Recent developments in the Indian Food and Beverage Industry
The Indian Food and Beverage Industry is emerging as a high-profit sector. It accounts for about 3 % of India’s GDP and around 2/3rd of the total retail market in India. In fact, the revenue in the food and beverage business segment is estimated to show a CAGR growth rate of 14.2 % from 2020-2024. Also, the projected market volume is USD 1,264 million by 2024.
There are several factors that are driving this growth like rapid urbanization, changing lifestyle and food habits of the surging generation, increasing household consumption rate, etc. Hence, foreign firms who are willing to capture India’s food and beverage industry must research these recent market developments to ensure unmatched returns on investment. For detailed insight, consulting with food and beverage consultants in India can be of great help.
Let’s delve into the market size and recent trends shaping the future of the food and beverage industry in India.
The current market size of the Indian Food and Beverage Industry shows great potential for higher profit and, therefore, is attracting enormous foreign investments. For example, revenue in the F&B segment is estimated to reach a valuation of USD 8,325 million in 2021, opening lucrative business opportunities in India. Also, the number of users in the F&B market is estimated to reach 346.9 million by 2025. There is also a great potential for the user penetration rate to hit 24.0% by FY 2025.
Hence, foreign businesses willing to invest in the Indian Food and Beverage Industry can secure unmatched growth. However, the focus must be given to frame market-centric business strategy by taking into account the current trends and with all-inclusive assistance from reliable food consultants in India
Key Trends Shaping the Indian Food and Beverage Industry Opportunities In India
Increasing Gourmet Brands
The gourmet food market in India has been experiencing significant expansion for the last few years. This has occurred due to the shifting consumption habits of Indian consumers from traditional food flavors to global food.
With increasing middle-class income, there is a growing demand for high nutritional food products, sophisticated palates, and premium products. In fact, currently, the value of the Indian gourmet food market is around USD 1.3 billion.
The gourmet market will grow in categories like exotic sauces, olives, honey syrup, spreads, cereals, etc. Foreign brands can earn unmatched profit by expanding their production and supply in these food ranges. For comprehensive planning, they can collaborate with top business consulting firms in India.
According to current statistics, the Indian dairy industry will grow by about 9 to 11% by 2022. According to IBEF, the packaged milk segment itself is projected to grow to USD 32.9 billion by 2030.
Increasing per capita consumption and demand for milk and milk products is steering the improvement. The ICRA Vice President and Sector Head state that while growth in the liquid milk segment will remain stable at 6-7 percent in FY22, the value-added dairy products (VDAP) like ice-creams, frozen yogurt, etc., will rise by 13 to 15%.
Growth in Bakery Segments
The Indian bakery market has emerged as the largest food processing segment. Increasing consumption of biscuits and cookies which accounts for about 72% of the total sales in the F&B industry is primarily boosting the growth in this segment. Also, several popular reports state the cake market will reach a valuation of USD 882.24 million by 2024. However, the market competition in this segment is also compelling. Hence, foreign investors in these segments need to frame strategic planning by collaborating with a business advisory consulting firm to receive unmatched ROI
As reported by Nestle India, the demand for packaged food in the Indian market will double in the coming 5 to 10 years. It is estimated to grow up to USD 100 billion creating lucrative business opportunities for foreign players. Several factors like growing e-commerce, demographic dividend, and overall economic growth have promoted the change. With detailed market insight from top food and beverage consultants in India, new investors can strategize the production and distribution of packaged food products like instant noodles, biscuits, snacks, and more.
Healthy Alternatives And Growth In Nutraceutical Market
The new-age Indian consumers are growing extremely health conscious. By gaining a better understanding of food labels, they are more prone to substituting their earlier food habits with healthy alternatives. This has consequently prompted the growth of the nutraceutical market, which is forecasted to reach a valuation of USD 4.5 billion by 2022.
Also, consumers in India are showing a great shift towards sugar replacers for health benefits. Therefore, the demand for sugar-free products and artificial sweeteners is on the rise and is here to stay. Foreign investors can take advantage of this opportunity with thorough market research from trusted Indian business consulting.
How Can Business Consulting Firms in India help?
To establish and grow in the Indian Food and Beverage Industry, foreign firms need to acquire a thorough market analysis and frame an India-specific market entry strategy. This is where the importance of food consultants in India is undeniable.
A trusted business advisory consulting firm in India like Tecnova offers all-inclusive assistance to foreign investors by offering-
- A customized study on addressable markets
- Quantitative and qualitative research on consumer demand
- Product launch and PR management
- Help in manufacturing plant set-up
- Retail roll out support
- Establishing brand and distribution network etc.
Such end-to-end assistance from business consulting firms in India will reduce investment risk in the long run.
The food and beverage segment in India is anticipating unmatched business opportunities in the future. However, with such impressive investment scope, the F&B segment in India is also growing extremely competitive. Furthermore, the consumer demand in the Indian market is constantly shifting. Also, there are several ongoing shifts in e-commerce and retail operations that must be taken care of.
Hence, a thorough analysis of recent food & beverage market trends is imperative. For comprehensive assistance, foreign organizations must collaborate with popular food and beverage consultants in India. This will help reduce investment risk and ensure sustainable business development in the long run.
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