India Agri-Business and Food & Beverage Sector Overview: Where is your Opportunity in the Changing Face of the Indian Food & Beverage Industry?

March 15, 2022

What is India eating? As an emerging Asian economy, India stands out as a phenomenal success with its GDP quadrupling from $523 billion USD in 2002  to $2.94 trillion USD in 2021. And this increase in prosperity runs concurrently with a rise in population that, as of 2021, stood at 1.5 billion citizens and 18% of the total global population. Not all of India’s citizens live at a subsistence level because as a result of this population explosion the Sub-Continent is home to a thriving middle-class and an increasing economically mobile working-class with an appetite for non traditional culinary tastes, a desire for food diversity as well as consumer awareness demanding better quality foods and traceability. Find out more about the dynamics of the Indian Food and Beverage Industry to learn where your opportunity may lie serving in the Indian market, albeit bulk commodity pulses, package foods, or processing and logistics.

 There are many different elements impacting the Indian food and beverage industry. Some of these might include rapid expansion of technology, higher disposable incomes, changing lifestyle habits, and expansion of urban areas. Some distinct opportunities include:

Sustainability for packaged food is important with the rise in environmental consciousness. Many consumers become aware of the environmental impact of packaged food. Consumer demand for sustainable packaged food options is rising, so investing in green packaging can be a great opportunity.

The alcoholic beverage industry tends to evolve and change with the times. Social norms surrounding alcohol is always evolving. There is emerging beverages market for craft breweries and spirit distilleries with younger demographics. Another opportunity in the Indian food and beverage industry is processed food, or snacks. The demand for healthier snacks is rapidly expanding in the Indian food industry.

Many younger consumers are looking to reconnect with their ethnic roots, which has resulted in an increased demand for ethnic and regional Indian food. The food processing sector is also a great opportunity as the market size is expanding rapidly. The agricultural output is also quite large, which adds to this opportunity. The food processing sector also requires investment in cold storage that results in less wastage.

Dairy products are one of the fastest growing food products in India. These dairy products can include milk products, ice cream, etc. It can also be related to vegan alternatives to dairy. Non-alcoholic beverages including carbonated soft drinks, sports drinks, and non-carbonated drinks such as teas and coffees. The demand for such drinks continues to rise and the market continues to develop. This market often coincides well with processed food and packaged foods markets.

It is important to bear in mind that regional food and beverage industry distinctions can be quite marked. Global food businesses wanting to enter the Indian market will need to align their practices and food products with Indian food regulations, along with regional preferences and cultural sentiments.

India’s food processing sector along with the food and beverage sectors are growing steadily along with the population. It is important that it also adapts to changing times. The competitive landscape provides great opportunities for businesses from food processing to food safety. Get your market share in the food and beverage segment today.

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