India emerging as major food market: CII-ORG MARG
21 Nov 2005
New
Delhi: A CII-AC Nielsen ORG-MARG report says changing
tastes and lifestyles are leading to increased demand
for packaged and branded food in India. Due to this,
India is seen emerging as a major world market for retail
sales of foods said the report released Sunday.
The report titled, 'Foods and Beverages - Challenges and Opportunities in the Indian Market', says foods sales have contributed a staggering 72 percent to incremental FMCG (fast moving consumer goods) value in 2004 as compared to 2000. Packaged basics like cooking oils, atta, rice and ghee have contributed an incremental value- indicating an overall upswing in the commodity - to branding movement."
The report says that the most significant change in the marketing environment in recent years has been the advent of modern format stores (MFS) which though accounting for only three percent of FMCG sales, have been increasing at a compound annual growth rate (CARG) of 15 percent in the last five years.
The
number of traditional retail stores is also growing
rapidly, and the trend is likely to continue for the
next three years. By 2007, the
number of stores is likely to be 7.8 million with bulk
of the growth coming from grocers and street corner
stores.
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