Survey: Frozen Yogurt Market in India (2013)

Copyright 2013, Chef At Large, Reproduction Prohibited | www.chefatlarge.in

[ CONSUMER BEHAVIOR SURVEY ]

2013 Indian Frozen Yogurt Market

Chef At Large survey | March 2013

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About us

Chef At Large is one of India’s largest online

food networks. The network provides

industry commentary on the Indian F&B

industry . It manages separate communities

dedicated towards food loving consumers

and some of India’s top food bloggers.

It also has an extremely popular blog (home

to over 1,000,000 visits annually) and does

the following: Restaurant, alcohol, book,

wine, book and appliance reviews | recipes

| columns and opinions | event listings.

Apart from this, the network has

experts on food photography, food

styling and menu development, that

assist individuals and brands with such

services.

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Contents • Introduction

– The premise of doing this survey

• Methodology Overview − How this survey was undertaken

• Executive Summary − Key insights from the survey

• Survey findings and analysis − The quantitative and qualitative analysis

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• Key learning from the survey − This includes recommendations for all brands in this

category

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6.

7.

8.

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Introduction

Frozen yogurt - there are people who’ve tasted it

and know about it, and then there are people who

clearly don’t know anything about this category;

either ways this category is here to stay!

Being present in India for over 3 years now, frozen

yogurts are getting popular in India and like most

things, it is a factor of demand and supply. On the

supply side, a lot of global frozen yogurt chains

like Red Mango and Yogurberry are investing in

India. Domestic giants in this space, Cocoberry,

aren’t behind either, as they continue to invest

and invent new formats to reach out to more

customers.

In India, frozen yogurts are being promoted under

the health and wellness category and it has indeed

struck a cord with many.

“Technopak estimates that in 2011, this segment

garnered around US$2 billion in revenues. Over the next

three years, it is expected to grow to US$5 billion.

Pratichee Kapoor, associate vice president for food

services and agriculture at Technopak, says the packaged

yogurt market (plain and flavored) currently constitutes

around 7% to 8% of the total health and wellness segment

in India and was worth around US$150 million in 2011. It

is growing at a CAGR of 18% to 20% and is poised to

double in size by 2015.

According to Technopak the ice cream and frozen dessert

market in India -- which includes frozen yogurt -- was

estimated to be at US$450 million in 2009-2010 and is

expected to cross US$900 million by 2014-2015. A

separate figure for the share of the frozen yogurt market

was not available.” [Source]

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Introduction (continued)

However, the market is still at its nascent

stage, especially when compared to foreign

territories where per annum consumption is

way higher.

But what we consider as the major challenge,

is to crack the code for frozen yogurts with the

Indian consumer; as there are plenty of doubts

and customer queries that exist in mind

regarding this category.

Being surrounded by people passionate

and influential about all kinds of foods

and beverages, we understand this issue

and have tried to, with this survey,

articulate the current Indian consumers

perception about the frozen yogurt

category and their doubts regarding the

same.

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Methodology Overview

300 Sample Size

Respondents break up

Geography Respondents were spread across Delhi, Mumbai and Bangalore

63% female 37% male 22% in 18-24 age bracket 52% in 25-34 age bracket 20% in 35-54 age bracket 6% in 55+age bracket

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The respondents consist of (1) members of the various Chef At Large online communities (2) food bloggers and (3) consumers chosen on a random sampling basis


Executive Summary

1. Most Indians consume frozen yogurts as desserts

2. Popularity of frozen yogurt has reached to a level, where people today crave it

3. Berry, followed by Mango, is the most favored flavor in frozen yogurts for consumers

4. While the majority of people like to have toppings over their cup of frozen yogurt,

they’re currently only experimenting with toppings

5. Most people also consider a frozen yogurts healthier, to ice creams

6. 25-34 is the age group that consumes frozen yogurts the most

7. Taste, followed by the variety of toppings offered and then location, are the top factors

people consider while eating frozen yogurt

8. Cocoberry is the most favored frozen yogurt brand, followed by Red Mango and then

Yogurberry

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Survey Findings

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How and when do you eat frozen yogurts?

