1. India Popcorn
Market
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2. Popcorn Market in India- Overview
Apart from multiplexes,
the demand for popcorn is also growing
in market streets and
hence a popcorn vending machine is a common sight in the local
markets these days.
The popcorn industry in India is growing extensively with multiplexes coming up in every
corner of the cities. Popcorn has become a
favorite munching snack for the young movie
watchers. Apart from multiplexes, the demand
for popcorn is also growing in market streets
and hence a popcorn vending machine is a
common sight in the local markets these days.
In addition to increasing demand in out of
home markets, the in home-home consumption market for popcorn is also increasing.
With people preferring convenient easy to
make snacks due to hectic schedules, popcorn
has become a favorite alternative pass time
snack for people.
India Popcorn Market

3. Market Size and Growth
Figure 1: Indian Popcorn Market
(Crore INR), 2012-2015
2034
1675
1420
1235
2012e
2013e
2014f
2015f
Source: RNCOS
The popcorn market in India was estimated at INR
1235 Crore in 2012 and is forecasted to reach INR
2034 Crore by 2015 growing at a CAGR of 10.3%
during 2012 to 2015. Consumption from metro cities and tier I cities are the major drivers of popcorn
sales in India.
Out-of-home consumption i.e. the consumption in
malls and multiplexes among others comprises of
the majority of the popcorn consumption market in
India. In 2012, around 75% of the popcorn market
was estimated to be held by out of home popcorn consumption market. The balance 25% was
garnered by the in-home consumption market. The
in-home consumption market consists of pressure
cooker variety and microwave popcorn segment.
Consumption from metro
cities and tier I cities are
the major drivers of popcorn sales in India.
India Popcorn Market

4. Figure 2: Indian Popcorn Market by
Consumption Pattern (%), 2012
Figure-3: In-Home Popcorn Market
(Crore INR), 2012-2015
594.0
25.0%
465.0
375.0
308.8
75.0%
Out of Home Consumption
In-Home Consumption
2012e
2013e
2014f
2015f
Source: RNCOS
Source: RNCOS Estimation
The in-home popcorn market was estimated at INR 308.8 Crore in 2012. With many
players apart from Agrotech expected to
enter the pressure cooker variety & the
microwave variety coupled with growth
of convenience food snack market, the inhome popcorn market in India is forecasted to reach INR 594.0 Crore by 2015.
On the other hand, the out of home popcorn market was estimated at INR 926.3
Crore in 2012 and is forecasted to reach
INR 1440.0 Crore by 2015. The introduction of new flavors coupled with provision
of attractive combos by multiplexes, are
expected to drive out of home popcorn
market in India.
Figure 4: Out of Home Popcorn Market
(Crore INR), 2012-2015
1440.0
1210.0
1045.0
926.3
2012
2013
2014
2015
Source: RNCOS
India Popcorn Market

5. Opportunities & Challenges
Opportunities
• Reducing Reliance on Popcorn Imports by increasing Maize Cultivation
The two major popcorn players - Agro Tech Food, which has Indian rights for American company Con Agra’s Act II brand, and Banaco Overseas - import around 23,000 tonnes of popcorn
annually. Agrotech and Borges import maize from Argentina, which is then processed in India.
With the growing popularity of popcorn both in in-home consumption market and out of
home consumption market, Indian farmers should start focusing on growing maize, which is
currently facing a decline in production. Apart from fulfilling the requirements for the popcorn
industry, it will also serve as an alternative to feed poultry as it is a rich source of protein.
• Opportunity for Foreign Players to enter the Industry
Multiplexes are cropping up in every corner of the city, surging the demand for out of home
popcorn consumption. Further, with growing industrialization and busy schedules of people, people are relying on easy to make snacks, increasing the demand for in-home popcorn
consumption to some extent. The above two reasons coupled with the fact that the industry is
presently dominated by only a few organized players, present an opportunity for foreign players to enter the market.
• High Profit Margins for Domestic Manufacturers
On the manufacturer’s front, manufacturers are being benefitted by the profit margin given by
the popcorn business. A corn kernel supplier sells raw material for INR 120-150 per kg and the
retail price of 1 kg popcorn is INR 1500 including the cost of production to packaging. Hence,
the manufacturer’s margin is INR 1350 per kg . This presents an opportunity for the savory
snack manufacturers and other local manufacturers to concentrate on popcorn category.
Challenges
• High Custom Duties on Imports
Popcorn is mainly imported from the American Continent. There is a 56% Customs duty on
quality imported corn. Moreover, for countries exporting corn to India, there is a higher tariff
on popcorn for distribution as most end users of popcorn are not in the business of distribution. But, due to insufficient production or production of low quality popcorn, organized players have to rely on imports.
• Domestic Popcorn Variety is of extremely Low Quality, posing hindrance
for exporting produce
Indian unbranded popcorn is of low quality with popping ratio of 20:1, vis a vis international
standard of 40:1. For microwaveable popcorn domestic brands source or process the maize in
India, using low grade corn or packaging and fail to reach international quality. Around 25% of
corn produce goes to the food industry, but the share of popcorn-worthy corn (small-kernelled,
flinty type corn with very low starch content) is still small.
India Premium Footwear Market

6. Major Players
August 2013: Hyderabad-based Venagro has started contract farming for corn and will launch its
brand this year. It will be selling 100 gm pack of popcorn in different flavours under the Cornella brand
August 2013: Mohar Singh Ratan Lal, a recognized trader, processor, wholesaler, retailer and supplier
of agricultural products has started supplying popcorn in 100-200 gm packs to retail stores under the
Farm Way brand.
June 2013: 4700BC, India’s first Gourmet Popcorn Brand, introduced pop corns in more than 18
evolved flavours in cheese, caramel, chocolate and candy categories. Customers can choose from Italian Herbed Golden Cheese, Tex-Mex Salsa Golden Cheese, Magical Rainbow Potpourri to Nutty Tuxedo
Choco-All-Ate.
January 2013: Popz, a global snack brand owned by a POPZ USA LLC, has entered the Indian market
through the JV route. It’s operations in India will be based at Delhi. The products will be imported from its
plant in Europe initially; till the company sets its own world-class production facilities in India.
Table 1: Major Players in Popcorn Market in India
Brand Name
Borges India
Agrotech Foods Limited
Bajoria Foods Pvt Ltd (American
Garden)
Venagro
Banaco Overseas
Farm Way (Mohar Singh Ratan
Lal)
4700BC
Source: RNCOS Compilation
India Popcorn Market

7. Future Outlook
The popcorn industry, which is witnessing new investments and great margins, is expected to show a
double digit growth in the future also. Despite of out of home category being highly priced, consumers
are happily paying these prices as the demand for this American snack seems inexhaustible. This high
demand/high margin popcorn business is inducing a major change in India’s agriculture and farmers
have started responding to the market by setting aside acreage devoted to popcorn-worthy corn.
Farmers are considering cultivating in areas close to urban centres which have good storage facilities, as
the popping strength of corn depends on good storage. On the consumer front, consumers are increasingly preferring consuming healthy snacks and popcorn serves as a perfect alternative as it is low on
calories.
On the manufacturer’s front, more number of players are eyeing the Indian market as the entertainment
and multiplex boom is catching pace among the younger generation. Players which entered the inhome popcorn market with the introduction of small packets of microwave and pressure cooker variety
for the purpose of test marketing, have also shown faith in the market and have started coming up with
larger packets. Thus, the industry is set to witness more developments in the coming years.
India Popcorn Market

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India Popcorn Market

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