Current trends of food industry

1. As consumers have grown increasingly concerned about what they eat and ever-
rising medical costs become more prominent in an aging population, functional
foods have taken a more prominent role in the Indian diet.

2. Ethnic cuisine to be present in organised and hygienic set-ups: Haldiram and

Bikanervala are a case study for the marketing of ethnic food to customers in
an organised set-up. Both have successfully transitioned form being small-
time sweet shops to full-fledged quick service restaurants (QSRs). In the fine
or casual dining space as well, regional cuisine restaurants are slated to come
up. It is expected that food from states such as Kerala, Tamil Nadu and
Kashmir will flood the Indian restaurant market. More and more restaurants
will come up focusing on cuisines from the North East, Odisha, Chhattisgarh
and Himachal Pradesh.
3. Food tech will continue to ‘organise the unorganised ’: The entry of food tech
start-ups has led to a massive transformation of the operations of restaurant
sector. In 2015, the food-tech sector in India went through a period of
turmoil when several start-ups had to shut down. This was followed by a
period of consolidation and correction.

4. Widening Palate, Yet Strong Regional Preferences in Food

The story of urbanization in India is different from the rest of the world. The
migration to urban centers in India is not happening as fast as it happened in China
and is not limited to a few large cities as it happened in South Asian countries like
Thailand or Indonesia. In India, it is the middle-tier or lower tier cities that are
expected to see maximum population growth over the next decade, driven by
migration from small towns and villages in the small region. Companies that can
modernize, traditional regional foods/ recipes, making them more convenient to
use/ consume will emerge as winners and the potential is immense.
 5. Gourmet food

The gourmet foods market took its time to establish, but is now soaring in India. The market,
which is characterized by distinctly flavoured, high quality, fresh and beautifully packaged
food products, stands at Rs 15,000 crore and is growing at a CAGR of 20 percent. The biggest
buyers of gourmet foods are the urban/ metro residents who understand the finer nuances
and aspects of foods as they are well travelled, well versed with fine foods, possess a refined
palate and seek experience.