With the growing number of nuclear families where both husband and wife are working, bachelors who are living away from their families, and Indians settling in foreign countries, the Frozen Food category is flourishing. It is the demand of a fast-paced lifestyle where people are seeking homemade convenience food options but don’t want to spend hours in the kitchen. It is a good alternative if consumers don’t want to eat outside and want to remain sure of what they are actually consuming.

Also since the lockdown, people have become extra conscious about their health and hygiene. They have started avoiding any open-selling food and started preferring packed food as it is untouched by human hands. The Frozen Food category has seen a sudden boost and since then, this category is exponentially growing. There are numerous trends across the industry - rapid urbanization, migration across the country, changes in lifestyle along with a substantial increase in the need for authentic Indian food in convenient formats that have contributed to the growth rate of the RTE/RTC category.

The Indian Frozen Foods market reached a value of Rs 124.06 billion in 2021, according to IMARC Group. Looking forward, IMARC Group expects the market to reach Rs 306.61 billion by 2027, exhibiting at a CAGR of 16.2 percent during 2022-2027. 

How Much Growth are Brands Observing in this Category?

MTR Foods has been a renowned innovator in the packaged foods space. For instance, its minute range is targeted at millennials and Gen Z who are time-starved and are seeking hyper-convenient solutions.

“RTE and RTC category accounts for nearly half of our business,” said Prerna Tiku, General Manager, MTR Foods.

Simultaneously, Suzu Agro Pvt Ltd, a ready-to-cook and ready-to-eat, food products company, is set to revolutionize the market through a technology-driven, sustainable, and healthy range of ‘Aaj Pakao’ packaged food products. Last year, it generated revenue of Rs 40 lakh and is now expecting to cross Rs 1 crore in sales.

“The demand has surged significantly in the wake of the pandemic, and as awareness about our products and market coverage grows, we will see greater traction. We are also expecting increased demand from Tier II and III cities as well as from the Horeca players,” stated Prachi Patil, Co-Founder, Suzu Agro Pvt Ltd.

Blue Tribe, too, is experiencing a doubling of revenue every quarter. Its key markets are the top-tier metro cities like Mumbai, Delhi, Kolkata, and Bengaluru along with cities like Dehradun and Chandigarh.

“The Quarter-on-Quarter (QoQ) growth is 50 percent and first-half growth in 2022 (compared to 2021) has been 400 percent,” asserted Sohil Wazir, CCO, Blue Tribe.

Bringing-In New Products

While breakfast and sweet mixes and Ready-to-Eat meals have long been a part of its core business, MTR Foods has recently added the ‘Minute’ portfolio, which consists of products that can be made in minutes like poha and upma breakfast, Instant Rasam, Idli and dosa batter.  

“We know the consumer well and are looking at launching hyper-local, authentic products in convenient and hyper-convenient formats,” Tiku of MTR said.

Bikano has also started offering frozen and RTC product lines by bringing to the market an array of rotis, naans, paranthas, and kulchas. It is also offering gravies such as pao bhaji, matar paneer, and combo meal options such as rice paired with dal makhani, choley, kadi, etc.

“We are adding a bit of finesse in terms of expansion into frozen and RTC categories, and also making a foray into gourmet foods,” noted Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd.

Suzu Agro’s ‘Aaj Pakao’ packaged food products are currently offering six beans and seven curries, out of which three are sprouts based. It also has products that bring to the fore authentic regional flavors such as Pav Bhaji, Mangalorean Ghee Roast, Goan Xacuti gravy, Chettinad gravy, etc.

“Our plan is to expand the portfolio and product base for B2B and retail customers. On the portfolio front, we are currently focusing on adding more regional delicacies such as the famous Maharashtrian Missal which is difficult to cook normally due to the requirement of ingredients, raw materials, and time. In the longer term, the plans are to include various sauces, pastes, and gravies catering to multiple cuisines such as Indian, Italian, Chinese, Thai, etc,” Patil explained.

Currently, Aaj Pakao is present in physical markets in Mumbai and Pune, and will soon expand to Goa, Aurangabad, Nagpur, Delhi, Bangalore, and Hyderabad. “These are cities with a higher concentration of working population, and in most families, both partners are employed. Thus, there is a significant demand for options that cut the cooking time without compromising on health and taste,” she added.

Blue Tribe’s Ready-to-Eat and Ready-to-Cook category offer 9-10 products, including plant-based chicken nuggets, plant-based chicken keema, plant-based smoked chicken sausage, plant-based spicy pork sausage, plant-based mutton keema, plant-based mutton grilled patty, plant-based chicken patty, plant-based chicken Darjeeling momos, and plant-based chicken seekh kebab.

“Our aim is to provide meat eaters with as many use cases as they get from meat. Right from RTE snacks to RTC chunks and whole pieces for use in curries, biryanis, etc,” Wazir of Blue Tribe stated.

Additionally, Goeld offers 24 products in retail and 30 products in Horeca. In retail, the brand offers soya shami kebab, veg seekh kebab, Dilli wali dal aloo tikki, spinach cheese pocket, beetroot cheese tikki, cheese corn bite, mac and cheese ball, amongst others. While in Horeca, it offers Punjabi samosa, veg spring roll, jalapeno cheese pops, galoti kabab, hara bhara kabab, chilli garlic potato shots, cheese corn nuggets, malabar paratha, laccha paratha, etc.

“We will soon launch 3-4 more new products in the retail market,” said Archit Goel, Executive Director and CFO of Shri Bajrang Alliance Ltd.

“Over 65 percent of our sales are from the retail sector and in certain markets and products, we lead the category,” he added.

Opportunities Galore 

Conscious consumerism has picked up and how. It all has spiraled up in just the last two and a half odd years with Gen Z, millennials, and Gen Alfa making a transition towards a well-balanced and ethical lifestyle, food choices, and keeping their choices guilt-free. The consumer palate is what will determine the future of this category. There is an emphasis on a localized taste and bringing regionally specific food into conveniently packaged formats. A quick innovation cycle that will produce food that is as close to regional taste as possible is where the growth trajectory will lie.

“I believe this is just the start of the ready-to-cook revolution in India, and a great time to enter the segment,” Patil said.

“By 2025, all stores will have a large frozen food section, and the market for frozen food will have tripled in size. The market for frozen food will have tripled in size due to the increasing demand for convenience foods and the health benefits of frozen foods. The higher demand will lead to more innovation in the frozen food industry,” Goel concluded.