Dosa to Cake: The Rising Popularity of ‘Ready to Cook’ Meal Options

Convenience is becoming a top priority for consumers, leading to a significant surge in the popularity of ready-to-cook (RTC) meals. Recent data from Kantar Worldpanel reveals that the RTC category has doubled in volume over the past two years, attracting an additional 18 million households. In stark contrast, the ready-to-eat (RTE) food segment is experiencing a decline, highlighting a shift in consumer preferences towards semi-cooked options that offer both convenience and a semblance of home-cooked meals.

Surge in Ready-to-Cook Meals

The ready-to-cook meals market is thriving, with a remarkable 58% increase in 2024, according to Kantar Worldpanel. This growth stands out against the backdrop of the overall packaged food sector, which has seen a modest growth of nearly 8%. The RTC category’s expansion can be attributed to various factors, including urbanization, the rise of dual-income households, and increasingly busy lifestyles. Consumers are not only embracing the ease of RTC products but are also making more frequent purchases, effectively doubling their annual trips to buy these items.

Products in this category range from dosa batters to curry and cake mixes, catering to a diverse array of culinary preferences. The shift towards RTC meals reflects a broader trend where consumers seek convenience without sacrificing the quality and freshness associated with home-cooked food. K Ramakrishnan, Managing Director of Kantar’s South Asia Worldpanel division, noted that while convenience remains paramount, consumers are also looking for freshness, health, and control over their meals.

Decline of Ready-to-Eat Foods

In contrast to the booming RTC segment, ready-to-eat (RTE) foods are losing their appeal. This category, which includes products that require minimal preparation, such as heat-and-eat pulaos and curries, has seen its volume halved in the past two years. This decline indicates a growing preference for semi-cooked options that allow consumers to engage more in the cooking process. The shift suggests that while convenience is essential, many consumers still desire a connection to the cooking experience, which RTE products do not provide.

K Ramakrishnan emphasized that the evolving landscape of consumer preferences is reshaping the packaged food market. As consumers increasingly seek products that align with their desire for freshness and health, brands that innovate in these areas are likely to capture the next wave of growth.

Market Response and Innovations

In response to the rising demand for RTC products, packaged food companies are expanding their offerings. Ashu Phakey, Vice President and Business Head of Frozen and Fresh Foods at ITC, highlighted the substantial growth in the RTC category, attributing it to heightened consumer demand and the rise of quick commerce, which enhances product accessibility. Factors such as increased disposable income, convenience, and innovation in product portfolios are driving this trend.

Phakey noted that Indian consumers are increasingly incorporating RTC products into their grocery shopping, reflecting a shift in buying habits. The RTC category’s share of the packaged foods segment has grown from a mere 5% to 8% in just a couple of years, marking a significant change in consumer preferences.

Future Outlook for Packaged Foods

The future of the packaged food market appears to be leaning heavily towards RTC options. Rajiv Kumar, Vice Chairman of the Dharampal Satyapal Group, shared insights on the growing popularity of gourmet ready-to-cook gravies, which cater to consumers’ desires to feel involved in the cooking process. As the market continues to evolve, companies that focus on innovation and meet consumer demands for convenience and quality are likely to thrive.

The shift towards RTC meals signifies a broader transformation in consumer behavior, where the balance between convenience and the desire for home-cooked experiences is increasingly important. As this trend continues, the packaged food industry will need to adapt to meet the changing needs of consumers.

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