Industry News

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.