Sumeru eyes larger slice of frozen foods market with launch of ‘disruptive’ snacks

October 30, 2019 Gubba Frozen In E News

The category is expected to grow at 17 per cent for next five years
Frozen snacks category will dominate transformation for the frozen food market, which is expected to grow at a robust 17 per cent led by disruptive innovations in the category.
The frozen food market includes snacks, meat, poultry & seafoods, and frozen fruits & vegetables, among others, of which frozen snacks dominate the demand, which is anticipated to continue dominating the market through 2021, due to wide variety of products available in the segment.
Bengaluru-based Innovative Foods Limited, which markets frozen foods products under the brand of Sumeru Foods, looks to capitalise on the innovative disruptions the company is implementing for the frozen foods.
“There are a lot of disruptive innovative products being introduced in different categories. At Sumeru, we have launched millet khichdi (ready to eat), also a few months back we launched momos in the category. Frozen foods category is buoyant and likely to see big growth driven by newer and innovative sub-categories. This will also disrupt the market, and in the next few years, this market is going to explode,” Mithun Appaiah, CEO of Innovative Foods Limited, told BusinessLine. Also, there are products such as frozen peas and frozen corn.
Currently, markets in the North and South India are showing healthy growth.
Notably, earlier dairy major and Amul marketer, Gujarat Cooperative Milk Marketing Federation (GCMMF) had last year launched six products under the category of “Happy Treats” frozen potato snacks. Amul Happy Treats provides six varieties in the frozen potato snacks category including Aloo Tikki, French Fries, Potato Wedges and veggie stix among others.
Market share
Sumeru is currently, the market leader in the frozen parathas category with about 50 per cent market share in the category, while it gets the majority of its revenues from non-vegetarian products i.e. frozen chicken. Put together the frozen chicken-based business, and Frozen paratha category contributes about 35 per cent of the revenues to the company.
Emerging cold-chain industry is benefiting frozen food market in India, while North is proving to be a significant revenue driver for the frozen food market due to robust growth in employment opportunities and rising migrating population.
Currently, the Indian frozen food market is dominated by frozen snacks and vegetables – these segments together account for 85 per cent of the volume and 65 per cent of the sales.
Though frozen food is gaining in popularity, particularly in North, it still has a limited audience due to unhealthy tag segment carries, which is an extension from the more substantial processed/packaged food.
Appaiah further stated that Sumeru tries to bust this myth with standard manufacturing processes and healthier ingredients for frozen food products.

Source : thehindubusinessline

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