The leading players in the Indian RTE sector are MTR, Godrej Tyson Foods, McCain and Ruchi Soya. Their offerings include breakfast items, packaged dinners, hot and cold beverages, soups and ready-to-eat and frozen snacks.
Market
P K Ramdas, director, sales and training, Monavie, said, “With the changing lifestyles and increasing incomes of people, the ready-to-eat market is growing in India. Its growth rate is expected to be 20 per cent.
He opined that the growth in the segment was driven by a fast-changing socio-economic scenario, with more women opting to spend time outside the kitchen, working bachelors
staying away from home and a growing population of non-resident Indians (NRIs) returning to India.
Trends
A major factor for the consumers’ shift to RTE foods is convenience, but there is a combination of factors influencing their launch in the market.
Vikas Mittal, managing director, McCain Foods India, said, “The product range has been launched, keeping in mind the consumers’ preferences for both ethnic and international products. The products have been tailored as tasty snacks or mini-meals that offer the convenience to consumers to cook fresh snacks in minutes.”
Nutrition
There is a common notion that packaged foods are unhealthy or junk foods. Ramdas said, “This may not be the case with every product in the market, though there are many that may fall into that category. It depends on the social responsibility, regulatory constraints, customer loyalty, etc.”
“A few conventional products that are freely available may be junk, but the increasing awareness and statutory requirements, such as those framed by the Food Safety and Standards Authority of India (FSSAI), would help better this image in the near future,” he added.
Johny Paul, manager, food division, Dhathri Ayurveda Pvt Ltd (maker of the Soukyam brand of ready-to-eat wellness foods), stated, “It is a fashion to brand any processed packaged foods as junk food by senior folks and environmentalists without looking at the nutritional information label.”
“We consider potato chips less healthier than a samosa or a banana fry, for the simple reason that these items have been served to us as snacks in our childhood by our parents. But scientific evaluation would prove that a normal potato chip is healthier than a samosa fried at a roadside shack,” he added.
Moreover, it is the customers’responsibility to look at the ingredient list and the nutritional information and personally verify it before opting for unpackaged foods.
Natural preservatives
There are many natural preservatives, including citric acid, ascorbicacid and natural oils, that can retain the freshness, taste and nutrition of food products.
Packaging
Packaging plays a vital role in the RTE category. It protects and maintains the shelf life of a product at all stages, right from its handling to its transportation and distribution to the consumer.
There are various processing and packaging technologies available the world over to maintain the taste and nutrition of food products without harming them.
Aseptic packing (such as tetra-pak) and aseptic poly-pouch packing keep the food safe without the use of any chemicals or preservatives.
Nitrogen-flushed packaging and aseptic retort pouch packing are other options available to the industry.
Monavie relies on the inventive technology of Defence Research Laboratories (DRL). Labelling is another safety aspect in the packaging of products, as it ensures that consumers are well-informed about correct product usage and application through the instructions on the product’s pack.
Pricing
Though most people are of the opinion that RTE products are highly-priced and cater to the high-income group, only certain food products are expensive.
Paul, who opined that the sector was growing at 25 per cent per year, commented, “Just because one or two products are expensive, it does not mean the whole RTE market should be generalised to be expensive.”
“It would be an injustice to the RTE industry if we generically brand them as expensive. Every organisation marketing RTE foods are working on various value chain interventions to stay competitive and grow the category,” he added.
Ramdas said, “The pricing may appear to be on the higher side, but that is a perceptional and relative topic. The lack of awareness could be the villain, making the products costly. Convenience is not the only factor as far as RTE foods are concerned, unlike conventional products. We prefer to give a scientifically-validated quantity.”
“For example, about 5g per day of beta-glucan - the most important and much-hailed fibre in oats - is required for the claimed health benefits that could be obtained from100g oats, and not from 40g breakfast sachets. However, something is better than nothing,” he added.
“The ingredients, presentation and quantity may make the products costlier comparably. There are a range of junk foods that are junk, not because they contain some junk, but because they do not contain what is proclaimed as much as required, and the junk factor is forced into the head, rather than the stomach, where it may be okay,” Ramdas stated.
Safety aspects
As a safety responsibility of the company, Dhatari Ayurveda has a special approach, according to Paul. He added, “Our approach to remain only in the three sub-categories would ensure that the nutritional quotient (NQ) of our products would always be a shade better than the conventional food products.”
“The difference will be in terms of purity (less toxic residues), minimal processing, natural taste, traditional wisdom,etc. Our research and development (R&D) in the space of ayurveda and food would also help us enhance the nutritional value of our products,” he stated.
Regulatory aspects
On a general note, FSSAI is more relevant from a legislation point of view, whereas the Hazard Analysis and Critical Control Points (HACCP) and International Standards Organisation (ISO) certifications will definitely add value and help organisations differentiate their offerings from competition.
International norms have to be followed right from sourcing the raw materials to the finished goods,and till it reaches the customer through a company’s own distributor network.
One hundred per cent of the ingredients should be disclosed, and the nutritional information should be presented for the customers' benefit prior to purchase.
Going global
With the growth and acceptance of RTE in India, companies are keen to take products to the international level.
McCain, which takes pride in exporting Made in India products to countries such as China, South-East Asia, the Middle-East, the United Kingdom, the United States and South Africa.
Dhathri Ayurveda Pvt Ltd proposes to export its offerings to the Middle-East, South-East Asia, Europe and the US markets.
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Source: F n B News
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