India Ready to Mix Food Market

Ready to Mix Food Market: India Industry Analysis and Opportunity Assessment 2014 - 2020

Ready-to-mix food is gaining popularity in India due to convenience and the availability of offerings that provide the authentic taste of Indian food across retail channels

FMI delivers key insights on the India ready-to-mix food market in its latest report titled “India Ready-to-Mix Food Market: Industry Analysis and Opportunity Assessment, 2015–2020.” Over the long-term outlook, the India ready-to-mix food market will expand at a CAGR of 15.7% and reach a valuation of US$ 284.4 Mn by 2020. Among the product type, the snack mix and curry mix segments are expected to hold the highest share of the India ready-to-mix food market.

The affluence of the working population and the increasing millennial consumers are key factors driving the India ready-to-mix food market. Moreover, increase in the population of working women due to higher standards of education and rising urbanisation has led to changing lifestyles and less time to cook food at home. Rapid digitalization is another key factor influencing the sales in the India ready-to-mix food market.

The growing preference of the average consumers for digital platforms is forcing the manufacturers to adopt ecommerce platforms to increase their reach among customers in ready-to-mix food market. Digital platforms are likely to influence 30 -35% of all the retail sales by 2025.

Increase in private labels in ready-to mix food

The private label concept is new to the Indian retail industry. A large number of retailers have started launching their own private label brands for ready-to-mix food as this enables more control over the supply chain. Customer have begun to like private labels owing to better quality and high food safety standards.

The ready-to-mix food private labels are generally priced lower than the branded products due to the considerable savings on marketing and distribution. Retailers make up for media marketing through in-house promotions and displays within stores.

Food Safety: Evolving with Time

The Food Safety and Standards Authority of India (FSSAI) is an autonomous body that controls the samples of each consignment that arrives in India. If a ready-to-mix food consignment is not as per the FSSAI regulations, it is likely to be rejected. One of the major challenges faced by the ready-to-mix food manufacturers is adhering to the revisions in the rules and regulations being imposed by regulatory bodies.

The regulatory bodies aim at benchmarking the laws/regulations as per the international standards and norms. As a result, they are modified from time to time and market players are expected to meet these standards and adapt themselves to comply with them.

These evolving food safety norms are expected to enable the production of high-quality ready-to-mix food and safety for consumers, however, from the point of view of manufacturers, these stringent regulations are likely to hamper the growth of their ready-to-mix food businesses.

Immense opportunity for high-growth segments of the India ready-to-mix food market in the country

Apart from India’s strong macro-economic indicators and production base, there are major factors that present immense opportunities for the high-growth segments of the India ready-to-mix food market. India is one of the most attractive markets for fast-moving consumer goods.

Innovative advertisements, along with an increase in the number of supermarkets and e-commerce channels, have boosted the sales for ready-to-mix foods as consumers are getting easy access and product awareness is increasing. Furthermore, the frequent changing tastes and preferences of the consumers has led to changing dietary habits, which is boosting the sales of ready-to-mix foods in the country.

Acceptability & trust - quality standards, health benefits

Consumer are preferring branded ready-to-mix foods due to the quality standards assured by the companies. Certain consumers check the health benefits, ingredients added and claim-free labels before purchasing the product. With growth in online retailers, modern trade and specialty food chains, the health benefits associated with packaged foods and beverages are visible.

These factors have enhanced the sales of natural/organic and claim-free ready-to-mix foods in India. Further, with the increasing disposable income and product awareness, Indian consumers are increasingly consuming ready-to-mix foods.

Majority of the consumers prefer fresh home-made meals

Majority of Indian consumers prefer homemade food, which is one of the major challenges in the Indian ready-to-mix food market. Manufacturers are coming up with constant innovations in their ready-to-mix food products to cater to the target market population. For instance, MTR, one of the leading processed food players, has always maintained its market dominance through product innovations and the adoption of new technology.

However, manufacturers still face challenges in the consumer acceptance of their ready-to-mix products as few consumers still resist changes in familiar formats.

Growth in the market share of the organized food services sector

The rapidly growing Indian economy and the stable governance have provided fresh impetus to retail and consumer sectors. Furthermore, the rising youth population, along with the fast-pace trend of eating packaged & convenience food and experimenting with various cuisines has provided a plethora of growth opportunities to the ready-to-mix food market in India. Retailing has gained significant popularity in India and has been rapidly evolving over the years.

Ready-to-mix food consumers represent a relatively untapped market and, while opportunities exist, cautious steps need to be taken. Even though price-sensitive consumers, weak distribution channels and low awareness levels among the consumers in India are expected to hinder the growth of the India ready-to-mix food market, the adoption of new technologies for cooking ready-to-mix food products and an increasing number of exhibitions, seminars and workshops to promote ready-to-mix food products are among the key trends expected to drive the India ready-to-mix food market in the near future.

The availability of ready-to-mix food products in local flavours

International manufacturers are focusing on improvising their product portfolio by providing ready-to-mix foods with domestic and local flavours. At the same, Indian manufacturers of ready-to-mix foods are focusing on incorporating international cuisines in their portfolio of ready-to-mix food products owing to the increasing taste and preference for western cuisines, primarily due to the growing exposure to these foods via travel and tourism. 

Ready-to-Mix Food Market: Segmentation Analysis

The application segment is sub-segmented into snacks mix, dessert mix and curry mix. Snack mix is expected to dominate during the application segment of the India ready-to-mix food market during the forecast period, accounting for almost 50% of the overall market share by 2020.

However, curry mix is experiencing robust growth by registering a CAGR of 15.8% of the India ready-to-mix food during the forecast period. Among the aforementioned sub-segments, the snacks mix sub-segments is predicted to account for the largest share of the India ready-to-mix food market with a CAGR of 15.9% to reach a value of US$ 145.01 million in 2020.

On the basis of distribution, the ready-to-mix food market includes retailers, kirana shops, online purchases and others. Among all these, the retailers segment is expected to dominate the India ready-to-mix food market by collectively accounting for nearly 49.37% of the market share, followed by kirana shops, which account for 29.09% of the market share. Retailers include wholesalers, department stores, specialty stores and convenience stores.

Ready-to-Mix Food Market: Competitive Players Outlook

Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the India ready-to-mix food market. The India Ready-to-mix food market is dominated by Mavalli Tiffin Room (MTR), GITS food products Pvt Ltd, Indian Tobacco Company (ITC), Kohinoor Foods and Priya Foods.

Additional Questions Answered

  • Key concerns related to ready-to-mix food

  • How logistics and supply chain management are critical elements (as they require compliance from source to customer)

  • Difference in the marketing strategies of the leading players in ready-to-mix food

  • How does advertisement play a key role in promoting ready-to-mix food products?

  • How are companies leveraging social media & digital marketing to promote ready-to-mix food?

  • Which is the target consumer base?

Key Segments Covered in India Ready-to-mix Food Market Report:

On the basis of application, the India ready-to-mix food market has been segmented into:

  • Snack Mix
  • Desert Mix
  • Curry Making Enablers

On the basis of distribution channel, the India ready-to-mix food market has been segmented into:

  • Modern Trade
  • Kirana Shops
  • Online Retailers
  • Other Distribution Channels

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