Indian food market sets for big leap, says US report
The Indian food market is set to more than double by 2025 on the back of growing economy and changing lifestyles of people, says a US report.
By PTI |
NEW DELHI: The Indian food market is set to more than double by 2025 on the back of growing economy and changing lifestyles of people, says a US report. Citing a study by McKinsey&Co, a report by the US Department of Agriculture says: "The market size for the food consumption category in India is expected to grow from $155 billion in 2005 to $344 billion in 2025 at a compound annual growth rate of 4.1 per cent."
The market holds enormous potential for snackfood. The urban India consumes commercial savoury snacks 10 times more than its rural counterpart, with people in the western parts topping the chart of snack lovers followed by the northern region, the report said.
Around 1,000 snack items and 300 types of savouries are sold in India. Potato chips and potato-based products are the largest product category with over 85 per cent share of the salty snack market, it pointed out. Pepsi and Haldiram's are some of the major players in the organised potato chips market.
India's snacks market is estimated to be worth $3 billion, with the organised segment accounting for half the market share and growing at a rate of 15-20 per cent a year. The unorganised snack food market is worth $1.56 billion and is growing at 7-8 per cent, the report said.
"Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers, it said, adding "there is a widespread recognition in India that consumers are likely to replace light meals with snacks".
The market holds enormous potential for snackfood. The urban India consumes commercial savoury snacks 10 times more than its rural counterpart, with people in the western parts topping the chart of snack lovers followed by the northern region, the report said.
Around 1,000 snack items and 300 types of savouries are sold in India. Potato chips and potato-based products are the largest product category with over 85 per cent share of the salty snack market, it pointed out. Pepsi and Haldiram's are some of the major players in the organised potato chips market.
India's snacks market is estimated to be worth $3 billion, with the organised segment accounting for half the market share and growing at a rate of 15-20 per cent a year. The unorganised snack food market is worth $1.56 billion and is growing at 7-8 per cent, the report said.
"Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers, it said, adding "there is a widespread recognition in India that consumers are likely to replace light meals with snacks".
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
