The Indian grocery retail market exceeded a total value of US $100 billion in 2011. The food and alcoholic drinks segment dominate the market, with the top two retailers of alcoholic drinks holding more that a 40% share.
Factors driving growth within the Indian grocery retail market include, changing consumer preferences due to increased disposable income, gradual increasing cosmopolitization of the Indian population due to western influences, and new types of packaged and convenience foods such as processed meat and meat products requiring refrigerated storage and transportation.
Private labels have a reasonably decent share of the Indian grocery retail market accounting for 14% of the volume share. Conversely, in the alcoholic drinks market, branded products leave very little scope for private labels. Private labels are squeezing the weaker brands in the categories like morning goods, fresh meat, popcorn and still wine.
As of now the emphasis in food and grocery retailing is on dry groceries. The wet groceries like fruits, vegetables and meat products account for only 3-5 % of the over all offering of the organised players. However, consumer spending indicates that approximately 40% of total consumer spending is on wet groceries.
The traditional channel consists of 'mom-and-pop' stores known as 'kirana' stores, owner-manned general stores, paan/beedi shops, convenience stores, hand-cart and pavement vendors, wet markets and employs about 40 to 50 million people. Of the 12 million traditional retail outlets in India, some 7.3 million sell FMCG and 41% of these are in urban India.
For more information on the Indian grocery retail market, see the latest research: Indian Grocery Retail Market Report
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