Companies have been attempting to break into the Indian breakfast industry since the 1990s, but have had little success. However, there has been a resurgence of interest in the category in recent years. Today, we'll look at why corporations are redoubling their efforts and see whether there's any value in entering this tricky sector.
The Synopsis
What do you consider to be the most important meal of the day?
Breakfast?
Yes, we concur. Breakfast is in charge. However, history shows that breakfast wasn't always the most important meal. Breakfast, on the other hand, is a relatively recent phenomenon. A morning meal was considered a sin in many areas of the globe until the 1500s. People only ate two meals a day, one in the middle of the day and another in the evening.
But then came the industrial revolution, which drastically altered everything. Meal patterns evolved in tandem with the widespread adoption of 9–5 workdays. Breakfast had become a must. It was even considered cool in certain places. "Eat breakfast like a king, lunch like a prince, and supper like a poor," was the motto. When individuals no longer had time to prepare elaborate meals, corporations like Kellogg's discovered a new market to exploit: ready-to-eat breakfasts. With their "milk and cereal" mixture, they started a revolution in the West, and they haven't looked back since.
Until they arrived in India, that is.
When the corporation attempted to reproduce their technique at home in the 1990s, they met a brick wall. Cold grains and milk were just unappealing to Indians. They most likely despised it! They need hot, fresh foods like as idli, poha, and parathas. You know what we're talking about if you're nodding your head as you read this!
And it was then that Indian corporations reasoned, "Why not take over this market?" and accomplish something that these western multinational corporations have failed to achieve. They took the initiative and produced indigenized breakfast foods that were tailored to the Indian appetite.
ITC, a tobacco-to-FMCG company, is the most recent entry on this front. After introducing a brand under the Aashirvaad umbrella (mostly for atta), the company now intends to take things a step further by providing ready-to-cook breakfasts. It's saying "no, thank you" to the oats-based Western diet in favour of a totally desi diet that includes rawa, vermicelli, and poha. It's following in the footsteps of MTR Foods and Marico (Saffola Oats) in an attempt to compete in this highly competitive sector.
And we use the term complex because, despite MTR Foods and Marico's efforts to offer ready-to-eat and ready-to-cook goods to the Indian market, they have yet to achieve much success. There is a respectable market, although it isn't as large as some of the other marketplaces. So why are so many businesses still attempting to make a dent in the market?
Probably because some new-age players are succeeding by using a more subtle technique. Take the case of iD Fresh Foods, for example. iD Fresh Foods had a straightforward value proposition — sanitary preparations with a more local flavour profile — in a market long dominated by neighbourhood cooks selling fresh idli-dosa batter. They researched certain micro markets and started developing items to meet their demands. Granted, they didn't have much success in certain cities, such as Chennai. They've had a lot of success in other locations, however. So much so that the corporation expects to achieve a sales goal of 500 crores this fiscal year.
Others are attempting to develop totally new product lines. Ready-to-eat parathas and chapatis are swiftly gaining popularity, and these alternatives make a lot of sense for young people who are always searching for a quick fix breakfast.
So, yes, the Indian breakfast sector is reviving in a major way, and ITC's involvement might just be the start of a new revolution.
(Source: Finshots)
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