The RTE/RTC/RTH/RTS/RTD and Frozen food segments, which collectively make up the convenience food industry in India, are poised for robust growth driven by urbanization, changing consumer preferences, and technological advancements. To capitalize on these opportunities, brands and retailers need to focus on innovation, quality assurance, and expanding their market reach.
However, sustained growth in this fast-growing and dynamic sector will depend on overcoming challenges such as infrastructure limitations and building consumer trust.
Overall, the future looks promising for RTE/RTC/RTH/RTS/RTD and Frozen food products in India provided brands and retailers continue to adapt to evolving consumer needs and leverage technological advancements and market opportunities effectively.
India’s food processing sector is witnessing a remarkable transformation amidst impressive growth rates and expanding opportunities. Over the past decade, this sector has surged forward, boasting an impressive 9% average annual growth rate since 2014-15. Central to this success is the food processing sector’s Gross Value Addition (GVA), which has steadily climbed with a Compound Annual Growth Rate (CAGR) of 7.27% over the last five years and now contributes a substantial 20% to the nation’s overall GVA.
Fueling this growth is India’s dual role as the world’s second-largest producer of key agricultural commodities—from rice and wheat to sugarcane and fruits—and as one of the globe’s fastest-growing economies. This dual advantage has not only fortified India’s position as a major food producer but has also nurtured a robust consumer market ripe with opportunity. India’s processed food exports have experienced a significant surge, reaching USD 13.07 billion in 2022-23.
Amidst this backdrop, the Ready to Eat (RTE), Ready to Cook (RTC), Ready to Heat (RTH), Ready to Serve (RTS), and Ready to Drink (RTD) sectors, which also includes the Frozen Food category, have emerged as compelling investment prospects.
Initially introduced in 1987, these categories faced tepid reception due to India’s deep-seated culinary traditions centered on home-cooked meals. It wasn’t until the early 2000s, bolstered by technological advancements enhancing product shelf life and a burgeoning network of storage and distribution centers that these categories began to gain traction.
Several segments were introduced in the industry resulting in an increase in product differentiation. Key innovations, such as retort technology, revolutionized the heat and eat food industry, ushering in a new era of convenience.
However, it was the seismic impact of the Covid-19 pandemic that truly propelled the RTE/RTC/RTH/ RTS/RTD segments into the mainstream. “The pandemic heightened demand for RTE and RTC foods, including frozen options, as consumers sought convenient, shelf-stable alternatives to reduce grocery store visits,” explains Aastha Almast, CoFounder, New Shop, a chain of convenience stores.
From a market perspective, the pandemic catalyzed a significant transformation within India’s RTE/RTC/RTH/RTS (Ready-to-Serve) /RTD (Ready-to-Drink) and Frozen food segments. As consumer behaviors shifted towards convenience and health consciousness, manufacturers swiftly pivoted, intensifying their efforts in research and development. The goal was clear: to refine nutritional profiles, enrich flavor experiences, and advance packaging technologies to cater to a discerning clientele.
The results were palpable. Indian RTE food products swiftly gained traction both domestically and on the international stage. Over the past decade, the RTE food segment has demonstrated impressive growth, boasting a CAGR of 12%. By 2024, revenues in the Ready-to-Eat Meals market are expected to reach USD 72.21 billion, with projections indicating a robust annual growth of 9.23% CAGR through 2028. Volume forecasts paint an equally promising picture, set to soar to 21.89 billion kg by the end of the decade.
Notably, the global appetite for Indian RTE food products surpasses that of the domestic market, signaling ample opportunities for expansion and investment. With forecasts predicting the highest growth rates among all food processing segments, the RTE sector stands as a beacon of potential for companies looking to capitalize on evolving consumer preferences worldwide
In this dynamic landscape, the convergence of innovation and market demand continues to drive the RTE food sector forward, setting the stage for a new era of growth and opportunity in India’s thriving food processing industry.
Convenience Foods: RTE, RTC, RTH, RTS, RTD, and Frozen Varieties
RTE, RTC, RTH, RTS, RTD foods, and Frozen can be broadly termed under the umbrella of Convenience Foods. Convenience Foods require less time and effort to prepare. These products are pre-washed, pre-cooked, processed, frozen, and can be consumed without requiring extensive food preparation
Used independently, RTE/RTC/RTH/RTS/RTD and Frozen Foods are terms used within the food industry to categorize products based on their preparation requirements and intended usage. Let’s break down each category
RTE Foods are fully prepared and require no further cooking or processing before consumption. These foods are typically cooked, processed, packaged, and often refrigerated or frozen to maintain freshness and safety. Examples of RTE foods include pre-packaged salads, sandwiches, canned soups, frozen meals, deli meats, and baked goods. RTE foods are popular for their convenience and time-saving benefits, as they can be consumed immediately without any additional preparation steps.
