Packaged Food Market To Hit $50 Billion By 2017
The packaged food market is on the rise and is expected to reach $50 billion by 2017. The need for packaged, ready-made food has significantly increased in the metros due to the increase in the number of working professionals in a household. According to a survey study conducted by The Associated Chambers of Commerce of India (Assocham), the amount of spending per household on packaged foods has increased by 32.5 percent between 2010-2015 and is expected to reach around 35 percent by 2017.
Elaborating on the research study, Assocham secretary general D.S. Rawat said, “The consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-paced, attracting lot more companies to launch new types of products and variants.” There is a significant demand in packaged foods in the metros as compared to the rural areas. The Metros account for 80 percent of the total packaged food consumption in India. A poll, conducted as part of the study, noted that 76 percent of the households with both working parents served packaged foods, in some form, around 10-12 times per month.
The need for quick and different means of consuming food has encouraged companies to introduce new innovative ways to manufacture their products to suit the demand. The packaged foods market currently consists of bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat, health products and drinks.
There has also been a significant increase in the number of food tech startups offering cooked meals delivered to the doorstep. These companies have targeted bachelors and single working professionals who prefer to eat nutritious packaged food of convenience rather than spending time cooking. The rise of these delivery platforms has given way to an increase in revenue and popularity of the food-tech startup scene.