37.50%

16.50%

26%

19.80% as a dessert

as a snack

when in the vicinity of a store

just about anytime

Most people consume frozen yogurts as a dessert

The second highest number of respondents said, they tend to eat frozen yogurts when in the vicinity of a store

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Do you ever crave frozen yogurts?

43.20%

56.80%

Yes

No

An impressive 43% of people mentioned that they craved frozen yogurts at one point or the other

This is particularly good news for frozen yogurt brands, because it showcases that the market is finding the value proposition attractive

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What is your favorite frozen yogurt flavor?

19.30%

10.20%

12.50% 58%

Mango

Chocolate

Vanilla

Berry (any)

Berry flavors have been, overwhelmingly, voted as the top flavor for consumers today

This may be one of the reasons why most brands in this category, having retail quick service outlets, include ‘berry’ in their name

Mango, being voted the second most preferred flavor, comes in as a surprise as it eclipses a more traditional base flavor - vanilla

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Do you like your frozen yogurts with toppings or plain?

64.60%

35.40%

with toppings

plain

A surprising 35% of people have voted that they like to have frozen yogurts without toppings

This shows the market opportunity for players in this category, that don’t have exclusive outlets selling frozen yogurts

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How do you manage your toppings?

52.6%

13.4%

4.1%

29.9% I experiment with my toppings

I have set toppings for different flavors

I use the same toppings for all flavors

I don't use toppings

Over 52% people experiment with their toppings, which reflects on frozen yogurts being a new category and people not being sure which topping to choose

It also shows the scope for creating further awareness about toppings, and the suggested ways they consumed in a manner that best compliments the yogurt

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Do you believe frozen yogurts are healthier than ice creams?

83.2%

16.8%

Yes, they're healthier

No, they aren't

83% people believing that frozen yogurts are healthier than ice creams, showcasing that the health & wellness category positioning, has been accepted by Indian consumers

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What age group of people in your family eat frozen yogurts?

20.0%

29.5%

52.6%

35.8%

8.4%

13 - 17 years

18 - 24 years

25 - 34 years

35 - 54 years

55+ years

People from the ages of 25 to 34 are consuming frozen yogurts the most, followed by 35 to 54 year olds

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What are the factors that matter to you the most, while eating frozen yogurts?

75.8%

47.3% 4.4%

6.6%

16.5%

19.8%

5.5%

35.2% Taste

Available Flavors

Temperature

Number of Toppings

Quality of Toppings

Perceived Health Benefits

Staff

Location

Taste, followed by availability of flavors are the top 2 parameters kept in mind by consumers before eating frozen yogurts

The most surprising is that the 3rd most important factor, is the location where the frozen yogurt is available

The 4th most important factor consumers take into account is the perceived health benefits

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Which is your favorite brand of frozen yogurts?

53.8%

29.5%

16.7%

Cocoberry

Red Mango

Yogurberry

Despite being offered multiple choices, all consumers voted amongst only these 3 brands – Cocoberry, Red Mango and Yogurberry

With 53.8%, Cocoberry is the most favored frozen yogurt brand for consumers

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Key Learning from the survey

1. ‘cracking the consumer’ is

crucial

While the category is growing in

India and the infrastructure is all

there, demand will only rise once all

consumer queries are put to rest

2. Taste always wins over health

While consumers may choose to have

a frozen yogurt over an ice cream

due to health reasons, ‘taste’ is the

top priority while they venture for

choosing their frozen yogurt flavor.

This premise should be accounted

for by manufacturers as they roll out

new flavors

3. Consumer awareness initiatives about the ideal toppings

to have with the yogurt is vital

Most consumers, irrespective of them be first time visitors or not,

are still just experimenting with toppings. This puts their

experience to risk each time. Consumer awareness, akin to what

has been done for wine, needs to be done for the frozen yogurt

toppings

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4. Frozen yogurt available from OTC (over the counter)

stores need to increase brand engagement

Most consumers recollect brand names of frozen yogurt, that

exclusively deal in this business like Cocoberry or a Red Mango,

whereas there are numerous other brands offering frozen

yogurts as well

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Health & Medicine

Survey: Frozen Yogurt Market in India (2013)