Examples of RTE Foods include:
- Packaged Snacks,
- Biscuits and Confectionery
- Ready Meals like instant noodles
- Canned fruits & Vegetables
- Bakery Products
- Ready-to-Eat Breakfast
- International & Ethnic Foods
- Frozen Meals
- Deli Meats
RTC Foods are partially prepared and require minimal cooking or assembly before consumption. These foods usually come with pre-measured ingredients or partially cooked components, reducing the cooking time and effort required by the consumer. Examples of RTC foods include marinated meats, pre-cut vegetables, meal kits, pasta sauces, and frozen pizzas. RTC foods cater to consumers who seek convenience but still desire some level of involvement in the cooking process. They offer a balance between convenience and customization.
Examples of RTC Foods include:
- Meal Kits like pasta meal
- Marinated Meats and Seafood
- Pre-cut Vegetables and Fruits
- Pre-packaged Sauces and Seasonings
- Grains and Legumes
- Baking Mixes
- Ready-to-Cook Meatballs and Burgers
- Dough and Pastry Sheets
RTH Foods are pre-prepared food items that are packaged and designed to be quickly and easily heated or reheated before consumption. These foods are typically fully cooked during manufacturing or preparation, and they are meant to be conveniently heated by the consumer at home or in another setting.
Examples of RTH Foods include:
- Frozen Pizza
- Microwaveable Meals such as pasta dishes, rice bowls,
- or stir-fries packaged in microwave-safe containers.
- Canned Soups
- Frozen Dinners
- Pre-cooked Grains
- Curries
- Frozen Meatballs or Sausages
RTS Foods are fully prepared and require no cooking or additional assembly before serving. These foods are typically served at ambient temperature or after minimal heating, and they are often packaged in containers suitable for immediate consumption. Examples of RTS foods include Pre-made salads, Dips, Sauces, Beverages and Desserts.
RTS foods are ideal for situations where immediate consumption is desired, such as parties, gatherings, or quick meals on the go. They offer convenience without the need for any cooking or preparation.
Examples of RTS Foods include:
- Canned Soup
- Frozen Pizza
- Instant Noodles
- Salad Kits
- Microwaveable Meals
- Deli Sandwiches
- Yogurt Cups
Frozen Foods refer to food products that have been processed, preserved, and stored at sub-zero temperatures, typically below -18°C, to maintain their quality and extend their shelf life. These foods undergo freezing to halt microbial growth and enzymatic activity, effectively preserving their nutritional value, texture, and flavor. They offer convenience as they can be stored for extended periods without significant degradation in quality. This makes them convenient for consumers looking to stock up on items that require minimal preparation.
Examples of Frozen Foods include:
- Frozen Snacks and Convenience Food
- Frozen Meat/ Poultry/ Seafood
- Frozen Meals
- Frozen Fruits & Vegetables
- Ice Cream, Yogurt, and Frozen Dessert
The RTE, RTC, RTH, RTS, RTD, and Frozen foods represent different levels of preparation and convenience for consumers. Whether it’s the fully prepared RTE options, the partially prepared RTC products, or the instantly servable RTS items, these categories cater to diverse consumer preferences, offering convenience, freshness, and ease of consumption.
RTD Beverages are pre-packaged beverages that are ready for consumption without any additional preparation. These beverages are convenient for on-the-go consumption and cater to various tastes and health preferences.
RTD beverages exemplify the convenience and variety available to consumers looking for quick and nutritious drink options, whether at home, work, or on the move. RTD beverages exemplify the convenience and variety available to consumers looking for quick and nutritious drink options, whether at home, work, or on the move
Examples of RTD beverages are:
- RTD Coffee
- RTD Tea
- RTD Protein Shakes
- Functional Drinks like Red Bull, Sting, Gatorade, and drinks
- that cater to specifi c health and performance needs.
- Juice and Smoothies: RTD fruit * Juices and Smoothies
Market Size and Overview
Consumers are seeking effortless meal preparation without compromising on flavor or quality. With an array of options including pre-cut vegetables, marinated meats, and meal kits, contemporary consumers are embracing time-efficient and health-conscious choices. The market caters to diverse consumer demographics, accommodating various cuisines, dietary preferences, and cooking skill levels.
