New research from Mintel, a leading market research firm with worldwide presence, has highlighted that it is India leading the way in the packaged rice market across the Asia-Pacific Region.
The research reveals that new product development in packaged rice in India has more than doubled in the past two years, with over 200 packaged rice launches in 2012 compared to around 100 in 2011, according to a press release sent out to the media by the firm.
Furthermore, in 2012, India was the most active country in terms of new product development, accounting for 50% of packaged rice introductions in Asia alone, followed by Vietnam and Thailand, which accounted for 10% and 8% respectively of NPD in the region. Malaysia came forth with 7% of new packaged rice launches in APAC followed by Australia with 6%.
Overall, the Indian retail rice market stood at Rs 122 billion in value and 2 million kg in volume in 2012, from Rs 75.56 billion and 1.2 million kg in 2010. And there is further good news for the market in the future too, as Mintel expects the market to grow even further to reach an estimated Rs 333 billion and 4 million kg by 2016 (+175%).
Ranjana Sundaresan, food and drink analyst, India, Mintel, said: “Packaged rice is becoming increasingly popular in India, especially in urban areas due to its convenience. Not so long ago, all rice used to be bought loose from small retailers, kirana stores or ration shops. Consumers could feel and taste the rice to judge their quality, but loose rice still needs manual cleaning before cooking. In the case of packaged rice this is usually not required, since the cleaning tends to be handled on a large scale by machines.”
“This time-saving convenience is one that is being appreciated across India as an increasing number of women join the workforce and are looking for quick and easy ways to reduce the time they spend in the kitchen, and can now afford to pay a little bit extra for the convenience,” stated Sundaresan.
Changing lifestyles could lead to further opportunities for the rice market in India, with labelling claims addressing specific consumer needs, such as “convenient or fast-cooking” or nutritional benefits. Indeed, in terms of convenience, 60% of all microwaveable packaged rice variants in Asia were launched in India and a further 23% carried a time or speed claim.
“In a decade of exceptional economic expansion, India has experienced rapid development, increased urbanisation and changing consumer lifestyles. Cooking is increasingly driven by convenience with growing exposure to Western food and easier cooking methods and rice products have tapped into the convenience trend. Microwaveable pouch rice products have begun to appear on the market and there is room for further expansion of convenience rice products, specifically tapping into affluent consumers’ preferences,” concluded Sundaresan.
