India Ready-to-mix Food Market

India Ready-to-mix Food Market Outlook for 2023 to 2033

The India ready-to-mix food market size is estimated to be US$ 1,749.7 million by 2033. The ready-to-mix food demand in India is expected to register a remarkable CAGR of 14.8% through 2033, with a present valuation of US$ 440.1 million in 2023.

Key Highlights

Consumers Inching Toward Healthy Brands for People and the Planet

The growth in the snacking sector is amplifying at a significant pace. Consequently, unfolding opportunities for brands to present new eating experiences for diverse moments. To add to this momentum, the increasing demand in India for judicious purchase choices is contributing to the expansion of snacking and confectionery industry. This industry encompasses salty and sweet nibbles, confectionary, chocolates, bakery, and frozen snacks.

Increasing Focus on Sustainability in the Ready-to-Mix Food Industry

In their search for the right snack, consumers are now also giving importance to the sustainability of the food item. This is strengthening the efforts of manufacturers, who are committed to elevating the sustainability quotient of ready-to-mix food products. Some of the clear markers of sustainability in the ready-to-mix food industry are on-pack education, post-consumption environmental impact, responsible packaging and sourcing, and community impact.

Brands Catching onto the Enthusiasm for Made in India Products

Key participants are leveraging the brand stories to gain higher customer loyalty. However, brand stories are not just what meets the eye. They run much deeper than what we see on TV or hear on music apps. Brand story is entrenched in the growth of communities, product journey, and echoes of shared purpose.

Small details like a clear print on a pack of the product that mentions being made in India, responsibly sourced ingredients, or a video of a farmer relishing the good harvest are some stories that make India proud and overjoyed. As new opportunities emerge for the ready-to-mix food industry, brand stories are becoming much more crucial to retain a loyal consumer base.

Historical Performance of the India Ready-to-mix Food Market Vs. Demand Outlook

The ready-to-mix foods and snacking industry has gone through many transformations since its inception. MTR Foods, which is an authentic Indian masala brand, has had much to do to enhance the acceptability of RTE in the India market. The brand came up with the solution of RTE foods, snacks, and chutney at the time of the Emergency Act, which forced a reduction in the price of food served in restaurants. Since then, the convenience product has only grown in popularity.

During the period from 2018 to 2022, the ready-to-mix food products in India have enjoyed accelerated growth due to the outbreak of coronavirus. The pandemic-induced panic buying in the initial months boosted sales of packaged Indian food products. As consumers prioritized health and hygiene during the pandemic, the key players reflected on their offerings to bring about a nutritious change in their products.

The market was also introduced with new products. For instance, in January 2018, Tata Sampann introduced a ready-to-eat multi-gran khichdi mix. The food mix is inspired by the Guinness World Record-winning khichdi composed of the firm’s products at World Food India. The company’s motto is to introduce products that are the amalgamation of traditional Indian wisdom and modern science.

As the market steps toward the future, more innovation and technologies are expected to be incorporated. With an impressive CAGR of 14.8% through 2033, the ready-to-mix food market is well-poised for forecast growth.

India Ready-to-mix Food Market Trends

• Year-round accessibility and ease of use of RTE food items are significant propellers of ready-to-mix food products
• Sedentary lifestyles of consumers, especially millennials, are fueling the industry's growth
• On-the-go meals are highly sought by working professionals who have insufficient time to prepare meals
• A surging number of females prioritizing their careers and have left the task of cooking on the back burner, which is also promoting the adoption of ready-to-mix food products
• Rising use of technologically-evolved products like inductions and microwaves has eased the cooking method and boosted the adoption of RTE meals.
• Introduction of new varieties with elevated nutrition content
• Growing efforts to expand the distribution channels for ready-to-mix food products in India are also fueling market growth
• Improved association of ready-to-mix food items with safety and hygiene is catering to market development

Nandini Roy Choudhury

Principal Consultant

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Category-wise Insights

Manufacturers Grabbing a Larger Share of the Expanding Snacking Mix Sector

For Indians, snacking has long been considered a significant gastronomical activity that heads toward satisfying the needs of the mind and body. With robust changes in the cultural, social, and economic dynamics, consumers are exhibiting higher concerns for taste, safety, and ease of grabbing the snack mix. Consequently, the inclination toward snack mixes for mood enhancement and quick energy is driving this sub-segment’s growth.

