Ready-to-cook foods surge 58% as Indian consumers prioritise convenience
While overall packaged foods saw modest growth of around 8%, the RTC segment posted a sharp 58% rise in 2024, according to Kantar Worldpanel data.
From dosa batters to curry and cake mixes, consumers are increasingly opting for convenience, with their yearly purchases in this category having doubled. The shift is being fueled by urbanisation, more dual-income families, and fast-paced, changing lifestyles.
Even as RTC has surged, its cousin category, Ready-to-eat (RTE) foods, is quickly losing relevance. RTE, which includes products that can be served straight from the pack, (such as, heat and eat pulaos, heat and eat curries, where the packaged food just needs to be warmed before eating) has lost half its volume in the past two years.
This underscores a greater interest towards semi-cooked options that offer convenience without compromising the home-cooked experience, compared to fully cooked meal offerings, K Ramakrishnan, MD, South Asia, worldpanel division, Kantar told TOI. "Convenience is king, but the landscape is evolving. Consumers want speed, but they also crave freshness, health, and control over their meals. Brands that innovate along these lines stand poised to capture the next wave of growth,''he added.
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Capitalising on the trend, packaged food companies are expanding their offerings.
Ashu Phakey, VP and business head - frozen and fresh foods at
ITC
, said "There has been substantial growth in the overall RTC category in the last few years, given the heightened demand. In addition, the recent rise of quick commerce has boosted accessibility. In the last few years, we have seen Indian consumers increasingly add RTC products in their grocery basket. There are several factors, which are driving category traction such as, increase in disposable income, convenience, accessibility and innovation in the product portfolio. Also, consumers prefer buying RTC as it also cues fresh food made at home''.
Just a couple of years ago, the convenience category made up a mere 5% of the packaged foods segment. Today, that share has climbed to 8%, a steady but significant expansion that reflects their growing foothold.
Rajiv Kumar, vice chairman, Dharampal Satyapal Group said: "We have been present in the gourmet, ready-to-cook gravies segment since late 2023. These products tend to be more popular, as they cater to the consumer's desire to feel involved in the cooking process.''
(With TOI inputs)
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