Driven by busy lives and increased urbanization, two-income households increasingly opt for quick meal options without compromising on nutrition or flavor. This demand has spurred innovations in packaging and led to a surge in convenience-seeking products, featuring organic and clean-label ingredients, aligning with the growing focus on health and wellness amidst changing dietary preferences in the international culinary landscape.
Consumers are also drawn to the convenience and health-conscious options offered by semi cooked meals and prepared foods. With busy lifestyles driving the demand for quick meal solutions, the market caters to convenience-seeking consumers with a variety of high-quality, simple-to-prepare options. Embracing international cuisines and catering to diverse dietary requirements, RTC food options focus on personalization and customization, offering customizable ingredients and portion sizes. Subscription services enhance the ready-to-cook experience, while AI-powered recommendation systems ensure fresh and healthy choices.
With a focus on minimally processed, locally sourced ingredients, the market also delivers a range of frozen meals and ethnic cuisine variations, meeting the evolving preferences of health-conscious consumers in the food industry segment. The concept of buying food that is ready to cook and frozen is gaining traction in India with growing number of Indians travelling abroad for different reasons. Food waste is another serious problem that has been addressed by the trend of frozen foods becoming more and more prominent.
Cold chain logistics and packaging developments are progressing at a rapid pace. Moreover, urbanites have started to discover that you can retain the nutritional value of food by freezing it. Compared to other foods, frozen foods are more appealing to consumers due to their minimal/no preservatives, clean labels, and appealing packaging. Another factor that drives consumer adoption of frozen foods is their availability throughout the year. There are many benefits of frozen foods as an alternative to restaurant food, especially if you are looking for something quick and easy to make.
However, the RTE/RTC/RTS and Frozen Food market is fragmented due to the presence of many players, and manufacturers are focusing on product innovation to cater to the increasing demand for meal varieties within segments such as frozen, chilled, vegetarian, and vegan.
“Currently the affordable ice cream space, which is available to the masses, is highly crowded with multiple players in the market. In India, people are now well aware of premium products and accompanied by the increase in disposable income, frozen desserts have become more accessible to a larger segment of population. Hence, consumers are willing to indulge in premium frozen dessert offerings,” says Vasuki Punj, Founder & CEO, Frozen Fun, a premium gelato ice cream brand.
As the rising demand for convenience food products among consumers with busy lifestyles is driving the growth of the RTE/RTC/RTS and Frozen Food market in India, these categories are also projected to have the highest CAGR in the upcoming years, primarily due to the increasing adoption of convenience food.
As a result, many new domestic and international players are also targeting the Indian markets due to factors such as increasingly open markets, changing consumer preferences, young and growing population, and high economic growth rates.
Already, India ranks among the top five regions for ready-to-eat (RTE) and ready-to-cook (RTC) products globally. Both RTE and RTC categories are seeing a swarm of new brands and products enter the market, thanks to the preferences of convenience-seeking consumers, increased demand for sustainable packaging, ongoing product innovation, the rise of food delivery apps, and a thriving startup environment.
As a leading segment of the country’s processed food sector, the RTE market was valued at USD 5.57 billion in 2021 and is projected to reach USD 28.61 billion by 2031, registering a furious CAGR of 17.6% from 2022 to 2031, as per a report by Allied Market Research
According to the Ministry of Food Processing Industries (MOFPI), the RTE food products have grown at a Compound Annual Growth Rate (CAGR) of 12% over the last decade, while RTC food products have grown at a CAGR of 7% over the same period. The production of RTE/RTC foods in India is expected to reach around INR 9,600 crore and 4.6 lakh MT by FY’30, indicating a CAGR of approximately 13%.
Data by Redseer Consulting shows that India’s RTC market stood at INR 2,100 crore in 2019, and growing at a CAGR of 18% the market will be worth INR 48,000 crore by 2024.
As a result, major food brands continue to build valueadded RTE/RTC/RTH and Frozen food products that cater to various consumer needs, as evidenced in the launch of new products like chicken jalapeno sausage, Thai curry, Szechuan chicken, among others.
