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Food retail market seen topping Rs 61 lakh crore by 2020: Report

Economic Times:  February, 2016

Mumbai: The Indian food retail market is expected to cross Rs 61 lakh crore by 2020, according to India Food Report 2016.

The report, compiled by Images Group, pegged the market size in 2014 at Rs 25 lakh crore, which accounts for 65% of the country's total retail market pie.

"Indians spend more on food than on any other consumption category, and this is expected to continue in the coming decade," said Amitabh Taneja, chief convenor of India Food Forum and the CMD of Images Group. "India is already the largest global consumer of dairy, pulses, sugar and spices."

According to the report, there is an evolution in dietary habit along with rising demand for food and its growing consumption in India. Indians are becoming more welcoming towards processed, western food options like noodles, corn flakes, juices and oats - something, which was very nascent until 10 year ago, it said.

Of the total food market, packaged commodity products had 34.7% share while dairy accounted for 16%, it said. Among the seven broad components that make up the food basket, one-third of the total food market in 2014-15 was occupied by protein food, followed by cereals that covered 19%. On the other hand, edible oil is the smallest segment with a share of 7%, the report said.