In pursuit of purity: Indian rice and pulses buyers look to make the loose to packaged transition

The latest Mintel research on rice and pulses reveals that a significant portion of Indian consumers are considering switching from loose to packaged formats. Nearly one-third (31%) of current rice buyers are likely to transition from loose to packaged offerings, representing a ripe opportunity for market expansion.

Similarly, 33% of consumers who are currently buying loose pulses are interested in packaged formats. This interest is notably higher in the South (41%) and West (47%) regions, among SEC A and B demographics (35% and 36%, respectively), and working women (47%).

Quality sets the stage, brand seals the deal for Basmati

Consumers buying loose basmati rice express concerns about its purity and authenticity, with women and consumers in Tier 3 cities being especially sceptical about the purity of loose basmati products (31% and 34%, respectively). Brands can address this concern by emphasising enhanced quality features to encourage a switch to packaged options, according to Anamika Banerji, senior food and drink analyst, Mintel Reports India.

"As a premium product linked to a rich dining experience, consumers expect nothing less than the authentic version, prioritising quality over price reductions. Mintel research suggests that taste and brand are among the top factors for consumers of loose and packaged basmati formats.

"While 41% of rice buyers associate aged basmati with superior quality, this perception doesn't directly influence their purchase decisions. Clear communication about the specific quality improvements associated with the ageing process is needed to strengthen the connection between 'aged' and the product's perceived value," Banerji said.

Focussing on 'free-from' claims is key

"Consumers are increasingly aware of the health risks associated with adulteration and are seeking safer, unadulterated food options. Mintel research on organic food and drink further underscores this, revealing that 26% of Indian consumers are concerned about adulteration in grocery items like spices and flours/atta. This awareness is expected to drive demand for branded rice and pulses, which offer convenience and reliability.

"Furthermore, the government's push towards sustainable agriculture and organic farming is further propelling this shift. Brands, on the other hand, can help create awareness about what organic entails and its long-term positive impact on human and environmental health. As consumers become more informed, they are more likely to seek out branded products that guarantee these benefits," said Banerji.

Consumers prioritise clear communication about the absence of pesticides according to Mintel research. Buyers of pulses favour the 'pesticide-free' claim (49%) over the 'organic claim' (28%). In the last twelve months to March 2024, organic, all-natural and pesticide-free claims were featured in 10% of pulse launches, while claims regarding the absence of preservatives (28%) and artificial colourings (25%) were more prominent during this period.

Additionally, India is leading the global market in organic, natural, and GMO-free claims for rice launches.

Opportunity for fortified rice

Fortification remains niche in the Indian packaged rice market, accounting for only 1% of launches between April 2022 and March 2024, according to Mintel Global New Products Database. However, consumer perception suggests otherwise, with 27% agreeing that packaged/branded rice is usually fortified with vitamins and minerals.

"This confusion puts brands with fortified rice at a disadvantage, as they struggle to stand out based on this nutritional benefit. Educating consumers on the positive impact of fortified rice on overall health and well-being through clear labelling, nutritional campaigns, and endorsements from health professionals can effectively communicate the advantages of choosing fortified varieties for a balanced and nourishing diet.

"Additionally, it is interesting to note that fortified rice is perceived positively among consumers of loose regular rice, with 25% of those intending to switch to packaged formats expressing willingness to pay a premium for fortified branded rice. Thus, fortification can be a tool to encourage a shift towards branded offerings," Banerji said.

Additional research rice and pulses market in India and interviews with the analyst team are available upon request from the Mintel Press Office. For those interested in purchasing the full report, please visit the Mintel Store.