Food Scenario in INDIA

Ready-To-Cook By: Akhilesh Sharma,SO Nestlé S.A.Balaji Institute Of modern management

Ready-to-cook Food• Foods that are processed and/or prepared to be ready to cook with very little

additional effort. Precooked or half cooked food, then frozen, 'ready to cook in an oven‘ or cooked, then frozen 'ready to microwave'

• New concept in India.

• Fastest Growing Sector.

• Immense potential.

Ready-to-cook Food: Key growth drivers• Huge Production Potential

• Rising Income level

• Change in food habit

• Growing Need for Convenience

Indian Food Industry

Ready-to-eat Ready-to-cook Dairy Fishries and Sea Food

0

2

4

6

8

10

12

14

2006-07 2010-11 2014-15

Source: Ministry of Food Processing Industries

(In ` 0000' crores): Size of Market

RTC food can be broadly classified into:• Low Moisture Food

• Medium Moisture Food

• High Moisture Food

Moisture Example

LOW 1-5% Instant Mix

Medium 6-20%Snacks,

sweetmeats

High 20-60%Freshly baked

products

Reasons for Market Penetration• Global Indians or NRIs

Indians look for traditional home cuisine abroad

• Urban Lifestyle

Busy Schedule Less time Western Influence

• More Income

Improved standard of living and Dual-incomes

Market

Type

• Consumer market Type.

Preferen

ce

• Consumer Preference

Need

• Consumer Need

Segmen

t

• Consumer Segment

Consumer Market Types:

Busy/Young

Price Conscious

Choosy/Old

1.Good for Health2.Easy to Digest3.Natural Ingredients4.Less on spices & Additives

Choosy/Old

1.Value for money2.Smaller packaging3.Long Storage Life4.No loss of flavor

Price conscious

1.Tasty 2.Variety of Flavors3.Trendy 4.Packaging5.Quick preparation

Young/ Busy

Consumer Need

• Tasty & Healthy

• Rapid Cooking

• Handy packaging

• Convenient

Consumer segmentsIndulgent homemakers &Traditional homemakers

Upmarket & Metro

Married WomenLarge Family

Setup

Consumer Segment

7%93%

Traditional

homemakers

100%

ConservativeSensitive towards Price & Health

Indulgenthomemakers

60% try Branded orPackaged foods

Spends ` 10K pm on grocery

Reluctant to try out Branded foods

Spends < ` 5K pm on grocery

7%Indulgenthomemakers

Marketers target this growing segment

Upmarket & Metro Married Women

Large Family Setup

60% try Branded orPackaged foods

Spends ` 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?

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

•Since  1970

MTR

•Since 2000

Knorr

•Since 1953

Parampara

•Since 1975

Kitchen Of India

About 100 Suppliers

Around 300 products

MTRAmong 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

KnorrVentured Into Processing Food Industry

Offers packaged Indian RTC & Soups

• 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 RTC sectorAnalysis: Perception of Ready to Cook Mixes .

Survey: Ready to Cook Food in Metropolitan CitiesEstimate: Market for RTC-mixes in India

Analysis: Perception of Ready to Cook Mixes

Factors contributing to growth

Cold chain development

Increasing disposable incomes

Diminishing culinary skills

Need for convenience on the demand side

2006 20150

500

1000

1500

2000

2500

3000

3500

128

2900

RTC Market In India

RTC Market In India

Source: Tata Strategic Management Group (TSMG)

Figu

res

in C

ores

Survey: Ready to Cook Food in Metropolitan Cities

Responses from 3000 representative households(10 metros in India)

With Children

Without Children

Nuclear Families

Bachelors

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

86

14Households

Prefer RTC

72

28

Bachelors

Prefer RTC

67

33

Working Women

Prefer RTC

2009 2010 2011 2012

150196

280

400

Market for RTC-Mixes in India

Figures in Crores

Estimated growth

30% over the next few years

Convenience food sector

has grown 70% over the

past decade

Global Symposium on Ready-to-Cook (RTC) 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

Addressed food challenges:

Promoting RTC 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