The article is based on a large scale household survey conducted in Gujarat but the findings of the study are relevant for other parts of the country as well. The study provides an insight into the market penetration of various types of food products and brands, market shares of different brands, consumer loyalty and reasons for buying or not buying certain food products. The study also explores many other aspects of buyer behavior such as reasons for brand switching, perceptions about quality, taste and price, sources of brand information and satisfaction/dissatisfaction from various brands of packaged foods. The article attempts to explore if the consumption of packaged foods is influenced by the income of the household, city size and exposure to media. Also, whether top of mind brand recall translates into actual buying by the consumer.
India is the second largest producer of fruits and vegetables in the world. Yet, till recently only a small percentage (less than 02%) of this output used to undergo some sort of processing and value addition (Economic Survey: 2003-04). However, due to rapid industrialization, growing number of working women, rising standards of living, coupled with higher disposable income and changes in the food habits of people, the scenario of the food processing industry is changing fast.
According to a study conducted by McKinsey & Co. in collaboration with the Confederation of Indian Industries (CII) in 1996, India's food processing industry was projected to grow in turnover from Rs. 800,000 mn (in 1996) to Rs. 2,250,000 mn by the year 2005 AD (The Hindu Survey of Indian Industries,1997). The major growth opportunities were expected in mass-based high volume primary processing like processed milk, poultry, wheat flour and bakery products. Though, a secondary processing involving refined edible oils, fruit pulp, paneer, frozen foods and the like, as well as, the tertiary processinginvolving a high level of modification to make natural products ready to eatcould also grow considerably. With improvements in transportation infrastructure, availability of better cold storage facilities, penetration of gadgets like microwave ovens in more urban households and innovations in packaging, several new packaged foods are expected to be introduced in the market expanding the current range of food products manifolds. |
