Beverage News
Food & Beverages – A Rising Star in India
India is a fast-growing and large emerging market. Although consumption patterns are changing, food and beverages still account for a substantial part of Indian consumption (over 30%) compared to other emerging markets (Brazil at 17% and China at 25%). Within the food and beverage category, in recent years, there has been a shift towards packaged food and beverages and branded products. India is also a large producer of fruits, vegetables and milk. The government is trying to develop the country as a food processing hub, which is likely to boost the Indian food processing sector in particular and the manufacturing sector in general
Favourable demographic trends; emergence of urban middle class – More than half of the country’s 1.2 billion people are under the age of 30 years. This young population, aspiring to improve its standard of living, is expected to drive the growth of the country’s consumption led food and beverages sector. India’s middle class population is expected to increase three times the current level in the next decade. Out of this, nearly 40% of the population would be living in urban areas. Indian economy is expected to triple in the next decade. The resultant income growth would lead to a rise in middle class customers. It is expected that the share of this middle class (strivers and seekers) would increase from 14% in 2008 to 46% in 2030.
Key highlight of India
- It is one of the most rapidly growing economies in the world.
- It is one of the largest beverage markets worldwide (by volume) for alcoholic beverages and soft drinks.
- Per capital consumption is still very low but is rapidly increasing (alcoholic drinks: +28%, soft drinks +100%).
- It is the number one market for milk and dairy products and is still growing.
- It is already a leading exporter for several food products because of its rich resources.
- Its domestic food market will reach 300 billion USD in 2020.
- Its food production is likely to double in the next ten years.
- The food processing sector was identified as a priority in the “Make in India” initiative to make India a food-processing hub and not just an exporter of raw produce.
- It is the number one producer of buffalo meat.
- It is the second largest producer of agricultural commodities worldwide.
- It is the number two producer of fruits and vegetables.
- It ranks fifth in poultry production.