Within the RTE segment, the frozen ready-to-cook category comprising frozen snacks, frozen fruits and vegetables, frozen meat, poultry and seafood, and others is growing fast, and recording double-digit growth. “The frozen ready-to-cook snacks category is itself estimated to be an INR 3,500 core market, with only 6-7 per cent penetration in the urban areas. This offers a huge opportunity for brands to expand their product expanse and gain market share,” says Mohit Marwaha, Assistant Vice-President, Yummiez, Godrej Tyson Foods
The Frozen Food market in India is estimated to grow at a CAGR of 14.12% between 2022 and 2027. The size of the market is forecast to increase by USD 1,478.91 million, says market research agency Technavio. The growth of the market depends on several factors, including the growing desire for convenience, rapid e-commerce penetration boosting market growth, and the rising demand from QSRs
The ice cream market in India is experiencing significant growth driven by mindful indulgence for premium quality frozen serves. According to IMARC Group, the Indian ice cream market stood at INR 289 billion in 2023. It is growing at CAGR 17.4% and will reach INR 956 billion in 2032. The major driving factor is the premium and new segment of product lines, which are contributing to the growth of the space,” says Frozen Fun’s Vasuki Punj.
According to Redseer Strategy Consultants, the RTC market in India stood at INR 2100 crore in 2019 and the market is expected to grow at a CAGR of 18% to reach INR 4800 crore by 2024. Ready to Cook market is segmented into non-frozen and frozen RTC product with the frozen taking bulk share of the market at present. However, non-frozen RTC is expected to grow at a faster pace compared to frozen RTC food and the
mix of frozen and non-frozen RTC is expected to evolve from 73%:27% in 2019 to 70%:30% by 2024.
The RTD Coffee & Tea market in India is projected to grow by 14.90% (2024-2028) resulting in a market volume of USD 458.5m in 2028, according to Statista. Overall, the fast pace of growth for RTE/RTC/RTH/ RTS/RTD and Frozen Food is primarily attributed to established brands diversifying their product offerings to cater to changing consumer preferences and dietary requirements. This includes introducing healthier options, ethnic cuisines, and premium gourmet products. On the other hand, new brands entering the market are also bringing innovative and niche products to cater to specific consumer segments
At the same time, there has been a significant proliferation of retail outlets, especially in the country’s tier I and II cities. Shopping malls and
supermarkets have become significant points of sale for RTE/RTC/RTH and frozen food items, accounting for nearly 75% of sales. Players in this industry are crafting strategies to inspire cravings for such products. They are doing this through promotional campaigns that inform customers about exclusive stores where their products are available
New opportunities will also arise from functional ingredients, convenience, and organic foods. However, a number of factors will also influence and determine the future growth of the players in this market, including the market environment and government support. Ultimately, to survive and succeed in a market that is so intensely competitive, players will have to differentiate their offerings through the creation of clear and unique value propositions.
Key Drivers of Growth for RTE/RTC/ RTS and Frozen Foods
In recent years, the RTE/RTC/RTH/RTS/Frozen market has experienced significant growth in India. This growth is mainly driven by the increasing preference for convenience food among the working population in India, mostly living in urban centers.
“The increasingly fast-paced lifestyles and the need for convenience have made consumers look for quick and easy food solutions, which is creating demand for a wide array of convenience food,” says New Shop’s Aastha Almast.
Market experts aver that the penetration of convenience food in India exhibits a distinct skew towards larger metro cities, reflecting both socioeconomic factors and evolving consumer behaviors.
Also, as hubs of cultural diversity, metro cities enjoy exposure to global cuisines. This exposure influences consumer preferences towards convenience foods that offer variety, novelty, and ease of preparation, aligning with global food trends.
At the same time, food manufacturers and retailers often concentrate their distribution and marketing efforts in metro cities due to their dense population, infrastructure, and economic viability. This focused approach enhances product visibility, availability, and consumer awareness, further fueling the demand for convenience foods. This exposure influences consumer preferences towards convenience foods that offer variety, novelty, and ease of preparation, aligning with global food trends.
“It’s common knowledge that the category is skewed towards metro cities and affluent households. With the disposable income going up and affordable convenience being at the center of consumption habits – these segments are generating lots of demand from the metros and Tier 1 cities. It’s a very exciting time to be in this category,” says Pranay Singh, Head – Modern Trade, McCain Foods.
Major metro cities boast a dense network of supermarkets, hypermarkets, and online grocery platforms. These channels offer a wide array of convenience foods such as RTE meals, frozen foods, instant mixes, and pre-cut vegetables. The convenience of accessing these products within close proximity or through efficient delivery services further drives their popularity in urban centers. “The convenience of online grocery shopping and the rise of e-commerce platforms are significantly influencing purchasing behaviors in the processed foods segment,” notes Aastha.
