Indian Palate: Changing Food Habits &

Consumer Behavior

Raghav Gupta
President, Technopak Advisors

29 July 2009
 |2

Evolving Indian Consumer

 The Indian Consumer’s Needs from
Processed Food |3

1 > INR 10.0 Lacs 1.2 Mn Lifestyle & Aspiration

Cheese, Wine, Gourmet Food, etc.

INR 5.0 – 10.0 Lacs 2.4 Mn Convenience & Time Saving

2
RTE, RTC, Purees, etc.

3 INR 2.0 – 5.0 Lacs 10.9 Mn Food Inflation Protection

Frozen Fruits & Vegetables, Juices

4 INR 0.5 – 2.0 Lacs 91.3 Mn Wholesome Nutrition

Milk, Juices, Meats, etc.

< INR 0.5 Lacs 101.0 Mn Basic Nutrition

5
Fortified Atta, Iodized Salt, etc.

Annual Household Income No. of Households Need from Processed

Food
 The Indian Consumer’s
Changing Spending Patterns |4

Changing consumer behaviour is catalyzing change in spending patterns,

freeing up income for discretionary expenditure

27% 30% 32% 32%

36%
40%
2003 2008 2013
4%
4%
9% 5%
10% 20%
20% 20% 11%

Food & Grocery Fuel, Transport & Communication Discretionary Expenditure

Rent, Utilities & Education Savings & Investment
 A More Evolved Consumer, at the
Upper Income Strata |5

2003 2008 2013

The Age of Altered The Age of

The Age of Maturity
Mindsets Consumption

Phase II:
Phase I: Status
Necessity
Approach Phase III:
towards Necessity
Packaged
Goods

Affluence
 |6

Emerging Trends
Shift to Thrift
Redefining Value
Small Wonders
Small Perk Me Up Products
‘Mummy ka Magic’
Stays Intact
Eating ‘Out’ at Home
Evolving Home Delivery Model
Taste Bhi, Health Bhi
A very strong co-
co-relation
Food On The Go
Instant Pick Me Up
 Eco Conscious
A light shade of green
Eco Conscious
Food As Discovery
More Experimenting
The Food ‘Connect’
Use of Social Media
POP will remain
Supreme
The final test
What does this mean for food companies? | 17

• Deepen Understanding of Consumer

• Offer Greater Value
• Offer Convenience
• Move to a Dialogue, as opposed to a Monologue
• Product & Packaging Innovation
• POP Emphasis
 Thank You!

raghav.gupta@technopak.com
+91 99585 22993
www.technopak.com