The India ready-to-eat (RTE) and ready-to-cook (RTC) food market was valued at $557.6 million in 2021, and is projected to reach $2,861.3 million by 2031, registering a CAGR of 17.6% from 2022 to 2031.
Ready-to-eat (RTE) foods are a group of foods that are completely processed before packaging and distribution. These products undergo through various processes such as pre-cleaning, precooking, and pre-mixing before packaging. According to the 2009 US Food Code by Food and Drug Administration (FDA) 2009, RTE foods should be in the edible form before packaging for consumption without using any additional steps to achieve food safety. Whereas, ready-to-cook (RTC) foods are generally in a raw and marinated form that can be used for direct cooking. These categories are commercially prepared foods developed for ease of consumption with taste and nutritional benefits.
RTE food products are in the rise in the India RTE & RTC food market owing to the various factors such as diminishing culinary skills among the consumers, rise in working women population, and curiosity to adopt westernized food culture in the country. This category witnessed a slight increase in the market share in India during and post pandemic which is expected to grow at a highest rate if compared to RTC during the forecast period.
India is one of the fastest growing economies in Asia-Pacific and its rapidly growing consumer market along with a large food sector has made the country more dynamic destination for a wide range of international food companies. Modernization, urbanization, economic growth, education & cultural growth, and cultural changes have impacted its fabled joint family system, leading to its extinction slowly. People are shifting to urban areas for their professional and business work and education, which promotes growth of nuclear families in the country. Thus, number of working women is increasing year-on-year in India. According to a report published by The Investing Tales 2020, nuclear households were accounted for 67% in the year 2016, which is expected to reach 74% by the end of year 2025. These all are the major factors that result in time compression of people to cook food thus, leading to rise in India RTE & RTC food market demand. RTE and RTC foods are becoming more popular among people, which, in turn, has led to rise in demand for these products in the country since past couple of years.
The movement of natural progression of Indian developing societies has resulted in expansion of Indian palate with less cooking activities and skills. Rise in demand for pre-cooked and RTE/RTC food products have changed the consumer preferences toward their daily appetite and food preparation. Rapid urbanization, increase in involvement of consumers in workforce, and rise in nuclear families are some of the key factors that are taking consumers away from authentic and traditional food preparations at home. Consumers are becoming more dependent on ready-made food products resulting in diminishing culinary skills. They are becoming more time-conscious and looking for pre-packed authentic Indian food recipes in the market, which propels growth of RTE gravies, rice & curry, dal, and chicken biryanis. RTE food manufacturers are increasingly focusing on meeting evolving demands of consumers by launching different RTE categories in the India RTE & RTC food market that are native to related areas such as Punjabi dal tadka and authentic sambhar. For instance, in July 2022, Licious India launched few new variants of Biryani- Kolkata Biryani, Hyderabadi Biryani, and Awadhi Biryani in the form of ready-to-cook mixes. Rise in demand for such innovative food products is expected to support the India RTE and RTC market during the forecast period.
India is one of the most popular markets for consumption of non-vegetarian diet, owing to availability of seaside for the fishermen and growing poultry production in the country. According to a survey and report published in India Today 2021, 07 out of 10 people in the country enjoy non-vegetarian food. Thus, Indian consumers are willing to pay for new and novel non-vegetarian food products and RTE & RTC food manufacturers are intensively catering to requirements in the India RTE & RTC food market. The category has developed as a substitute for home-cooked non-vegetarian foods. Kabab & sausages, rice & curry, pizza, and burger are the most popular categories in non-vegetarian RTE & RTC food options, however, pasta and noodles hold a major market share in India.
In past few years, there has been an increase among Indians about long-term health issues associated with the consumption of unhealthy and irregular diet. Indians are taking more efforts in establishing control over their personal health. Consumers are becoming educated and they check the source of raw materials and the manufacturing process of food products during purchase. Detailed nutritional and ingredient information on product packaging is vital in gaining the trust of consumers over a brand. Factors associated with packaged food such as reduced nutritional values and high usage of salt & saturated fats that affect consumers’ health and cause high blood pressure are few of the reasons that force consumers to avoid eating RTE and RTC food. According to a report by the International Journal of Management and Social Sciences Research (IJMSSR), more than half of Indians are influenced by the ‘better-for-you’ claims during the purchasing of RTE and RTC food products. These all are the factors that are impeding the growth of India RTE & RTC food market.
Majority of the RTE and RTC food market is majorly concentrated in Tier 1 and metro cities, owing to busy life style, high purchasing power, and higher standard of living of consumers. These products are mainly available in supermarkets and big modern retails, owing to their refrigeration requirements, which limits its availability in rural or small cities of India. Lack of adequate infrastructure to store and supply RTE and RTC food products in small cities pose a big challenge for manufacturers in the market, which restrains the India RTE & RTC food market market growth.
Consumers are becoming more aware and conscious about their health and focusing on foods that are more convenient to prepare and healthier. For instance, in 2021, Delightful Gourmet Pvt Ltd. (Licious) released a statement that their RTE and RTC category is increasing at a staggering pace post pandemic and contributes for approximately 20% of the total revenue. The company was ready to handle disruptions amid the pandemic by keeping double stock of RTE/RTC in their inventory. Currently, the company is focusing on India RTE & RTC food market share expansion and adopting several market strategies to deliver their products through online distribution partners and retailers. In 2020, MTR foods partnered with online food delivery platform Swiggy in India to deliver food products to door steps of customers.
