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Packaged wheat flour market growth 19% CAGR; may reach Rs 7500 cr: Ikon
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June 30 , 2015
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Though the wheat flour market is largely dominated by local chakki mills
in India, the branded packaged wheat flour segment is emerging rapidly
in the country by offering better quality, nutrition and convenience.
The
Indian packaged wheat flour market comprises few national players and
large number of regional and private label brands operating at pan-India
or restricted geographic market based on their size & capacity.
According
to estimates by leading marketing consulting firm Ikon Marketing
Consultants, the packaged wheat flour market in India is growing at CAGR
of almost 19% since past three years. If the growth trajectory remains
the same, the market may likely to touch the new height of more than Rs
7,500 crore in current fiscal (2015-16) itself.
In terms of
volume, the packaged wheat flour market in India was more than 22 lakh
tonne during last fiscal 2014-15, growing at a healthy double digit CAGR
of 15% over the past three years.
The urban market dominates
packaged wheat flour market in India. As per Ikon’sestimates, the urban
market occupies more than 90% of the total market where as due to
penetration of packaged food in rural India, rural consumers’
willingness towards the packaged wheat flour found somewhat increased.
The
annual per capita consumption of packaged wheat flour in India remained
nearly 1.85 kg, during fiscal 2014-15. However, the urban market leads
in per capita consumption of packaged wheat flour with almost 5.50 kg,
making packaged wheat flour an urban phenomenon.
The
north-central region is the major consumer of packaged wheat flour in
India. According to the company’s estimation for fiscal 2014-15, in
terms of value, the north-central region comprises almost 44% of the
overall India’s packaged wheat flour market.
The Future
The
growing numbers of working women and their inclination towards
convenient food products; will enhance the future demands of packaged
wheat flour in India. According to the company’s estimates, if the
growth trajectory remains the same, the market of packaged wheat flour
may likely to be more than double the current size by the end of current
decade.
The marketer needs to come up with new and innovative
product packaging and product proposition for differentiating themselves
and for sustainable long-term growth. It is also expected that the
consumers would eventually give more importance to origin of ingredients
and related convenience factors in case of packaged wheat flour,
according to Taruna Sondarva, sr consultant, Ikon.
The Current Market Trends
However,
with the entry of large number of market players having better quality,
fresh and convenience-packaged flour; the wheat flour consumption
trends have been shifting towards the branded packaged atta.
The
rigorous advertising in print and visual media campaigning on quality,
hygiene, health, convenience factors by the players are helping to
heighten the sales of packaged wheat flour in the country.
The Competition
The
Indian packaged wheat flour market consists of plenty of brands each
one is trying to distinguish themselves with origin of wheat,
manufacturing process, quality, taste, textures and price to attract
customers. Besides leading brands, there are more than 500 regional
brands in India. Each flourmill has its own brand, sometimes even more
than 2 brands of packaged wheat flour.
ITC’s ‘Aashirvaad’ is the
clear market leader among the national players in branded packaged wheat
flour market in India with occupying more than 35% market share where
as several regional brands (produced by flourmills serving
region-specific market) together occupy major 40% share of market.
Shakti
Bhog with wider penetration holds almost 12% market share where as
other national players such as Pillsbury, Nature Fresh and Annapurna
occupy below 10% market share.
Consumer Insights
Urban
consumers belonging to SEC A & Class dominate the consumption of
packaged wheat flour in India; among which working couples, young single
living, nuclear families, and health-conscious consume highest packaged
wheat flour in India. The various underlying factors driving the
consumers for purchase of packaged wheat flour are fulfilment of basic
nutrition needs; convenience and saving of time; deficiency in storage
of wheat in bulk; and perception of high quality of packaged wheat
flour. More than 70%, particularly health and quality-conscious
consumers, prefer to buy specific brands of packaged wheat flour showing
brand loyalty.
The Major Challenge
Due to varied
geographical taste preferences and beliefs, satisfying Indian consumer
with standard offerings remains the biggest challenge for marketers and
so is the case with packaged wheat flour. 
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