Also, a new generation of customers is increasingly concerned about the quality of food and willing to pay a little bit more if it means getting the greatest quality without sacrificing their health. So, Indian food producers are always working to develop new foods, and the RTE/RTC/Frozen food sector is expanding significantly. “There are multiple innovations like momos and other innovative fries and cheese-based snacks, etc, that are driving the growth,” says McCain’s Pranay Singh
“Earlier, the major market mover in the Frozen Dessert space was ice cream wherein there are some brands that don’t use fresh milk and substitute it for milk solids/milk powder. Considering the consumer awareness and their purchase behavior, the trend has shifted towards more authentic product options,” says Frozen Fun’s Vasuki Punj.
He adds that with the shift in market trends, brands that offer healthier alternatives have gained a competitive edge. “Artisanal gelato, sorbets, diary-free (vegan) and low-calorie options are the key categories on the rise. Consumers are willing to pay for premium and artisanal frozen desserts and this is driving the growth in the market.”
“Gelato, because of its core ingredients like more milk, and less cream, has a lower content of butter fat (4-8%) which stands as healthier product when compared to ice cream, which has a minimum of 10% dairy fat that could go up to 28%,” points out Vasuki.
Among the most important factors responsible for driving the growth of convenience food in India are:
Urbanization and changing lifestyles: As more consumers migrate to urban areas and adopt fast-paced lifestyles, the demand for convenient food solutions is expected to rise. Increasing disposable incomes: Rising incomes, especially among the middle-class population, have led to higher spending on convenience foods and ready-to-eat options.
Busy work culture: With hectic work schedules and limited time for meal preparation, consumers are increasingly turning to RTE, RTC, and RTS foods as convenient meal solutions.
Youthful demographic: The convenience food market in India is primarily driven by young consumers, and the millennial population accounts for approximately 34% of the total population, indicating a significant potential for the sector in India.
Product innovation: New generation of customers are increasingly concerned about the quality of food and are willing to pay a little bit more if it means getting the greatest quality without sacrificing their health. So, Indian food producers are always working to develop new foods, and the convenience food sector is expanding significantly.
“In the processed food market, consumers prefer healthy and nutritious options. This includes a growing demand for organic, low-calorie, high-protein, and gourmet products,” notes Aastha
“In the premium frozen desserts segment, there are hardly any brands that are targeting new consumer preferences and this white space has a high growth potential. Frozen Fun has introduced premium product options like artisanal gelato, sorbets, vegan and noadded sugar frozen desserts in the market as our major categories in FMCG and F&B space. With a focus on healthier options, consumers are looking for distinctive and indulgent experiences that not only satisfy their sweet tooth but bring a sense of exclusivity,” says Vasuki.
Booming e-commerce sector: India’s booming e-commerce sector has further propelled the growth of the RTE/RTC market. The e-commerce platforms offer high product visibility, thereby facilitating greater market penetration of RTE/RTC products in India. “With the rising share of Quick Commerce in the overall e-commerce market, the convenience food category and its various segments have been consistently growing as well as increasing the overall size of the market pie,” says Sameer Shaikh, Regional Head – Buying & Merchandising, bigbasket.com
Growing start-up industry: Big start-up brands have been warmly accepted by consumers. They are constantly innovating and are trying to offer new products to consumers. The industry players are rapidly integrating ready-to-eat food in their product portfolio to accommodate the changing palate of Indian consumers
Global Demand due to longer shelf life: RTH (ready-to-heat) stands out from other segments in terms of its long shelf life and durable packaging.
This provides an easy marketing advantage and enables the companies to sell it in markets outside of the nation of origin. Also, there is a rise in the demand for Indian processed food (due to various cuisines) in the international market. Thus, India’s integration with the global economy is also one of the growth drivers for the industry.
Expanding Retail Infrastructure: The growth of modern retail formats such as supermarkets, hypermarkets, and convenience stores has facilitated the availability and accessibility of RTE, RTC, and RTS products across urban and semi-urban areas.
Unlocking potential in RTE/RTC/RTS and Frozen Food sector in India
Trends in RTE/RTC/RTS and Frozen Food sector and their market overview brings into light the immense opportunities that the sector presents. The newly acquired growth for these categories is positive and long-term in both global as well as domestic market.
