The home grown firms such as Mother Dairy, Amul, Ruchi Soya, Britannia, and Parle Products dominated the packaged foods sector in India in the last year even as Nestle slipped five places moving to the seventh in the overall rankings, claims a new report.
The data from Euromonitor, a market researcher shows that only three MNCs such as Mondelez, Nestle and PepsiCo are in the top ten players of the market across the packaged food segment as the domestic firms have increased their distribution. The domestic brands have penetrated into the rural regions of Indian and launched small packs at lower price tags.
As per Euromonitor, the packaged foods market of the country stands at Rs 2,572 billion as of 2015 and it is up by 15 percent in comparison to the previous year. The domestic manufacturers have dominated this market segment in the last year. The global players need to understand the dynamics of the consumer mindset in the country. The local companies are increasing their product portfolios, revealed Manjunath Reddy, a Research Analyst at Euromonitor International.
Amul is at the top position of the packaged foods market with a retail value share of 7.2 percent as of the last year. Nestle that was the second largest player in the year 2014 witnessed a drop in the share due to the ban of Maggi. The period helped Mother Dairy to grab the second spot.
Gujarat Cooperative Milk Marketing Federation that is the seller of Amul products reported a turnover of around Rs 23,000 crore for the fiscal that ended in March 2016. This is an 11 percent increase from the previous year.
Now, Nestle Maggi has returned to the market and it has been a few months since it hit the retail shelves. It has gained the leadership position with close to 50 percent of the share in the Rs 2,000 crore worth instant noodles market segment.
