The Indian food industry is growing at a compound annual growth rate of 5.1% and is expected to reach US$300 billion by 2015, according to Market Research Reports.
This is despite challenges such as inadequate infrastructure, unreliable power supply and lack of trained manpower.
The food processing industry forms close to 43% of the total food industry and the share is expected to grow to 50% by 2015.
The sector is undergoing various changes in terms of the manufacture’s capability and the consumer’s perception.
While earlier frozen vegetables used to be the most popular items of sale, items such as sausages, kebabs, pork and seafood are now gaining popularity in India.
The domestic per capita frozen food consumption in India is still very low and with the acceptance of frozen food fast increasing, the sector has a lot of growth potential.
Since the category is still nascent in India, it is essential to create awareness through in-store promotions and advertisements.
Cross category promotions and wet sampling at stores have been found to be most effective methods of promotion for launching new products as well as boosting sale of existing products.
