Globalization has significantly influenced various aspects of Indian society, including the change in food habits of Indian consumers over the last two decades. Aided by
several economic developments, increasing spending power and openness to new diets and lifestyle habits, the development of production, processing, distribution and marketing of the FMCG and F&B industries has seen tremendous growth in India. One of the major shifts in the food industry is the increasing number of Indians shifting to a non-vegetarian diet despite India’s reputation as a vegetarian nation. According to the sample registration system (SRS) baseline survey, 2014 released by the Registrar General of India, 71% of Indians over the age of 15 are non-vegetarian. India consumes close to $30 billion worth of meat annually, of which 90% is handled by the unorganized market. In this fast-growing industry, a prodigious shift has been seen towards consumption of fresh and chilled ready to eat meats including sausages and cold cuts. The Indian market for non-vegetarian products has been primarily dominated by frozen ready to eat meat products, unlike international markets where fresh and chilled ready to eat non-vegetarian products are more prevalent with decreasing frozen sales. Fresh ready to eat products are superior in taste, nutritional value and texture.

Due to these reasons, globally, in most developed countries, the focus is on fresh with very few brands available in the frozen range. However, the shift towards consuming fresh sausages, deli products and ready to eat products is increasing with consumers in their 20s and 30s, in particular, driving the changes in frozen food as they grew up in an era of heightened awareness about nutrition, intense scrutiny of the food industry and the advent of the internet and social media to fuel that fire. Consumers are
becoming more aware of food ingredients and look for ‘betterfor- you’ high-quality ingredients. TV shows like Master Chef, easy cook recipe books and columns appeal to the viewers to use pre-chopped vegetables and meat or other prepared meal components to aid them to cook fresh meals quickly. The changing consumer demand is leading to major changes in the retail Industry to tap into this demand, leading to diminishing frozen sales. Even globally, Kroger Co. (the second largest food retailer after Wal-Mart in the US) said frozen sales have weakened over the past few years. At the centre of the supermarket and the heart of kitchen convenience, freezer-aisle items are struggling today as consumers shift their tastes to fresh food that they see as healthier. Retail stores have sought to capitalize on the desire for fresh meats, ready to eat products and deli products by sprucing up the perimeter of the stores with investment in chillers and infrastructure, as they are the critical differentiators against competition. 

On the supply side, the challenge also remains given the complex nature of managing chilled temperatures unlike frozen meats and ready to eat products, and the supply chain proves to be the hindrance in providing high-quality fresh food. With very few manufacturers having the expertise and technical know-how in the fresh meat and fresh ready to eat products – creating high barriers for entry – there are limited choices in brands to choose from. Also, the focus on infrastructure for fresh and chilled meats and deli products remains a major roadblock. Thankfully, retailers now understand the change and are moving towards fresh meats. The cold-cut retail/e-tail sector has experienced positive growth in Indian markets, yet there is considerable untapped marketing potential. The meat market is expected to reach $65 billion by 2022. This reflects the appetite and high interest level of meat lovers. It will be interesting to see what 2020 has in store; needless to say, more players are expected to join the race.

(Source: Gubba Frozen E News, May 8, 2019)