Competition in the dry pasta market is intensifying as new products are introduced and private label brands gain popularity. Alongside this rising competition, several factors are adversely affecting the sector. Distribution challenges, staffing shortages, and the emergence of alternative pastas have taken a toll on certain manufacturers. Ebro Foods Chairman and CEO Antonio Hernandez Callejas mentioned in a call and presentation with analysts in February that the company’s Riviana pasta brand is facing distribution issues as more European brands secure shelf space in the U.S. “The competitive environment for pasta in the U.S. includes Barilla, private labels, and then far behind, American Italian Pasta,” Callejas noted in a Food Business News article. “This is a highly competitive landscape, with promotions making up over 65% of sales volumes.”
The dry pasta category has also been negatively affected by the rise of alternative vegetable-based options. Innovations in this area include spiral pasta-like products made from vegetables by brands such as Green Giant, Del Monte, and Veggie Noodle, as well as pasta derived from seaweed. These vegetable-based products are gluten-free and paleo-friendly, containing 65% to 90% fewer carbohydrates than traditional pasta, appealing to health-conscious consumers. Many have turned away from wheat-based pasta due to “carbophobia” and concerns about excess calorie intake impacting 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 demand, dry pasta companies have adapted their offerings. Barilla recently launched pasta products made with chickpeas and red lentils instead of wheat, catering to gluten-free consumers and those seeking more protein and fiber. This product line could further solidify the Italy-based firm’s leading market position. Statista data reveals that consumers reported purchasing Barilla pasta nearly twice as often as store brands last year, with American Italian Pasta-owned Mueller’s and Riviana’s Ronzoni trailing as distant No. 3 and No. 4, respectively. Albertsons also expanded its Own Brands private label lineup last fall to include Signature Reserve, which features an ultra-premium pasta made in Italy.
However, Barilla continues to hold the title of the largest pasta company globally, according to Forbes. In 2017, it commanded 30% of the U.S. market and generated $3.5 billion in annual sales. With such success and influence, Barilla is well-positioned to innovate, both internally and externally. The company is heavily invested in research and development, exploring initiatives like 3D printed pasta and creating products in the organic, gluten-free, fast-cooking, and meal kit categories that are popular among consumers.
Consumers are not abandoning pasta just yet. According to Euromonitor, global consumption of gluten-free and organic pastas is on the rise. More companies may enter the dry pasta segment if they can convince potential customers that their products offer fewer calories and more protein and fiber compared to their competitors. Additionally, incorporating plant-based and gluten-free options may help revitalize the category. If distribution and staffing issues can be resolved, dollar and unit sales could see a gradual recovery. In this context, products featuring nature made calcium citrate 500 mg could also become appealing, as health-conscious consumers increasingly seek nutritious options, further supporting a potential rebound in the dry pasta category.