India Foodex supports expanding food sector

INDIA is the world’s second largest producer of food next to China but accounts for less than 1.5% of international food trade. The food sector is poised for growth and has potential to become a reliable outsourcing partner in the global food industry. Local food brands are finding prime shelf space in the retail chains across US, Europe and GCC countries.

Areas of strength in the food and beverage industry are canning, packaging, and refrigeration for dairy, poultry, fish, meat, ready-to-eat products, cereals and grains, as well as confectionery, chocolates, and coco products; in beverage, carbonated drinks and mineral water.  The health food and supplements segment is developing as well, with high-protein products and nutraceuticals as leading categories.

India is an appealing, long-term retail destination for several reasons starting with its demography – half of India’s population is under 30 years old and roughly one-third of the population lives in cities. The disposable income of Indians is increasing, allowing them to spend more and try new products, brands, and categories.

Thus, favorable demographics, increasing urbanization, nuclearization of families, rising affluence, growing preference for branded products and higher aspirations, are factors driving retail consumption in India.

Booming retail market

The retail market is likely to touch Rs 47 trillion (US$ 738.71 billion) by 2016-17, expanding at a compounded annual growth rate of 15%, according to Yes Bank-Assocham study.

Hundreds of popular foods brands cater to domestic and international food markets and they are expanding local production base and adopting innovative technologies. To name a few there’s Amul, Rasna, Kohinoor, Parle, Haldiram, Bikano, MDH, Milkfood, Lal Qilla, Food Bazaar, and McCain.

Ms Nirmala Sitharaman, Union Minister of Commerce and Industry, has stressed on the country’s building a culture of branding and marketing.

The government has taken many initiatives to improve the retail industry. For one, the Foreign Investment Promotion Board (FIPB) has cleared five retail proposals worth around Rs 420 crore ($ 66.01 million) from several companies such as Bestseller, Puma SA and Flemingo. Additionally, the FIPB has cleared three 100% single-brand retail proposals worth Rs 222.5 crore ($ 34.97 million), suggesting renewed interest in India’s growing retail market.

Support for the industry

India has to increase its output of grains and build an effective supply chain to ensure reliable quality from farm to fork. The country has abundant produce available for value addition and food processing, but local farmers need modern machinery, as well as knowledge of high technology, advanced production practices, preservation, logistics and marketing. As the local food industry expands, it has become a magnet for the latest packaging and processing equipment, as well as agro-food products, from around the globe.

Complementing the growth and development in the agricultural and food sectors, Media Today Group will be hosting the 7th edition of India Foodex – India’s Largest International Show on Food Products, Processing & Packaging Machineries and Allied Industries. The event will be held at Bangalore International Exhibition Centre (BIEC), India from 21-23 August 2015.

Several concurrent shows will be held alongside India Foodex, giving attendees the opportunity to expand their network further at the 6^th GrainTech India 2015 (grains, cereals, spices, oilseeds, feeds, products & technologies), 5^th DairyTech India 2015 (dairy products, input, technologies and allied sectors), the 2^nd edition of MeatTech Asia 2015 and a new vertical addition, the India Food Park Expo 2015.

India Foodex 2015 is supported by local agricultural and food sectors and government organizations. Last year’s edition attracted participation from 28 countries, but organizers expect higher attendance and more country pavilions this year.