Heat and Eat Foods Industry in India, 2014 - 2019
ValueNotes presents a research report on the heat and eat foods industry in India. This industry report covers intelligence on the market size, growth, industry trends, industry attractiveness, and Porter’s analysis. The report covers fiscal years 2014 through 2019.Heat and eat foods are products which are merely meant to be heated and then consumed by the user without changing the form or structure of the food item. They are prepared using retort or heat-sterilization technology. The heat and eat foods industry forms a segment of the convenience foods industry.
Key Findings:
- The heat and eat foods industry in India, valued at INR 2,370mn (~USD 39.49mn) in FY 2014, has been growing at a CAGR of ~18% over the last three years. ValueNotes estimates that the industry will be worth approximately INR 6,405mn (~USD 106.73mn) by FY 2019, growing at a CAGR of ~22%
- The heat and eat foods industry can be segmented by the type of food products which are manufactured. This includes curries, rice delicacies, light meals and desserts.
- Steadily growing urbanisation and disposable income, expected increase in youth population and female work participation in India as well as widening scope of the Indian retail market will drive the industry towards growth
- Latest trends witnessed in the industry reveal that companies manufacturing heat and eat food products tend to focus more on export markets. To increase domestic presence, the manufacturers are now adopting new technologies and launching more region-specific or state-specific products
2. INDUSTRY STRUCTURE
Heat and Eat Foods Industry Structure
Evolution of Heat and Eat Foods Industry in India
Heat and Eat Foods Industry definition
Heat and Eat Foods Industry classification
Industry Supply chain
3. INDUSTRY OVERVIEW
Market Size and Growth
Industry Segmentation by category
Industry Segmentation – Urban and Rural markets
Industry Segmentation – Export and Domestic market
Geographical Analysis
Price Analysis
4. DRIVERS AND CHALLENGES
Driver 1: Rapidly growing urbanisation trend
Driver 2: Increase in consumer base of convenience foods
Driver 3: Rise in disposable income of households
Driver 4: Widening scope of Indian retail market
Inhibitor 1: Stronghold of alternatives and substitutes
Inhibitor 2: Lack of consumer awareness and preference
Inhibitor 3: Price hike in packaging materials
5. INDUSTRY TRENDS
Recent trends witnessed
6. INDUSTRY ANALYSIS
Porter's analysis
Industry attractiveness index
7. COMPETITIVE ENVIRONMENT
Industry segmentation by players
Market share of players
Brand positioning – Price and Quality Analysis
Competitive Benchmarking
Profiles of Key Players
India Tobacco Company Limited
MTR Foods Private Limited
Kohinoor Foods Limited
Gits Food Products Private Limited
Tasty Bite Eatables Limited
8. APPENDIX
Research Methodology
Abbreviations and Bibliography
Glossary
Chart 1 Share of heat and eat in convenience foods segment in 2013 – India
Chart 2 Heat and Eat Market Size & Growth (INR million)
Chart 3 Heat and eat industry segmentation by category
Chart 4 Segmentation by consumption in urban and rural markets
Chart 5 Domestic and export sales breakup and export market ranking of heat and eat industry
Chart 6 Number of Overseas Indians or Indians living abroad in 2012 (million)
Chart 7 Segmentation by price of heat and eat products
Chart 8 Distribution of rural and urban population of India
Chart 9 Growth of urban population in India (millions)
Chart 10 Growth of young population in India (million)
Chart 11 Female work participation – Overall and Urban
Chart 12 Per capita disposable income of India (INR million)
Chart 13 Indian retail market breakup (2012)
Chart 14 Growth of the organised retail market in India (INR billion)
Chart 15 Growth of QSR market in India (INR million)
Chart 16 Breakup of QSR spend in urban cities (FY 2013)
Chart 17 Crude oil price hike (INR/bbl)
Chart 18 Porter’s analysis of heat and eat industry in India
Chart 19 Heat and eat industry segmentation by players
Chart 20 Percentage breakup of market share of top competitors
Chart 21 Price and quality analysis of heat and eat products
Chart 22 Annual Turnover of ITC Ltd (INR Million)
Chart 23 Key Manufacturing Locations – ITC Ltd.
Chart 24 Annual Turnover of MTR Foods Pvt. Ltd (INR Million)
Chart 25 Key Manufacturing Locations – MTR Foods
Chart 26 Annual Turnover of Kohinoor Foods Ltd. (INR Million)
Chart 27 Key Manufacturing Locations – Kohinoor Foods
Chart 28 Annual Turnover of Gits Food Products Pvt. Ltd (INR Million)
Chart 29 Key Manufacturing Locations – Gits Food Products
Chart 30 Annual Turnover of Tasty Bite Eatables Ltd (INR Million)
Chart 31 Key Manufacturing Locations – Tasty Bite Eatables
- India's heat and eat food industry is valued at INR 2,370 million in FY 2014, of which the top-5 players account for 84% of the market share
- The industry is expected to grow at a CAGR of 22% and will be worth INR 6,405 million by FY 2019
- The industry is largely export-driven with the domestic market contributing 40% to the total revenues
Although the ready to eat (RTE) food category was first introduced in India in 1987, it was not well received by Indian consumers due to the dependence on traditional cooking. In the early 2000s, with the advent of new technology that improved the shelf life of products and the growth of storage and distribution centres, RTE products began to gain popularity. Several segments were introduced in the industry resulting in an increase in product differentiation. One of these segments was developed by using retort technology, and came to be known as the heat and eat food industry.
The heat and eat food industry in India, valued at INR 2,370 million (~USD 39.5 million) in FY 2014, has been growing at a CAGR 18% for the last three years. The industry is expected to grow at a CAGR of 22% in the next five years till FY 2019 due to rapid urbanisation, increasing disposable income, and an expected improvement in retail infrastructure. ValueNotes estimates that the industry will be worth approximately INR 6,405 million (~USD 106.7 million) by FY 2019.
India’s heat and eat food industry is currently dominated by the top five players, viz. ITC, MTR Foods,
Kohinoor Foods, Gits and Tasty Bite Eatables. ITC and MTR together contribute to about 49% of the market share, while the other three players make up 35% of the total production of heat and eat food. Other players in the category include ADF Foods, Priya Foods and Heinz who are relatively new entrants in the market with limited product lines and have a regional presence.
According to Vaishnavi Raichur, a research analyst at ValueNotes, "The heat and eat food category has a tremendous growth opportunity in the near future due to a growing youth population and working woman segment." She adds, "Increasing work and study commitments, declining culinary skills, the rising need for convenience, and surging disposable incomes, along with clever marketing will all lead to a higher demand for heat and eat products.”
The heat and eat category of food products is largely export-driven as it is yet to establish a firm footing in the Indian retail market. However, the domestic markets constitute 40% of the total revenues of heat and eat products. Maximum sales of these products occur in urban areas, especially in tier I cities where retail infrastructure is significantly developed.
The ValueNotes report, titled Heat and Eat Foods Industry in India: 2014-2019, takes a look at the industry including the current market size and growth, the drivers and challenges for growth, the competitive landscape, an analysis of the industry for investor attractiveness, and Porter’s Five Forces.
