Ready to Mix Food Industry In India: Growing at a Fast Pace

The ready to mix food industry in India has witnessed tremendous growth in recent years on the back of changing consumer lifestyles and busier schedules. With increasing urbanisation, dual income households and nuclear family structures becoming commonplace, ready to eat and ready to cook foods have become quite popular. In this article, we take a deeper look at the various factors driving the growth of this segment and how companies are innovating to tap into the opportunities.

Changing consumer habits fuel demand

One of the primary reasons for the ready to mix food industry gaining traction is the changing consumer habits and priorities. Unlike a few decades back, people today have less time to spare for household chores and cooking. Long working hours, hectic schedules and extra-curricular activities have reduced the cooking time available with most households. At the same time, the importance given to homemade and fresh food has not reduced. This gap is being filled nicely by the ready to mix segment which offers the convenience of store-bought products along with the appeal of homemade food.

The young population between 18-35 years of age forms a major part of this target segment for ready mixes. Their preference for convenience and experimenting with new flavours regularly is driving volume sales. Working women also find ready mixes very handy for cooking nutritious meals for their families even on busy days. Overall, the need for easy, quick and hassle-free meal solutions has boosted demand.

Rise of nuclear families

Another societal trend aiding this industry's growth is the prevalence of nuclear family structures in metropolitan areas. With older generations and extended families no longer staying together, the responsibility of cooking meals falls largely on working couples or individuals. They have less time to spend hours in the kitchen but still want home-cooked meals. Ready mixes address this need brilliantly by offering them an easy solution to prepare meals with minimal effort.

The number of households with just two members has increased manifold over the last two decades. Research reports indicate that nuclear families now comprise over 70% of the total households in major Indian cities. This has opened up a huge customer base that is increasingly opting for ready mixes instead of take-outs or frozen packaged foods.

Increase in women workforce

Rapid economic development and modernization have led to a substantial rise in the number of women joining the paid workforce outside their homes in India over the past decade. The female labour participation rates touched an all-time high according to recent reports. This phenomenon has been a significant growth lever for the ready mix industry.

Working women have even less time than their male counterparts to invest in cooking activities after returning home from long office hours. This makes ready mixes an attractive choice as it saves them substantial time without compromising on the nutrition or taste of home-cooked meals. The segment offers a diverse range of products tailored for women who want to cook healthy India Ready To Mix Food within 30 minutes.

Rising disposable incomes

Parallel to the changes in lifestyles and family structures, the overall rise in disposable incomes across urban regions has positively impacted the demand for value-added convenience food products. As people earned more, their spending on branded ready mixes that offer superior quality than local alternatives increased rapidly.

While the middle-income population forms the core customer base currently, even those from higher-income segments are opting for ready mixes sometimes. The premiumization trend along with new product introductions has expanded the market potential further. Going forward, ready mixes are expected to penetrate deeper into rural and semi-urban markets as well driven by higher farm incomes and infrastructure development.

Innovative product launches

Sensitive to the convenience need of time-pressed consumers, companies operating in this space have launched an array of innovative ready mix offerings in the past few years. From instant idli/dosa batters to readymade pav bhaji masala mixes, paneer makhani gravy mixes to exotic offerings like pizza bases - the choices have increased manifold.

Many brands are also introducing powdered mixes that can be prepared instantly by just adding water. This makes the preparation process even simpler. Ingredients are sourced carefully to maintain authentic flavours. Some players have also focused on health-focused variants containing whole grains, millets and protein rich ingredients to appeal to nutrition-conscious buyers. Companies are regularly upgrading formulations basis changing consumer preferences.

With the ready mix segment evolving at a rapid pace, we can expect to witness greater innovations and new product developments in the coming years. The untapped potential as well as industry initiatives aimed at uplifting consumer awareness will propel further gains. Overall, considering the backdrop of a rising ready-to-eat food culture in India, the industry seems poised for continued strong performance.

Rising Investments and Distribution Growth

Encouraged by the fast uptake seen over the past few years, several big firms have raised investments to expand their product portfolio and supply chain infrastructure. Major players plan to set up new production units across regions along with augmenting distributor and retailer networks nationwide.

Going forward, efficient supply chain management for shorter lead times will remain a key focus area. While modern retail channels contribute the lion's share presently, general trade outlets continue to be important for wider outreach especially in secondary cities and rural areas. Companies are proactively partnering smaller kirana stores and improving last mile connectivity across all channels.

Overall, with favorable macroeconomic factors and evolving societal trends continuing to propel demand exponentially, the ready mix industry provides significant headroom for growth in the coming decade. Successful brands will be those able to quickly adapt to dynamic customer needs through constant innovation. If current growth pace sustains, the market size is projected to more than triple to over 2 billion USD by 2025. Undoubtedly, ready mixes have arrived as a popular convenience food choice for Indian households.