The increase in gross family income and the concept of nuclear families are pushing the growth of this sector manifolds. All these lead to several attractive opportunities within the sector, which includes:
Processing technology: RTE/RTC/RTS and Frozen food products tend to lose the freshness of taste or aroma over time. Further, authentic Indian food items are complex and require high-quality ingredients sourced from the region to which the dish belongs. Thus, technological advancement and intelligent manufacturing processes would need to be deployed by the tech companies to enable the new labels to enter the market, and cover this gap.
Thus, processing machinery and equipment for heat treatment, preservation of food and testing, etc, also has high potential in Indian market.
E-commerce growth: The growth of e-commerce in India is making it easier for consumers to access a wider range of food products, including RTE/RTC/ RTS and Frozen food products. Online sales channels offer a significant opportunity for companies to expand their reach.
The growth of electronic commerce and digital communication has changed the way consumers shop and prefer online stores to physical stores. Brand and manufacturers must respond by invest in solid online platforms that offer a hassle-free shopping experience, personalized recommendations and fast delivery options. They should also increase their focus on social media marketing, influencer partnerships and targeted digital advertising,” opines New Shop’s Aastha.
On the other hand, retailers should integrate their online and offline channels to deliver a unified customer experience. Provide a seamless shopping experience across both online and offline channels, and promote click-and-collect services where customers can order RTE and RTC meals online and pick them up at a designated time for added convenience,” she adds.
Export potential: India’s RTE/RTC/RTS and Frozen food products have a significant export potential. With India’s growing reputation as a source of high-quality and healthy food products, the export market for these products is likely to grow in the coming years
Sustainable packaging: Sustainable Packaging is fuelling the market growth all over the world. With high growing consumer sensitivity to environment-friendly packaging, the packaging industry is continuously coming up with fresh ideas to boost the growth and hence shows immense potential in global market.
“There is a heightened awareness of the environmental impact of food production and packaging. Consumers are opting for products with sustainable sourcing, eco-friendly packaging, and a lower carbon footprint. Brands are responding by developing eco-friendly products using sustainable materials and circular economy practices, reducing the use of plastic and introducing biodegradable or recyclable packaging,” points out Aastha.
She advocates that brands should further enhance packaging convenience by using single-serve portions, microwavable containers, and re-sealable packs to cater to the growing demand for on-the-go and easyto-use products.
Packaging requirements of the products vary for the different categories of RTE/RTC/RTS and Frozen products. While in the normal practice, the RTE/RTC/ RTS and Frozen foods are consumed in a short span of time, however, with the advancement in packaging technology, it would be possible to produce these items commercially and to extend the shelf-life up to a few years.
Innovative and cost-effective packaging solutions for RTE/RTC/RTS and Frozen food products have great potential in India, which has remained mostly untapped. But some brands have started stepping up to the plate. “Frozen Fun, which offers authentic Italian products to consumers in India, celebrates Indo- Italian culture through its unique product packaging and design.
“By combining bright colors with iconic Italian symbols, our gelato tubs appeal to Indian consumers who see India as a vibrant and colorful country and the product itself transports anyone who tastes it to the streets of Italy. We believe the impactful design of our packaging also helps our tubs stand out even on crowded supermarket shelves,” says Vasuki Punj.
New Shop’s Aastha offers another instance of innovative packaging. “Fabcafe has launched RTE frozen foods and Ready-to-Drink (RTD) beverages made with healthy vegetables, free from preservatives and artificial flavors. The packaging is not only well-designed and eye-catching but also recyclable and focused on sustainability. Each product features clean labels that highlight key ingredients and nutritional benefits. Moreover, the pricing is affordable, ranging from INR 150 to 200.”
Such innovations showcase how brands are utilizing product development, format diversification, sustainable packaging, and strategic pricing to generate excitement and cater to the changing demands of today’s consumers. “The introduction of larger pack sizes and value pricing strategies previously absent in the market has been instrumental in our category growth. Additionally, the launch of new snacking portfolios has further bolstered expansion,” points out McCain’s Pranay.
“There have been huge developments in terms of product and packaging innovation in recent times. Many food brands are opting for reusable, recyclable, or compostable packaging to satisfy environmentally-conscious consumers. Microwave Assisted Thermal Sterilization (MATS) technology helps manufacturers to create products that can be stored at room temperature while preserving their flavor and texture. This technology has helped to re-imagine the RTE and RTC segments,” informs Bigbasket’s Sameer Shaikh.
