India Ready to Mix Food Market Driven by Growing Urban Population and Busy Lifestyle
The India ready to mix food market is estimated to be valued at USD 420.2 Mn in 2024, exhibiting a CAGR of 16.7% over the forecast period (2024-2031). Furthermore, busy lifestyles and improved disposable incomes have increased the demand for ready-to-mix food products in India.
Market Dynamics:
The India ready to mix food market is primarily driven by the growing urban population and changing lifestyle patterns in the country. India's urban population is expected to reach over 60 crores by 2030, according to the United Nations projection. These urban dwellers mainly consist of young working professionals who often have busy schedules and limited time for cooking. As a result, ready to mix food products such as breakfast mixes, curries & gravies mixes, and dessert mixes have gained immense popularity as they offer convenience without compromising on taste. Another key driver has been the rising disposable incomes especially in tier 1 and tier 2 cities. Indians now have more spending capacity on premium packaged food items to save time and effort in the kitchen.
Market Drivers, Restraints, and Opportunities for the India Ready to Mix Food Market:
Increasing Working Population and Busy Lifestyles
Over the past decade, India has witnessed strong economic growth and a boom in jobs across various sectors such as IT, finance, consulting, and others. This has led to a significant rise in the number of people employed. With hectic work schedules and long working hours, people have less time to cook meals from scratch at home. Ready to mix foods provide a convenient solution as they just need to be added with some water or milk and cooked. The ease of preparation is a major attraction among urban families and working professionals with busy lifestyles.
Growing Health Awareness and Demand for Healthy Convenience Foods
Along with convenience, Indians are also becoming increasingly health conscious. There is a rising demand for healthy and nutritious convenience food products. Ready to mix foods allow people to prepare meals with fewer ingredients and less oil/fat as compared to restaurant/takeout foods. Major players are innovating their product ranges by introducing low-calorie, sugar-free, whole-grain, high-protein, and other health-focused variants. Increased health awareness is positively impacting the growth of the India ready to mix foods market.
High Prices of Branded Ready Meals
The prices of ready to mix meals offered by major national and international brands tend to be on the higher side in India. Considering the average per capita income levels in the country, premium-priced ready meals are still not affordable for the masses. Many consumers prefer traditional home-cooked meals due to their relatively lower costs. This makes the market somewhat price sensitive.
Lack of Proper Cooking Infrastructure in Rural Areas
A vast segment of India's population lives in rural and semi-urban areas which lack modern kitchen infrastructure and appliances. Ready meals require facilities like gas stoves, microwaves, etc. for cooking which are still not universally present. The distribution and availability of branded ready meals also remains relatively limited in underdeveloped regions.
Expanding Retail Landscape in Tier 2 and Tier 3 Cities
Over the last few years, India has witnessed aggressive retail expansion beyond metro cities with organized retailers venturing into smaller cities and towns. E-commerce has also grown by leaps and bounds. This has created lucrative opportunities for ready meal producers to increase their reach in emerging urban and sub-urban hubs. As lifestyle patterns change in tier 2/3 India, demand for convenient packaged foods will rise.
Innovation in Product Types and Formats
While instant meals, soups and pastas currently dominate the segment, there is scope to introduce newer product types aligned with local taste preferences. Formats like ready mixes for local dishes could attract many Indian consumers still loyal to homemade cooking. Companies investing in R&D to develop customized, regionalized offerings have the opportunity to significantly boost the category growth.
Key Developments:
- In September 2021, Bambino Agro Industries Limited planned to purchase a pasta mill from Italy with a capacity of 2,000 kg/hr in order to build up a manufacturing facility in, Haryana, MP with a total capex of roughly Rs.24.00 cr. Bambino Agro Industries Limited is classified as a public limited company and is actively listed. It operates with a dedicated workforce of approximately 600 employees and maintains manufacturing units in multiple locations, including Gurgaon and Bhiwadi.
- In January 2021, Indian Tobacco Company Limited was recognized as the 'Best Governed Company' in the Listed Segment: Large Category at the 20th ICSI National Awards for Excellence in Corporate Governance.
- In April 2020, Indian Tobacco Company Limited has been ranked No. 1 globally among peers and No. 3 overall on Environmental, Social, and Governance (ESG) performance in the food products industry by Sustainalytics, a global ESG rating company, in recognition of its superior Environmental, Social, and Governance (ESG) models. ITC Limited, originally established as the Imperial Tobacco Company of India Limited in 1910, is one of largest conglomerates in India, headquartered in Kolkata, India.
Link: https://www.coherentmarketinsights.com/market-insight/india-ready-to-mix-food-market-4766
Key Player:
Indian Tobacco Company, Mavalli Tiffin Room, Gits Food Products Pvt. Ltd., Kohinoor Foods, Priya Foods, and Bambino Agro-Industry
