Emerging food trends in India: An insight for Australian exporters

Talking about food, a number of changes are shaping the Indian food landscape affecting how companies function, how companies interact with consumers, and what consumers are seeking. Listed below are my top three trends which I have observed over the last few months in market:-

Health in Food

-Changing demographics, fast paced lifestyle, low work-life balance and changing consumption pattern has led to growth of lifestyle diseases in India;

- With 30 Mn diabetes patients, India is known as the diabetes capital of the world. India has 61 Mn patients suffering from cardio-vascular diseases and recording an increase in number of people suffering from thyroid problems, obesity, hypertension etc.

Increase in awareness has led to people looking for prevention of these disease. People are increasingly looking for healthier alternatives in food to incorporate health in daily consumption.

Opportunities for Australian companies include sugar free and gluten free products highlighting the clean, green, safe and reliable standards of Australia. There is also a growing demand and export of Australian Health Supplements particularly Vitamins & Minerals, Sports Nutrition ,Cosmoceuticals etc. In short , excellent opportunities for "free from all'' products.

Convenience

Of the total population of India, 443 Mn people are Millennial and 393 Mn people are Generation Z. A larger percentage of young population and growth in dual income households and nuclear families has led to changes in consumption pattern in the country. Long and stressful work hours, increasing travel time, need to socialize and high disposable income has created a need for convenient food options.

Convenient to prepare/ order among all food categories the Ready To Cook/Ready To Eat and packaged food has grown at the fastest rate (CAGR of 18-20%)17. The need for convenience has led led to growth of e-grocery and food delivery in India.

Opportunities for Australian companies innovative packaging which increase shelf life, ready to eat packaged food etc.

Digitally Active

Today’s dinner table looks quite different than it did 10 years ago- there is likely a smartphone next to the fork and a laptop or tablet on the dining table. Technology and its awareness among the consumers has changed how people buy, prepare, order, perceive and consume food. 

Online grocery and packaged food shopping a significant change that we have seen in favour of online food shopping is that consumers are increasingly overcoming their biases against purchasing items without inspection and safety of online transactions. 

Social media, blogging, research and discussion forums Over 168 Mn social media users in India discuss and share ideas for multiple topics including reviews, suggestions, ratings, etc. on social media platforms. An industry study suggested that almost 45% of restaurant-goers below the age of 28 years seek at least some review of the restaurant or the new International brand before trying.

Austrade also ran a month long Taste of Australia food promotion campaign involving social media influencers, bloggers and writers. We regularly host networking events targeting these influencers and highlighting Australian food and wine.

Opportunities for Australian companies include to test bed their products via Austrade’s tailored programme with Amazon (AMEP- Amazon Market Entry Programme) and other eCommerce grocery portals like Big Basket etc.

Way forward for Australian companies

India appears to be a complex market for international companies, however the market has plenty to offer in terms of scope and growth if you can solve the puzzle. It is definitely not a short term market and has its own challenges, but it is a market you can’t ignore. Australian companies, large and small, have found success in India. Given the enormity of the country and the potential it promises - one would want to get on the back of the Indian elephant before it starts to charge.

To paraphrase our first Prime Minister Jawaharlal Nehru, India today is a new star rising, a new hope coming into being. The country made a tryst with destiny years ago, and Australian companies can well partner India in redeeming this pledge.

It’s time to maximize the Australian clean, green, safe and reliable manufacturing standards of Australia in India.

We as a market are too big to be ignored. It is time for you to have India as a part of your overseas expansion. If not now, then when?

The writer works for Austrade which is the federal trade promotion agency of Australia with offices across major cities in India. If you are an Australian company looking to expand to India, please reach out to Austade or can message him directly.

Source: Euromonitor , The India Food Report 2018-19 by Images Retail