Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Scrutiny of Indian Food Industry

By Market Review Subscribe to RSS | March 22nd 2012 | Views:
loading
 
  



How big the Food Ingredients market in India and at what rate is it growing?

India is making a splash in the food ingredients market with a 9% growth rate year-on-year, well above the 5-6% seen in the global market.

What was once a small market valued at $470 million in 2007, only a meager 1.6% of the global market, is now getting worldwide attention from major food and beverage manufacturers and food ingredient companies. Big players such as Danisco, DSM, Solae, ADM and BASF (just to name a few) have already established their presence in India. Food and beverage giants such as Pepsico, Coca Cola, and Kellogg’s are shifting their product portfolio to more nutritious and healthy products. Even Nestle India, a subsidiary of Nestle, is set to compete with other giants in the health foods category.

In addition to the growing middle-class in India, urbanization, changing lifestyles and the need for convenient healthy foods is pushing the growth of the food ingredients market. As consumers evolve from a subsistence living, they invariably spend a large portion of their new income on food and as a result, they demand healthier food and beverage options. There is a catch though. Generating more income does not mean they are willing to sacrifice convenience. Consumers want healthier products but are unwilling to go out of their way to get it. This means that food and beverage manufacturers need to get creative.

What are the emerging trends in the Food Ingredients industry today?

India, with a population of more than one billion, represents one of the largest consumer markets in the world. Additionally, the country enjoys one of the largest and most balanced demographics in terms of age, as more than 50% of the population is below 30 years of age. The tremendous growth in its population of young people is likely to bring about a shift in the Indian food and drinks industry, as young populations drive the demand for processed and health foods.

Due to increasing urbanization and rising disposable income, the buying power of the new middle-class is increasingly being directed towards modern convenience food products. Higher incomes will result in a change in consumption patterns, and India may see an increasing demand for health, organic, processed and packaged food.

The key challenges are

the rules for contract farming should be relaxed and commercial tie-up with farmers should be encouraged. It has suggested that a government agency should act as a mediator in this.

Infrastructure development for cold storage facilities and up graded transportation options in order to reduce agro produce loss.

Taxation benefits and export incentives that have been revised for the food processing industry should be extended to the food ingredients industry as well.

To encourage cold chains, the ministry of food processing industry has proposed to exempt excise duty on refrigeration equipment, with a refrigeration utilizing power of 50 KW and above. The Frost and Sullivan report recommends that the same benefit could be extended to food ingredient manufacturers as well, since they are the direct link for complete integration from the farm to the end-product level.

The report has also asked for relaxation of food laws and incorporation of new standards under the FSAA (Food Safety and Standards Act, 2006) it is expected that this will bring in significant investments in the food ingredients industry, which in turn will boost agricultural growth.

How do international events cater to the growing needs of the Food Ingredients industry, especially India?

Food & Beverage trade shows in India showcase the latest developments in the food and beverage industry. These Food & Beverage shows bring all the major players of the food & beverage industry on one platform. Food ingredients (Fi) India is successful in creating its position as the industry’s only meeting place and driving further the Indian processed food sector. More than 4,500 food professionals had attended Fi India 2010, held in Bombay Exhibition Centre, Mumbai.

Running since 2006, Fi India event is the meeting place for all stakeholders of India’s food ingredients industry. What started as a small conference in 2006 in Mumbai is now the leading event of the industry, recording continuous growth and bringing together thousands of buyers and sellers every year. UBM also organises Health Ingredients and Natural Ingredients exhibitions in India and overseas which receives an overwhelming response.

Market Review - About Author:

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/investing-articles/scrutiny-of-indian-food-industry.htm

Related Investing Articles Subscribe to RSS

How effectively online trading sites help us
Published by Alvin Cook on March 20th 2012 | Investing
For investors it is important to find online trading sites which can provide a convenient platform...
 
Online options trading through established Brokerage Company
Published by Alvin Cook on April 3rd 2012 | Investing
After making your choice on options trading business, you have to perform lot of search...
 
Top tips for better auto quotes
Published by Auto Insurances on January 14th 2012 | Finance
Type of vehicles that you choose to purchase will influence the premium costs big time. Apart from t...
 
Know about brokers and brokerage firms in futures trading
Published by Lightingstyles on May 16th 2012 | Investing
Futures trading is known to be fast paced and volatile market. Most people think that trading in fut...
 
Top 3 tips for First Time Home Buyers
Published by Lending Expertsca on April 21st 2012 | Investing
First time home buyers are a vulnerable lot. Therefore, they need to seek assistance of mortgage ser...
 
The significance of Forex trading systems
Published by Loura Seo on April 3rd 2012 | Investing
Finally, learn Forex trading system will enlarge more as you become a more knowledgeable in Forex tr...
 
Know some benefits of forex trading online
Published by Bread Lee on December 14th 2011 | Investing
Forex trading is becoming more and more popular since it was introduced to the internet users. The p...
 
Final call from your digital options trading company
Published by Alvin Cook on May 15th 2012 | Investing
It has been the final decision made by investors to look into the binary options trading...
 
Helpful tips for gold investment
Published by Mike Neon on December 15th 2011 | Investing
Buy Gold Bullion Coins and take physical possession by having them shipped direct to your home. Bull...
 
Forex options trading to decide precise strategy
Published by Alvin Cook on February 16th 2012 | Investing
Forex trading options can be a fruitful strategy to follow the market trend...
 
Top tips for money management and using a credit card
Published by Jesse Wallace on June 6th 2012 | Finance

Learning how to use your credit card effectively could help you balance and manage your debts....
 
Equity trading involved in your numerous software portfolio on China
Published by Leo T Garcia on August 1st 2012 | Finance
Equity trading involved in your numerous software portfolio on China...
 
Uncomplicated route to earn commencing binary options trading
Published by Alvin Cook on March 14th 2012 | Investing
Binary options has become ultimate way to gain huge money in less time interval...
 
How advantageous online trading account is?
Published by Alvin Cook on February 20th 2012 | Investing
Everything we do today includes use of internet which is desirable to gather high performance with e...
 
Critique Philippine Forex currency trading Strategies for ETF's
Published by Hector Diaz on May 15th 2012 | Investing
Fernstliche financiers are similar to or even cousins of all over the world simply because these ite...
 
Gather immediate online trading account earnings
Published by Alvin Cook on April 11th 2012 | Investing
Trading business highly popular scheme to gather millions everyday has became ultimate mode of occup...
 
Advice and tips for settlement of debts
Published by Rajkumar Kaushal on June 19th 2012 | Finance
Sometimes, it is when most people are in debt that they start looking for advice. Advice can be expe...
 
Commodity Bhavishya provide commodity advice on Gold and Silver tips
Published by Alena on December 24th 2011 | Finance
Commodity Bhavishya provide commodity advice and tips on MCX, NCDEX , Nifty FUT services, legs inven...
 
Call and put options in online trading scenario
Published by Alvin Cook on May 11th 2012 | Investing
Option trading is best scheme to earn through money invested in stock market...
 
Valuable trading options tactics for small investments
Published by Alvin Cook on March 15th 2012 | Investing
Strategic plans implied in trade world holds the baseline of earning; if your stock market strategy ...