As per the latest ready-to-mix food market statistics, the snack mix sub-segment is expected to acquire a sizeable portion of 52.5%. The snacking patterns in India are constantly evolving. A key trend that has been indicating a deeper and more meaningful relationship between consumers with their snacks.

In India, around 81% of the population replaces 1 meal of the day at the minimum with a snack. Indian consumers have shown persistence in their search for the right snack. Some of their endeavors consist of bite-sized indulgences, new expressions of their long-adored legacy snacks, and new-found fad for snack bars. India is brimming with snacking choices that are driven by physical and emotional well-being. Besides, the country is also driving innovation in its search for the sought-after right snack.

Key factors determining the decisions of snacking mix manufacturers:

• A sizeable portion of consumers opt for snacks with delectable taste
• Indians are very fond of potato-based snacks and consider them an omnipresent element of their snacking platter
• North India in particular is seeing the trend of vegetarian snacks
• Indian snacks hold prominence over the rest of the snacking options
• Higher inclination toward preservative-free snacking options
• Easy availability of the product item
• Working women are more inclined to buy snacks, as they find it to be a convenient option for hunger management

Modern Trade to Bag a Notable Portion of Ready-to-mix Food Market

Concerning a prominent distributor of ready-to-mix food, modern trade tops the charts with a share of 38.3% in the market. Modern trade refers to a sophisticated and organized system of chain retailers like hypermarkets, supermarkets, mini-markets, etc. They are found mainly in cities and are usually corporate-owned. Due to the easy availability and high visibility of new ready-to-mix options in modern trade stores, consumers can easily scan and purchase preferable products.

With the high number of women professionals located in urban cities, it makes sense that female buyers with hectic work schedules are expected to opt for easy solutions to prepare at their homes. Consumers are gravitating toward ready-to-mix solutions that are claiming their products as organic/natural and claim-free.

Competitive Landscape in the India ready-to-mix food market

The India ready-to-mix food market is witnessing increasing investments due to its perceived robust momentum. Leading brands in the market are investing to scale up their manufacturing infrastructure and boost their marketing and sustainability goals. Brands are also turning to social media platforms like YouTube to share their recipes and attract views, to ensure that they remain on the top of their consumers’ minds.

Key players in the ready-to-mix food market are also seeking ways to lower their carbon footprint. Further, merchants are introducing global as well as regional flavors of different states in India. Ready-to-mix food items with elevated texture, flavor, and satiety level, along with health and convenience is expected to lure more customers who are on the path of mindful consumption.

Recent Developments in the India Ready-to-mix Food Market

• In June 2023, Weikfield Foods, which is India’s prominent brand for custard powder, baking powder, corn flour, and pasta, released its recent innovation, the Weikfield Instant Custard Mix. The company is committed to enhancing its consumers’ experiences with easy-to-make food options. With the launch of this ready-in-2-minute dessert, the company is set to transform the custard powder market.
• In March 2023, Ammamma’s, a renowned brand in Telangana, Hyderabad, and Andhra Pradesh for its high-quality and fiber-rich products, launched its product line consisting of a diverse range of packed chapati, along with parota, poori, and dosa-idli batter. The brand is extending its presence in Bangalore by tying up with a strategic logistic partner, named Green Drive Mobility.
• In April 2023, Wipro obtained Brahmins, which is a Kerala-based conventional vegetarian, ready-to-cook, and spice mix brand. The company has also drawn up plans to introduce its snack brands in the southern market. For this purpose, the company is in the process of debuting its brand in the rapidly growing RTE and snacks segment.

Key Players in the India Ready-to-mix Food Market

• Mavalli Tiffin Room (MTR)
• GITS food products Pvt Ltd
• Indian Tobacco Company (ITC)
• Kohinoor Foods and Priya Foods
• Others

Market Segmentation

By Application:

• Snack Mix
• Desert Mix
• Curry Making Enablers

By Distribution Channel:

• Modern Trade
• Kirana Shops
• Online Retailers
• Other Distribution Channels