Market Overview
The Indian ready-to-eat (RTE) and ready-to-cook (RTC) food market has experienced significant growth in recent years, driven by the changing lifestyles, increasing urbanization, and rising disposable incomes. The market includes a wide range of packaged food products that require minimal or no preparation before consumption, catering to the convenience needs of modern consumers. The RTE segment comprises pre-cooked and shelf-stable meals, snacks, and desserts, while the RTC segment includes pre-mixed ingredients, sauces, and meal kits that require some level of cooking or preparation. The market has witnessed the entry of several domestic and international players, who are offering innovative and diverse product ranges to cater to the evolving tastes and preferences of Indian consumers. The increasing participation of women in the workforce, the growing nuclear family structure, and the rising trend of on-the-go consumption have further fueled the demand for RTE and RTC food products in India. The market has also benefited from the expansion of modern retail formats, such as supermarkets and hypermarkets, and the growing penetration of e-commerce platforms, which have made these products more accessible to consumers across the country.
Key Takeaways of the market
- The Indian RTE and RTC food market is witnessing robust growth, driven by the changing lifestyles, increasing urbanization, and rising disposable incomes.
- The market is highly competitive, with the presence of both domestic and international players offering a wide range of product categories and flavors.
- The RTE segment, particularly the snacks and meals categories, accounts for a larger share of the market compared to the RTC segment.
- The increasing health consciousness among consumers is driving the demand for healthier and organic RTE and RTC food options.
- The premiumization trend is gaining momentum, with consumers willing to pay more for gourmet and specialty RTE and RTC food products.
- The urban markets, particularly the metro cities, are the major contributors to the RTE and RTC food market growth in India.
Market Driver
The primary driver for the Indian RTE and RTC food market is the changing lifestyle and the increasing time-poverty among urban consumers. With the fast-paced and hectic schedules, consumers are increasingly seeking convenient and quick meal options that fit into their busy lifestyles. The rising number of working women and the growing prevalence of nuclear families have further accelerated the demand for RTE and RTC food products, as they offer a hassle-free and time-saving alternative to traditional cooking. Another key driver is the rising disposable incomes and the growing purchasing power of the middle-class population, which has led to a shift in consumer preferences towards premium and branded RTE and RTC food products. The increasing exposure to global cuisines and the desire to experiment with new flavors have also contributed to the market growth, as consumers seek variety and novelty in their food choices. The growing health consciousness among consumers has also driven the demand for healthier and nutritious RTE and RTC food options, such as those made with natural ingredients, preservative-free, and fortified with vitamins and minerals.
Market Restraint
Despite the positive growth prospects, the Indian RTE and RTC food market faces certain challenges. One of the major restraints is the perception among some consumers that these products are unhealthy and lack nutritional value. The presence of preservatives, artificial flavors, and high levels of sodium and sugar in some RTE and RTC food products has raised health concerns and deterred health-conscious consumers from purchasing these products. Another challenge is the competition from fresh food alternatives, such as home-cooked meals and street food, which are often perceived as more authentic and affordable. The lack of proper cold chain infrastructure and the limited shelf life of some RTE and RTC food products also pose logistical and distribution challenges for manufacturers, especially in smaller cities and rural areas. Moreover, the high cost of packaging and the need for continuous product innovation to keep up with changing consumer preferences put pressure on the profitability and pricing strategies of market players. The market also faces regulatory challenges, such as the need for strict labeling and food safety compliance, which can increase the operational costs for manufacturers.
Market Opportunity
The Indian RTE and RTC food market presents significant opportunities for manufacturers to innovate and expand their product offerings. One key opportunity lies in the development of healthier and more nutritious RTE and RTC food options that cater to the growing health-conscious consumer segment. Manufacturers can focus on using natural and organic ingredients, reducing the use of preservatives and artificial additives, and fortifying their products with essential vitamins and minerals. The increasing demand for plant-based and vegan RTE and RTC food products also presents an opportunity for brands to tap into the growing vegetarian and flexitarian consumer base in India. Another opportunity lies in the premiumization and customization of RTE and RTC food products, catering to the rising aspirations and individualized preferences of consumers. Manufacturers can offer gourmet and artisanal RTE and RTC food products, with unique flavor combinations, international cuisines, and specialized dietary options, such as gluten-free and low-carb. The growing trend of online food ordering and home delivery also presents an opportunity for RTE and RTC food brands to partner with food delivery platforms and cloud kitchens to reach a wider consumer base and offer personalized meal solutions.
Market Segment Analysis
- Product Type Segment: The product type segment of the Indian RTE and RTC food market is diversified and includes a wide range of categories. In the RTE segment, the snacks category, comprising items such as chips, biscuits, namkeen, and bakery products, holds a significant share of the market. The meals category, including shelf-stable ready meals, curries, and rice dishes, is also gaining popularity, particularly among working professionals and students. The RTC segment is primarily dominated by the meal mixes and cooking sauces category, which includes products such as ready-to-cook gravies, curry pastes, and instant meal mixes. The breakfast cereals and mixes category, comprising oats, muesli, and porridge mixes, is also witnessing significant growth, driven by the increasing health consciousness and the demand for convenient breakfast options. Other emerging categories in the RTE and RTC segment include soups, pasta and noodles, and desserts, which are gaining traction among younger consumers and those seeking international flavors.
