This document summarizes emerging trends in the Indian food and beverage industry. It identifies five key themes: 1) Vulnerable Gen X consumers who are health-conscious and want brands that speak directly to them. 2) Fluid lifestyles leading to on-the-go eating and snacking. 3) A broader definition of health that includes mental wellness. 4) Eating driven by moments throughout the day rather than large meals. 5) Demand for transparency in sourcing and production to build trust in packaged foods. The document discusses implications for brands, such as targeting Gen X, developing healthier snack replacements, and marketing to different consumption moments.

1. FOOD
NOT JUST A
MATTER OF TASTE

2. FOREWORD
Demand for packaged F&B including Nutrition has been stressed over the last few years. The
sector has suffered from controversies and a new entrant that has shaken the pecking order. In
2016,the sector sawsingle digits growth– 4% for Foods and 6% for Beverages.
(Source:KANTARWorldpanel).
It is estimated that the coming years will be a big growth story for India that will offer massive
opportunities to businesses. Consumer spending in India is expected to increase to USD 3.6
trillion by 2020, with maximum spend likely to occur in the food, household, transport and
communication segments.
(Source:Report onShaping ConsumerTrends,FICCI-PWC,2016)
Behind this growth story we see emergence of new consumer behaviors and tipping points to
branded food practices. During the time when consumers are adopting new ways to find, buy
and consume food, just knowing your category and consumer isn’t enough.To create a winning
consumer offer, businesses will need to adapt their business models to the changing landscape
of consumer needs and behaviors.
This white paper by Kantar IMRB captures what’s changing in India when it comes to howwe find,
buy and consume food. It identifies critical areas to win in the Food & Beverage industry. The
report focuses on five broad themes influencing the food category: vulnerable Gen X, fluid
lifestyles, multi-dimensional health, food for moments, and trust & transparency. Within
these spaces, we spotlight some of the things to watch and present what it means to the
marketers.

3. EMERGING THEMES
1.Vulnerable GenX
GenX(35-45years) has higher spending power thanyouth.These mid-lifers care more about the
environment,food quality and make more conscious choices while shopping.The cohort is under
immense pressure to prolong their youth.The pressure to prolong youth stems primarily from the
health vulnerability that starts setting in at an age of 30 years (Refer Chart 1). Considered
gatekeepers of the house, Gen X is often spoken to about their families but, rarely about
themselves. This creates a big opportunity in front of marketers to craft unique propositions
sharplytargeted at GenX.
Very
concerned
Not
concerned
11-15 yrs 16-20 yrs 21-25 yrs 26-30 yrs 31-35 yrs 36-40 yrs
Health vulnerability starts at an age of 30 years
Age-wise concern about overall health
Chart 1
Source: Kantar IMRB

4. We see Gen X leaning towards brands that speak to them & about them. Some recent
examples of brands that have succeeded by speaking to Gen X include Saffola Oats,
Britannia Nutrichoice, Women’s Horlicks.
For example, Women’s Horlicks celebrates women turning 30. The brand urges women to
have Women’s Horlicks for their bone health. Britannia tries to resolve the love-hate
relationship between consumers and their favorite snacks with a range of Britannia
Nutrichoice health biscuits.

5. There are multiple implications of this theme. The first implication is emergence of newer, more
convenient food formats. A case in point here is the recent launch ofAct II Pop 'n' ServeTub by
Agro Tech Foods, an affiliate of ConAgra Foods, Inc. of USA. The tub can be directly placed in
microwave, popped and consumed. Another illustration is the recent launch of Nachos &
Salsa, Nachos & Dip combo packs by Cornitos,the flagship brand of Greendot Health Foods
Limited.Cornitos has also extended its offering to a newrange of Resealable Nuts packs.
Source: Kantar IMRB
Sit down meals
3
Small meals
6
2.Fluid Lifestyle
The new always-busy, always-on culture, emergence of multicultural nuclear families and
constant urge for variety and newness is disrupting our daily routines. The way we eat food and
the meal structures itself is fragmenting. People have an ever-increasing need to have food
solutions that sustains energythroughout the day.

6. The second implication of this theme is increase in demand for Snack Replacements. As per
Euromonitor definition, Snack Replacements are typically miniaturized versions of common
staple foods that have been positioned for “on-the-go” occasions.
Drums Food International recently launched Epigamia yoghurt in a Snack Pack. Epigamia
Snack Pack yoghurts are positioned as healthy and tasty snacks for in-between meals. In 2016,
Nestlé India had announced the launch of NESTLÉ a+ GREKYO Yoghurt. GREEKYO yoghurts
are positioned as healthier snack for hunger pangs.These market launches illustrate food brands
tapping into the growing demand for healthier Snack Replacements.

