Economy
Spices down, sweets up. How Indian ready-to-eat is storming western palates
Summary
- Over the past few years, Indian ready-to-eat (RTE) food items have experienced remarkable growth in exports, especially to developed economies such as the US, the UK, Canada, Australia, etc.
New Delhi: Even as Indian spices face the heat from regulatory authorities in Singapore, Hong Kong and Europe over unsavoury chemicals in their composition, another category of Indian foods is quietly but steadily finding its place on the plates and palates of the developed world.
Over the past few years, Indian ready-to-eat (RTE) food items have experienced remarkable growth in exports, especially to developed economies such as the US, the UK, Canada, Australia, etc. RTE food exports include breakfast cereals, sweets and snacks, biscuits and confectioneries, cane jaggery, wafers, paan masala, and betel nuts, among others.
India’s exports of RTE foods have more than doubled from $739.64 million in FY2019 to $1.52 billion in FY2024, according to data from the commerce ministry. “The data suggests a positive trend in India’s export capabilities and competitiveness in the global market for ready-to-eat foods," said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), an independent non-profit that conducts research and analysis on global trade policies and practices.
“The global prospects of Indian RTE food are very attractive," said Anand Ramanathan, partner and consumer products & retail leader at Deloitte India. “There is a lot of interest in Indian cuisine. Many RTE/RTC (ready to consume) companies have grown exports much faster than domestic sales, and creating efficient channels of supply have helped grow the market by attracting new customers beyond the NRI community."
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Meanwhile, RTE imports have grown marginally, from $304.96 million in FY2019 to $360.37 million in FY24. The FY24 figure marks a fall in imports of 13.6% from the previous fiscal year. “Reduction in imports indicates changing domestic consumption patterns, and increased local production," Srivastava said.
Queries emailed to the commerce ministry spokesperson remained unanswered till press time.
What’s behind the surge
Experts said the surge in demand can be attributed to the convenience, diverse flavours and high-quality ingredients that Indian products offer, which is aligned with the fast-paced lifestyle of Western consumers. In particular, Indian breakfast cereals, sweets and snacks have become popular choices in Western markets.
According to commerce ministry data, the export of breakfast cereals shot up by 53.9% year-on-year (y-o-y) to touch $106 million in FY24, following a 38.2% y-o-y rise in FY23 to $68.88 million. Likewise, the export of Indian sweets and snacks rose 30.7% y-o-y in FY24 to touch $694.83 million. In FY23, it had risen 8.5% y-o-y.
The major export destinations for Indian RTE foods items are the US, the UK, UAE, Canada, Australia, Saudi Arabia, Singapore, Germany, Japan and Netherlands, among others.
“The awareness and appreciation of Indian products are deeply ingraining themselves into the minds of people abroad," said Jigish Devta, managing director of Deepkiran Foods, an Ahmedabad-based exporter of ready-to-eat food items.
“There has been a notable shift in perception; whereas previously, foreign consumers might have turned to Indian cuisine out of necessity due to a lack of their own native options, now they choose Indian foods by preference. Made in India has transitioned from being a second choice to the first," Devta added.
The local market
In India, the value of RTE meals will grow by 45% from 2021 to 2026, reaching $64 billion, as per research from SATS, a leading in-flight catering service provider that comes out with research papers on RTE food segment.
Also Read: What eating at your desk says about your working habits
Trade experts view the growth of RTE products as a reflection of the evolving needs of consumers, particularly millennials and Gen Z. These consumers, who are often short on time, seek culinary options that offer variety, quality, and time efficiency.
“Food is extremely local, with distinct cuisine clusters across the country; this presents an excellent opportunity for food companies to grow the category by innovating with new ready-to-eat/ready-to-consume products by taking share from the unorganised market," said Ramanathan of Deloitte. “The added convenience from these products also helps them increase their penetration in the respective regions and beyond."
To be sure, RTE, with $1.52 billion in exports in FY24, is still some way behind spices, which racked up exports of $4.25 billion in FY24, with 12% share of global trade in the fiscal.
