Packaged Foods and Beverages

The organised food market will lead the next phase of growth within consumer goods; the segment has lagged at ~15% penetration compared to 90%+ penetration of non-food FMCG segment. The 11% growth is largely driven by rising spending propensity, evolution of customer choices towards healthier options and growth of convenience food segment.

How the Indian Consumer is changing?

80% of households in India will belong to middle class by 2030

Increase in India’s millennials (15-34 years) marked by higher disposable incomes and spending power

35.4% of wallet share accounts for food in average consumer household

Market share of India’s unorganised food services segment declined from 69% in FY2013-14 to around 62%

Penetration increase driven by Tier- 2 and 3 cities

E-commerce expected to contribute 4% of total food and grocery by 2025

What are they eating?

In the ever-changing landscape of the packaged foods segment, we have identified several key trends that brands must address to stay competitive and succeed:

  • Increasing range of customer preferences: Today’s Indian millennials have diverse and evolving tastes comprising of a mix of localised flavours, healthy options and global cuisines. To capture the attention of these customers, brands must focus on three crucial aspects:
    • Localisation of products: Food preferences vary not only by state but also by region. Brands can no longer adopt a one-size-fits-all approach but need to evolve and consider localized preferences. At Qwixpert, we have collaborated with a dairy producer to analyze customer taste differences based on demographics such as region, gender, and livelihood. This profiling has enabled us to recommend new product variants that can increase market share and cater to specific customer preferences.
    • Niche segment identification: The convenience factor and growing health-consciousness have led to the emergence of niche but fast-growing segments such as ready-to-eat foods, frozen foods, healthy snacking, and organic foods. These segments are outgrowing the industry at 20%+ CAGR. Qwixpert has successfully partnered with companies to identify lucrative business expansion opportunities in both the Indian and export markets. By utilizing iterative shortlisting based on market size, growth outlook, operational and regulatory complexities, and potential for synergy, we have recommended targeted products and developed comprehensive go-to-market (GTM) strategies to achieve 10% share and revenue growth within five years and Rs. 150 Cr. topline.
    • Preference for Global Cuisine: Indian consumers have developed a taste for global cuisines, with imported food segments experiencing remarkable growth of 22-23% while traditional food growth is 9-12%. At Qwixpert, we specialize in assisting global brands in formulating GTM strategies for the lucrative Indian market. Our services encompass target group identification, recommendations for product development and pricing strategies, and guidance on selecting the right sales and distribution channels.
  • Volatile raw material prices that impact margins: The changing climatic conditions and increased geopolitical risk led to inflationary pressure on raw materials. In FY22, the price of input commodities wheat and maida by 7-8%, gram and gram flour by 6-8%, and milk and sugar by ~1% had put massive pressured on margins and brands responded by lowering grammage and increasing prices by ~ 10%+. With prices stabilising now, the brands are undoing the measures they’d taken, but in a volatile market it becomes very important to secure future supply of material. Qwixpert can help devise a procurement strategy on how to handle commodity price fluctuations, establishing sustainable supply source, balance between inventory carrying and stockout.
  • Building brand equity in a highly competitive landscape: Brands face intense competition from private labels, direct-to-consumer (D2C) brands, unorganized food segments, and traditional packaged food manufacturers. To remain a part of the shelf space, mind space and wallet share, brands must connect with customers in a meaningful manner, offer better value for money, ensure availability at stores, and keep up with the latest taste and packaging trends. Qwixpert’s in-house analytical tools empower you to derive insights from sales data, gaining a deeper understanding of your target group and delivering superior value to them. We can help you identify potential new products, optimize your product-market mix, and develop pricing and promotion strategies that generate better returns on your investments.
  • Quick commerce and distribution: The online grocery segment if projected for 53% growth between FY21 and FY25, with hyperlocal delivery companies like Zepto, Dunzo, and Swiggy Instamart gaining popularity, particularly in Tier-1 cities. Keeping up with the momentum and by in-roads in Tier 2/3 cities, the segment is expected to grow by eight times over the next 5 years. While brands focus on driving online sales, it is equally essential for the general trade segment to evolve and remain competitive as they serve the mass market. We have assisted FMCG companies in determining the right margins and incentives for their general trade partners. This ensures their continued relevance in the evolving market and drives sales growth and efficiency improvement. We have also assisted an FMCG company in developing overall logistics network (in-bound and outbound) that factors in the low shelf-life of product and ensures cost-effective distribution within the required service level. Through primary node selection (DC’s and CFA’s), right linkages for stock transfer and by secondary route optimisation; Qwixpert identified potential for ~20% supply chain cost reduction.

In an industry with a strong growth outlook, Qwixpert believes that the winning formula lies in understanding your target segment and efficiently servicing the market.

