Ready To Eat Market – India

March 2010
Executive Summary

Total market for ready to eat (RTE) food in India was valued at INR XX mn in 20-- growing at a
rate of a% annually

RTEs are categorized into two product categories
Market – Shelf stable packaged food
– Frozen packaged food

Most players started with an export-oriented model but changing taste and preferences has

Drivers:
PLE
made the domestic market attractive with major focus on Tier-I cities

Challenges:

M
• Target consumer base for RTE is expanding • Consumers behavior and perceptions
Drivers &

A
• Organized retail offers advantage for RTE sales • Inefficient logistics and infrastructure
Challenges
S
• Development of cold chain infrastructure
• Government Initiatives

Focus on export markets

Trends
Lack of significant product differentiation

Use of Retort Technology is Standard

Major players like Company A, Company B and Company C dominate the market although small
players are also present
Competition
Market is highly competitive due to low product differentiation

Most players have sizeable businesses in related products like U, V, W etc.

READY TO EAT MARKET IN INDIA 2010.PPT 2

•Introduction
•Market Overview
•Drivers & Challenges
•Trends
•Competition

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 Ready to eat food is an emerging market that serves the
convenience factor of consumers
Ready To Eat Packaged Food

• Ready to eat (RTE) can be defined as food products that constitute complete meals; require minimal
processing, if any, typically requiring re-heating to desired temperature or addition of water
• They are often termed as ‘Convenience Food’ since they are positioned as ‘value for money’ products that
solve the issue of time-constrains faced by consumers due to the pressures of urban life

PLE
Shelf Stable Packaged Food Frozen Packaged Food

SAM
• RTEs are stored safely in a sealed container
• Frozen RTE foods refer to processed foods that
need to be refrigerated to maintain nutritional
and are packaged using technology that offers
value and taste
a long shelf life ranging from a-b years
• Products can be heated in a microwave oven or
• Products are typically without preservatives
a conventional oven
• They can be stored at room temperature
• Products typically do not contain preservatives
without refrigeration making their storage
or artificial ingredients
convenient for retailers as well as consumers
• They include complete dishes, special curries
• They include curries like product 1, product 2,
and a major portion contains snacks like
product 3 etc.
product 4, product 5 and product 6

Source:

READY TO EAT MARKET IN INDIA 2010.PPT 4

 Ready to eat food market in India has huge untapped
potential and offers scope for investments
Overview Market Size & Growth (Domestic)
•Ready to eat (RTE) foods was introduced in
India originally in 19--. However, the concept
failed at that time and has only recently INR mn
z
exploded 800

E
a%
•Most participants began with an export-

to the domestic market

PL
oriented model but gradually extended sales
700
600
y

M 500 x
•Changing consumer habits, preferences and

SA
perceptions has driven the market
•A strong correlation exists between the
growth of RTE foods and organized retail
400
300
200
formats such as supermarkets and 100
hypermarkets
0
•Tier-1 cities are the predominant or primary 2006 2007 2008
target for RTE foods
•Large number of players exist in the market
which is dominated by Y brands

Source:

READY TO EAT MARKET IN INDIA 2010.PPT 5

Drivers & Challenges

Drivers
Challenges
Target consumer base for RTE is
expanding Consumers behavior and perceptions
Organized retail displays advantages
in driving RTE sales Inefficient logistics and infrastructure

Cold chain development

Government Initiatives

READY TO EAT MARKET IN INDIA 2010.PPT 6

 Focus on Export Markets

Trends

Use of Retort Technology is Lack of Significant Product

Standard Differentiation

READY TO EAT MARKET IN INDIA 2010.PPT 7

Indian RTE market is dominated by domestic players who
are steadily improving their service areas
Competition - Overview

PLE
• The market is highly competitive due to lack of significant product differentiation
• However, a rapidly growing market with low penetration rates offers significant opportunity for all players without market share
cannibalization

M
• Company A was the first company to enter this market followed by Company B, C etc

SA
• Company A, B and C account for Z% of the RTE market
• Most companies have an older and possibly more sizeable business in related items such as cooking sauces, pickles, spices, cooking pastes
etc.

Company Vegetarian (V) Non-Vegetarian (NV) Desserts (D) Price Range (INR) Quantity (gms)
Company A   NA NA

Company B  P1 – P2 (V) Q1 (V)

P3 - P4 (V)
Q2 (V,NV)
Company C
   P5 - P6(NV)
Q3 (D)
P7 - P8 (D)

Company D   P9 – P10 (V) Q4 (V)

Company E  P11 (V) Q5 (V)

Company F  NA NA

Company G   P12 – P13 (V) Q6 – Q7 (V)

Source:

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 Major Domestic Players (1/3 )

Company Brand Business Description

Company A • Leading manufacturer of ready to eat curries
-- • It offers vegetarian north Indian curries, desserts and non vegetarian gravies

• Founded in 1963, caters to snack food and diary segment

Company B • Introduced its Ready-to-Eat range in 20--
• r% of its revenue comes from exports of products to USA, Canada, UK,
-- Australia, Asia, the Middle East and Europe
• It has O factories in L, Maharashtra
Financials
• Sales turnover of USD x mn in 20-- (including other income)

Company C • Established in 19-- in Bikaner, Rajasthan

-- • Entered the ready to eat market in 20--
• Products currently range from popular north Indian curries to Indian snacks

Source:
SAMPLE
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 Thank you for the attention
The Ready To Eat Market - India report is a part of Research on India’s Food & Beverage
Industry Series.
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