Top FMCG brands bet big on functional food market
health problems, priced considerably higher than the regular and even organic variants.
Large companies, including ITC, Adani Wilmar, Tata Consumer, BigBasket and Emami Agrotech are betting on functional food, offering products such as low cholesterol ghee, edible oil for the sugar conscious, immunity boosting atta, rice and sugar, potato with low glycemic index (GI), tea with vitamins, and salt with iron and vitamins.
Last month, ITC launched a new food brand, Right Shift, which will have a portfolio covering meals, drinks and snacking items targeted at those in their 40s and above with dense nutrition, apart from ghee with low cholesterol, at a 26% price premium over the regular range.
Adani Wilmar has rolled out a new oil for the sugar conscious and those looking for an immunity booster, and will soon launch low GI rice and atta for diabetic consumers to premiumise the portfolio, chief financial officer Shrikant Kanhere said during the company's earnings call earlier this month. The oils are priced 22-46% higher than sunflower oil.
Hemant Malik, executive director at ITC, said that with changing lifestyle habits, fitness focus and nutritional preferences, discerning consumers are now seeking distinct value propositions in packaged foods.
«The market for premium food products is growing in India, with the 30 million affluent and niche consumers willing to pay a premium for innovative value-added offerings that provide benefits across nutrition, wellness, taste, quality and sustainability,» he said.
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