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.