Ready-to-eat food in India

According to the report of Euromonitor International, the amount of money Indians spend on
meals outside the home has more than doubled in the past decade, to about US$ 5 billion a
year and is expected to double again in about half that time. The industry is estimated to grow
at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8 per cent, during the
tenth five-year plan period. Value addition of food products is expected to increase from the
current 8 per cent to 35 per cent by the end of 2025. Fruit and vegetable processing, which is
currently around 2 per cent of total production is estimated to increase to 10 per cent by 2010
and to 25 per cent by 2025.
With the growth of 150 per cent in sales, the popularity of food and agro products is not
surprising. With such promise in the sector, a number of foreign companies have joined the
competition.
Popcorn Market in India
Apart from multiplexes, Popcorn has emerged as a favourite munching snack in house also.
In addition to increasing demand in out of home markets, the in home-home consumption
market for popcorn is also increasing as consumers are preferring consuming healthy snacks
and popcorn serves as a perfect alternative as it is low on calories
. With people preferring convenient easy to make snacks due to hectic schedules, popcorn has
become a favourite alternative pass time snack for people.
India Popcorn Market Figures

The popcorn market in India was estimated at INR 1235 Crore in 2012 and is forecasted to
reach INR 2034 Crore by 2015 growing at a CAGR of 10.3% during 2012 to 2015.
Consumption from metro cities and tier I cities are the major drivers of popcorn sales in
India. Out-of-home consumption i.e. the consumption in malls and multiplexes among others
comprises of the majority of the popcorn consumption market in India. In 2012, around 75%
of the popcorn market was estimated to be held by out of home popcorn consumption market.
The balance 25% was garnered by the in-home consumption market. The in-home
consumption market consists of pressure cooker variety and microwave popcorn segment.

The in-home popcorn market was estimated at INR 308.8 Crore in 2012. The in-home
popcorn market in India is forecasted to reach INR 594.0 Crore by 2015. On the other hand,
the out of home popcorn market was estimated at INR 926.3 Crore in 2012 and is forecasted
to reach INR 1440.0 Crore by 2015.
Consumer Needs and Preferences

Low Price
Good for Health
Easy to Digest
Natural Ingredients
Value for money
Smaller packaging
Long Storage Life
No loss of flavour
Tasty
Variety of Flavours
Trendy Packaging
Handy packaging
Convenient

Major Players
Venagro: Hyderabad-based Venagro has started contract farming for corn and has launched
selling 100 gm pack of popcorn in different flavours under the Cornella brand. Butter salted,
Tomato, Mint, Chaat, Masala and Schezwan are the options available

Mohar Singh Ratan Lal, a recognized trader, processor, wholesaler, retailer and supplier of
agricultural products has started supplying popcorn in 100-200 gm packs to retail stores
under the Farm Way brand.
4700BC, Indias first Gourmet Popcorn Brand, introduced pop corns in more than 18 evolved
flavours in cheese, caramel, chocolate and candy categories. Customers can choose from
Italian Herbed Golden Cheese, Tex-Mex Salsa Golden Cheese, Magical Rainbow Potpourri to
Nutty Tuxedo Choco-All-Ate.
Popz, a global snack brand owned by a POPZ USA LLC, has entered the Indian market
through the JV route. Its operations in India are be based at Delhi. The products will be
imported from its plant in Europe initially; till the company sets its own world-class
production facilities in India.
Borges: The Indian subsidiary of Borges, the Spain -based maker of snacks and cooking
medium, has launched popcorns in India.
Agrotech Foods: Agrotech Foods, a subsidiary of North American foods major, Congra.
Den Foods is purchasing classic quality raw Popcorns from vendors in Poona and Mumbai,
importing the corns from ArgentinaThese Popcorns are packed in food grade plastic cups and
the cups are sealed with aluminum foils after filling nitrogen gas.
The Shelf Life is about 3 months and Available Flavors are Cheese, Butter, Nacho, Tomato,
and Salted.The Packaging is available in 30 g pack. In one box 30g x 12 packs

Future Outlook
The popcorn industry, which is witnessing new investments and great margins, is expected to
show a double digit growth in the future also. Despite of out of home category being highly
priced, consumers are happily paying these prices as the demand for this American snack
seems inexhaustible. Consumers prefer consuming healthy snacks and popcorn serves as a
perfect alternative as it is low on calories.
Players which entered the in-home popcorn market with the introduction of small packets of
microwave and pressure cooker variety for the purpose of test marketing, have also shown
faith in the market and have started coming up with larger packets. Thus, the industry is set to
witness more developments in the coming years though it will face competition from Indian
Snacks.

Questionnaire
1. Do you eat popcorn?

Yes
No
2. How often would you be interested in eating popcorn as a snack?
Once per week
Twice or three times per month
Once a month
3. Where do you usually eat popcorn?
At home
Malls
Theatre
Others

4. What types of popcorn do you eat or would prefer to eat?

Popcorn (No salt or butter)
Buttered Popcorn
Kettle Popcorn (Sugar-flavoured popcorn)
Cheese Popcorn
Caramel Popcorn
Chilly
Pepper
Other

5. Which one of the following two would you prefer?

Ready to eat popcorn
Ready to make popcorn
6. Would u like different colours of Popcorns?
Yes
No

7. Please select the statement that describes your need for popcorns as a snack?
I really need it
I need this product for snacking on.
I don't really need this product, but it sounds good.
I don't need this product.
8. What sizes you would like?
9. What prices would you like to pay for a small pack of popcorn?