Convenient Food are rapidly rising segments of this industry which aregaining vast popularity
. The market for
branded foods is growing at a healthy10%-15%.
next sunrise industry for India is going to be food.
of totaloutput addition, food has surpassed IT and pharma
India’s middle class segment will continue to hold the key to success of theprocessed food market in India. The profile of the middle class is changingsteadily
as hired domestic help is becoming costlier. This is
conducive to anexpansion in demand for ready to eat Indian-style foods.
Indian food and beverage companies are making a beeline for regionaloverseas markets
like Bangladesh, Pakistan, Nepal, Middle East and CIScountries because of similar lifestyles and consumption habits . GodrejConsumer, Marico, Dabur are among the companies
Some companies have
achieved growth in the key processed food segment byreaching lower price points
to make the products more affordable
to a biggerconsumer class
Unorganized, small players
more than 70 per cent
of theindustry output in volume terms and
50 per cent in value terms.
Lower overheads due to limited local area
, family management, focusedproduct lines and less expenditure on marketing
help the unorganized sector togrow.
The Food and beverages sector is
witnessing recently large-scaletransformation, huge advertisement spending, ,awareness campaign aboutthe products and brands,
distribution of free samples with the focus onimproving the distribution network to make strong presence in the Indian market.
Key factors to success are distribution (in rural markets) and advertising (inurban markets Innovation and launching of new brands
are being adopted bythe companies to grab the market.
Big companies have started sourcing their products from localmanufacturers as cost saving measures and to enter the mass consumersegment..
The market is seeing players like Heinz, Mars, Marico, Conagra, Pepsi, ITC,Dabur, Britannia, Cadbury, HLL, Pillsbery, Nestle and Amul, SmithklineBeecham, The Surya Food and Agro Private Ltd etc and a host of localmanufacturers offering competition with their established brands on nationallevel. Every player is busy in the race by expanding their product range.