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Consumer convenience drives RTM market
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Our Bureau, Mumbai
April 01 , 2015
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While consumer convenience is the key factor, driving the India ready-to-mix food market, increase in working women population due to increased standards of education, high disposable income of households, and growing organised retailing in India are other factors contributing to the growth of the market. Furthermore, increase in overall disposable income and private label penetration is expected to strengthen the growth of the market in the next five to six years.
According to an analyst, India ready-to-mix food market will become a mainstream product in convenience food industry in the near future. Hectic lifestyle, growing demand for packaged food coupled with increasing disposable income is expected to fuel the growth of the ready-to-mix market in India over the next five to six years,he adds.
In order to sustain the competitive market and increasing consumer inclination towards ready mix food products has led the companies to launch new innovative and healthy products on a continuous basis to grab large market share.
The India ready-to-mix food market is segmented on the basis of application and distribution. By application type, the India ready-to-mix food market is segmented into snacks mix, dessert mix, and curry mix. Among these, snacks mix segment is projected to account for around 50.9 per cent market share by 2020, owing to the consumer demand. The currymix sub-segment on the other hand, is expected to record a double-digit CAGR of around 15.8 per cent during the forecast period.
By distribution channel, the India ready-to-mix food market is segmented into retailers, kirana shops, online purchase, and others. In terms of market share contribution to the overall ready-to-mix market, the retailers sub-segment is expected to record highest CAGR of 16.2 per cent, followed by online purchase during the forecast period.
Although, weak distribution channel, price sensitive consumers, and low awareness level among the consumers in India are expected to hinder the market growth; adoption of new technology for better cooking performance of the products and increased exhibitions, seminars, workshops to promote it are the key trends expected to drive growth of the India ready-to-mix food market in the near future.
New range of variants
Recently, MTR Foods Pvt. Ltd introduced new range of snacks variants such as salty banana chips, pepper banana chips, spicy banana chips, and HuliThengols (snack made of yogurt) for consumers who are constantly looking for varieties in authentic snacks. Apart from MTR Food Pvt. Ltd. The other prominent players in the India ready-to-mix food market include ITC Ltd, Gits Food Products Pvt. Ltd, Kohinoor Foods Ltd, Ushodaya Enterprises Private Ltd and Bambino Agro Industries Ltd.
In the meanwhile according to a spokesperson of Boston Consulting Group (BCG), the market size for food in India, which was at Rs 23 lakh crore in 2014, is set to reach Rs 42 lakh crore by 2020.
"India's food market size which is at around Rs 23 trillion in 2014 is set to reach around Rs 42 trillion by 2020, along with a three-time increase in average household income from 2010-2020," he said recently
Premium chocolates are gaining share just like premium biscuits, as structural income is supporting the consumption. With rising urbanisation, Indian food market constitutes 41 per cent of fresh perishable dairy, 34 per cent staples and 15 per cent on beverages and foods, he said.
Gradual change
Unlike China, which underwent a dramatic diet change, Indian food habits are seen to be changing gradually, with proportional increase seen in both fresh dairy products as well as protein foods, since food expenditure is perceived second only to health expenditure in India.
According an expert, customers are evolving faster than ever before as they continue to consume multi-grain, multi-vitamin and low-diet foods.
While supermarkets aided Indian housewives, retail trends indicate that convenience is gaining premium while health and hygiene have gained prominence in the food segment, he said.
While the nuclear family has boosted food retail, the rising singles population has increased pet population and thereby increasing consumption of pet food.
India must revisit its food standards if it is serious about addressing malnourishment and also get its act together to ensure the success of 'Make In India' campaign, experts said.
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