7. Google Trends comparison of weight management vs. mental health
across all categories in India (past 5 years).
Chart 2
Weight
management
Mental health
Interest over Time
In the coming times,we expect the definition of health brands to widen, new brand propositions
to be built on positive psychology, and a complete exploration of multi-dimensional health
space.
The action areas will be natural,organic,herbal and othertraditional products.
Soups for the soul (soups with relaxants), green tea for mental health and maybe, re-packaged
comfort foods have an opportunityto playin this space.
3.Multi-dimensional health
As the pace of life intensifies, stresses and strains are not only being placed on the body, but also
on the mind.Health is beingviewed in a more holisticway.
Mental well-being is being folded into the definition of ‘health’ (Refer Chart 2). Consumer
choices are being driven by products and services that enhance physical fitness, mental health,
and also cause less damage to the environment. Topics such as mental well-being, mood
management,happiness are becoming new debates in the online Health space.
Average Jul 8,2012 Mar 30,2014 Dec 20,2012 Jul 8,2017
100
75
25
5037
5
Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak
popularity for the term. A value of 50 means that the term is half as popular. Likewise a score of 0 means the term was less than 1%
as popular as the peak.

8. 4.Food for Moments
Instead of having large balanced meals,there is an increasing reliance on multiple snacking.This
style of eating across the day gives an opportunity for moment-based marketing. For example,
as per Kantar IMRB National Food Survey 2016, 37% of breakfast consumption is alone which is
contraryto the popular belief.This creates an opportunity for 'individual' targeted products.
The evening 3pm to 7pm slot is characterized byvariety delivered through multiplicity of flavours
and textures (Refer Chart 3 and Chart 4). This moment is likely to be shared with family
members and friends.
Share of Beverages between 3-7 pm. All figures in percentages.
Chart 3
Source: Kantar IMRB National Food Survey, 2016
Tea
Co ee
Carbonated Soft Drinks
Plain Milk
Unpackaged Juice/Fresh Juice
Soup
Buttermilk/Lassi
Health Food Drinks
Others
63
12
8
4
4
2
2
1
4

9. Chart 4
Kantar IMRB National FoodSurvey2016 further reveals 'healthy' is not a day-long phenomenon
for the average Indian.The daystarts offwith a healthybreakfast - or,at least an attempt to - but
the rest of the day,especially snacking is primarily about indulgence (Refer Chart 5).Balancing
taste and health is a code that both marketers and consumers are yet to crack successfully;
it is a burgeoning opportunitythat is still a white space of sorts.
Share of Meta categories within Food during '3 to 7 pm'.
All figures in percentages.
33
28
14
6 5
4 4
3 2 2
0
Source: Kantar IMRB National Food Survey, 2016
Fruits ConfectionerySweetsSalty
Snacks
Swap
Food
Western
Fast Food
Dairy BFCRTERTCBiscuitsStreet Food
/Savoury

10. Balancing taste and health across occasions.
Chart 5
Source: Kantar IMRB National Food Survey, 2016
Before
Breakfast
Breakfast Between
breakfast
and lunch
Lunch time Between
lunch
and dinner
Dinner
More
Healthy
More
Indulgent
Last at night
More healthy
More indulgent

11. 5.Trust&Transparency
Repeated high profile food scares and scandals worldwide have led to decreased trust in
packaged foods. Driven by the need to rebuild this trust, consumers are increasingly looking for
ways to ensure qualityof ingredients,transparencyin process and enhanced label literacy.
Back to Basics emerges as a strong code among consumers. There is an emphasis on
goodness and freshness of food instead of additive benefits, transparency in sourcing and
manufacturing, and food sources that are more natural and organic. As per Kantar IMRB
National Food Survey 2016, natural unpackaged juice had larger share of stomach than
packaged juice.
Consumers are seeking assurance that the food they eat has been produced, handled, stored to
meet certain standards.Need fortrust&transparency is giving rise to usage of better-for-you
ingredients, improvements in food chain transparency, and new labeling schemes for
packs.
An example of this trend is a recent campaign by HUL for its Bru Gold coffee. The
commercial emphasizes the source of its authentic coffee – South Indian plantations. It
inspires the audience to thank the coffee workers for the toil and hard work in bringing the best
coffee to market.
In an attemptto illustrate authenticity of ingredients,Frito-Lay India recently revamped the
packaging of its snack brand Kurkure. The new Kurkure pack features real ingredients that go
into the snack.

