New Delhi: The size of packaged food in India is set to witness a quantum jump to $50 billion by 2017, CAGR of 35 per cent due to demand for ready to eat food and snacks, according to an industry study, as such food is convenient and gaining confidence. Currently the industry is around $32 billion.
The average rate of annual spending on packaged food by Indian households has increased by 32.5 per cent during 2010 -2015 and the growth is expected to touch around 35 per cent in the coming years, said an Assocham study. The survey claimed that “76 per cent of parents, mostly both working, with children under five years in the big cities are serving these easy-to-prepare meals at least 10-12 times per month in some form or the other.”
Assocham secretary general D.S. Rawat said that the consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-paced, attracting lot more companies to launch new types of products and variants. The paper also points out that there is a large divide between urban, semi-urban and rural consumers. The urban demand accounts for 80 per cent of all packaged food.”
“About 76 per cent of the nuclear families feel that they have less time to spend in the kitchen. It is in this background that the home delivery business model for cooked food is growing,” said Assocham. “Nearly 79 per cent of unmarried people prefer this food. The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat and health products,” it said.
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