Foodservice, How about Giving a Treat to...
Posted in Food Services by Adolf on Dec 8,2014 22
Expanded shelf-life, better storage and distribution has helped the industry grow
It is hard to believe that the ready to eat items were first launched in India in 1987, it is quite sure that not many of us who today consume these delicious quick preparations knew this. Though the “HEAT AND EAT” as this category is famously known was introduced some 25 years ago it did not have a performance which was estimated. The initial stages proved to be more of a disaster as the Indian culture was more in favor of home cooked food consumption. However, the industry had to alter certain aspects depending on which it struck success in the early 2000’s.
Better quality, Indian cuisine recipes and longer shelf-life along with advanced storage and distribution networks are listed to be helping factors for the extremely successful industry.
The HEAT AND EAT food category found its active market after the use of the retort technology. The industry is estimated to be of $ 39.5 million by the end of 2014, fast lifestyle, growing numbers of youth population and increasing number of the women working class are marked to be the reason for this massive market size for ready to eat foods in India. It is projected to grow and become a further mammoth expansion which is possible as the rural market remains untouched and is expected to be explored in the recent following years.
The same industry in India is forecasted to build a three time bigger business of $ 106.7 million by the finish of the year 2019. At present there are a few brands offering these Heat and Eat food products such as MTR Foods, ITC, Gits and Tasty Bite Eatable Products. Out of these, MTR Foods and ITC share a major dais of 49% market share whereas the rest of the brands cover a margin of 35%. Experts from the industry indicate that most of these brands produce eatable and export most of the quantities to foreign consumption, as countries in aboard have a better consumption rate. However, the domestic market is catching up fast as around 40% of the total industrial revenue is sourced from Indian sales and sure to increase in the coming years. Maximum domestic sales result from the tier-I cities where the infrastructure in the retail industry is well developed compared to the rest of the nation.
Moreover, the category has some well performing unorganized brands which may make up for some added competition in the open market, making life tough for the big brands operating in the industry.