ITC Foods Targets Quick Commerce with New Fresh Packaged Products

ITC Foods has unveiled plans to expand into the fresh packaged foods space with offerings such as short shelf-life cookies, cakes, and chapatis. This marks a major strategic step for the cigarette-to-snack conglomerate as it seeks to capture India’s rising appetite for convenience-led foods that last only a few days, compared with the 12–24 month shelf lives typical for processed items. The push comes in response to the explosive growth of quick commerce platforms, which are reshaping consumer access to everyday essentials.

Leveraging Quick Commerce and Brand Extensions

As per news reports, Hemant Malik, chief executive of ITC’s food division, explained, “There is a growing consumer demand for fresh packaged food products, powered by enhanced accessibility and convenience provided by the surge in quick commerce platforms.” 

ITC has extended its Sunfeast and Aashirvaad brands into these categories to strengthen consumer familiarity and trust. To support this shift, the company has developed a hyper-local production and distribution ecosystem, enabling next-day delivery from oven to doorstep. With 75% of India’s sales still routed through local kiranas, ITC believes its small-batch, micro-market scaling model will ensure freshness while avoiding the limitations of long-haul logistics and warehouse storage.

Financial Performance and Competitive Landscape 

ITC’s packaged foods business reported ₹18,270 crore in gross sales during FY25, reflecting a 6% year-on-year increase. The company’s decision to diversify into fresh packaged goods coincides with the rapid rise of quick commerce players such as Blinkit, Swiggy Instamart, and Zepto, which deliver ultra-fresh items within hours. 

These channels have already been embraced by direct-to-consumer brands and local bakeries like Theobroma, Baker’s Dozen, and Id Fresh. To remain competitive, FMCG heavyweights including Hindustan Unilever, Marico, Adani Wilmar, and Parle have also created specialised quick commerce sales and distribution teams, highlighting the industry-wide pivot toward faster stocking cycles and dedicated product lines.

Read More: The Magic of ₹5 and ₹10 Goods: Why Are They the Heartbeat of India’s Mass Market?

ITC Share Price Performance 

As of September 15, 2025, at 1:47 PM, ITC share price is trading at ₹413.50 per share, reflecting a decline of 0.06% from the previous closing price. Over the past month, the stock has gained by 1.75%.

Conclusion

By entering the short shelf-life packaged foods market, ITC Foods is positioning itself at the intersection of changing consumer preferences, supply chain innovation, and quick commerce growth. While concerns around scalability and inventory management exist, the company’s focus on hyper-local ecosystems, small-batch production, and brand-driven expansion places it in a strong position to benefit from India’s surging demand for fresh, ready-to-consume food products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.