A snapshot of Food Industry News
India’s Food Industry to reach US$300 Billion by 2015
According to Market Research Reports Indian food industry is on a roll. It is growing at a compound annual growth rate (CAGR) of more than 5% and is expected to cross the three billion dollar mark by this year. Both manufacturer capability as well as consumer choice have dictated the trends in the food processing industry. While at one point it was frozen vegetables that dominated consumer choice today the sector has panned out and includes non-vegetarian foods and sea foods.
The food processing industry forms 43% of the food industry as a whole. However, now that frozen foods are being accepted in India there is a potential for higher growth and it is predicted to cross 50% soon. One stumbling block in its growth is that the per capita frozen food consumption is low in India so frozen foods need to be promoted. Wet sampling at stores as well as in-store promotions and advertisements, used effectively, will help to promote new products and boost sale of popular products.
Next 30 Years will see Huge Growth in Soft Drink Market
The demand for fruit drinks and packaged juice products has been increasing rapidly. On the other hand the market for carbonated soft drinks has remained steady. The overall size of the soft drink market is a huge Rs.65, 000crores. The industry is expected to grow at an annual rate of about 30% in the next 30 years. Fruit drinks make up Rs.8, 000crore of the market while carbonated drinks stand at Rs.25, 000crore while the rest of the share in the market is held by bottled water and other soft drinks.
Even though the soft drink market seems huge it lags behind most countries with regard to per capita consumption. This means that even if the per capita consumption increases by a few litres the soft drink market will surge ahead. Seeing that the potential for the growth of the soft drink market is going to increase Manpasand Beverages is making an initial public offering to raise Rs.400 crore. The money raised will fund the company’s expansion plans which include opening a new manufacturing unit in Ambala, Haryana.
Bihar CM asks Entrepreneurs to Establish Food Processing Units
Speaking at the ‘Agriculture and Food Processing Conclave’ organised by ASSOCHAM and the State government, the Bihar Chief Minister, Nitish Kumar asked entrepreneurs to direct their efforts to opening food processing units in the state. The CM has a dream of seeing “one food item from Bihar in every Indian’s plate.” In order to see this dream fulfilled, he has not only asked entrepreneurs to establish “good quality” food processing units, but has offered all help including subsidies.
He has expressed the view that since agricultural productivity is on the rise in Bihar food processing will lead to better agricultural development. This will help raise income of farmers and also generate employment. He said that the State has all the requisites for food processing units and pointed out the potential of food processing in litchi, mangoes, betel and rice besides other crops. He would like to see some brands develop from Bihar.
Growth in the Market for Sugars and Sweeteners in Processed Foods and Beverages
A comprehensive survey was carried out of all the major companies as well as end users of sugars and sweeteners. Being one of the oldest markets in the world sugar occupies the major share of the sweeteners market. Since the last decade however, non –sugar based sweeteners have been experiencing growth too. This is mainly due to some innovations in production and the fast lifestyles. Sweeteners are used in foods and beverages and the sedentary lifestyles and health issues have led to the growth of use in non-sugar sweeteners. The market is expected to grow further with advancements and innovative product launches.
After data was collected from current financial, trade and government sources the study found that there was substantial growth in this market. The global market for sugars and non-sugar sweeteners is expected to grow at a five-year CAGR of 2.8% from 2014 to 2019 to reach $122.8 billion from about $106.9 billion in 2014. The sugar market was $92.1 billion in 2014 and is expected to rise at a CAGR of 2.6% and reach nearly $104.7 billion by 2019. On the other hand, the non-sugar sweeteners market is estimated to rise at a CAGR of 4.3% by 2019 and be worth nearly $18.2 billion.
Packaged wheat flour market to double to Rs.15, 500crore
According to a Gujarat based marketing consulting firm IKON packaged wheat flour is likely to double its market size. The market size will double from the present Rs.7, 500crore to about Rs.15, 500crore by 2020. Since the past three years packaged wheat flour market has been growing at a GAGR of 19%. It is expected that the growth trajectory could remain the same and so the market size is slated to double. The growth is seen to mainly result from the fact that a number of players have entered this market. They are being seen as responsible for the change in trend as they provide quality wheat flour.
The Jalgaon Plant is expected to see Jain Irrigation Earn Rs.100 crore in Export
The Jalgaon food processing plant of Jain Irrigation was recently inaugurated by the Chief Minister of Maharashtra, Devendra Fadnavis on June 20. The plant will use both Individual Quick Frozen (IQF) and Block Quick Frozen (BQF) technologies and is designed to handle 60,000 MT of fruits annually. The products from this IQF facility would be exported to the US, Europe, Japan, Australia, New Zealand and the Middle East. The company is expecting to earn Rs.100crore in foreign exchange from processing fruits like mangoes, bananas, pomegranates, papaya, jamun, strawberry and sapota.
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