12. Big Basket, online grocery shopping service in India is strengthening its place in sustainable
agriculture. The online supermarket’s campaign highlights the Farm to Fridge proposition.
Underpinned by the need to have something good and reliable, we also see growing number of
Indians embracing DIY. Kantar World Panel data shows that there has been 40% increase in
DIY foods in 2016. DIY is also resulting in co-creation of food ideas and display of
craftsmanship on social media.
Source: Instagram

13. WHATITMEANS FOR BRANDS?
Marketing to targeted cohorts
We have seen a lot of brands talking to the millennials. In times ahead, this trend will shift to
include new cohorts. For instance, Gen X (35-45 years), a cohort with higher spending power
than Gen Y will be seen as a popular target choice for brands. Security, protection, health & well-
beingwill be guiding motivations for this group.
Staple based snacks
There is likely to be a shift in market from conventional,processed snacks to snack replacements.
India has a rich culture of traditional snacking. It will be interesting to see if brands with a strong
foothold in traditional snacking space create new modern staple-based snack replacement
offerings OR if the multinationalswould be faster off the block.We predict that areas of action for
brands will be dairy,wheat, brown rice, nutrient-packed superfoods such as millets, flax, quinoa,
walnuts,steel cut Oats (less processed).
Marketing to moments
We see consumers branching out to new moments of consumption.Breakfast which is to a large
extent an unaccompanied moment of consumption will offer opportunities to brands to create
sharp individually targeted products. On the other hand, we will see new food interests and
choices becoming pronounced during the course of the day.From individual to shared moments,
possibilities will be endless.Businesses will have an opportunity to create a repertoire of products
to followa moment-based strategy.

14. Synergy betweenScience and Nature
Food & food based supplementation will be increasingly used as a proactive alternative than
medicine,but the form this will take may be closer to nature than science.Over years fortification
has played an important role in food marketing but, in the coming times it may become a point
of parity. Brands may seek differentiation via communication leaning towards claims such as
fresh, light, nutritious, healthy, smart, wholesome. From a positioning standpoint, while science
based brands may explore disruption by moving from science based proposition to nature based
supplements,nature based brand mayexplore synergies between science and nature.
InSum
Consumer shifts tend to serve as a gateway to opportunities for marketers.Trends explored here
indicate new shifts that will shape future demands. Brand marketers, in the coming times, will
have to make intelligent and aware decisions.
Howwill trust and assurance be built?Are there any partnerships that will help my brand become
trustworthy? How should my brand acknowledge both health and indulgence? What attributes
of my brand would complement a wholesome lifestyle? Are there new ways in which my brand
can fit into lives of customers ignored in the past?
These are thought starters thatwill challenge and inspire businesses in future.
Unless otherwise specified, examples stated in the paper are based on our data observation from public domain and not
from anyspecific consumer research done byKantar IMRB.

15. REFERENCES
• Kantar IMRB
• KantarWorldpanel
• Shaping ConsumerTrends.(2016).Retrieved May31,2017,from
www.pwc.in/assets/pdfs/publications/2016/shaping-consumer-trends.pdf
• www.epigamia.com/#home
• https://www.nestle.in/Brands/nestle-a-plus-grekyo-yoghurt
• GoogleTrends
• www.brucoffee.in
• Euromonitor International
• Instagram
• Big Basket
• www.pepsicoindia.co.in/brands/kurkure.html
• women.horlicks.in
• britannia.co.in/products/nutri-choice/nutrichoice-oats
• www.fitfoodie.in/saffola-products
• www.atfoods.com/our-brands/act-ii-popcorn/microwave-popcorn.html
• www.cornitos.in/index.php

16. WRITTEN BY
Soumya Mohanty
Managing Director&ChiefSolution Officer,Kantar IMRB
Soumya has over 20 years of experience in digging deeper into consumer behaviour & helping
companies across sectors connect better with consumers. Her specialties include innovation &
opportunity spotting, media and content measurement, communication assessment and
tracking.
soumya.mohanty@imrbint.com
SarahanaSanchay
Sr.Account Manager,Kantar IMRB
Sarahana is part of Consumer Insights Advisory team at Kantar IMRB. Passionate about
consumer behavior, she sees cultural shifts as opportunities for businesses. Her experience
includesAdvertising and Brand Management.
sarahana.sanchay@imrbint.com

17. CONTRIBUTION BY
Ranjana Gupta
ExecutiveVice President,Kantar IMRB
Ranjana Gupta leads Marketing Science, the innovation and solutioneering team at Kantar
IMRB. Her areas of expertise include pricing, segmentation, innovation evaluation and
forecasting.
ranjana.gupta@imrbint.com
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