Food retail is one of the fastest growing segments of the Indian retail sector and is expected to reach $482 billion by the year 2020, a significant increase from $236 billion in 2006. Some of the factors that are leading to its fast growth are the rising disposable incomes, a growing exposure to global lifestyles, increasing aspirations of consumers, convenience factors and health consciousness.
According to food industry experts at a CII seminar “Foodpro 2007” in Chennai, more than 80 million Indian consumers have an income of more than $5,000 and these consumers are the growth drivers of the sector. The consumer class of India is growing rapidly and with each year, more people enter the segment.
Rajesh Srivastav, managing director of Rabo India Finance, stated that “Following the US, China and Japan, India is the fourth largest economy in terms of purchasing power parity. The consumer base is growing with the households of annual income of over $5,000 expected to increase from the current 81 million to 147 million by 2015.”
With 9 million consumers in India with an annual income of more than $25,000, a number that will increase to 20 million by the year 2015-15, India’s consumer class is one of the most dynamic and will ensure that the food sector growth continues at a fast pace.
