Changing tastes and lifestyles are leading to increased demand for packaged and branded food in India, according to a CII-AC Nielsen ORG-MARG report.
"Influenced by the changes in the consumer demand, supply-chain dynamics and marketing interventions, India is emerging as a major world market for retail sales of foods," says the CII-AC Nielsen ORG-MARG report released on Sunday.The report, "Foods and Beverages — Challenges and opportunities in the Indian Market", states that foods sales have contributed a staggering 72 per cent to incremental FMCG (fast moving consumer goods) value in 2004 as compared to 2000.Most of the incremental value "has come. From packaged basics like cooking oils, atta, rice and ghee — indicating an overall upswing in the commodity — to branding movement."
According to the CII report, the most significant change in the marketing environment in recent years has been the advent of modern for-mat stores (MFS). Though MFS accounts for only three per cent of FMCG sales, they have been increasing at a compound annual growth rate (CARG) of 15 per cent in the last five years. Even without major reforms, it is expected that the year 2010 will see a 10 per cent contribution by modern trade to all FMCG. In metros, this figure is expected to be 30 per cent.
The number of traditional retail stores is growing rapidly, and the trend is likely to continue for the next three years. By 2007, the number of stores is likely to be 7.8 mil-lion with bulk of the growth coming from grocers and street corner stores. The CII report points out that one of the biggest opportunities in food in the coming years are likely to be the "Quasi" or quick meal, because there is a greater openness to experimenting."Since the most important role of eating a full meal has already been broken, there is a need for a combination of convenience, hygiene, variety and value ... not all of which are readily available today," the report observes. (TANS)
"Influenced by the changes in the consumer demand, supply-chain dynamics and marketing interventions, India is emerging as a major world market for retail sales of foods," says the CII-AC Nielsen ORG-MARG report released on Sunday.The report, "Foods and Beverages — Challenges and opportunities in the Indian Market", states that foods sales have contributed a staggering 72 per cent to incremental FMCG (fast moving consumer goods) value in 2004 as compared to 2000.Most of the incremental value "has come. From packaged basics like cooking oils, atta, rice and ghee — indicating an overall upswing in the commodity — to branding movement."
According to the CII report, the most significant change in the marketing environment in recent years has been the advent of modern for-mat stores (MFS). Though MFS accounts for only three per cent of FMCG sales, they have been increasing at a compound annual growth rate (CARG) of 15 per cent in the last five years. Even without major reforms, it is expected that the year 2010 will see a 10 per cent contribution by modern trade to all FMCG. In metros, this figure is expected to be 30 per cent.
The number of traditional retail stores is growing rapidly, and the trend is likely to continue for the next three years. By 2007, the number of stores is likely to be 7.8 mil-lion with bulk of the growth coming from grocers and street corner stores. The CII report points out that one of the biggest opportunities in food in the coming years are likely to be the "Quasi" or quick meal, because there is a greater openness to experimenting."Since the most important role of eating a full meal has already been broken, there is a need for a combination of convenience, hygiene, variety and value ... not all of which are readily available today," the report observes. (TANS)