Growth Drivers of Convenience Food in India

Major numeric and socioeconomic changes in the last two decades, such as increasing population, increasing disposable incomes, rural to urban movement, increase in rural per capita productivity has resulted in major shifts in food consumption trends and production patterns in India as reported by many researchers. There has been an accelerating shift from food security to nutritional security and convenience foods in the recent past. It is also observed that total expenditure on food has increased across all classes.

- Jayanta Roy

The increasing presence of drive-through windows, take-away meals, microwave dinners, home delivery for groceries and online shopping also influences the sale of convenience foods due to both increased availability and affordability. Rising urbanization leading to changing lifestyles and less time to prepare food at home, willingness to experiment with different and new products, changing tastes and preferences, exploration of new tastes by the consumers etc. are the key drivers of the recent growth of the convenience food sector in India. Convenient food, commercially designed to maximize ease of consumption, makes it possible to cater to delivery and dine out requests in today’s lifestyle. Such food is usually ready to consume without further preparation, easily portable, and has a long shelf life.

Convenience food category of food includes prepared foods such as ready-to-eat foods, frozen foods, shelf-stable products and prepared mixes such as cake mix. Convenience food is available in a variety of forms which may include products like pre-cut vegetables, bottled and canned products, frozen meat and snacks, ready to cook (RTC) or ready to serve (RTS) foods and many more. The RTE and RTC market is undergoing continuous evolution caused by changes in consumer behaviour and food technology. Many leading food companies are augmenting their infrastructure and developing new categories of convenience foods such as soup powders, artificial gravies, cereal based breakfast options, and various kinds of pudding mixes etc.