Packaged foods growth driving Indian ready-to-eat innovation
Rising incomes and younger households in India’s main cities suggest that ready-to-eat foods will continue to surge over the next two years, the association of chambers of commerce said.
Since 2010, the packaged food segment, which includes beverages, dairy products, snacks and baked foods, has grown at an average annual rate of 32.5%, according to Assocham.
This figure is set to grow to 35% up to at least 2017, with the market reaching a value of US$50bn from its current $32bn. Urban households account for 80% of such purchases.
With around 76% of the nuclear families feeling that they have less time to spend in the kitchen, households with working parents and young children now serve on average 10-12 packaged meals a month, the report said. Meanwhile, nearly 79% of unmarried people prefer convenience foods.
Categories including dairy products, pastas, ketchups, jams and baby food have seen the greatest rise, while consumers are now buying more packaged beverages and frozen foods as part of their groceries.
This rise in processed foods has prompted manufacturers to concentrate on developing innovative new food products to keep up with the speed demand growth.
In 2013, PepsiCo’s global chief Indra Nooyi said the company would invest Rs330bn (US$4.9bn) by 2020 and focus on the growth of its Kurkure and other snack brands.
More local packaged food and beverage companies have followed with their own such announcements.
Firms such as Gujarat-basedBalaji Wafers, Indore’s Prataap Snacks, Bikaner Bhujia, Bikano snacks of Delhi and Bengaluru-based Maiyas have all sought to add new products, raise capacity and expand, many of them doing so with venture capital funding.
