India Packaged Food Industry Escalating by Double Digit Growth Rate in the Last Five Years: Ken Research
India Packaged Food Industry escalating by double digit growth rate in the last five years: Ken research
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
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