The packaged wheat flour market in India is growing at a CAGR of 19% over the past three years and may likely to be double the current size by end of this decade, according to IKON Marketing Consultant’s latest pan India research ‘The Indian Packaged Wheat Flour (Atta) Market – Breaking the Traditions’.
If the growth trajectory remains the same, the market may likely to touch the new height of more than Rs 7,500 Cr in current fiscal (2015-16). In terms of volume, the packaged wheat flour market in India was more than 2,200 thousand tones during last fiscal 2014-15, according to the report.
The wheat flour market is largely dominated by local chakki mills in India. Bur now, the branded packaged wheat flour segment is emerging rapidly in the country by offering
better quality, nutrition and convenience.
The annual per capita consumption of packaged wheat flour in India remained nearly 1.85 Kg, during fiscal 2014-15. However, urban market leads in per capita consumption of packaged wheat flour with almost 5.50 kg, making the packaged wheat flour an urban
Phenomenon, the report says.
As per the report’s estimation for fiscal 2014-15, the North-Central region, in terms of value, comprises almost 44% of the overall India’s packaged wheat flour market.
“For sustainable long-term growth, the marketer needs to come up with new and innovative product packaging and product proposition for differentiating themselves. We are also expecting that the consumers would eventually give more importance to the its origin of ingredient and related convenience factors in case of Packaged Wheat Flour,” points out Taruna Sondarva, Sr. Consultant at IKON.
The Indian packaged wheat flour market consists of several brands each one is trying to
distinguish themselves with origin of wheat, manufacturing process, quality, taste, textures and price to attract customers. Besides leading brands, there are more than 500 regional brands in India. Each flour mill has its own brand, sometimes even more than two brands of packaged wheat flour.
ITC Food’s Aashirvaad is the clear market leader among the national players in the branded packaged wheat flour category in India with more than 35% market share whereas several regional brands (produced by flourmills serving region specific markets) together occupy major 40% share of market.
Shakti Bhog holds almost 12% market share and other national players such as Pillsbury, Nature Fresh and Annapurna occupy about 10% market share togather.
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