Ready to eat functional foods with traditional ingredients is a product segment with high potential, especially with rising health awareness among consumers. Ready to eat processed foods fortified medicinal plants that have anti-inflammatory properties are also picking up demand in the domestic market owing to the increased awareness of preventive health post Covid 19 pandemic
Focus on nutritious packaged foods: Many families still compel their younger members to have home-cooked meals, due to the lack of trust in RTE foods. This is causing many RTE companies in India to focus positioning their products as having high nutritional value.
For instance, McCain Foods, though relatively new to the Indian market, provides its customers with a range of delicious frozen foods, including French fries, aloo tikki and cheesy bites.
“Our growth is primarily driven by product innovation across various categories. Examples include products such as momos and plant-based snacks catering to specific clienteles, alongside the rising consumption of premium offerings like cheese-based vegetarian snacks. Established categories like fries maintain high consumption rates and strong category affinity,” informs Pranay.
He adds that recent developments in the industry include multiple new product launches, such as cheese-based snacks, momos, and plant-based alternatives. “This innovation is complemented by the introduction of new pricing strategies and packaging sizes tailored to meet household consumption needs effectively.”
Breakfast for schooling children: Parents of teenagers and children attending afternoon schools are quite particular that their kids have a high nutrition breakfast. In a country where milk is thought of as having wholesome nutritive value, mixing cereals with it is believed to be highly nutritious. It is this belief coupled with the American breakfast enculturation through media that has earned brands like Kellogg’s cornfl akes and Quaker oats instant and growing popularity.
Segmenting the RTE and RTC categories into more specific groups such as breakfast, lunch, dinner, snacks, and healthy choices will offer brands and retailers with more innovative category management opportunities,” opines Aastha.
Market Challenges
In economics, Say’s law says ‘Supply creates its own demand’. It’s aptly applicable here that ‘availability creates demand’. Currently, the majority of RTC/RTC/RTH and Frozen food market is concentrated in Metro and Tier 1 cities owing to high purchasing capacity, higher standard of living and busy lifestyle. Also, the products are mainly found in supermarkets and big departmental stores owing to refrigeration requirements for frozen RTC, limiting the viability. Also, there is a lack of proper infrastructure to supply and store such products in the retail shelf. However, with improving cold chain on these attributes and spread awareness. This will help in building consumer trust towards the new category.
Some major challenges faced by RTC/RTC/RTH and Frozen food brands include:
Lack of effective product distribution system: The RTE/RTC/RTH and Frozen market in India is largely composed of unbranded products. As a result, the supply chain contains many small stakeholders like raw material producers, research and quality testing units, suppliers of RTE/RTC/RTH and Frozen food manufacturers, among others. Many such soiled units are making the food distribution system a complex one.
Also, lack of proper storage facilities end up in considerable food wastage. To avoid this, third party distributors have been plugged into the supply chain, leading to additional operational cost.
Quality and Safety Concerns: Maintaining quality, freshness, and food safety standards is crucial for the success of RTE, RTC, and RTH products, presenting both challenges and opportunities for manufacturers.
Innovation and Product Differentiation: Continuous innovation in product formulations, flavors, packaging, and marketing strategies is essential to differentiate products and capture consumer interest in a competitive market.
Health and Wellness Trends: With increasing health consciousness among consumers, there is a growing demand for healthier RTE, RTC, RTH and Frozen options, presenting opportunities for companies to innovate with nutritious and natural ingredients
Brand Frozen Fun believes that desserts bring people together and have the power to create immense joy. Promising a premium quality taste by sourcing the finest and purest ingredients, the brand infuses its frozen products with a variety of exotic fruits, nuts, yogurt-based gelato, sorbets, and vegan options, all of which are gaining popularity
“To comply with new consumption trends, we have expanded our flavor profi le to include healthier options like vegan choices, rich and authentic products, consistent quality, an interactive experience combining product taste with innovative packaging, complete transparency including all relevant data (such as ingredients, allergens for allergy-friendliness, and other certifications), recyclable packaging, and ongoing engagement with the community,” avers Vasuki Punj.
Rural Market Penetration: While the urban market remains the primary focus for RTE, RTC, RTH, and Frozen products, there is untapped potential in rural and semi-urban areas, where consumer awareness and access to such products are comparatively lower.
