Indian Palate: Changing Food Habits & Consumer Behavior

Raghav GuptaPresident, Technopak Advisors

29 July 2009

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Evolving Indian Consumer

| 3

The Indian Consumer’s Needs from Processed Food

Annual Household Income

Basic NutritionFortified Atta, Iodized Salt, etc.

Wholesome NutritionMilk, Juices, Meats, etc.

Food Inflation ProtectionFrozen Fruits & Vegetables, Juices

Convenience & Time SavingRTE, RTC, Purees, etc.

Lifestyle & AspirationCheese, Wine, Gourmet Food,

etc.

Need from Processed Food

< INR 0.5 Lacs

INR 0.5 – 2.0 Lacs

INR 2.0 – 5.0 Lacs

INR 5.0 – 10.0 Lacs

> INR 10.0 Lacs

No. of Households

1

2

3

4

5

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The Indian Consumer’s Changing Spending Patterns

Food & Grocery Fuel, Transport & Communication Discretionary Expenditure

Rent, Utilities & Education Savings & Investment

2008 2013

Changing consumer behaviour is catalyzing change in spending patterns, freeing up income for discretionary expenditure

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A More Evolved Consumer, at the Upper Income Strata

The Age of Altered Mindsets

The Age of Consumption

The Age of Maturity

2003 2008 2013

Phase I:Necessity

Phase II:Status

Affluence

Phase III:Necessity

Approach towards

Packaged Goods

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Emerging Trends

Shift to ThriftRedefining Value

Small WondersSmall Perk Me Up Products

‘Mummy ka Magic’Stays Intact

Eating ‘Out’ at Home

Evolving Home Delivery Model

Taste Bhi, Health Bhi

A very strong co-relation

Food On The Go

Instant Pick Me Up

Eco ConsciousEco ConsciousA light shade of green

Food As Discovery More Experimenting

The Food ‘Connect’

Use of Social Media

POP will remain SupremeThe final test

| 17What does this mean for food companies?

• Deepen Understanding of Consumer

• Offer Greater Value

• Offer Convenience

• Move to a Dialogue, as opposed to a Monologue

• Product & Packaging Innovation

• POP Emphasis

Thank You!

raghav.gupta@technopak.com

+91 99585 22993

www.technopak.com