Food Trends in India: What Makes the Indian Market so Different?

The majority of growth will come from indulgence/impulse purchases

Whilst staples such as dairy, baked goods, and oils and fats account for the largest proportion of packaged food sales in India, the bulk of growth is set to come from impulse/indulgence products, like confectionery, ice cream, and sweet and savoury snacks. These products are growing very fast in India, catering to the needs of both older and younger consumers.

Young and brand-savvy population drives sales of premium indulgence products

India has one of the youngest populations globally, with the country’s mean standing at just below 29 years in 2014. A growing number of these young Indians have higher disposable incomes than their older counterparts. They also have a lower propensity to save and are less afraid to display what they eat and drink, driving sales of premium and value-added products.

Traditional grocery retailers key to packaged food growth

Traditional grocery retailers account for almost 90% of overall packaged food value sales and are thus key to future growth. Kiranas, the Indian local independent retailers, represent the bulk of packaged food sales. Hence, understanding kiranas is vital to understanding the average Indian consumer.

The future of India lies in its villages

With 68% of the population living in villages, getting into rural India is of utmost importance for packaged food manufacturers and retailers if they are too boost sales and increase their margins. However, rural India has its own needs and challenges, which require special attention.

Consumer foodservice a mixed blessing for the packaged food industry

India boasts one of the fastest growth rates for consumer foodservice. Growth is particularly high in the fast food and pizza foodservice categories. This has both positive and negative implications for the packaged food industry, but can work in the industry’s advantage if the right steps are taken.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment