Rising household income drives demand

The Indian food processing market is projected to reach Rs.50,571 billion by 2024, exhibiting a CAGR of 12.4% during 2019-2024. It was Rs.24,665 billion in 2018.

The major demand drivers are rising household incomes, urbanization and the growth of organized retail, said a ResearchAndMarkets report “Indian Food Processing Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024” which was released on 1 July 2019.

A continuous growth in the urban population and an increase in employment rates have resulted in consumers living a fast-paced and busy lifestyle.

With limited time available for cooking and meal preparation, processed foods such as ready-to-eat products and snacks have become quite popular, particularly in the urban areas, noted the report.

India has one of the largest working populations in the world. With increasing disposable incomes, this segment can be regarded as the biggest consumer of processed foods in the country.

“We expect this population to grow continuously during the next five years,” added the report.

Increasing penetration levels of organized food retail outlets are offering a wide range of options to consumers. Organized retail outlets allow consumers an access to a diversified range of products coupled with attractive discounts.

The proportion of working women have been increasing continuously both in the urban and rural areas.

As a result of their busy lifestyle, the amount of time for household activities such as cooking is declining.

This is creating a rising demand for processed and ready-to-eat foods, said the report. fiinews.com