Growing economy, increasing employment opportunities and changing lifestyles are some of the drivers behind the increasing prepared meals market in India, which is estimated to grow from Rs 260 crore (approximately US $ 37.9 million) in 2018 to Rs 470 crore (approximately US $ 63.2 million) by 2023, at a compound annual growth rate (CAGR) of 12.7%, says GlobalData.
GlobalData’s report, ‘India Prepared Meals – Market Assessment and Forecast to 2023’, reveals that the ready meals category held the most significant value share of 88.8% in 2018 and is forecast to grow at a CAGR of 12.7% from 2018 to 2023. On the other hand, the meal kits category, which held a value share of 11.2% in 2018, is expected to record a value CAGR of 12.2% during the next five years.
‘Ready meals’ was also the largest category in volume terms, registering volume sales of 9.1 million kilograms in 2018. The category is forecast to grow the fastest at a CAGR of 9.3% during 2018 to 2023.
Sneha Singh, consumer analyst at GlobalData, says, “The growing middle class and increasing working population, particularly young adults, looking for instant and convenient food products, are shifting towards prepared meals.”
MTR Foods, Haldirams, and Gits Food Products are leading companies in the Indian prepared meals sector. MTR Foods offers products in meal kits and ready meals categories, whereas Haldirams and Gits Food Products, have products positioned in the ready meal category.
Hypermarkets and supermarkets are the leading channel for the distribution of prepared meals in India. It held a value share of 80.9% in 2018, followed by convenience stores and food and drinks specialists with shares of 14.5% and 2.6%, respectively.
Singh concludes, “With growing disposable income, Indian consumers will continue to trade-up in the prepared meals sector, providing manufacturers an opportunity to offer products with high quality and novel ingredients.”