Food & Drink Opportunities

An Expert's View about Food , Beverages and Tobacco in India

Posted on: 25 Nov 2011

India, home to a billion people, is among the world's largest producers and consumers of food. With a growing middle class estimated to be between 200 and 300 million, and increasing globalisation, significant opportunities are emerging for imported food & drink.

Sector briefing Food & Drink Opportunities in India Why India India has the youngest working population in the world (60% of India's population are under 24 years, while 81% population below 45 years) ? young singles are making a lot of money as a result convenience overrides price consideration. An average Indian household spends about 52% of its income on food. With changing food habits and high propensity to spend additional income on food, the market prospect is very vibrant. India, home to a billion people, is among the world's largest producers and consumers of food. With a growing middle class estimated to be between 200 and 300 million, and increasing globalisation, significant opportunities are emerging for imported food & drink. Find general information on the India market conditions on UKTI?s website. The Doing Business Guide for food & drink gives an overview of India?s economy, business culture, potential opportunities and an introduction to other relevant issue. UK Trade & Investment Sector briefing: Food & Drink opportunities in India In the fisheries and meat segment, packed Opportunities salmons, etc have a good market share but imports are restricted as a result demand from Opportunities for UK food and drink in India the UK is not as much. are growing-key areas are detailed below: India represents one of the world's The food & grocery sector presents the most largest whisky markets. Scotch whisky significant potential in the Indian market as market in India is growing at a fast rate of consumer spending is highest on food. Major around 40% per annum. Malt whisky is a Intenational supermarket chains like Walmart, growing category in India, the total whisky Metro, Bookers, Carrefour has invested in cash market is around 70 - 75 million cases, of & carry operationss in India.Tesco is providing which imported whiskies account for around technical knowhow to Tata Trent to operate 300,000 cases per annum, and is growing at Star Bazaar chain.Fast food companies like 35 - 40 per cent in India. Costa coffee, subway, Mcdonlds, KFC, Donutking, Slice of Italy already have a pan The beer market in India increased at a India presence. growth rate of 18.8% between 2004 and 2009. The standard lager segment led the beer Food & Drink including jams, Sauces, market, with a share of 92.5%. The leading Cheese, Confectionery, Biscuits etc is an player in India is the United Breweries important area of growth. The Indian food & (Kingfisher brand) and Sab Miller (Foster drink sector is highly fragmented.There are brand). An average Indian prefers beer over large and small companies operating in the whisky and wine. This is since beer is cheaper sector.The four metros account for more than and is good for the warm weather. Beer 50% of consumption of imported food and consumption has increased on average by 9% drink. over the last five years, and has good prospects for continued growth driven by India?s hospitality and restaurant service sector strong economic growth, favourable contributes more than 55 per cent of the GDP, demographics (56% of the population is under making it a most formidable component of the 25), government deregulation and the growing country?s economy. This sector is one of the popularity of beer over other forms of alcohol. largest customers of imported food & drink. India is not yet a wine drinking country. But Market for Jams & sauces together is estimated with growing affluence and local production of at ?62.5 million, while confectionery market is wine, people are growing to enjoy the taste. estimated at ?306 million. Sugar confectionery is 61% of this market, while balance 39% is of Diageo, Famous Grouse, Beam Global, Perno chocolates, mint & gums. Biscuits market is Ricard, Whyte & Mackay, Bowmore Morrison estimated at ?1.1 million tonnes per annum, are some of leading brands of scotch whisky valued at ?588 million. About 90% of Indians with significant market presence. There is buy biscuits. Hard boiled candies and toffees exists opportunities for many more to enter the constitute the largest segment accounting for market. 69% share. Gums are the second largest demand segment with 18% share. If you have any questions on the opportunities above, contact the UKTI contacts named in this Cheese is considered as breakfast food in report. Business opportunities aimed India. Lately pizzas, pastas and burgers are specifically at UK companies are added daily to emerging as a popular a fast food especially UKTI?s website. These leads are sourced by our amongst the younger population. Some of the staff overseas in British Embassies, High popular brands available in the market are Commissions and Consulates, across all sectors Denon, kraft, Pilgrim choice, lebon, Gruyeri and in over 100 markets. and Mozzarella produced by local companies like Amul & Britannia. Confectionery and biscuit You can be alerted to business opportunities on segment is monopolised by brands like a regular basis by registering on the UKTI Sunfeast, Perfetti, Parrys, parle, Nutrine, website. Find out more on UKTI?s business Candico, Wrigley, Nestle, Glaxo Smithkline and opportunities service on the UKTI website. Cadbury. Recently United biscuits from the UK have set up a manufacturing base in India. UK Trade & Investment Sector briefing: Food & Drink opportunities in India Major events and activities Annapurna - World of Food www.worldoffoodindia.com Contact: Kiraan Sharma Email: Kiran.Sharma@fco.gov.uk Time: 25-27 Nov 2011 Food & Grocery Forum www.foodforumindia.com Contact: Kiraan Sharma Email: Kiran.Sharma@fco.gov.uk Time: 27-28 March 2012 Ahaar www.ahaar.com Contact: Kiran.Sharma Email: Kiran.Sharma@fco.gov.uk Time: 10-14 March 2012 UKTI contacts Kiran Sharma Senior Trade & Investment Manager UK Trade & Investment New Delhi Tel: (91) 11 24192155 Email: Kiran.Sharma@fco.gov.uk www.ukti.gov.uk Collette Weston Second Secretary UK Trade & Investment Tel: (91) 22 66502222 Email: Collette.Weston@fco.gov.uk www.ukti.gov.uk UK Trade & Investment Sector briefing: Food & Drink opportunities in India Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Indian market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in India, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright ? Published 2011 by UK Trade & Investment. ?Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Food & Drink opportunities in India
Posted: 25 November 2011

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