Released on: May 12, 2008, 12:23 am

Press Release Author: Shushmul Maheshwari

Industry: Food & Beverage

Press Release Summary: Changing consumption pattern and lifestyle is expected to
drive the consumer expenditure on food, beverages & tobacco in India at a CAGR of
12% through 2011, says the RNCOS report.

Press Release Body: Consumer expenditure on food, beverages and tobacco (FBT) in
India is expected to grow at a CAGR of 12% during 2007-2011, forecasts “Indian
Food Beverages and Tobacco Market Forecast till 2011”, a research report by
RNCOS.

The report identifies that food expenditure in India will grow at the rate second
fastest after China during the forecasted period. The fast growth in the consumer
spending is led by advertisement spending, campaigns to market products and brands,
free sample distributions, launch of innovative and new brands, and strengthening of
the product distribution networks. All these factors have brought a wave of change
in the consumption habits of people in the last six years, evident from changing
preference of the urban Indians, who don’t like to spend hours in kitchen
cooking food, and instead resort to convenience food.

In addition, the RNCOS report reveals that changing lifestyle on account of
increasing disposable income of Indians is significantly affecting the consumption
patterns. In the last five years (from 2001 to 2006), per head disposable income of
Indians surged at a CAGR of 10.2%. Apart from this, increasing presence of women in
working population and rising number of nuclear families with double income are
leading to change in lifestyle. Also, these factors are resulting in increased
overall disposable income of the Indian consumers, which, in turn, is increasing
their spending on branded food items. Consequently, says the report, the branded
food market is witnessing strong growth of 10% to 15% in the country.

The report also highlights that with accruing disposable incomes, consumers will
prefer to opt for buying from organized retail channels rather than local markets.

In addition, “Indian Food, Beverages and Tobacco Market Forecast till
2011” gives detailed analysis on changing consumption patterns in various
sub-sections in food segments like milk, fruits, vegetables, meat etc. The report
also includes in-depth study of the Indian beverage market, containing information
about different varieties in beverages, and their sales and consumption patterns
among the Indian populace. The RNCOS research includes comprehensive information on
the market trends in the Indian tobacco market.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM578.htm
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