India Packaged Food Industry Escalating by Double Digit Growth Rate in the Last Five Years
Busier lifestyles resulting in the demand for convenience products to persistently provide a major thrust to the growth in the packaged food sector in India New Delhi: 29/7/2013- Packaged food sector is presently the fifth largest sector in India and has grown rapidly over the past few years. India packaged food industry has escalated remarkably at a CAGR of 15. 6% from FY???2007-FY???2013.
The packaged food industry in India has been characterized by low rural penetration coupled with a strong prevalence of the unorganized sector for years attributing to factors such as, low affordability, lack of awareness and preference towards home cooked food, penetration of packaged foods has remained low among rural households. Rural areas therefore constitute a huge untapped market for the sales of packaged foods in India.
The packaged food industry in India has been largely dominated by the ready to eat segment, which contributed nearly 90% of the total sales of packaged foods in India FY???2013. Although ready to eat segment has witnessed a decline in its market share over the past few years, it has continued to dominate the packaged food market in terms of the revenue. Bakery category, mainly led by massive sales of biscuits was the major contributor to the revenues from ready to eat segment, in FY???2013 followed by confectionery, snacks and ice cream respectively.
There has been a shift witnessed in the customers focus from price to the quality in the recent years, particularly in the urban and a few semi urban areas. Consumers have been drifting from openly or loosely sold food products to the consumption of hygienically packaged fortified foods. Semi-processed food category on the other hand has registered growth at a CAGR of 22. 1% during the period FY???2007-FY???2013.
The rising demand for semi processed food growth among the Indians has been mainly on account of changing demographics, including an increase in the country???s female working population, augmenting dual income families and inclining health consciousness Britannia India Limited INSERT INTO `cofwp_posts` VALUES (BIL), Cadbury India, Parle Products and Indian Tobacco Company INSERT INTO `cofwp_posts` VALUES (ITC) are some of the major companies operating in the industry???s organized segment constituting nearly half of the industry???s revenues as recorded during FY???2013.
The market is expected to witness surge in its consumption owing to factors such as growing urbanization, surging participation of women in the workforce, inclining dispensable household earnings and augmenting middle class. Additionally, the expansion of organized retail frameworks coupled with improving foreign investment is expected to further drive the industry growth in the near future.
According to the research report ???India Packaged Food Industry Outlook to FY???2018 ??? Ready to Eat Snacks to Drive Future Growth??? by Ken Research, the packaged food market is expected to witness surge in its consumption owing to factors such as growing urbanization, surging participation of women in the workforce, inclining dispensable household earnings and augmenting middle class.
Additionally, the expansion of organized retail frameworks coupled with improving foreign investment is expected to further drive the industry growth in the near future. ???Several factors including convenience, busier lifestyle, increasing disposable earnings, growing middle class, incline in the share of children and youth in the population demography, growing cold chain logistics and others are expected to drive the industry???s growth in the future??? according to the Research Analyst, Ken Research.
The report provides detailed overview on the packaged food market in India and aids reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, packaged food companies, suppliers and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.