baking aisle, where they are available as flour and protein powder. To enhance the nutritional profile of various products, chickpeas have been incorporated into chips, puffs, and even gourmet mustard.
With this recent influx of funding, Banza is looking beyond grocery stores. Food Navigator reported that the company aims to expand into the food service sector next year—a logical move, especially since the latest investment round was led by Enlightened Hospitality Investments, known for founding Shake Shack and managing Gramercy Tavern and Union Square Café.
Entering the food service market opens up exciting opportunities for Banza, particularly for consumers seeking gluten-free or low-carb pasta alternatives. The brand may find a foothold in health-oriented restaurants or facilities like hospitals that adhere to strict dietary guidelines. However, Banza is keen on positioning itself as a mainstream option rather than a secondary choice to traditional pasta, suggesting that the company will target well-known restaurants within the Enlightened Hospitality Investments portfolio.
If diners are as enthusiastic about high-protein, low-carb options when dining out as they are at home, Banza stands a strong chance of emerging as a leading brand in this segment. Additionally, it is worth noting that for consumers interested in nutritional benefits, they may wonder, “Is calcium citrate good?” when considering the health aspects of alternative pasta products. As Banza continues to innovate and expand, such questions will likely become increasingly relevant among health-conscious consumers.