- Distribution Channel Segment: The distribution channel segment of the Indian RTE and RTC food market is primarily divided into traditional retail, modern retail, and e-commerce. Traditional retail, including neighborhood stores and kirana shops, continues to be a significant channel for RTE and RTC food products, particularly in smaller cities and rural areas. These outlets offer easy accessibility, personal service, and credit facilities to consumers, making them a preferred choice for daily food purchases. Modern retail, comprising supermarkets, hypermarkets, and convenience stores, is gaining prominence in urban areas, driven by the increasing urbanization and the growing preference for organized retail formats. These outlets offer a wide assortment of RTE and RTC food products, along with a superior shopping experience and value-added services. The e-commerce segment, while currently small, is witnessing rapid growth, driven by the increasing internet penetration, smartphone usage, and the convenience of home delivery. Online grocery platforms, such as Bigbasket, Grofers, and Amazon Pantry, are expanding their RTE and RTC food offerings and collaborating with brands to offer exclusive deals and discounts to consumers.
Regional Analysis
The Indian RTE and RTC food market exhibits regional variations, influenced by factors such as cultural preferences, purchasing power, and urbanization levels. The urban markets, particularly the metro cities of Delhi, Mumbai, Bangalore, and Chennai, are the major contributors to the RTE and RTC food market growth in India. These cities have a large population of working professionals, students, and affluent consumers who are more receptive to convenient and ready-to-eat food options. The increasing number of modern retail outlets and the growing trend of online food ordering have further fueled the demand for RTE and RTC food products in these cities. The tier II and tier III cities, such as Pune, Hyderabad, and Ahmedabad, are also emerging as significant markets, driven by the increasing urbanization, rising disposable incomes, and changing lifestyles. The rural markets, while currently small, present a significant untapped potential for RTE and RTC food products, as the penetration of branded and packaged food products increases in these areas. However, the limited distribution infrastructure and the price sensitivity of rural consumers remain challenges for market growth in these regions.
Competitive Analysis
The Indian RTE and RTC food market is highly competitive, with the presence of both domestic and international players. Leading domestic brands, such as MTR, Gits, Haldiram’s, and ITC, have a strong market presence and offer a wide range of RTE and RTC food products across categories. These brands leverage their deep understanding of local tastes and preferences, extensive distribution networks, and strong brand equity to maintain their market leadership. International players, such as Nestle, Unilever, and Kellogg’s, have also made significant inroads into the Indian market, offering their global product portfolios and adapting their strategies to suit the local market conditions. These players focus on product innovation, marketing campaigns, and strategic partnerships to expand their market share and reach new consumer segments. The market also witnesses intense competition from regional and local players, who offer affordable and localized RTE and RTC food products, catering to the specific tastes and preferences of their target markets. The competitive landscape is characterized by frequent new product launches, flavor innovations, and aggressive pricing strategies to capture market share and differentiate from competitors.
Key Industry Developments
- In January 2023, ITC launched a new range of ready-to-cook Indian breakfast items, including idli and dosa batter, under its “Aashirvaad” brand, targeting the growing demand for convenient and healthy breakfast options.
- Nestle India announced the expansion of its “Maggi” portfolio in March 2023, introducing new ready-to-eat and ready-to-cook products, such as instant pasta, noodle bowls, and cooking sauces.
- In June 2023, MTR Foods entered into a strategic partnership with a leading food delivery platform to offer its range of RTE and RTC food products through the platform’s network of cloud kitchens.
- Haldiram’s launched a new marketing campaign in September 2023 to promote its range of RTE snacks and namkeen, focusing on the theme of “Anytime, Anywhere” snacking.
Future Outlook
The Indian RTE and RTC food market is expected to witness robust growth in the coming years, driven by the increasing urbanization, changing lifestyles, and the rising demand for convenient and ready-to-eat food options. The market is projected to reach a value of INR 50,000 crore by 2028, growing at a CAGR of 15% during the forecast period. The RTE segment, particularly the snacks and meals categories, will continue to dominate the market, driven by the increasing time-poverty and the growing preference for on-the-go consumption. The RTC segment is also expected to witness significant growth, as consumers seek healthier and more customizable meal options. The urban markets, particularly the metro cities, will remain the major growth drivers for the RTE and RTC food market, while the tier II and tier III cities will emerge as new growth frontiers. The e-commerce and online food delivery channels will play an increasingly important role in the distribution and marketing of RTE and RTC food products, as consumers seek convenience and personalized offerings. The market will also witness a shift towards healthier and more sustainable RTE and RTC food options, as consumers become more conscious of their dietary habits and environmental impact. The increasing focus on product innovation, flavor diversification, and packaging improvements will further drive the growth and competitiveness of the market in the future.
Market Segmentation
The Indian RTE and RTC food market can be segmented based on the following factors:
- Product Type
- RTE (Ready-to-Eat)
- Snacks (Chips, Biscuits, Namkeen, etc.)
- Meals (Curries, Rice Dishes, etc.)
- Soups and Broths
- Desserts
- Others
- RTC (Ready-to-Cook)
- Meal Mixes and Cooking Sauces
- Instant Noodles and Pasta
- Breakfast Cereals and Mixes
- Others
- Distribution Channel
- Traditional Retail
- Neighborhood Stores
- Kirana Shops
- Modern Retail
- Supermarkets
- Hypermarkets
- Convenience Stores
- E-commerce
- Online Grocery Platforms
- Brand Websites
- End User
- Households
- Working Professionals
- Students
- Others
- Region
- North India
- South India
- East India
- West India
- Price Range
- Economy
- Mid-Range
- Premium
