Nestle sees packaged food mart doubling

NEW DELHI: The Indian packaged food market is expected to be double and grow up to USD 70 billion in the next 5-10 years, led by factors that include economic growth, demographic dividend and growing e-commerce, said Nestlé India Chairman and Managing Director Suresh Narayanan.

The company is also waiting for the government's production-linked incentive (PLI) scheme for the food processing sector, which would be a good step for the industry that has the best ratio of capital investment and employment generation.

"I am a firm believer of the consumption story of this country," said Narayanan while addressing a virtual media roundtable.

Surveys conducted by all major agencies suggest the packaged goods market to double in the next 5-10 years, he added.

"The market today is worth USD 35 billion and we are expecting it to go to USD 70 billion," said Narayanan while adding that because of the pandemic, there could be some delay in that but "cannot be denied also".

There are factors such as 'demographic dividends' and 'economic reasons', which would help the food processing industry with a digital push.

"If you look at the aspiring class, the affordable class and the wealthy into the country, research after research are showing that between 2018 and 2030, we are going to add almost 140 million households to the aspiring and to the affluent class," he said.

He also added that the bottom of the pyramid, those who are the deprived, is going to shrink.

This clearly means that there is going to be an increasing proclivity towards the consumption of packaged goods and also of branded goods, he added.