India ready to mix food market

Ready to mix food are classified as conveniences and healthy food. These foods are easy to prepare and consume less time for cooking as they are already half processed. Ready to mix food is used in a variety of applications such as desert mix, snack mix, and curry making enablers. They are relatively cheaper and gaining huge demand as it takes less time to prepare.

The India Ready to Mix Food Market is projected to surpass US$ 915.18 million by the end of 2028, in terms of revenue, growing at CAGR of 16% during the forecast period (2021 to 2028).

Drivers

The rise in the overall disposable income of households of the Indian population is propelling the market growth of the ready to mix food. According to Trading Economics, disposable Personal Income in India increased to 206752290 INR Million in 2019 from 192817450 INR Million in 2018. Moreover, improving standard of living and changing consumer eating habits is again augmenting the demand for convenience food products, this in turn is accelerating the market growth of India ready to mix food.

Expanding modern retail formats in India is escalating the market growth of the ready to mix food. According to the India Brand Equity Foundation, the Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the penetration of several new players. The retail industry reached US$ 950 billion in 2018 at a CAGR of 13 percent and is projected to reach US$ 1.1 trillion by 2020. Online retail sales were forecast to grow 31 percent year-to-year to reach US$ 32.70 billion in 2018.

Market Restraints

High packaging costs owing to the growing demand for packaged food is expected to hinder the market growth of India ready to mix food. The high packaging cost is increasing the overall price of the packaged food products this is in turn hampering the product demand.

Poor supply chain and distribution channel in India is projected to create a gap in demand and supply. This in turn is hampering the market growth of India ready to mix food in the near future.

Market Opportunities

Increasing adoption of new technology for removing oil from food after frying and increase shelf-life of food is expected to create lucrative growth opportunities. For instance, the FMC Corporation developed a new sausage-casing technology that delivers better shelf life and enables better cooking properties. Continuous development of the innovative technology for preparing processed and convenience food products is projected to escalate the market growth of India ready to mix food.

The growing export of food and agriculture products from India is expected to provide immense market opportunities in the near future. According to the India Brand Equity Foundation, in 2019, the export of agricultural and processed food products totaled US$ 38.49 billion. In February 2020, India exported basmati rice worth US$ 3.88 billion, buffalo meat worth US$ 3.01 billion, non-basmati rice worth US$ 1.84 billion, and other processed foods worth US$ 2.71 billion.

Figure 1. India Ready to Mix Food Market – Opportunity Analysis

Market Trends

• Growing desire for more variety and choice among younger people as they account for a majority of the population in India is driving the market growth. This group of people are health conscious and wish to make informed choices in food, based on ingredients present in the food products. Moreover, the growing influence of TV, social media, and advertising as these help the consumer to make an informed decision is again driving demand for more variety and choice of ready to mix food among young consumers.
• The increasing trend of private label concept in India is expected to foster market growth. The various manufacturer has started launching their own private label brands for ready-to-mix food as these allow enhance control over the supply chain. Also, consumers have started liking private labels due to growing food safety standards and better quality food products.

Figure 2. India Ready to Mix Food Market, Revenue Share (%), By Distribution Channel, in 2020

Key Takeaways of the Graph:

• The Retailers held dominant position in the market and accounted for 49.4% share in the India Ready to Mix Food Market in 2020. The segment is expected to reach US$ 466.68 million in 2028.
• The rise in the overall disposable income of households of the Indian population is propelling the market growth of the ready to mix food.

India Ready to Mix Food Market - Impact of Coronavirus (Covid-19) Pandemic

During the coronavirus epidemic, ready-to-eat food products became one of the few businesses that saw a massive increase in demand. With most individuals working from home and countries under lockdown, ready-to-cook meal products have been flying off the shelves in recent months. Young people spend the majority of their money on handy ready-to-eat foods. For ready-to-eat food manufacturing key players, young consumers are the easiest targets. The ease of use of such items contributes to an increase in overall market demand around the world. Consumers are cooking at home more due to restaurants restricting services to takeout and the concern of a rising number of Coronavirus cases, resulting in an increase in the use of ready-to-eat products. Several companies in the ready-to-eat sector have indicated that demand for their products such as curries/meals, batters, instant mixes, desserts, and frozen snacks has increased during Covid-19 epidemic.

Competitive Section

Major players operating in India ready to mix food market include, Indian Tobacco Company, Mavalli Tiffin Room, Gits Food Products Pvt. Ltd., Kohinoor Foods, Priya Foods, and Bambino Agro-Industry.

Few Recent Developments

• In September 2021, Bambino Agro Industries Limited has planned to purchase a pasta mill from Italy with a capacity of 2000 kg/hr in order to build up a manufacturing facility in Gohana, Sonipat, Haryana, with a total capex of roughly Rs.24.00 cr.
• In January 2021, at the 20th ICSI National Awards for Excellence in Corporate Governance, Indian Tobacco Company Limited was named 'Best Governed Company' in the Listed Segment: Large Categorization
• In April 2020, Indian Tobacco Company Limited has been ranked No. 1 globally among peers and No. 3 overall on ESG performance in the Food Products industry by Sustainalytics a global ESG rating company, in recognition of its superior Environmental, Social, and Governance models.