CONSUMERS INCREASINGLY WANT PRODUCTS AND SERVICES THAT ARE...
Healthy, seasonal and nutritional
Consumers are becoming more health-conscious, proactively focusing on a balanced nutrition and an active lifestyle.
Fresh, seasonal ingredients; unprocessed, natural and organic foods; foods with favourable nutritional profiles; and plant-based alternatives dominate preferences today.
Households are rediscovering the hidden powers in their kitchen, namely spice mixes that can bring excitement to any dish and provide a boost to health.
Customised, unique and local yet global
Today’s palettes are far more flexible and adventurous.
Consumers are keen on experimenting with drinking and snacking options that feature a variety of flavours. There is a growing interest in ethnic mashups, where flavours and techniques are fused to create signature options.
Convenience led, experience driven and personal
Households are gradually becoming smaller and everyday lives are busier than before. As a result, convenience continues to be a key motivator in choosing away-from-home socialising occasions.
Cold refreshments that are consumed away from home are steadily gaining popularity, and not just in the summer months. Herbal flavours and tea based ready-to-drink non-carbonated options that cannot be replicated at home, rank high on satisfying beverage cravings.
At the same time, quality at-home food and drink options are likely to witness greater traction in the near term.
Good for the planet and ethically sourced
As social consciousness grows, today’s customers want to know the stories behind where their food and drink come from.
Qualities like local, organic, sustainable sourcing, corporate performance, diversity and environmental impact, among others, are all important to consumer choices in varying degrees.
Social media friendly and sensory thrillers
Technology and smartphones are changing the way consumers interact with brands and the way companies are looking at supply chains.
Over the years, Instagram and other photo-sharing apps have revolutionised the consumer-facing industry. Social media is shaping category and brand perceptions, and micro-influencers are gaining credibility in promoting products and services.
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 Portfolio focus |
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 Product
innovation |
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 Social hubs
for food and
beverage |
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 Sustainability
considerations |
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 Accelerating
digital |
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FOOD AND BEVERAGE – A RS. 30 LAKH CRORE OPPORTUNITY
India's food and beverage consumption in 2019 is estimated at ~Rs. 30 Lakh Crores. The 'in-the-kitchen' segment, comprising staples, spices and condiments, dairy and others, accounts for ~70% of the food and beverage basket, or ~Rs. 21 Lakh Crores. However, the share of organised players in this segment is less than 10% and remains largely untapped. The other segments, 'on-the-table' (comprising spreads, sauces and others) and 'on-the-go' (comprising snacks, ready-to-eat options and others) have traditionally seen larger play by organised players, but their offerings are skewed towards indulgent snacking products. The industry is also witnessing a shift in consumer preferences, with demand for healthier, better quality and more affordable food and drink options growing across all the three segments.
Market size 2019
70%: In-the-kitchen
20%: On-the-table
70%: On-the-go
In-the-kitchen
24%: Dairy
24%: Fresh Produce
19%: Staples
19%: Edible Oils
9%: Spices
5%: Others
Source: PwC; Edelweiss Report; and Company analysis
EVOLVING CONSUMER BEHAVIOUR
Rising affluence
Rising affluence of Indian households will lead to premiumisation and higher demand for products that are healthy, provide well-being and are convenient to use.
1 in 2 households in 2030 will belong to the high and upper-middle income segments (compared with 1 in 4 households today).
Household mix#
2005
69% (151 Mn)
23% (51 Mn)
7% (16 Mn)
1% (1 Mn)
2018
43% (127 Mn)
33% (97 Mn)
21% (61 Mn)
3% (8 Mn)
2030
15% (57 Mn)
34% (132 Mn)
44% (168 Mn)
7% (29 Mn)
Lower income: <USD 4,000
Lower-mid: USD 4,000-8,500
Upper-mid: USD 8,500-40,000
High income: >USD 40,000
basis income per household in real terms
India's young consumer
India will witness the rise of the Gen-Z consumer – tech savvy, aspirational and desirous of engaging with brands across multiple channels.
Demographic mix (%)#
Median age
>=65
50-59
15-24
60-64
25-29
<=15
*Millennials born during 1981-2005 Gen Z is born post 2005
Consumption gap between
rural and
urban to narrow
Consumption mix (%)#
Rest of rural
Boom town
Developed rural
Metro
Rest of urban
#Source: WEF Report
We perceive a large and transformational market opportunity ahead of us and we aim to leverage our strengths to become a formidable player across the three segments of in-the-kitchen, onthe- table and on-the-go, offering products that are high in quality, innovative, delightful and made with goodness and care.
Key value drivers
Portfolio of market leading brands and high growth potential brands
Presence across 200 million households in urban and rural India
Deep understanding of consumers and an omnichannel presence
Innovation-led culture with focus on health and well-being products
Legacy and the trust embodied by the Tata brand
Wide distribution network of ~2.5 million retail outlets across India
With a proven ability to win, Tata Consumer is well positioned to ride the next consumption wave in India.
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