The Global Pasta Market : What are
the strategic directions the global
pasta industry must pursue?
Nicola Ghelfi
General Manager Business Unit Pasta Meal – Barilla
The Problem of the Pasta Industry
Industry Profit Pool decline expected to
accelerate even further due to:
• Flat consumptions in key markets
• Trade pressure on retail shelf price and
unit net sales
• Durum wheat price and other costs
increase
The Challenge of the Demand and
Strategic Direction #1
• Atkins and anti-carbs diet viruses
• Pathological Obesity
• Communication on behalf of pasta not
enough to support demand
Strategic Direction #1
Strive for consumption increase via innovative
communication of scientific evidences
The Challenge of Innovation and
Strategic Direction #2
• Avoid product introductions destroying
Pasta category quality perception
• Health & Wellness needs and aspirations
not fulfilled yet
Strategic Direction #2
Preserve/increase quality and respond to
Health&Wellness needs at quality parity
The Challenge of Branding and
Strategic Direction #3
• Pasta commoditization
• Brands are less and less differentiated
• Intanglibles are less and less effective
Strategic Direction #3
Progressively increase investment behind
Brands and focus on tangibles
The Challenge of New Markets and
Strategic Direction #4
• Pasta consumptions in current markets
expected to grow by +0,5% 05-25 CAGR
• China and India, despite of cultural barriers,
could enable Asia to get +1,200,000 tons by
2025
Strategic Direction #4
Develop pasta demand in China and India via
new entry strategies
The Strategic Agenda for Pasta
Industry Future
1. Strive for consumption increase via innovative
communication of scientific evidences
2. Preserve/increase quality and respond to
Health&Wellness needs at quality parity
3. Progressively increase investment behind
Brands and focus on tangibles
4. Develop pasta demand in China and India via
new entry strategies
 Invest on the future AND do well in the short term
 Increase Value AND Achieve Efficiencies
Magna pars est profectus velle
proficere
Gran parte del progresso
sta nella volontà di progredire