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India Packaged Food Market - Forecast(2024 - 2030)
India Packaged Food Market Overview
India's Packaged Food Market size is estimated to reach $3.4 billion by 2027, growing at a CAGR of 4.6% during the forecast period 2022-2027.
Packaged foods can be delineated as food items that are covered to
disrupt their interaction with environmental stimuli like water, air, and
moisture so that their shelf-life can be enhanced. Packaging extends an all-weather
safety to food products and elongates their lifespan to a long period
unless the packaging is scratched. Various food items like savoury snacks,
baked goods, breakfast cereals, processed meat, frozen sweet corn, and ready
meals are readily available in retail stores in their packaged forms. By keeping
the food intact, packaging helps in preserving the essential nutrients. In
addition to that, it prevents fiddling or adulteration practices. The rapid
urbanization of people from rural areas to urban centers, the growing size of
the middle-class population, inclination of millennials toward the western
lifestyle, rising disposable income, refining retail infrastructure, internet
penetration in rural areas, and technological breakthrough are factors set to
drive the growth of the India Packaged Food Market for the period 2022-2027.
Report Coverage
The report: “India Packaged Food Market Forecast
(2022-2027)” by Industry ARC covers an in-depth analysis of the following
segments of the India Packaged Food Market.
By Type: Baby food, Frozen processed
food, Ready meals, Bakery, Confectionery, Meat, Dairy products, and
Others.
By Distribution Channel: Offline (Supermarkets,
Hypermarkets, Convenience stores, Brick-and-Mortar, and Others) and E-commerce.
Key Takeaways
- The soaring popularity of quick-service casual restaurants, technological breakthroughs in nanomaterials and nanotechnology, eventful lifestyles of people, rapid urbanization, changing tastes and preferences, expanding e-commerce services in rural areas, and growing presence of modern retail outlets are the factors said to be preeminent drivers driving the growth of India Packaged Food Market. Growing concerns regarding the safety of packaged foods and rising campaigns to curb environmental pollution caused by plastic are the factors said to reduce the market growth.
- Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the India Packaged Food Market report.
India Packaged Food Market- Distribution Channel (%) for 2021.
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India Packaged Food Market Segment Analysis-By Type
The India Packaged Food Market, based on Products and
Services Types, can be further segmented into baby food, frozen
processed food, ready meals, bakery, confectionery, meat, dairy
products, and others. The dairy products segment held the largest share in
2021. The growth is owing to the high popularity of dairy items like curd and
cheese among Indian consumers. Owing to a high number of vegetarians, the
majority of the Indian population relies upon veggies and dairy items to fulfill
their nutrients requirement. Various dishes like malai kofta, chili paneer,
paneer butter masala, paneer Manchurian, palak raita, mango lassi, Dahi vada,
and others are prepared from cheese and curd. Therefore, these two
items never run out of demand. In addition to that, rising western influence
has heightened the trend of conferring confectioneries during festive seasons
or special occasions. Also, the overwhelming demand for snacks and bread as
consumers turn health conscious is the crucial reason for the market hold.
Moreover, the ready meals segment is estimated to be the fastest-growing, with a
CAGR of 5.3% over the forecast period 2022-2027. Eventful lifestyles of people
are driving them toward pre-cooked foods to save time.
India Packaged Food Market Segment Analysis-By Distribution Channel
The India Packaged Food Market, based on distribution channels, can be further segmented into Offline (Supermarkets, Hypermarkets, Convenience stores, Brick-and-Mortar, and Others) and E-commerce. Moreover, the offline segment held the largest share in 2021. The growth is owing to comprehensive existence in both metropolitan and pastoral areas. On the contrary, online or e-commerce services are bound to specific requirements, such as full-fledged infrastructure for their smooth functioning; otherwise, it is not viable for them to offer doorstep deliveries. Additionally, the majority prefer buying offline because of advantages like the option to touch and feel the products at the time of purchase, hassle-free returns, bulk buying, and bargaining. In addition to that, the growing existence of modern outlets like supermarkets has gravitated the attention of billions worldwide because well-established nature, easy shopping, lucrative sale deals, and one-stop solution. Moreover, over 60 percent of the Indian population lives in rural areas where there is little to moderate presence of e-commerce services; therefore, most purchases occur through offline mode.
