21 Apr 2021
Posted in Consumer
India’s soups sector poised to reach US$148.4m in 2025, forecasts GlobalData
The Indian soups sector is projected to grow at a compound annual growth rate (CAGR) of 7.8% from INR7.9bn (US$111.8m) in 2020 to INR11.4bn (US$148.4m) in 2025. The growth will be driven and benefitted from soups’ perceived image of being a healthy and nutritious snack-product, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘India Soups – Market Assessment and Forecasts to 2025’, reveals that the sector is majorly driven by growth in the dried soup (mixes) category, which is forecast to register the fastest value CAGR of 7.8% during 2020–2025. The category will be followed by ambient soup, which is expected to record a CAGR of 7.4% during the same period.
Anjali Singh, Consumer Analyst at GlobalData, says: “The Indian soups sector witnessed a boost in 2020 sales owing to the panic buying as consumers stocked convenient, easy-to-cook and shelf-stable soup products among other food products amid the nationwide lockdown. The positive image of these products as healthy and nutritious snacks will play a key role in driving their demand in the coming years.”
‘Convenience stores’ was the leading distribution channel in the Indian soups sector in 2020, followed by ‘hypermarkets & supermarkets’ and ‘food & drinks’ specialists.
In volume terms, India’s share in the global soups sector is expected to increase from 0.3% in 2020 to 0.4% in 2025. Similarly, the country’s share at the Asia-Pacific (APAC) level is expected to increase from 3.5% in 2020 to 4.5% in 2025.
In terms of the leading players, Unilever, Nestle SA, and Capital Foods Limited were the top three companies in the Indian soups sector by value in 2020, while Knorr and Maggi were the leading brands by volume.
Ms Singh concludes: “Health and wellness trend will prevail in the soups sector and health-conscious consumers will opt for soups as a snack over other processed food products. As a result, manufactures should focus on product innovation and offer more healthy options with features such as low calorie, low sodium, vegan and gluten-free to attract young consumers.”