India's ITC hails growth of branded packaged food

Indian conglomerate ITC has insisted its branded packaged food business, which includes brands like Yippee noodles and Sunfeast biscuits, is “one of the fastest growing” in the sector.

Free Report

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:

Market drivers and inhibitors
Five-year forecasts and the impact of COVID-19
The performance of the online channel versus offline
Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation

Assess developments within this sector to help your business thrive in 2022 and beyond.

By GlobalData

By clicking the Download Free Report button, you accept the terms and conditions and acknowledge that your data will be used as described in the GlobalData privacy policy

By downloading this Report, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services.

Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reporting financial results for the year to the end of March, ITC said the branded packaged foods industry saw “sluggish” demand during the period.

ITC said consumers had curbed their discretionary spending, while it had seen “headwinds” in demand from rural parts of India. The company also saw “heightened competitive intensity” amid declining commodity prices.

However, ITC claimed its branded packaged foods division had “sustained its position as one of the fastest-growing branded packaged foods businesses in the country”.

The company did not disclose financial figures specific to the division. However, ITC reported higher revenue and segment income from its FMCG – Others division, which includes its packaged food brands, alongside businesses in sectors including apparel, education, stationery and personal care. Revenue stood at INR97.23bn (US$1.44bn), up from INR90.27bn a year earlier. Segment income was INR574.6m, against INR312.2m a year ago.

ITC said its staples, snacks and meals “posted a robust performance during the year, growing well ahead of the industry”. The company said the “consumer franchise [of] Yippee noodles grew significantly” as it invested in marketing to push the brand amid problems at rival supplier Nestle.

During the year, ITC entered India’s dairy sector, with the launch of ghee, or clarified butter.

Free Report

What’s the forecast for the food and grocery industry?

Market drivers and inhibitors
Five-year forecasts and the impact of COVID-19
The performance of the online channel versus offline
Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation

Assess developments within this sector to help your business thrive in 2022 and beyond.

By GlobalData

Dean Best

An experienced editor, Dean has reported on the international food and beverage industries for 19 years. He became editor of Just Food in 2007 and Just Drinks in 2022.