Convenience Foods Gain Ground As Cooking Gets Costly
FMCG Food & Beverage.

Convenience Foods Gain Ground As Cooking Gets Costly

As gas supply constraints raise concerns, the demand for frozen, ready-to-eat (RTE) and ready-to-cook (RTC) products is witnessing 15 to 20 per cent growth

A shortage of cooking fuel is quietly redrawing the contours of India’s food consumption. As LPG supply disruptions ripple through parts of the country due to geopolitical tensions, both commercial kitchens and households are being nudged toward faster, less fuel-intensive alternatives. This has resulted in the rise in demand for frozen, ready-to-eat (RTE) and ready-to-cook (RTC) foods.

While accelerated by a constraint on the supply end, the shift is unfolding at a time when the country’s packaged food ecosystem is already evolving rapidly, led by convenience, changing lifestyles and the rise of quick commerce. As the immediate and most visible impact of the LPG crunch is being felt in restaurants and foodservice operations, frozen, RTE and RTC foods are seeing demand surge up to 15 to 20 per cent.

“Over the past few weeks, we have seen a rise in enquiries from restaurants and caterers looking at frozen and ready-to-cook options that can support quicker preparation and consistent output. As a result, demand from the Horeca segment has increased by roughly 10 to 15 per cent for certain product categories,” stated Deepanshu Manchanda, Managing Director, Zappfresh.

Snack-based frozen products such as samosas, momos, kebabs and spring rolls have grown by around 15 to 20 per cent, as these products help kitchens maintain quick service and consistent taste while reducing preparation time. Frozen snacks and protein-rich ready-to-eat meals under Meaty Story are seeing the sharpest growth, while categories like nuggets, kebabs, and meal components are leading the surge, Ayush Garg, Co-Founder of Cravicious Foods, told BW Retail World.

Demand Surges Across Categories
At the household level, the shift towards the adoption of instant foods is more gradual but still discernible, particularly among urban consumers, who are already inclined toward convenience.

“There is stronger international demand for frozen foods, though this is not a significant category in the domestic market. For snacks like namkeens, which remain our primary domestic category, demand has been steady and consistent, and the business continues as usual despite the LPG crisis,” highlighted Manoj Verma, Chief Operating Officer (COO), Bikaji Foods International.

On the business-to-business (b2b) side, the companies are seeing significant growth in demand of base gravies, breads and snacks as restaurants are focusing on planning to reduce cooking to the extent possible to save on gas.

“We are responding to this demand spike with a careful balance of production ramp-up and inventory management. Our Greater Noida facility allows us to scale output efficiently while maintaining strict quality and hygiene standards,” Garg explained.

From a supply perspective, manufacturers also need to adjust production planning to respond to changing demand patterns. “In our case, we have optimised our production schedules and increased output for certain high-demand categories by around 15 to 20 per cent to ensure stable supply,” Manchanda added.

This last-mile availability is becoming a critical enabler. A report by Redseer noted that the quick commerce’s share in the packaged food and beverages (F&B) market is expected to rise from about 4 per cent today to nearly 15 to 20 per cent by 2030. Overall market is expected to grow from USD 103 billion to USD 151 to 158 billion (8 to 9 per cent compound annual growth rate), with QC growing around nine times faster than other channels.

Temporary Spike Or Structural Shift?

The key question now is whether the current surge in convenience food demand will sustain beyond the LPG crisis. While industry leaders see a more lasting behavioural shift underway, Scepticism exists. “For whatever shift would have happened, we doubt it to be a long-term adoption of convenience foods in India,” Verma noted.

Garg explained that the demand for convenience foods has always been there, but the LPG crisis has made it more visible and immediate. Urban households are increasingly appreciating the ease, reliability, and consistent quality of frozen snacks and protein-rich meals, which makes integrating them into weekly routines effortless, he added.

“In the long term, we believe this shift goes beyond a temporary response to the LPG crisis. Indian consumers are increasingly seeking solutions that combine convenience with authentic taste and quality ingredients. Ready-to-cook products offer a middle ground between fully prepared meals and traditional cooking, enabling consumers to enjoy home-style flavours while saving time and effort,” emphasised Akash Agrawalla, Co-Founder, Zoff Foods.

The Rise Of RTC
Smaller households and time constraints are pushing consumers towards solutions that are easy to prepare and portion-controlled. The rise in appliance ownership, including microwaves and air fryers, has further improved usability. Frozen RTC is now an established category on QC, estimated at around USD 375 million, with frozen veg snacks and peas contributing to around 40 per cent. Chilled segments such as batters, at roughly USD 400 million, have seen deeper penetration given their shorter shelf life and higher frequency of purchase.

“Categories such as ready-to-cook, functional beverages, and chocolates are responding differently because the underlying need states are different. The brands that win here will be the ones that understand these micro-moments and build for frequency, not just scale,” emphasised Kushal Bhatnagar, Associate Partner, Redseer Strategy Consultants.

An earlier report by Redseer revealed that around 50 million consumers were addressable in India’s ready-to-eat/ready-to-heat segment prior to quick commerce growth, which has likely now expanded to 70 to 80 million. However, the market is still evolving and nascent. Within the addressable consumers, less than 15 per cent were regularly using RTE/RTH.

The LPG crunch has exposed how deeply convenience, efficiency and accessibility now shape consumption choices across both households and commercial kitchens. While traditional formats will continue to hold ground, the growing reliance on frozen, RTE and RTC foods signals a shift that goes beyond crisis response.

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