The Food Processing and Agriculture Organization of the United Nations analyzed the food consumption pattern of Indiana over a time of 50 years, from 1961 to 2011, and noticed that that the average daily food consumption in 1961 was 2,010. This increased to 2,458 in 2011.
This report is a reasonable sign that the food industry in India has changed the manner in which individuals used to eat, and think about food.
Let’s know how it has been doing and what are the elements that will come out on top to achieve the evaluated figure.
Market Size in India
The Indian food market is the sixth biggest market on the globe and it adds to 70% of the aggregate sales. Discussing the contribute inside the nation, the food processing industry has an offer of 32% in the countries all-out market. As far as a generation, utilization, and exports, it is positioned as the fifth biggest industry in India. The Indian food market is esteemed at USD 1.3 billion and is developing at CAGR of 20%.
The food processing industry over the most recent couple of years has seen an extreme change with the technology of the “Online Food Ordering” business. Still in the prior stages, organizations like FoodPanda, Zomato, Swiggy, and numerous such are prepared to take the Indian online food ordering business higher than ever. The online food delivery division is developing at 150% year-on-year and the GMV (Gross Merchandise Value) is assessed at USD 300 million.
Investment from over the globe
The food processing business in India has, over the most recent couple of years, seen a ton of investment from foreigners. The Department of Industrial Policies and Promotion (DIPP) states that India got around USD 7.54 billion FDI from April 2000 to March 2017. The CII has anticipated that the food processing sector can possibly pull in around USD 33 billion FDI in the following ten years and furthermore produce nine million long stretches of business.
Some examples of investments in the industry are:
- Amazon, the worldwide e-commerce monster, has plans to enhance its business by entering the Indian food retailing market and put around USD 515 million in the next five years.
- Parle Agro Pvt Ltd has kept its objective to accomplish a yearly focus of Rs. 5,000 crore by 2018, and to do as such have propelled new items like Frooti Fizz.
- US-based Cargill Inc intends to develop its marked buyer business in India by multiple times by 2020.
- Uber Technologies Inc has entered the food delivery service with its image UberEATS.
Ventures by Government
The Indian government has found a way to support the food processing business by enabling the Indian food makers to move its items fabricated in India through discount as well as retail, including through online business without the Government’s earlier endorsement. The Food Safety and Standards Authority of India (FSSAI) have plans to contribute USD 72.3 million to fortify the food testing foundation in India. It has plans to redesign its current 59 food testing research centers and set up 62 new versatile testing labs. These are only a couple of ventures by the Indian government, which will support the food processing business in India from 2018 to achieve the ideal estimation of USD 65.4 billion.
Added aspects
- India is positioned at 15th in the of best 20 exporters of agricultural products around the world. The agrarian exports developed at CAGR of 16.45% and came to from USD 11.3 billion in FY 2010 to USD 38.21 billion in FY 2018.
- The rural service has been assigned USD 8.9 billion in the Union Budget 2018-19. In FY 2018, it is normal that the Gross Value Added (GVA) by the forestry, agriculture, and fishing will expand to USD 274.23 billion.
- The Indian warehousing market is developing at a CAGR of 9% and is evaluated to contact USD 1.5 Billion. A critical piece of it, around 85%, is being utilized for food grains. Along with that, the Indian government’s prominence on the “make in India” the local generation has accelerated and is making open doors for the logistics business in the nation.
- The Indian market has 68% rural populace, which is being encouraged by a solid and profound distribution network by organizations like Parle. Parle, the popular biscuit company of India has one of the biggest distribution networks which includes 4.5 million outlets crosswise over India.