Conclusion
The RTE/RTC/RTH/RTS and Frozen Food market in India offers a sizable window of opportunity for expansion and improvement. In India, there is a growing need for quick-to-consume food and beverage options due to changing lifestyles and hectic schedules of customers. The government’s initiatives and assistance have been crucial in fostering the expansion of this industry.
The Indian government has aggressively encouraged investment, given regulatory oversight, and facilitated market access for the ready-to-eat/ cook/drink sector through programmes like the Food Safety and Standards Authority of India (FSSAI) and numerous government schemes. These measures have emphasized protecting food safety, upholding quality standards, and encouraging industry innovation.
Regulations governing food safety and labeling are upheld thanks to the governance and regulatory environment in the ready-to-eat/cook/drink industry. Standards and guidelines are developed by organizations like the FSSAI and other regulatory agencies to ensure customer safety and encourage the manufacture of high-quality products.
Robust government policies prioritizing investments in technology and infrastructure, and putting a priority on product diversity are all necessary to realize the ready-to-eat, cook, and drink sector’s future potential in India. For the industry to expand, it is imperative to strengthen supply chains, enhance packaging and labeling procedures, and support research and development.
Additionally, helping small and medium-sized businesses, establishing a positive business climate, and encouraging innovation and cooperation among industry stakeholders can all help the sector succeed in the future. Adopting digital technologies, e-commerce platforms, and successful marketing techniques can help expand consumer and market reach. The government’s assistance, regulatory support, and industry initiatives are positioned to accelerate expansion in the Indian ready-to-eat, cook, and drink industries. India can unleash the full potential of its ready-to-eat/cook sector through consistent efforts and collaborations between the government, industry stakeholders, and consumers, assuring sustainable growth and addressing the changing demands of a dynamic market.
RTE/RTC/RTH/RTS and Frozen food products have seamlessly integrated into our fast-paced urban lifestyles, offering unparalleled convenience for busy weekdays, leisurely weekends, or any time craving strikes without the hassle of preparation. The advent of last-mile delivery apps like Blinkit and Zepto, reducing delivery times to as little as 10 minutes, further enhance this convenience. As we navigate through the dynamic landscape of modern living, it’s clear that ready-to-eat foods are no longer just a trend but have solidified their place as an indispensable part of our daily routines
Furthermore, the Indian market, with its abundant resources, diverse culinary traditions, and rapidly evolving consumer preferences, presents a promising landscape for the ready-to-eat industry to thrive and expand. With all these factors considered, it’s evident that the RTE/RTC/ RTH/RTS and Frozen food segments are not only here to stay but poised for rapid growth in the foreseeable future. But although players have built the capacity to package fresh and hygienic dishes, they are not communicating this advantage effectively. The typical messages displayed on packaging include “natural” and “no preservatives”.
In addition, players should also make clear that their products are safe and made of fresh ingredients to increase consumer trust toward this new category. At this stage of the product’s life cycle, it is critical to educate more consumers and overcome their tendency to associate packaged food and long shelf life with questionable quality and a lack of freshness.
According to Manish Aggarwal, Director Bikano, these categories demand constant innovation and additions at planned intervals. “Studies are highlighting how the right size pack containing niche, regional options of ready-to-eat meals, and flavors are more and more likely to find favor with the contemporary Indian consumers.”
For example, small, single-use packs of upma are great at targeting the young, entry-level office- or college-going consumer while medium packs of various kinds of masala, parathas, fries, etc, are what impact nuclear families that are more likely to purchase, with the sliding price range of the different size packs becoming a key sale determiner.
“In addition to the increasing demand for diverse product offerings and packaging sizes, there is a pressing need for sustainable packaging solutions. This stems from growing consumer awareness and preferences for environmentally friendly packaging materials. If the packaging used for food products is not recyclable, reusable, or compostable, consumers may opt for brands that prioritize eco-friendliness,” believes Manish
“While companies navigate this evolving trend, they must ensure that ready-to-eat (RTE) packages continue to fulfill their fundamental purpose of preserving the quality and flavor of meals until consumption. Balancing these requirements, companies also need to maintain cost efficiencies in packaging per unit to remain competitive in the market,” he adds
In conclusion, the RTE/RTC/RTH/RTS and Frozen food industry in India presents tremendous opportunities for growth and expansion. By aligning with consumer preferences for convenience, authentic flavors, and high quality, companies can tap into this burgeoning market. Continued innovation, strategic distribution partnerships, and a relentless commitment to meeting consumer demands will ensure that the industry flourishes and remains an indispensable part of our fast-paced lifestyles.
