Globalization has significantly influenced various aspects of
Indian society, including the change in the food habits of Indian Consumers
over the last two decades. Aided by several economic developments, increasing
spending power and openness to new diets & lifestyle habit, the development
of production, processing, distribution and marketing of the FMCG and F&B
Industry has seen tremendous growth in India.
One of the
major shifts in the food industry is the increasing number of
Indians shifting to a non-vegetarian diet despite India having a reputation as
a vegetarian nation. According to the sample registration system (SRS) baseline
survey 2014 released by the registrar general of India, 71 percent of Indians
over the age of 15 are non-vegetarian. India consumes close to US$30 billion
meat annually where 90% is handled by the unorganized market.
In this fast growing industry, a prodigious shift has been seen
towards consumption of fresh & chilled ready to eat meats including Sausages and Cold Cuts. The Indian
Market for non-vegetarian products has been primarily dominated by frozen ready
to eat meat products unlike International Markets where fresh & chilled
ready to eat non-vegetarian products are more prevalent with decreasing frozen
sales. Fresh ready to eat products (including sausages & cold cuts)
are superior in taste, nutritional value and texture. Due to these reasons,
globally, in most developed countries, the focus is on fresh with very few
brands available in the frozen range.
However, a shift towards consuming fresh sausages, deli
products, ready to eat products are increasing with consumers in their 20s and
30s, in particular, are driving the changes in frozen food as they grew up in
an era of heightened awareness about nutrition, intense scrutiny of the food
industry and the advent of the Internet and social media to fuel that fire.
Consumers are becoming more aware of the food ingredients and look for "better-for-you"
high quality ingredients. TV shows like "Master Chef", easy cook
recipe books and columns appealing viewers for pre-chopped vegetables/meat or
other prepared meal components aid them to cook fresh meals quickly.
The changing consumer demand is leading to major changes in the
Retail Industry to tap into this demand and diminishing frozen sales. Even
globally, Kroger Co. (the 2nd largest food retailer after Wal-Mart
Stores Inc. in the US)said frozen sales have weakened
over the past few years. At the center of the supermarket and the heart of
kitchen convenience, freezer-aisle items are struggling today as consumers
shift their tastes to fresh food that they see as healthier. Retail stores have
sought to capitalize on the desire for fresh meats, ready to eat products and
deli products by sprucing up the perimeter of the store with investment in
Chillers and infrastructure as this is critical differentiator against
competition.
On the supply side, the challenge also remains given the complex
nature of managing chilled temperatures unlike Frozen Meats & ready to eat
products and supply chain proves to be the hindrance in providing high quality
fresh food. With very few manufacturers having the expertise and technical
know-how in the fresh meat & fresh ready to eat products - creating high
barriers for entry, leading to limited choices in brands to choose from. Also,
the focus on infrastructure for fresh & chilled meats & deli products
remains a major roadblock. Thankfully retailers now understand the change and
are moving towards Fresh meats.
The cold-cut retail/e-tail sector has experienced positive
growth in Indian markets, yet there is considerable untapped marketing
potential. The meat market is expected to reach US$65 billion by 2022. This reflects
the appetite and high interest level of meat lovers. It will be interesting to
see what 2020 has in store needless to say more players are expected to join
the race.
No comments:
Post a Comment