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Is there a silver lining to the dark cloud?

Is India ready to take the plunge?

RTE (Ready to eat) including RTC (Ready to cook) is often termed as ‘Convenience Food’ was introduced in India originally in early 90s, the concept failed initially largely owning to:-

  • Low level indigenization
  • Lack of understanding of local tastes
  • Over estimation of demand potential
  • Rosy assumptions- slow bureaucratic clearances
  • Inefficient logistics and infrastructure
  • Inappropriate strategies- Pricing
However, the RTE & RTC market has recently seen drastic growth, according to industry reports the biggest reason for purchasing ready-to-eat meals is convenience due to a lack of time to prepare a proper meal – 87% claimed it as their main / second reason for purchasing them, another major reason was that consumers didn’t have enough money to spend in restaurants. Beyond convenience, few cited cheaper than buying all the ingredients and preparing from scratch as their reason for purchasing them. The category is estimate to see a CAGR of 19 % in the coming few years, primarily due to the following factors:-
  • Large Size of Indian market
  • Psychographic changes
  • Government Initiatives
  • Rising Income Levels
  • Changing Food Habits
  • Packaging Convenience               
  • Organized retail lends impetus to RTE / RTC sales
  • Increasingly Affordable Prices
  • New Product Introductions by Brands….
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