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Shri Bajrang sees untapped opportunity for growth in frozen food market
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Saturday, 08 October, 2022, 08 : 00 AM [IST]
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Nandita Vijay, Bengaluru
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Shri Bajrang Alliance, which supports the Goeld Frozen Food brand, sees that frozen food market is relatively untapped, the potential for growth is immense. Once the cold chain system which is a challenge in India is well established, frozen food can reach every corner of the country, including remote areas. Besides imported brands, there has been a surge of Indian brands who have entered the sector and are catering to the tastes of Indians.
Interest in Indian frozen food is phenomenal on the global market as well. "Given that half of the world is occupied by India, global economic growth is also burgeoning," said Archit Goel, executive director and CFO of Shri Bajrang Alliance Ltd.
Noting that the frozen food market was Rs 99 billion in 2020 and by 2025, the market was projected to grow at a compound annual growth rate of 18.17% to Rs 225 billion, Goel said that until a few years ago, this concept was unthinkable and an alien notion in India. However, now it has become a mainstream food trend which is dominating the Indian food market. So, we can witness India has only been consuming frozen foods for a relatively short time.
Another factor contributing to the growth and popularity of frozen foods is their easy accessibility through online or offline channels. Frozen products can be used to make a delicious meal in a matter of minutes. "Young people are always exploring and experimenting and cooking delicious foods with frozen options is easy," he added.
During the Covid era, frozen foods continued to be popular because of their convenience and affordability. "Frozen food was preferred by households without help and frozen meals became an obvious choice and an option too. As a result of the popularity and growth of these products, available in a large variety with excellent taste and range," said Goel, while speaking to FnB News.
With the growing acceptance of frozen food, many companies are focused on expansion from regional to national presence. Last year, Raipur-based steel manufacturer Goel Group entered a frozen food business called Goeld.
While Covid-19 caused a lot of disruptions, it also provided a good business opportunity for lots of companies. According to the Indian Council of Medical Research (ICMR), the Indian frozen food market is expected to be growing at 17 per cent annually uptil 2024. "To gain traction in a sector that already has companies like McCain Foods, Venky’s, Godrej Tyson Foods, and more, Goeld offers 15 products in four categories, including Indian breads, snacks, desserts, and vegan treats," he said.
The frozen food market, which includes frozen meals, observed a faster growth rate in the past five years. There is considerable growth in the number of millennial consumers among the semi-urban and urban markets opting for convenience food, giving rise to the acceptance of frozen food in India.
Expansion in modern retail outlets and a demand in online retailing has further boosted the growth of frozen food sales. Frozen food has long shelf life, however, due to lack of infrastructure, the product is wasted easily leading to a loss for frozen food manufacturers. Lack of investment due to the monetary crisis in developing economies has been one reason slowing down the cold chain logistics business in India, according to Goel.
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