Along with minimizing food product loss, packaging not only ensures authenticity but also maintains the integrity of the food product. From snacks to ready-to-eat meals, the demand for convenience food has risen proportionately with the busy lifestyles of Indian consumers.
Projected to reach over three billion U.S. dollars by 2027, the overall landscape of the packaged food market is dynamic and constantly changing. The dairy segment dominates packaged food products, followed by snacks, sweets, and biscuits, which are distributed over various channels across the country. In addition, Nestlé, Britannia, and Parle Products were the prevailing packaged food companies in India.
Moreover, the upsurge in the online grocery segment, especially after the pandemic, has made a substantial contribution to the market. It is interesting to note that the increase in demand for eco-friendly and sustainably packaged food and beverage products as a result of increasing consumer awareness offers potential for growth and development for the market. Various companies, like Ecoware and Greenhandle, are introducing innovative and sustainable packaging for consumers.
Another noteworthy trend in this sector is the growing acceptance of plant-based and vegan options. As a result, there is an increase in demand for ready-to-eat meals and snacks that meet plant-based or vegan-friendly standards as more individuals adopt plant-based diets or reduce meat intake. A Bengaluru-based food company, MTR Foods, has led the Indian RTE market, offering a range of RTE meals with authentic flavors. Other major companies in the run were ITC Limited, Haldiram’s, and Kohinoor Foods.
Projected to reach over three billion U.S. dollars by 2027, the overall landscape of the packaged food market is dynamic and constantly changing. The dairy segment dominates packaged food products, followed by snacks, sweets, and biscuits, which are distributed over various channels across the country. In addition, Nestlé, Britannia, and Parle Products were the prevailing packaged food companies in India.
Growth drivers of the packaged food market
The changing consumer behavior over the years has been a major contributing factor driving the growth of the packaged food market. Nowadays, consumers opt for a healthier variety of packaged food products with good quality ingredients and increased shelf life. Additionally, the expansion of the working population and increased disposable income led to higher demand and affordability for packaged food products.Moreover, the upsurge in the online grocery segment, especially after the pandemic, has made a substantial contribution to the market. It is interesting to note that the increase in demand for eco-friendly and sustainably packaged food and beverage products as a result of increasing consumer awareness offers potential for growth and development for the market. Various companies, like Ecoware and Greenhandle, are introducing innovative and sustainable packaging for consumers.
Shift towards ready-to-eat food products
A ready-to-eat (RTE) revolution is approaching India’s processed food market. Driven by constant product innovation to meet changing consumer demands and preferences, the ready-to-eat segment has undergone a major shift recently. The rising popularity of convenience food, ready-to-eat food, and ready-to-cook categories offers plenty of room for market expansion. The ready-to-eat market is expected to reach 25 billion Indian rupees by 2025.Another noteworthy trend in this sector is the growing acceptance of plant-based and vegan options. As a result, there is an increase in demand for ready-to-eat meals and snacks that meet plant-based or vegan-friendly standards as more individuals adopt plant-based diets or reduce meat intake. A Bengaluru-based food company, MTR Foods, has led the Indian RTE market, offering a range of RTE meals with authentic flavors. Other major companies in the run were ITC Limited, Haldiram’s, and Kohinoor Foods.