What can we do?

Our Solutions for Packaged Foods Industry

Business Plan

We specialize in developing comprehensive long-term plans for business expansion – new geographies, adjacent products and a new business division. Our team will work closely with you to create a strategic roadmap that maximizes your growth potential. Our roadmap will include investment requirement, organisation capacity building and stakeholder requirements.

Brand Extension Strategy

Maintaining brand presence while meeting regulatory requirements is crucial for sustained success. Our team can help you develop a brand extension strategy that expands your product offerings while adhering to ASCI (Advertising Standards Council of India) requirements. We also explore opportunities to drive alternate sources of income, ensuring your brand remains competitive and profitable.

Product Strategy

o Innovation is a crucial competitive edge and our product strategy expertise can help you design the right offering for the customer. Based on consumer profiling and competitive benchmarking, we can identify the product gap in the market. Our skilled consultants will thoroughly evaluate the business case for new product development, helping you make informed decisions that align with your goals.
o For your existing product portfolio we can optimise the product-market fit. By considering both financial and operational efficiency, we ensure your products resonate with your target audience while maximizing profitability.

Go-to Market Strategy

We excel at identifying “white spaces” within micro markets – penetration and coverage gaps, allowing you to discover new avenues for growth. We develop customized sales growth strategies tailored to specific micro-markets, taking into account factors such as geography, channel, and product segment.

Brand Communication and Marketing

Effective brand communication is essential for building a strong presence in the market. We help determine the right brand communication strategies based on your desired brand perception. Our experts work closely with you to develop a marketing mix that aligns with your brand values and resonates with your target audience.

Pricing Strategy

Pricing should not only maximizes revenue but also supports your marketing objectives and maintains a competitive edge in the market. We can help you formulate the right pricing strategy by analysing your cost structure and market dynamics to determine the optimal pricing that balances profitability and competitiveness. We also evaluate the margin for channel partners – retailers, stockists and distributors based on their investments and ensure that pricing aligns with your promotional efforts, creating a cohesive and impactful marketing mix.

Sales Analytics

We will help convert your data to insights by leveraging out industry experience and out analytical skills. We can develop trackers and dashboards to ensure that leading trends are detected and you can plan for disruptions.

Procurement Cost Reduction

Input to food segment is threatened by price volatility and requires careful optimisation between bulk purchase and cost of storage. We analyse your material sourcing and inbound logistics processes to identify opportunities for cost savings – alternate vendors, long-term contracts etc. By implementing better procurement strategies and optimizing supplier relationships, we help you reduce procurement costs without compromising on quality.

Warehouse Design

Warehouses for food need to be temperature controlled and maintained in a very hygenic manner. Inventory control is critical due to the low shelf-life of the product. Our team can assist you in designing a storage strategy that ensures delivery of hygienic and top-quality products to the market. We consider factors such as manual, mechanized, or automated solutions for cold-chain and ambient temperature warehouses.

Logistics Cost Reduction

The goal of order fulfilment is fresh supply of food products in a cost-efficient manner. We evaluate your primary and secondary logistics operations and identify optimisation scope through network design, route optimization, and better vendor negotiations. By streamlining your logistics processes, we help you minimize transportation costs and improve overall supply chain efficiency.

Indirect Cost Reduction

In addition to direct costs, we focus on systematically reducing indirect costs that impact your margins. Our experts analyze various areas such as media procurement, office administration expenses, travel expenses, and freight costs. By identifying opportunities for cost savings and implementing effective cost reduction strategies, we help you enhance profitability.

Our in-house products can help get to solutions faster

Our Technology

Our insights

In the financial year 2022, the Food and beverage industry in India has shown promising growth with an industry median of 21%. However there has been a dip of -12% in ROCE resulting in industry median of 15%. 

Demand Generation

Marketing expenses has slightly grown by 8% to contribute 1% of the revenue generated. Compared to revenue growth of 21%, marketing expenses stay on the safer side.


Driven by inflation and a significant increase in raw material costs, procurement expenses in the industry grew by 19%, representing a high 73% contribution to the revenue generated. Additionally, payable days and Inventory days have gone stricter, experiencing a decline of 16% to reach 33 days and 7% to reach 25 days.


Manufacturing expenses has grown by 23% primarily driven by increased fuel price. Concurrently, the industry has witnessed a significant growth of 16% in fixed asset turnover to reach 4.2x

Order Fulfilment

The median FG inventory is 19 days. In the backdrop of sales growth and rising fuel prices, logistics costs (contributing 5% of revenue) witnessed an increase of 43%.


Administrative cost increased 24% to account 1% of the total revenue generated. Debt to Equity Ratio declined by 4% to 0.98

Analysis: Growth VS RoCE

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