India Ready-To-Eat Food Market Assessment, By Category [Instant Breakfast/Cereals, Instant Soups and Snacks, Baked Goods, Meat/Poultry, Others], By Packaging [Canned, Frozen or Chilled, Retort, Others], By Distribution Channel [Online; Offline-Supermarket

India Ready-To-Eat Food Market Assessment, By Category [Instant Breakfast/Cereals, Instant Soups and Snacks, Baked Goods, Meat/Poultry, Others], By Packaging [Canned, Frozen or Chilled, Retort, Others], By Distribution Channel [Online; Offline-Supermarkets/Hypermarkets, Departmental Stores, Convenience Stores, Others], By End-user [Residential, Food Service, Institutional], By Region, Opportunities, and Forecast, FY2017-FY2031F

India Ready-To-Eat (RTE) Food Market will witness a CAGR of 16.4% during the forecast period FY2024-FY2031 reaching at USD 2933.31 million in FY2031 from USD 870.43 million in FY2023. Rapid increase in travelling, increasing younger generation and working population preferring more convenience food owing to busier lifestyles, the enlargement of the Indian retail chain sector, and new product launches by various manufacturers are the key factors driving the growth potential of RTE food market in India.

Availability of diverse food options and higher exposure to western culture has made RTE food a part of millennial’s life in India as well. Moreover, technological advancements in food packaging and cold chain logistics also influences the growth of RTE food in India Market.

However, challenges including the rise in obesity and diabetes-related health problems may prevent market growth. Ready-to-eat foods are not preferred by consumers who are concerned about their health because of their high fat content. Due to their hectic schedules and lack of resources to prepare meals at home, the working population of India is becoming demanding for ready-to-eat food as a large part of Indian working couples are staying as a nuclear family. Employment rate in India was recorded at 44.7% of the country’s population in Q4 of 2022.

Working Couples, Parenting Millennials and Younger Population Living Apart from Families

Staying apart from families to reduce down on the travel time, and at times due to employment in cities other than native cities, large number of younger population and working couples is following it as a common practice in India which is eventually resulting in a higher consumption of packaged and RTE food. The processed food business is driven by a higher need for convenience because of customers' busy lifestyles. There has been a progressive move away from the conventional paradigm of daily cooking because of the rise in the number of workers in developing nations like India as well as the tendency towards longer and more unpredictable working hours. Furthermore, because it boosts consumer purchasing power, rising disposable income is another element that significantly affects the expansion of the food market.

Demand for Innovative Products

People today like experimenting with their cuisine and are willing to try different foods. Nonetheless, younger generations of consumers are becoming more concerned with food quality and are prepared to pay a little bit more if doing so means receiving the best quality without compromising their health. In light of all of this, Indian food producers are constantly attempting to create new cuisines, and the ready-to-eat food industry is rapidly growing. For instance, Goa-based Sairaj Dhond, a former lawyer who is now an entrepreneur, founded Wakao Foods in October 2020, which is making it simpler to adapt to a plant-based diet by utilising the superfood jackfruit that is currently gaining popularity. BigBasket entered the market with products like frozen pizza and frozen peas under its private label Fresho after spotting ""need gaps"" in the goods other businesses were offering.

Government’s PLI Scheme to Incentivise Use of Millets in RTE Food

The government of India is equally concerned for the health and wellbeing of its citizens as the population is. In line with the same, the government keeps adding or revising to the existing scheme and promotes health awareness by incentivising the manufacturers for following the food safety standards. According to Press Information Bureau, the Ministry of Food Processing Industries (MoFPI) implemented the Production Linked Incentive (PLI) scheme for food products since 2021-22 and it has been encouraging the use of millets in ready to cook and ready to eat food. The authority has sanctioned an amount of INR 8 billion (800 crores) to incentivise these products provided there is more than 15% of millets by volume/weight being used in the composition of these RTE food products.

Impact of COVID-19 on the India Ready-To-Eat Food Market

Although the COVID-19 outbreak created several inconveniences, it also gave many businesses a good economic opportunity. One of these is the dramatic increase in demand for FMCG goods, particularly those in the categories of ready-to-eat or frozen foods. According to a survey by the Indian Council of Medical Research (ICMAR), the Indian frozen food market is anticipated to increase at a rate of 17% per year from now until 2024. Even companies like Licious, iD Fresh Foods, and Grofers, among others, reported an uptick in sales in ready-to-eat and frozen food categories during the nationwide lockdown.

Impact of Russia-Ukraine War on India Ready-To-Eat Food Market

The 2022 conflict between Russia and Ukraine has a significant effect on world food security. A food shortage resulted from the crisis, particularly with regard to wheat. Following this quickly was India's restriction on wheat exports, which unbalanced world markets and significantly raised the price of wheat around the globe. The wheat exports ban caused a market shock in India, forcing farmers to sell a perishable crop like wheat at the lowest price possible when they had kept their crops in anticipation of rising prices. Wheat became more accessible to Indian customers because of extremely low prices.

Key Players Landscape and Outlook

The market is characterised by the timely emergence of a few significant small- to medium-sized local firms, catering to niche markets, in addition to the major players. The key players are emerging in the market as the awareness for product is increasing gradually.

For instance, The Taste Company (2020), a quick meal brand owned by Instahot Foods Private Limited, offers food created with common recipes for wholesome consumption. In other words, the company creates foods that are completely prepared and ready to eat; all that is required to enjoy them is the addition of hot water.

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How are the markets predicted to develop in the future and what factors will drive or inhibit growth?

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