Furthermore, the offline segment is estimated to be the fastest-growing, with a CAGR of 6.5% over the forecast period 2022-2027. E-commerce is on the rise in the country, but it will still take around 10 to 11 years to replace offline stores as the primary shopping destination of consumers. There are many factors behind it, such as lack of trust, poor infrastructure, delayed deliveries, harsh returns, and rudimentary tech knowledge of people of the old generations.
India Packaged Food Market Drivers
Swift modernization is anticipated to boost the market growth.
Over the years Indian urban population has witnessed a sheer
rise. As of 2020, the total urban population of India was around 34.93 percent
(over 481 million people) of its total population. The number witnessed a
slight rise in 2021 and reached 35.4 percent. Several reports claim that by
2030 the figure is likely to reach 40 percent; that is, over 600 million Indians
will be living in urban areas by that time. Unlike rural areas, people living
in metropolitan cities have better access to packaged foods because of
well-established infrastructure, across the board presence of retail outlets,
and e-commerce services. Moreover, the rapid push by the Indian
government on planned urbanization is likely to aid the market. For instance,
In the Union budget 2022, Government has allocated nearly Rs 76,549 crore for
urban development.
Bettering retail and rising disposable incomes are expected to boost market demand.
The Indian retail industry is booming at an unprecedented
pace. Several estimates claim that it is likely to cross $1.5 trillion in terms
of value by 2030. Crushing competition because of the presence of
companies like Reliance, DMart, Avenue Supermarts, and Amazon is a prominent
factor behind the growth of the Indian retail industry. On the other hand, rising
internet users provide fairgrounds for e-commerce companies to expand
their business. As of 2022, there are nearly 658 million internet users in
India. The figure is anticipated to cross the 900 million mark by 2025. In addition to that, soaring exports are resulting in economic prosperity
and ultimately increasing the disposable incomes of consumers. Moreover, worth
Rs 10,900 crore production-linked incentive scheme framed by the Ministry of
Food Processing Industries is likely to drive the market.
India Packaged Food Market Challenges
Health concerns linked with processed food and soaring pollution levels are anticipated to hamper the market growth.
Packaged food may be famous for its taste, but it is notorious for setting several health complications. Excess consumption of such food may lead to HBT, heart illnesses, obesity, and diabetes. The world is already reeling under the weight of such complications. According to International Diabetes Federation, there were nearly 537 million adults across the globe had diabetes in 2021. The figure is anticipated to reach 783 million by the year 2045.
Moreover, heart diseases have merged as a
leading cause of death worldwide. Consequently, rather than being reactive, as
people turn more health proactive, they will avoid packaged
food. Moreover, rising campaigns regarding plastic pollution are anticipated to
pose a challenge to the steady growth of the Indian packaged food market.
India Packaged Food Industry Outlook:
Product launches, mergers and acquisitions, joint ventures,
and geographical expansions are key strategies adopted by players in the
aforementioned Market. India Packaged Food market top 10 companies include-
- ADF Foods Ltd.
- Nestle India Ltd.
- Hatsun Agro Products
- BKV Industries Ltd.
- Britannia Industries Ltd.
- DFM Foods Ltd.
- Zydus Wellness Ltd.
- Gold Coin Health Foods Ltd.
- Herman Milkfoods Ltd.
- Hindustan Foods Ltd.
Recent Developments
- On March 9, 2022, Chennai, India-based leading packaged food company “Hatsun Agro Products” publicized that company’s board of directors has permitted the sale of the loss-making business of ready to eat foods to Tamil Nadu, India-based food manufacturing company “Naga Ltd.” The total value of the transaction stands at around Rs 25 crore.
- On September 10, 2020, Massachusetts, United States-based renowned private equity firm “Advent International” announced the successful acquisition of ownership interest in New Delhi, India-based snack manufacturing company “DFM Foods.” A payment of Rs 1178 crores has been made by Advent to bring the acquisition to a close. Advent has bought 68 percent stake from promoters and the remaining from public shareholders for Rs 270.2 per share.
- On January 30, 2019, Ahmedabad, India-based leading packaged food and consumer wellness company “Zydus Wellness,” announced the successful acquisition of the consumer wellness business from Heinz India. The acquisition has put several products like Glucon D and Complan into Zydus’ portfolio. The total value of the transaction stands at around Rs 4595 crore.
Relevant Links:
Packaged Japanese Traditional Foods Market – Forecast (2022 -
2027)
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Packaging Adhesives Market – Forecast (2022 - 2027)
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Ready Meal Market – Forecast (2022 - 2027)
Report Code: FBR 0240
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