The Indian canned food market is projected to grow at a CAGR of 6.65% during the forecast period to reach US$2,132.022 million by 2028, from US$1,431.967 million in 2021.
Canning is a method of preserving food for a longer time by using air-tight containers. The canning process varies by product, but usually, it involves three steps: processing, sealing, and heating the cans to kill harmful bacteria and prevent spoilage. Commonly used canned foods include fruits, vegetables, beans, soups, meats, and seafood. The major advantage of canned food is that it is affordable, convenient to carry, and has a longer shelf life. In recent times, canned food consumption is increasing among people, particularly working people, as canned food requires less time to prepare, provides a nutrient-based diet, and longer storage potential. With the rise of urbanization and changing lifestyles, there has been a shift towards convenience food options. As more people seek out ready-to-eat and ready-to-cook options, canned food provides a convenient solution. Canned food offers a quick and easy solution for busy individuals who don't have the time to cook or prepare meals from scratch.
Increasing demand for processed foods is mainly driving the demand for canned foods in India due to various factors such as changing lifestyles, increasing disposable incomes, and a growing preference for convenience foods. The Indian population has become more aware of the importance of food safety in recent years, especially after several high-profile food contamination incidents. Canned food offers a safer alternative as it is processed and sealed in a sterile environment, reducing the risk of contamination.
Furthermore, the growth of the organized retail sector in India has led to increased availability and visibility of canned food products. Supermarkets and hypermarkets have been quick to stock a wide range of canned food products, making them easily accessible to consumers across the country. In addition, online retail platforms have made it even easier for consumers to purchase canned food products, with the added convenience of home delivery. For instance, Nestle India, a subsidiary of Nestle SA, launched a range of ready-to-eat meals under the brand name "Maggi Nutri-licious" in 2021. The meals come in canned packaging and are available in various flavors such as Schezwan, Chatpata, and Lemon Chutney.
It has made it easier for consumers in remote areas to access a wide variety of canned food products. This has led to an increase in demand for canned food products among consumers who previously had limited access to these products. Also, online distribution channels often offer competitive pricing for canned food products, making them more affordable for consumers. This has helped to drive sales of canned food products and increase their popularity. Moreover, online shopping has become increasingly popular in India due to its convenience. For instance, in 2020, Amazon India launched a dedicated platform for groceries called Amazon Fresh, which includes a wide range of canned food products. The platform offers delivery within a two-hour window, making it a convenient option for busy consumers.
India Canned Food Market Segmentation: