Dublin-based Research and Markets says the Indian food industry is growing at a CAGR of 5.1 per cent and is expected to reach US$300 billion this year, despite suffering from various challenges such as inadequate infrastructure, unreliable power supply and lack of trained manpower.
Food processing industry forms close to 43 per cent of the total food industry and the share is expected to grow to 50 per cent by 2015, it said in a report “Analyzing the Frozen Food Market in India 2015”.
The sector is undergoing various changes in terms of the manufacturer’s capability and the consumer’s perception. While earlier frozen vegetables used to be the most popular items of sale, now items such as sausages, kebabs, pork and seafood are gaining popularity in the Indian market.
The domestic per capita frozen food consumption in India is still very low, and with the acceptance of frozen food fast increasing, the sector has a lot of growth potential. Since the category is still nascent in India, it is essential to create awareness through in-store promotions and advertisements, according to the report.
Cross category promotions and wet sampling at stores have been found to be the most effective methods of promotion for launching new products as well as boosting sales of existing products, it said.
fii-news.com
