Emerging opportunities in Indian Ready To Eat foods market

Introduction

This report is based on trends observed in the changing Indian lifestyles, dietary intake patterns and the heightened need for convenience. It captures the current attitudes towards consumption of ready to eat foods and is aimed at enabling the NPD and marketing team in FMCG companies, to identify potentials in terms of advertising, product formulation & packaging, and emerging consumer segments.

Scope

• Identifies current and emerging categories in ready-to-eat foods
• Explores drivers and inhibitors behind Indian consumers’ product choices of ready-to-eat foods
• Focus areas for FMCG companies in terms of marketing communication, product formulation and packaging and target consumers
• Geographic scope is India

Highlights

There is a rise in the demand for foods based on traditional Indian recipes across different states in India and abroad. This can be attributed to a number of factors including paucity of time and declining skills to prepare several traditional Indian foods, and the rise in the globalization of Indians and Indian food.

The extensive coverage of topics related to health and wellness in the media is increasing awareness amongst Indian consumers regarding health issues and the long term ill-effects of consumption of fast-food.

Since Indians’ dietary patterns have changed such that they don’t have their ethnic foods during their breakfast, lunch or evening snack, there is an inclination to balance the dietary intake by opting for a traditional Indian cuisine during dinner.

Reasons to Purchase

• Information on current consumer and product trends in the Indian ready-to-eat foods market
• Insights into Indian consumer attitudes towards purchase and consumption of such ready to eat foods
• Identifies opportunities in terms of marketing communication, product formulation&packaging,and emerging consumer segments for FMCG companies in India

Contents

Overview
Catalyst
Summary
Table of Contents
Table of figures

THE FUTURE DECODED

INTRODUCTION: The need to meet taste and convenience needs is fueling the growth of dried ready meals in an increasingly time-pressed Indian society
Changing societal trends in India are having a major impact on Indians consumers' food behaviors
There are two forms of convenience food, although this report only covers the shelf stable fare
The Indian RTE food market is growing at a rate well in excess of the country's overall GDP growth
TREND: The changing lifestyles and socioeconomic profile of Indians is fueling the growth of RTE foods in the country
The concept of nuclear families and moving away from one's hometown is now commonplace in Indian society
Blurred gender roles and responsibilities have arisen from ongoing societal changes
An emerging generation of Indian women now exists that have neither the necessary knowledge nor the time to prepare traditional Indian meals on a regular basis
Indians have become more experimental with respect to their food and drink choices, as there is a need for variety in dietary intake
Glocalization of Indians and Indian food is increasing the acceptance and demand for RTE foods
Key takeouts and implications: Changing lifestyles and socio-economic status of Indians is going to drive the demand for more convenient dietary options such as, RTE foods
TREND: There has been an increase in Indian consumers' awareness of long-term health issues associated with an irregular diet and fast food consumption
Mealtime fragmentation is leading to irregular and smaller portion intake, although the importance of having a wholesome and home-cooked dinner is still apparent
Claims associated with health and wellness have a significant influence on consumers' product choices
Key takeouts and implications: Ensuring and communicating freshness, and offering more convenient product concepts should be the areas of focus for RTE manufacturers in India
INSIGHT: To reduce stress and improve work-life balance, a high majority of Indians are seeking time saving products and services in an attempt to maximize leisure time
Pressure to achieve professional satisfaction is ever rising
Indians are showing a significant tendency to choose products with a convenience positioning
Key takeouts and implications: All aspects of convenience-driven benefits should be at the forefront of marketing communication from the RTE manufacturers
INSIGHT: Both Indian men and women are equally interested in knowing the relationship between food and health, but more women tend to use on-pack nutritional information
Since Indians are taking more interest in taking control of their personal health than ever before, there is a renewed interest in reading information related to health and wellness
Key takeouts and implications: Detailed and descriptive nutritional information on product packaging is vital in gaining the consumers' trust
INSIGHT: More than half of Indians across all age groups are highly influenced by 'better-for-you' claims while making food and beverage choices
Key takeouts and implications: RTE foods should be reformulated to contain low-fat and low-cholesterol
INSIGHT: Food and beverages marketed with 'Freshness' claims have more influence on consumers, compared to 'Authentic/home-made/original' or even 'No artificial additives'
Traditionally, Indians have long believed in the benefits of consuming freshly prepared food at home
The ongoing preference for 'fresh' food is influenced by growing understanding of the benefits of food products which are free from artificial additives or are made from 'natural' ingredients
Key takeouts and implications: Freshness-linked claims gain precedence over authenticity and home-made claims in consumers' choice of food products
INSIGHT: Indians who do not cook dinner at home on a sustained basis choose take-away meals more often than eating out, driven by an innate preference for at-home consumption
Key takeouts and implications: Driven by a desire for eating at home, Indians are increasingly looking for convenient and healthy alternatives which give the taste of home-cooked meals

