food scenario in India

Outline

• What are RTE foods• Reasons for RTE foods to enter Indian Market• Consumer Types• Consumer Preferences• Growth in the RTE segment

Ready to eat foods

Semi-cooked/Processed

Require little/No preparation

RTE market - New concept in India

- Fastest growing sector

- Immense potential

Inception

• India – Defense Food Research for Indian army

• US – Meal, Ready-to-Eat (MRE) for soldiers

• NASA – RTE foods for astronauts

Reasons for Market Penetration

Global Indians NRIs

Urban Lifestyle

Improved standard of living Dual-incomes

Busy Schedule Less time Western Influence

More Income

Migrant working population

Indians look for traditional home cuisine abroad

Need for on-the-go productsConvenience is priority

CONSUMER MARKET

Types of ConsumersConsumer NeedsConsumer Preferences

Consumer Market types

Price Conscious

Busy/Young

Choosy/Old

Health Conscious

Consumer Preferences

Choosy/Old

• Good for Health• Easy to Digest• Natural

Ingredients• Less on spices

& Additives

Consumer Preferences

Price Conscious

• Value for money• Smaller packaging• Long Storage Life• No loss of flavor

Consumer Preferences

Busy/Young

• Tasty • Variety of Flavors• Trendy Packaging• Quick preparation

Consumer Needs

• Tasty & Healthy

• Rapid Cooking

• Handy packaging

• Convenient

CONSUMER SEGMENTS

Indulgent homemakers &Traditional homemakers

Consumer Segments

93 %7%Indulgenthomemakers

Upmarket & Metro Married Women

Large Family Setup

ConservativeSensitive towards Price & Health

Traditionalhomemakers

93 %7%Indulgenthomemakers

Upmarket & Metro Married Women

Large Family Setup

60% try Branded orPackaged foods

Spends Rs. 10K pm on grocery

ConservativeSensitive towards Price & Health

Reluctant to try out Branded foods

Spends < Rs. 5K pm on grocery

Traditionalhomemakers

Consumer Segments

7%Indulgenthomemakers

Marketers target this growing segment

Upmarket & Metro Married Women

Large Family Setup

60% try Branded orPackaged foods

Spends Rs. 10K pm on grocery

Consumer Segments

Prefer

Need

Concern

Foods

7%Indulgenthomemakers

Marketers target this growing segment

New Innovative Products

Wider Food Choice

Freshness & Availability

Free Of Spoilage/Contamination

Consumer Segments

93 % Traditionalhomemakers

Why are they reluctant to try out Packaged foods?

Consumer Segments

93 % Traditionalhomemakers

Why are they reluctant to try out Packaged foods?

Prefer

Need

Concern

Foods

Home Cooked Food To Others

Nutritious/Healthy Food

GM Foods/Preservatives

Less Fat/Calories

Consumer Segments

POPULAR BRANDS & MARKETING STRATEGIES

Popular Indian ProductsStrategies adopted by Indian players

Popular Indian Products

• MTR Foods• ITC• Haldirams• Nestle• Kellogg India

About 100 Suppliers

Around 300 products

MTR• Among Top 5 processed food manufacturers in India

• 22 delicious Indian curries, Gravies, Rice

• 6 new breakfast mixes

• Focus on Traditional Indian foods

• Extensive local advertisements

• Convenient pricing

ITC

Two Brands - Kitchens of India & Ashirvaad

Markets Indian food in US, UK, Europe & Australia

Indian cuisine: Biryanis, Curry Pastes and dishes

• Focus on selling Indian cuisine abroad

• Targets Global Indians

Britannia Healthy Start Britannia – Pioneer Fast moving consumer goods (FMCGs)

Launched Britannia Healthy Start, Jan 2011

Ready-to-cook breakfast mixes: Upmas, Pohas, Porridges & Oats

• Packed with Multi-grains, Vegetables, Pulses & Nuts

• 5 minutes cook time

• Rs 33 - 45 price

• (150 -170 gm packets)

Sundrop Yummy meals

AgroTech Foods - Largest Premium Brand-refinedoil segmentLaunched Sundrop Yummy meals, Jul 2011

Ready to eat rice-based breakfast

• Aimed at students/working professionals

• Quick, affordable and healthy food alternatives

• Innovative products: Peanut Butter, Act II Popcorn

Haldirams

Traditional Indian Sweet-maker

Ventured Into Processing Food Industry

Now Exports Indian Snacks - Western World

Offers packaged Indian Snacks: Chana Masala, Samosa, Pakoras

• Focus on Packaging

• No compromise on Taste/Quality

Marketing Strategies

• Easily Digestible – Cereals, Veggies, Atta Vitamins/Nutrients

• Add Flavors – Vegetables, Cheese, Masala, International flavor

• Nutrient info/Health Benefit – Display on packaging

• Promotion/Free trails

• Competitive Price/Quantity than rivals

• Traditional Food alternatives

• Target Diet Conscious – Less cholesterol/Calories

GROWTH OF RTE SECTOR

Analysis: Tata Strategic Management Group (TSMG)Survey: Ready to Eat Food in Metropolitan Cities

Estimate: Market for Breakfast-mixes in India

Analysis: Tata Strategic Management Group (TSMG)

2006 20150

500

1000

1500

2000

2500

3000

3500

128

2900

RTE Market In India

RTE Market In India

(Fig

ures

in C

rore

s)

• TSMG leading management consultancy firm in South Asia

• Factors contributing to

growth – Cold chain development

– Increasing disposable incomes

– Diminishing culinary skills

– Need for convenience on the demand side

Survey: Ready to Eat Food in Metropolitan Cities

86

14

Households

Prefer RTE

67

33

Working Women

Prefer RTE

Responses from 3000 representative households(10 metros in India)

With Children

Without Children

Nuclear Families

Bachelors

72

28

Bachelors

Prefer RTE

Study conducted By ASSOCHAM (Jan 2011)Associated Chambers of Commerce & Industry of India

2008 2009 2010 2011

150196

280

400

Market for Breakfast-mixes in India

Figures in Crores

Convenience food sector has grown

70% over the past decade

Estimated growth

30% over the next few years

Global Symposium on Ready-to-Eat (RTE) Foods: Opportunities for R&D, Entrepreneurship and Markets

• The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT)

• Associated Chambers of Commerce and Industry of India (ASSOCHAM India)

• Ministry of Food Processing, Government of India

• Hyderabad (April 25-27, 2011)

Global Symposium on Ready-to-Eat (RTE) Foods: Opportunities for R&D, Entrepreneurship and Markets

• Addressed food challenges:

– Promoting RTE foods to wider market

– Meeting the demands for innovative, healthy & safe meal

solutions for a busy lifestyle

– Empowering Entrepreneurs

– Introducing innovations in Manufacturing/Packaging

– Increasing role of micro/small/medium scale enterprises