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Food and Drink Sector Review

 

Definition and scale of sector

  • Agricultural commodities supply primary produce processing,
  • Secondary processing,
  • Wholesaling distribution,
  • Food-processing machinery

Why the sector was chosen in the West Midlands

  • Employment growth recorded in cluster.
  • Consumer tastes and concerns over food safety are key drivers.
  • Both create opportunities to value added through, for example, innovations in prepared ethnic foods and organics.
  • Significant force for change in rural areas through a strengthening of supply linkages.

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India’s Food Retail Sector Takes a Breather - June 2013

After rising from an estimated 200 stores in 1995 to nearly 3,000 stores in 2012, the number of modern food retail outlets in India dropped slightly over the past year. The drop seems to suggest that firms are still working to identify the best formats, improve supply chains, overcome debt, and deal with high real estate costs. The government’s September 2012 decision to allow foreign direct investment in the multi-brand retail sector subject to certain provisions has not generated new investment proposals. Foreign firms appear to be studying the provisions and the government recently clarified a number of the investment requirements.

Despite a number of challenges, India’s food retail sector, which is dominated by millions of small grocery stores, is considered ripe for development. Many had hoped that the Government of India’s recent decision to approve foreign direct investment in multi-brand retail, subject to a number of conditions (see IN2120), would spur growth in the sector and lead to the development of supply chains and new marketing opportunities for farmers.

Source: USDA Foreign Agricultural Services

FOR THE FULL REPORT PLEASE CLICK HERE

 

Food Processing Sector In India - August 2012

India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and argricutural sector. The food processing industry is one of the largest industries in India- it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry - large disposable incomes- the food sector has been witnessing a marked change in consumption patterns, especially in terms of food.


Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt, and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg, and fish, fruits and beverages.
For instance, the proportionate expenditure on staples (cereal, grams, pulses) decilne from 45 per cent to 44 per cent in the rural India while the figure settled at 32 per cent of the total expenditure on food in urban India.


A large part of this shift in consumption is driven by the processed food market, which accounts fro 32 per cent of the total food market. It accounts for US$ 29.4 billion, in total estimated market of US$ 91.66 billion.

Source: Leicestershire Corporate Catalyst India

FOR THE FULL REPORT PLEASE CLICK HERE

 

Business Opportunities Food And Drinks Sector 2012

India is expected to be more than US$ 5 trillion (current market price) economy by 2020. Investment activity is expected to accelerate, which will help the Indian economy to grow faster. Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by 2020(Dun & Bradstreet).

The Indian food services industry is expected to grow at a compound annual growth rate (CAGR) of around 12 per cent during 2012-2015, according to a RNCOS research report, 'Indian Food Services Market Forecast to 2015'. According to another report, the industry is estimated to be nearly worth US$ 13.56 billion and is growing at a healthy CAGR of 17
per cent. The food services sector in India is expected to reach US$ 24.77 billion by 2015, according to a Franchise India report released at the Indian Restaurant Congress.

India has also been recognised as one of the largest potential market for organic food consumption worldwide. The organic food is invariably increasing among the Indian retailers, especially with the niche retailers, as per RNCOS research report titled, ‘Indian
Organic Food Market Analysis’. The report further expects that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent.

Source: Leicestershire Chamber of Commerce

FOR THE FULL REPORT PLEASE CLICK HERE 

 

Food Industry Sector Report - December 2010

According to a report published by market research firm RNCOS in April 2010, titled ‘Indian Food and Drinks Market: Emerging Opportunities’ the Indian food and beverages market is expanding rapidly and is projected to grow at a compound annual growth rate (CAGR) of about 7.5 per cent during 2009-13 and would touch US$ 330 billion by 2013.
The food retail industry, currently at US$ 70 billion is predicted to grow more than double to US$ 150 billion by 2025, according to KPMG, a global audit and advisory firm. India’s food retail industry is poised for exponential growth. With the evolution of innovative food processing capacity and the emergence of organized retail, change in consumption patterns along with fast changing demographics and habits is fuelling the next growth trajectory for the food industry in India.
The Indian fast food market is growing at an annual rate of 25-30 per cent, according to a report published by market research firm RNCOS in September 2010, titled ‘Indian Fast Food Market Analysis’. Foreign fast food chains are aggressively increasing their presence in the country. For instance, Domino’s has planned to open 60-65 outlets every year for the next three years (2010-2012) while Yum Brands Inc is also preparing for massive expansion across the country with plans to open 1000 fast food outlets by 2015.

Source: India Brand Equity Foundation (IBEF)

FOR THE FULL REPORT PLEASE CLICK HERE

 

Food and Drink Sector - From UKTI - May 2008

India has the youngest working population in the world - young singles are making a lot of money. Average Indian household spends 52% of its income on food. With changing food habits and high propensity to spend additional income on food and with retail food sales estimated at $185 billion (2004/2005), the market prospect is very vibrant.

Source: UK Trade and Investment

FOR THE FULL REPORT PLEASE CLICK HERE

 

Food Industry Sector Report from IBEF - April 2008

India is the world's 2nd largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. With India's food production likely to double in the next decade, there is an opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing industry. Health food and health food supplements are other rapidly rising segments of this industry.

Source: India Brand Equity Foundation (IBEF)

FOR THE FULL REPORT PLEASE CLICK HERE

 

Fruit punch - February 2008

This juice is worth its squeeze. At least cola majors Coca-Cola and PepsiCo think so. A couple of weeks back, when beverages giant The Coca-Cola Company announced its results for the October-December 2007 quarter, it attributed the growth in its Indian market to its mainstay brand Coca-Cola and its expanding portfolio of fruit drinks (beverages with 20 per cent fruit pulp).

Fruit drinks are increasingly filling the crates that were otherwise capped with fizzy carbonates in the Indian market. In October 2007, Coca-Cola India took its orange fruit drink Minute Maid national after a carefully phased launch that first covered major cities. Last month, PepsiCo rolled out its fruit drink, Tropicana Twister, nationally.

Source: Business Standard

FOR THE FULL REPORT PLEASE CLICK HERE

 

Working up an appetite - A Report from IBEF - October 2007

When early bird investors calculate their medium to long term returns from the Indian food processing industry the results put to shade comparative returns from many other higher profile businesses. The reasons are apparent as the food processing industry enjoys a string of benefits and concessions, besides a growing appetite from foreign investors.

The growing list of positive factors include government subsidised food parks, tax breaks, increased FDI (foreign direct investments) and foreign food retailer interest, proposals for public-private investment partnerships, increased spending on the supply chain infrastructure, a burgeoning middle-class with fast growing disposable incomes and changing consumption patterns, modern retail formats changing shopping behaviour and international road shows by the government.

Source: India Equity Brand Foundation (IBEF)

FOR THE FULL REPORT PLEASE CLICK HERE

 

Food and Drink Sector Report - July  2007

India has the youngest working population in the world - young singles are making a lot of money. Average Indian household spends 52% of its income on food. With changing food habits and high propensity to spend additional income on food and with retail food sales estimated at $185 billion (2004/2005), the market prospect is very vibrant.

Source: UK Trade and Investment

FOR THE FULL REPORT PLEASE CLICK HERE

 

Food Industry Overview - from IBEF - July 2007

The Indian food industry is estimated to be worth over US$ 200 billion and according to the Confederation of Indian Industry (CII) is expected to grow to US$ 310 billion by 2015. India is one of the world's major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters.

Source: India Equity Brand Foundation (IBEF)

FOR THE FULL REPORT PLEASE CLICK HERE

 

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