KFC plans to bring edible packaging in India
India: KFC is set to introduce its edible
packaging for the first time in India through starting with its product, Rice Bowls.
These bowls, which were earlier made of plastic will now be made of tortilla.
If successful, the innovation may also be adopted in the global markets. Yum
Brands has earlier used edible coffee cups as ready to eat packaging in UK.
After
the plastic ban imposed by the Government of Karnataka the company is expected
to adopt the innovation in Bengaluru City. However, the company is not expected
to increase its product prices for their edible bowls initially and would wait
for the consumer response as well as the adoption rate if these bowls after
which, the company may increase its ready to eat edible packaging to other
items on its menu.
According
to a report published by TechSci
Research, “India Food Services Market Forecast & Opportunities, 2020”,
the market for food services in India is expected to grow at a CAGR of over 12%
through 2020. Growth in the market is anticipated primarily on account of
higher disposable income, improved standard of living and changing preferences
of consumers. In addition, expansion of brands into tier II and tier III
cities, is also a major factor which is expected to drive growth in food
services market of the country over the next five years. In 2013, the market
was dominated by unorganized and non-branded players, however, with growth of
various foreign and domestic brands, these players are expected to lose their
market to organized branded players. Segment-wise, dining food services segment
was the largest contributor in India food services market in 2014, on account
of the large number of dining restaurants in the country. The segment is
expected to retain its dominance in the market over the forecast period as
well.
According
to TechSci Research, increasing
innovation and R&D activities undertaken by Yum Brands will ultimately improve the brand image thereby,
increasing the company’s revenue. Yum Brands India has already invested heavily
in its innovation team and apart from edible bowl, items like Chizza and
Krushers innovated by KFC’s Indian subsidiary has been adopted globally.