ACTION POINTS

ACTION: Remove the skepticism surrounding the freshness of RTE foods via healthier product formulation and appropriating communication on product packaging
ACTION: Make smaller pack sizes to allow for single serve usage and to encourage trial
ACTION: Target the workplace as a consumption occasion
ACTION: Introduce greater variety by offering popular international cuisines
ACTION: Introduce RTE salads targeted at the health conscious
ACTION: Explore meal combinations of rice/bread and curries
ACTION: Offer RTE foods in packaging formats that allow for direct consumption from the container

APPENDIX

Definitions
Canned ready meals
Chilled ready meals
Frozen ready meals
Dried ready meals
Methodology
Further reading and references
Ask the analyst
Datamonitor consulting
Disclaimer

LIST OF FIGURES

Figure 1: Changing lifestyles, gender roles and the need for products that offer a balance between taste and convenience are driving the growth of RTE foods in India
Figure 2: Manufacturers in India need to work on delivering better taste, health and convenience to make RTE foods a more formidable competitor to other dinner time meal considerations
Figure 3: Three waves of supermarket diffusion have influenced emerging market retailing
Figure 4: Indians' diet diversification over the last two decades has taken place through two distinct stages
Figure 5: Several Indian manufacturers have launched ethnic Indian cuisines in the RTE format, but with slightly different value propositions communicated through package literature
Figure 6: Regional Indian cuisines, sweets and combination meals present significant opportunities for Indian RTE food manufacturers to explore new product development
Figure 7: Public health indicators related to dietary intake among Indians show possibilities of a deterioration by 2025
Figure 8: Many consumers do not feel that they have the time to prepare and eat 'three square meals a day'
Figure 9: Most Indians make a conscious attempt to eat healthily, but on a sustained basis, female consumers do so more than the males
Figure 10: RTE food manufacturers are increasingly using 'Natural' and 'No preservatives' claims on the front of the product packaging
Figure 11: In 2009, Indians felt that their lives became more stressful, and this can be attributed to a decreasing satisfaction with respect to work-life balance
Figure 12: Over the last two years, rising inclination to maximize leisure time has resulted in close to 80% of the Indians giving more importance to time-saving products and services
Figure 13: There are at least two broad dimensions of convenience
Figure 14: Close to 70% of Indian men and women show a keen interest in reading or hearing about the relationship between food and health
Figure 15: A large proportion of Indian consumers remain unsure about whether they feel food and health information is confusing and conflicting
Figure 16: Compared to the men, more Indian women use nutritional information on product packaging to help make food and drink choices on a regular basis
Figure 17: Across all ages, 'Low or lowers cholesterol' and 'Low or reduced fat' has a high level of influence on 50% of the Indians' choice of food and beverages
Figure 18: Across all age groups, Indians value 'Freshness' claims more than 'Authentic/home-made/original' or even 'No artificial additives' claims
Figure 19: On a regular basis, if not for home-cooked dinner, Indians prefer at-home consumption of take-away meals over eating out
Figure 20: RTE manufacturers in India should focus on reducing the fat content in their curries or at least use and communicate the fact that healthier oils have been used in the preparations
Figure 21: Leverage product packaging to promote the nutritional value of RTE foods and create trust among consumers
Figure 22: Time pressure and an attempt to 'eat moderate to stay healthy' are driving Indians to eat and drink smaller portions
Figure 23: Easy to use RTE meal concepts targeted at lunch-time consumption at the workplace is a potential opportunity to increase 'share of stomach' in India
Figure 24: As preferences broaden, Indian RTE manufacturers should explore convenience-meal concepts based on popular international cuisines, such as Chinese and Italian
Figure 25: RTE salad concepts present a significant opportunity, as they potentially satisfy Indians consumers' converging needs for taste, health and convenience
Figure 26: Introducing combinations of rice and curries to make RTE offerings a comprehensive meal is a potentially compelling market offering
Figure 27: RTE foods in bowl or dish-type packaging could further increase the convenience-led value proposition
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