Furthermore, online demand has rapidly increased for multiple divisions including foods & beverages, especially in RTE and RTC categories that are delivered at home with innovative contactless regulations. The crisis also offers a potential opportunity for manufacturers that capitalize timely and ambitiously on online businesses and who are willing to adopt the same post pandemic. However, spike in trend of RTE and RTC food sales in India is expected to normalize after couple of years. Technological advancements are one of the main reason of the development of India RTE & RTC food market. Canning is one of the most effective and favorable technologies for the production of RTE and RTC foods owing to its beneficial offerings such as cost effectiveness and time compression. The technology leads to a dramatically development of the RTE and RTC food market which is used a preserving technique. Pickling of vegetables, sterilizing the food, fruits preservation, and others have become easier due to the adaption of canning technology. Filling, lacquering, brining, exhausting, thermal processing of canned goods, and cooling are all part of the canning process flow.
The companies profiled in the report are Delightful Gourmet Pvt Ltd., Godrej Agrovet Limited, ITC LIMITED, Just 2 Eat, Orkla ASA, Prabhat Poultry Pvt. Ltd., Tata Consumer Products Limited, TYSON FOODS, INC., Venkys India, and Zorabian Foods.
Segment review
The India RTE and RTC food market is segmented on the basis of product, source, and distribution channel. By product, the market is classified into vegetarian and non-vegetarian. By source, it is classified as poultry, lamb, seafood, and veg sources. By distribution channel, it is divided into supermarkets and hypermarkets, convenience stores, online retail, specialty stores, and others. On the basis of type, it is bifurcated into RTE and RTC.
By Type
RTE segment would exhibit the highest CAGR of 18.5% during 2022-2031, owing to the rising preferences of consumers toward ready made foods to save time in their hectic schedule.
By type, the India RTE & RTC food market is segregated RTE and RTC food products. RTC food products hold major market share owing to the increase in consumer dependability over ready-made or pre-packaged food in their busy schedule.
By Product Type
Vegeterian segment would exhibit the highest CAGR of 18.5% during 2022-2031, owing to the increase in health concerns and rising awareness of the benefits of vegetables.
By product, the India RTE & RTC food market is dominated by the non-vegetarian category owing to the rising interest of consumers in the sea food and poultry products consumption. The demand for vegetarian category is expected to grow decently in the forecast period.
By Source
Veg sources segment would exhibit the highest CAGR of 18.4% during 2022-2031, owing to the increase in health concerns and rising awareness of benefits of vegetables over other foods..
By source, the India RTE & RTC food market is dominated by the poultry category owing to the increase utilization of chicken by the manufacturers of the RTE and RTC food in India.
By Distribution Channel
Online retail segment would exhibit the highest CAGR of 19.8% during 2022-2031, owing to the increase in usage and adaption of e-commerce services in India.
By distribution channel, the India RTE & RTC food market share is dominated by supermarkets and hypermarkets owing to the increasing preferences of consumers towards bulk shopping under a single roof. Furthermore, the emergence of modern trades is another factor boosting the sales of RTE & RTC food products in India.
Key Benefits For Stakeholders
- This report provides an extensive analysis of the current India RTE & RTC food market trends and emerging estimations & dynamics of the India RTE and RTC food industry from 2021 to 2031, in terms of value.
- Detailed India RTE & RTC food market analysis of the market by product, source, and distribution channel helps to understand the different products that are currently in trend, and the variants that are expected to gain prominence in the future.
- The Porter’s five forces analysis highlights the potency of buyers and suppliers to offer a competitive advantage to stakeholders to make profit-oriented business decisions and help strengthen their supplier & buyer network.
- Extensive analysis of the India RTE & RTC food market opportunities is conducted by following key product positioning and monitoring the top competitors within the India RTE & RTC food market size.
- India RTE & RTC food market share for all segments with respect to India is detailed in the report, which helps understand the trends in the industry.
India Ready-To-Eat (RTE) and Ready-To-Cook (RTC) Food Market Report Highlights
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Analyst Review
According to insights of top-level CXOs, cold chain technology in the RTE and RTC food sector is a gamechanger for both manufacturers and consumers. Suppliers may utilize cold chain technique for fresh RTE and RTC food products in India to cater to increased demand in urban as well as rural parts of India. The option to personalize data flow between buyers and sellers is unique to the platform.
Furthermore, blockchain technology encouraged consumers to choose best products in the market. CXOs further add that veganism is becoming more popular and customers are gravitating toward it. Processed and RTE meat producers are seizing the opportunity and releasing new plant-based meat versions to the market. For instance, Maple Leaf Foods, Inc., a leading plant-based meat brand, developed a range of plant-based meat products in 2021 to captivate consumers and meet market demand. On the other side, when health-conscious customers become more aware of the risks of ingesting meat, they are more likely to switch to plant-based meat. Hence, such factors are expected to propel the market growth.
The India ready-to-eat (RTE) and ready-to-cook (RTC) food market was valued at $557.6 million in 2021.
The companies profiled in the report are Delightful Gourmet Pvt Ltd., Godrej Agrovet Limited, ITC LIMITED, Just 2 Eat, Orkla ASA are the key players in the market.
North India is the largest regional market for India RTE & RTC Foods market.
Non-vegetarian category is the leading type of India RTE & RTC Foods market.
Adoption of on-the-go foods and packaged convenience foods are the latest India RTE & RTC food trends in the recent years.
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