Get All Access for $5/mo

Here's How Indian F&B Retail Industry is Transforming India consumes close to $30 billion meat annually where 90 per cent is handled by the unorganized market

By Lisa Suwal

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock

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 per cent of Indians over the age of 15 are non-vegetarian. India consumes close to $30 billion meat annually where 90per cent is handled by the unorganized market.

What do People Like?

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 were 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 Shift in the Market as a Result of Demand

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 centre 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.

Managing the Product

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 $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.


Lisa Suwal

Lisa Suwal - CEO of Prasuma

A Postgraduate from Symbiosis Center for Management and Human Resource Development, Pune. Lisa Suwal - CEO of Prasuma - Pioneers of premium Meats and Delicatessen. Growing up in a family involved in delicatessen business for over 30 years, she has always been exposed to the nitty-gritty of the business and the art of making good food. A young and seasoned marketer, she is known for her innovative approach towards brands and alluring business perspective.

News and Trends

TDV Unveils Second Fund with INR 50 Cr Corpus, Targets 10-12 Annual Investments

Trillion Dollar Ventures, founded by Ujwal Sutaria, will invest INR 1-2 crore per startup in emerging sectors like spirituality tech, fintech, and gaming, making 10-12 annual investments from Q3 FY25.

News and Trends

IndiaQuotient Leads INR 27 Cr Funding Round in Furnishka, Total Funding Reaches INR 45 Cr

Furnishka will use the funds to enhance product development, strengthen manufacturing, and expand geographically with six new stores. The company will also grow its furniture collections and create educational content for customers.

News and Trends

How AI Can Play a Bigger Role in Predicting Climate, Diseases, Agriculture, and Food

While one would hope another episode similar to COVID-19 will not take place in future, the reality is that we are living in a global village. We will likely witness such situations more frequently and rapidly, which is why, along with human empathy, we will need advanced technology at our disposal

News and Trends

Capital IQ Acquires Karman Drones at INR 75 Cr, Signaling Strategic Entry into Drone Sector

Karman Drones specialises in indigenous drones for defense and civil sectors, including the Pratham series, Tethered Drones, and Long Endurance VTOL. It's also developing Kamikaze drones with VTOL and recovery features.

Side Hustle

This 20-Year-Old Student Started a Side Hustle With $400 — and It Earned $150,000 Over the Summer

Jacob Shaidle launched his barbecue cleaning business Shaidle Cleaning in 2021 when he was just 15.