Aug 10, 2018
A total transformation has been observed in the food industry of India. Right from the farms to the household kitchen the technology has taken over tremendously.
The Food and Agriculture Organization of the United Nations (FAOSTAT) has examined the consumption patterns of Indians over a period of 50 years, from 1961 to 2011, and found that the average daily calorie consumption in 1961 was 2,010. This grew to 2,458 in 2011.
The above related figure indicates that the food industry in India has changed the lifestyle of people, the way they think, eat and spend, greatly matters. The industry which was valued at USD 39.71 billion in 2017 is all set for a gigantic intensification and by the end of 2018, at a CAGR of 11%, will be attaining USD 65.4 billion.
Food industry along with food and grocery market stands 6th as the largest market in the world. It has a share of 70 per cent of the total sales. The food processing industry alone counts 32 per cent of the share in the nation’s total market. In terms of production, consumption, and exports, it has stood as the 5th largest industry in India. The Indian gourmet food market is priced at USD 1.3 billion and is rapidly advancing at CAGR of 20 per cent.
Online Food Ordering business companies like Zomato, FoodPanda, Grofers, Bigbasket, Swiggy, and many such others, though still in the nascent stages, are ready to take the reins to new pinnacle.
The picture of foreign investment in food industry in India has come into mainframe with many MNC’s joining in. According to the Department of Industrial Policies and Promotion (DIPP), India has received around USD 7.54 billion FDI from April 2000 to March 2017. The CII has predicted that the food processing sector is capable to attract around USD 33 billion FDI in the next ten years and also generate nine million person-days of employment.
To name a few giant investments in the industry are Amazon, Parle Agro Pvt Ltd, US-based Cargill Inc,Uber Technologies Inc (UberEATS).
The Indian government has shown leniency by allowing the Indian food manufacturers to do business through wholesale and/or retail, including through e-commerce without the government’s prior approval.
The Food Safety and Standards Authority of India (FSSAI) is planning to invest USD 72.3 million to bond food testing infrastructure in India. FSSAI is already planning in upgrading its existing 59 food testing laboratories and set up 62 new mobile testing labs. To mention these are few major steps by the Indian government which will boost the food industry in India by 2018 to reach the desired value of USD 65.4 billion.
Globally speaking, India stands on 15th step in the list of top 20 exporters of agricultural products. Agricultural exports grew at CAGR of 16.45 per cent and reached from USD 11.3 billion in 2010 to USD 38.21 billion in 2018. Around USD 8.9 billion has been allotted to the agricultural ministry in the Union Budget 2018-19. The Gross Value Added (GVA) by the agriculture, forestry, and fishing is expected to grow to USD 274.23 billion.
The growth of Indian warehousing market is steadily growing at a CAGR of 9% and is predicted to reach USD 1.5 Billion. Primarily, around 85% of it, is being used for food grains. The government has stressed the policy of “Make in India”, which has boosted the production and given a great opportunities for the logistics industry in the country.
Rural population comprises of 68 per cent of Indian market. The food giants like Parle have penetrated in the rural India with 4.5 million outlets with their vast distribution network.
With thorough knowledge of the food industry, the fact and figures points to the promising and encouraging 2018. Timely and decisive changing trends in the Indian market confirm the same. An ever-changing customer’s consumption trends, a fast-track lifestyle pattern, hectic working timings, drastically changing fads and occurrence of lifestyle diseases like heart problem, diabetes has changed the scenario of the “Consumer Health market”.
Advance technology and fast data has improved consumer awareness. People now are looking for healthier alternatives in matter of food and nutrition in their daily consumption. Indian consumer health market is USD 4.8 billion with introduction of new dietary supplements, weight management, probiotics, sports energy drink, reduction in sugar, gluten-free products and many more.
More often than not, consumers prefer products which are convenient to handle like- sachets, ready-to-eat & drink items, food served in disposables, use and throw packaging etc… Some are chronic online buyers, as they prefer staying online for online shopping resulting in online food ordering payment methods.