7 Feb, 2018
People in India are giving up on ‘loose oil’ sold in grocery stores and are going in branded edible oil. As per data from market research has revealed that the edible oil category had overtaken dairy to become the largest packaged food segment a few years ago, grew 25.6 per cent to cross the Rs 1.3 trillion mark in 2017. This is the first time any packaged food category has crossed the Rs 1.3 trillion mark. Dairy was the second largest with Rs 1.2 trillion, 16.5 per cent higher than 2016.The packaged food market, including rice, pasta and noodles, stood at around Rs 378 billion last year, growing 23.6 per cent year on year, thanks to the downside risks associated with these kinds of foods.
In fact, edible oil formed over 30 per cent of the Rs 4.34 trillion packaged foods market in India, compared to the 8.8 per cent share held by rice, pasta and noodles. Chief Executive Officer at Adani Wilmar, the company that sells a number of edible oil brands, Atul Chaturvedi stated that “Growth is primarily coming from new consumers, who are shifting from loose to packaged oils. Packaged oil sales are growing at 2.5 times the rate of overall edible oil consumption in India.” Managing Director of Cargill’s food business, India, Deoki Muchhal said “increasing awareness for safe products, the food law administration restricting loose product sale and the crackdown by the government on unfair trade practices aided this growth.”
According to market research company, the rice, pasta and noodles category will grow faster than others till 2022 with a 12 per cent cumulative average growth rate, followed by breakfast cereals (10.6 per cent). Edible oil, though, is expected to maintain a healthy rate of 9 per cent.