The Economic Times daily newspaper is available online now.

    Millennials push companies to serve ready-to-eat

    Synopsis

    MTR Foods, another key player in this space, also realised that its brand needed a change to reflect the key consumers of today

    TNN
    MUMBAI: A decade back, the homemaker took pride in rustling up something delicious for the family even as she reduced cooking prep time by using cut & peeled vegetables and readyto-use masala and idlidosa batters. This drove the readyto-cook (RTC) products market in a big way , with a number of brands promising convenience to consumers.

    Reflecting this era of consumption was one of the oldest television commercials of Gits Food Products -`Maine banaya, Gits se'. The company's gulab jamun mix became popular among consumers for the convenience it offered.

    Today's younger consumers -people who have grown up seeing their mothers use RTC products -however, are not as keen on displaying their culinary skills.They are okay with the even more convenient ready-to-eat (RTE) products. A change in lifestyle -rising dual-income families, diminishing culina ry skills and numerous food delivery apps -has triggered a transition from the RTC to the RTE segment. This shift in consumer behaviour has pushed Gits to launch a ready-toeat gulab jamun in tins, even while its trademark mixes continue to cater to the older generation of consumers.

    Sahil Gilani, director (sales & marketing), Gits Food Products, said, “Over the years we observed that culinary skills are diminishing among the youth. The pride of cooking resonates mainly with the older generation. We had several consumer insights that bluntly said: `We love Gits gulab jamun, but don't want to cook it'.We, thus, were losing out on a newyounger set of consumers that grew up eating our product made by their mothers, but now want it more easily accessible. Hence, we have now launched it in more convenient `open & eat' cans.“

    MTR Foods, another key player in this space, also realised that its brand needed a change to reflect the key consumers of today . Its target gro up has changed from just the homemaker to all adults with aspecific focus on the younger age group. Apart from changing its logo and packaging, MTR implemented certain strategic shifts.

    From a geographical perspective, MTR has moved from being a predominantly south Indian company with a heavy product focus in southern India to being a pan-Indian company with a balanced portfolio of north and west Indian products. From a brand communication perspective, it has changed the tonality and incor porated different mediums of communication in its mix.This year, MTR launched two large-scale products -spicy sambar predominantly in the south, and `3 Minute Breakfast' with a national focus.

    Sunay Bhasin, CMO, MTR Foods, said, “Over the last decade or so, there has been a distinct shift in consumer behaviour led by youth that have migrated for jobs. The lack of ready infrastructure for food when they move out of their homes, coupled with the declining knowledge of cooking and the paucity of time, has led to a ready acceptance of quick and convenient options for labour-intensive chores like cooking. In the everyday rushed pace of life, convenient food options like RTE or RTC have taken a permanent place in the kitchen, often replacing homecooked meals altogether. This change has led to an increasing acceptance of ready-toeat food not just for in-home consumption, but also for onthe-go food options.“

    According to data research company Nielsen, the breakfast mixes market is growing at 17% and is currently pegged at Rs 275 crore. The RTE meals market is currently valued at Rs 23 crore. It grew at a compounded annual growth rate of 3-5% in the last five years.

    Companies expect homemakers to continue using RTC mixes, even while their kids are adapting quicker to RTE options. “In the long run, perhaps the overall pie will get bigger as we are catering to new consumers. Thus, contribution of ready-to-eat is likely to grow faster compared to ready-to-cook,“ said Gilani.

    Image article boday


    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more
    The Economic Times

    Stories you might be interested in