Food & Beverages Industry
Food & Beverages Industry
Food & Beverages Industry
An Introduction to the Sector
Accounts for about two thirds of the total Indian retail market
The retail food sector in India is likely to grow from around US$
70 billion in 2008 to US$ 150 billion by 2025
The world food industry is set to grow from US$ 175 billion to
US$ 400 billion by 2025
Spices
Despite a global slowdown, India exported 470,520 tonnes of spices
valued at US$ 11.68 billion
Compared with 2007-
2007-08, exports of spices had shown an increase of
19% in rupee value and 6% in dollar terms
Health Food
Recognising the growth potential of the branded health food sector in
India, various FMCÚ majors are foraying into this sector
Sectors
Food Processing
The Indian packaged foods industry is estimated at US$ 13.05bn
growing at 14-
14-15% over the past two
two--three years
India¶s share in exports of processed food in global trade is only
1.5%; and the size of the global processed-
processed-food market stands at
around US$ 3.2 trillion
Under the Vision-
Vision-2015 action plan Ú I plans to triple the size of the
food processing industry from around US$ 70 billion to about US$
210 billion
Ú I also aims to increase the share in global food trade from 1.5% to
3%, requiring an investment of US$ 20.6 billion
Ernst and Young predicts the food processing industry in India to
grow at 30-
30-40% as against the present 15% in the next 10 years
Ú I is looking for an investment of US$ 21.50 billion in the food
processing industry over the next 5 years, a major chunk of which it
plans to attract from the private sector and financial institutions
Sectors
Dairy
The current size of the Indian dairy sector is US$ 62.67 billion and has
been growing at 5% a year
The domestic dairy sector is slated to cross US$ 108 billion in
revenues by 2011
India continues to be the largest producer of milk in the world. It
produced 110 million tonne of milk in 2008-
2008-09
Beverages
The market for carbonated drinks in India is worth US$ 1.5 billion
The juice and juice-
juice-based drinks market accounts for US$ 0.25 billion
The fruit drinks market is growing fastest at 25% followed by other
sports and energy drinks
The market for wine has also been growing at 25% per year
Investments in pipeline
6oor infrastructure
High cost of raw material and packing material and high freight
charges put pressures on margins
This report helps clients to analyze the factors and examine the
opportunities critical to the success of food and beverages
industry in India.
[ [ [ [
Ë The Food and meverage Industry is projected to have overall
growth between 8% -8.5 %
Ë The sectors which are projected to achieve excellent growth of
20% and above are ±Semi 6rocessed/Cooked Ready to eat
(22%), Ice-
Ice-Cream(20%), Edible/Vegetable oil
(20%),ine(22%) .
Ë Development of rural infrastructure, rural extension services,
agro--based and food processing industries have been given
agro
high priority.
Ë The process of setting up of Food 6arks in various key
locations of the country with the involvement of the various
state governments and other allied institutions is on.