KIT: Gourmet food market in India

Strategic tools for the practising manager

The gourmet retail space has witnessed rapid expansion in last five years; the space is expected to grow manifolds overthe next few years. The size of the gourmet food market in India is Rs 6,500 crore, growing at a CAGR of 20 per cent. The market is set to cross Rs 13,700 crore by 2015.

The Indian gourmet market is divided into the café market, casual/ fine dining market and the retail market. Imported retail products can also be considered in the gourmet market of India.

The key products stocked in a regular gourmet retail store includes oils, sauces, cereals, concentrates, honeys, syrups, nuts, olives, spices, spreads, truffles, vinegars. Exotic fruits and vegetables form a big part of the product mix of the standard gourmet retail store. A standard gourmet store has about 5,000 stock keeping units (SKUs). Management of shrinkage and wastage and vendor management for proper product replenishment are most important for the smooth operations of a store.

Established retail brands in the Indian gourmet food market are Godrej, Foodworld Gourmet and Future Group. Some of the new players like Nature’s Basket, Ruci & Idoni, Mason D’Gourmet, Le Marche, Nuts ‘n’ Spices have grabbed a big share in the pie with wide product assortment and premium offerings.

As a new trend, gourmet players are now tying up with chefs and celebrities to educate customers about the advantages of gourmet foods. This has led to a spurt in the sales of gourmet products in the country.