Trade Show Duo meets rising demand for processed and packaged food and beverages in India
The trade fair duo drink technology India and International PackTech India meets the rising demand for processed and packaged food and beverages in India. Both trade shows, taking place from 25 September until 27 September in Mumbai, will present the complete value chain for food processing, liquid food, beverage and packaging technology.
One of the largest markets for packaged food in the world,
The packaged food industry is the fifth largest sector in India. The Indian packaged food industry is worth 39.7 billion USD and is expected to reach 65.41 billion USD by 2020. With a sales volume of 30 million tonnes in 2013, India is one of the largest markets for packaged food in the world, just behind the US, China, Brazil and Mexico, and the second largest in Asia. But with a per capita consumption of 24 kg per year the Indian packaged food market is still at an early stage.
The fourth largest sales market for beverages in Asia
With a consumption of 22 billion litres of drinks (alcoholic drinks and soft drinks) India is the fourth largest sales market for beverages in Asia. Soft drinks are the largest segment. The Indian non-alcoholic beverage market was growing at an annual compound growth rate of 23 percent between 2010 and 2013 as more and more people are choosing packaged soft drinks. Within the soft drinks market bottled water is the largest category and the demand will double until 2017. Packaged juice shows also a strongly increasing demand. It is expected that the consumption of juice in India will rise by an annual compound growth rate of 20 percent until 2017 up to 1.2 billion litres.
Shifts in the Indian food and drinks industry
With more than 50 percent of the population younger than 25 years, increasing disposable incomes, a growing middle class, ongoing urbanization, changing lifestyles and a rising number of modern retail formats like supermarkets, the country enjoys highly favourable demographic patterns. These will enable shifts in the Indian food and drinks industry, as the young people are one of the key drivers in the demand of processed and hygienic packaged foods. Manufacturers are continuing to introduce products that increase convenience and reduce the time required to prepare meals. Products with additional ingredients - in easy to handle packaging and convenient package sizes - will continue to gain popularity.
Premiuminsation trend
The Indian middle class is growing rapidly and they simply love to buy. They are on the lookout for premium brands, especially for confectionery products like chocolate. But the premiumisation trend is not only noticeable in chocolates but also in biscuits. These trends are expected to continue even years from now.
Rural India provides growth opportunities
Rural India provides growth opportunities for packaged food and beverages. Almost 70 percent of the Indian population live in rural regions. The rural population benefits from investment in infrastructure and rising wages. Food processing companies are realizing the potential of rural India and are trying to expand their presence in these areas. They are launching their products in smaller pack sizes and at low price points to attract consumers. As India's soft drinks market is slowly reaching maturity in urban India, rural India is the new target for most of the manufacturer of soft drinks.
High growth rates for food and beverage expected
All these developments result in a continuously growing demand for packaged food and beverages in India. It is expected that the demand for packaged food in India will rise by an annual compound growth rate of 6 percent to reach an amount of 37 million tonnes by 2017. The beverage consumption will grow by an annual compound rate of 15 percent to reach an amount of 38 billion litres in 2017.
Growing demand for state-of-the art processing and packaging technology
To meet the rising demand for processed and packaged food and beverages, companies have to expand their production, and as a result the demand for state-of-the art processing and packaging technology will grow. Export oriented manufacturers in particular favour high-tech solutions in order to meet the international standards and to be competitive.
