The Packaged Wheat Flour Market in India started breaking the old age traditions of grinding wheat at local Chakki mills by growing at a whooping Compound annual growth rate (CAGR) of 19% and may likely to be double the current size by end of this decade, according to IKON Marketing Consultant’s latest pan India research report titled ‘The Indian Packaged Wheat Flour (Atta) Market – Breaking the Traditions’.
However, the report noted that the wheat flour market largely dominated by local chakki mills in India; the branded packaged wheat flour segment is emerging rapidly in the country by offering better quality, nutrition and convenience.
The Indian packaged wheat flour market comprises few national players and large number of regional and private label brands operating at pan India or restricted geographic market based on their size and capacity.
According to IKON’s estimate, the packaged wheat flour market in India is growing at whooping CAGR of almost 19% since past three years. If the growth trajectory remains the same, market may likely to touch the new height of more than Rs 7500 crore in current fiscal (2015-16) itself. In terms of volume, the packaged wheat flour market in India was more than 2,200 thousand tons during last fiscal 2014-15, growing at healthy double digit CAGR of 15% over the past three years.
The urban market dominates packaged wheat flour market in India. As per IKON’s estimate, urban market occupies more than 90% of the total market where as due to penetration of packaged food in rural India, rural consumers’ willingness towards the packaged wheat flour found somewhat increased.
The annual per capita consumption of packaged wheat flour in India remained nearly at 1.85kg during fiscal 2014-15. However, urban market leads in per capita consumption of packaged wheat flour with almost 5.5kg, making the packaged wheat flour an urban phenomenon.
North Central region is the major consumer of the packaged wheat flour in India. According to IKON’s estimation for fiscal 2014-15, in terms of value, the North-Central region comprises almost 44% of the overall India’s packaged wheat flour market.
The growing numbers of working women and their inclination towards the convenient food products; will enhance the future demands of packaged wheat flour in India. According to the IKON’s estimates, if the growth trajectory remains the same, the market of packaged wheat flour may likely to be more than double the current size by the end of current decade.
The marketer needs to come up with new and innovative product packaging and product proposition for differentiating themselves and for sustainable long-term growth. It also expected that the consumers would eventually give more importance to the its origin of ingredient and related convenience factors in case of Packaged Wheat Flour, said Taruna Sondarva, Sr. Consultant at IKON.
Azaz Motiwala, Founder & Principal Consultant of IKON Marketing Consultants added, “I am highly optimistic about the packaged wheat flour market in India. The current growth figures looks promising, however the players with strong brand image, product quality, distribution network and constant R&D for product innovation capabilities will going to stay in the market. ”
The current market trends
However, with the entry of large number of market players having better quality, fresh and convenience-packaged flour; the wheat flour consumption trends have been shifting towards the branded packaged atta.