Book Sex Workers Available Pune Call Girls Lavasa 6297143586 Call Hot Indian...
ย
India - Opportunity Awaits
1. Helping southern U.S. companies export food & agricultural products around the world.
www.susta.org
India
Activity No. 12AS55
Opportunity Awaits
2. India: Opportunity awaitsโฆ
ยงโฏ The third largest economy (over trillion dollar).
ยงโฏ Consistent GDP growth even during Global economic slowdown.
ยงโฏ India: second-most attractive destination for FDI in the world.
UNCTAD's World Investment Prospects Survey 2010-2012
ยงโฏ Imports grew to US$ 34.6 billion in 2012.
ยงโฏ Disposable income is showing consistent increase.
ยงโฏ Among youngest nations with an avg. age of 25 years.
ยงโฏ The Indian retail market is USD 396 billion growing at 12% making
India fifth largest retail destination globally: AT Kearney
3. MINI - METROS
โขโฏ Goa
โขโฏ Nagpur
โขโฏ Pondicherry
โขโฏ Chandigarh
โขโฏ Agra
โขโฏ Ludhiana
โขโฏ Pune
โขโฏ Lucknow
โขโฏ Varanasi
โขโฏ Ahmedabad
โขโฏ Amritsar
โขโฏ Jaipur
โขโฏ Kanpur
โขโฏ Udaipur
METROS
โขโฏ New Delhi
โขโฏ Mumbai
โขโฏ Kolkata
โขโฏ Chennai
โขโฏ Bangalore
โขโฏ Hyderabad
Major cities where the retail activities are
targeted
4. The Indian Middle Class
โขโฏThe Indian consumer market is drawing global attention
not just because of its promise of sheer volumes but also
because of the shift happening in the nature of demand.
โขโฏBy 2025 the size of middle class will increase to about
583 million people, or 41% of the population.
5. Indian Consumer Feasting on Value Added Food
products
โขโฏ The Indian food market stands at 69.4 billion USD and
imported food products comprise 22.2 billion USD out of
it.
โขโฏ Food and food products are the biggest consumption
category in India.
โขโฏ Spending on food constitutes more than a 51% share of
wallet.
โขโฏ The young Indians prefer buying or eating out quality
convenience and processed foods.
โขโฏ
6. โขโฏ Indian economic and demographic indicators suggest a market with strong potential for
U.S. agricultural exports.
โขโฏ The largest opportunity for imported food products comes from supermarket and
hypermarket formats.
โขโฏ Nevertheless, the Ma and Pa stores contribute almost 90% of the retail market.
โขโฏ India s snack food and snack food ingredient import market has trebled since 2002.
โขโฏ Indian consumer is increasingly looking at health aspects in food items.
7. Key Drivers for the food industry
ยปโฏ Economic growth
ยปโฏ Demographics
ยปโฏ Urbanization
ยปโฏ Rising income levels
ยปโฏ Growing need for convenience food
ยปโฏ Higher aspirations and brand consciousness
among youth
ยปโฏ Plastic Revolution โ Increased use of credit cards
and debit cards
ยปโฏ Increasing numbers of working women
ยปโฏ Changing life styles and tastes
ยปโฏ Change in consumption patterns
ยปโฏ Impact of western lifestyle
8. FDI in multi brand retailโฆ!
โขโฏ Foreign FDI was prohibited in food retail
except for single brand retail.
โขโฏ In January 2006, up to 51 per cent foreign
investment was allowed in single-brand
retailing.
โขโฏ The GOI has recently allowed 51 per cent
FDI in multi-brand retail and allowed
100% FDI in single-brand retail.
9. FDI open gates for new opportunities for imported food
โขโฏ The opening up of multi brand retail will lead to the entry
of major retail giants like Wal-Mart, Tesco and Carrefour.
โขโฏ This step would lead to greater competition and greater
need to differentiate. The retailers, both Indian as well as
foreign will focus on offering specialty foods coinciding
with changing consumer tastes.
โขโฏ The entry of these major players will encourage stocking of
processed and packaged food along with wines, nuts,
specialty foods etc.
10. Category wise analysis of the food industry in India
โขโฏ Processed food
โขโฏ Fresh Produce
โขโฏ Seafood
โขโฏ Horticulture
โขโฏ Pulses
Emerging Potential Categories
โขโฏ Chocolate and Chocolate Confectionary
โขโฏ Dairy
โขโฏ Carbonated drinks
โขโฏ Edible oils
12. Market Analysis
โขโฏ Packaged food industry valued at US$25.4 billion.
โขโฏ Snacks and Confectionery industry is estimated to be worth
US$ 3 billion.
โขโฏ A variety of imported foods such as confectionery items,
beverages, jams, jellies, health foods, biscuits, cookies,
wafers, processed fruits and vegetables, soups, syrups and
seasonings, fresh and dried fruits / nuts, pasta and noodles,
etc can be easily found on the shelves of retail stores.
โขโฏ Emerging New Categories
โโฏ Health-focused Snack Foods
โโฏ Frozen Ready-to-eat Segment
โโฏ Pet Foods
13. โขโฏ The West and North India region has the highest value sales of packaged foods in India.
โขโฏ Consumer awareness of packaged foods is also high in North India and metros in the South like
Hyderabad and Bangalore which are the IT hubs of the country and population has high
disposable incomes and good lifestyle due to good salaries.
โขโฏ North is one the most affluent regions in the country with areas such as New Delhi, NCR,
Chandigarh, Jaipur and Lucknow.
โขโฏ Demand for imported specialty foods such as chocolates, dry fruits and nuts, cakes, pastries, and
fresh and exotic fruits is significantly increasing during festivals like Diwali, Eid, and Christmas.
โขโฏ Hence, October to December is the best time to introduce new-to- market products in India. This
is also the best time to organize promotions for new products.
Trends and Buying Habits
14. Key Partners in the Market
โขโฏ Importers, Retailers and wholesalers
โขโฏ Retail Channels
โขโฏ Hotels, restaurants and institutions (HRI)
โขโฏ Fast food outlets
โขโฏ Imported foods are procured by high-end grocery stores or
organized retail stores and grocery stores catering
primarily to high-end customers in urban areas.
โขโฏ Indian retailers highly value in-store promotions to
highlight international food products.
16. Market Analysis
โขโฏ Out of the total production of fruits, nearly 76 per cent is
consumed in fresh form.
โขโฏ India is the sixth largest consumer of apples in the world.
โขโฏ Apple imports have grown rapidly since the removal of
quantitative restrictions in 1999.
โขโฏ India has very low domestic production of pears. So,
pear is a relatively new fruit for India.
17. Trends, Buying Habits and Consumption patterns
โขโฏ Factors contributing to increased consumption of Fresh Fruits
and vegetables
โขโฏ Rising income / Economic growth
โขโฏ India s burgeoning middle-class
โขโฏ Demographical changes
โขโฏ Health awareness
โขโฏ Increased literacy
โขโฏ New diseases prevalence like diabetes and heart problems
โขโฏ Cities in North and South increasingly are offering Fresh Fruits
and Vegetables in nearby shops, Supermarkets and
neighborhood stores.
โขโฏ The children in the family are encouraged to consume more
fruits and vegetables as healthy habits.
โขโฏ Exotic fruits and vegetables are increasingly finding space in
the kitchen of middle class consumer as the households are
preferring international cuisines and mainly salads
19. Market Analysis
โขโฏ There is limited market for seafood in India.
โขโฏ It is mainly the food service sector where there is major
consumption of seafood.
โขโฏ The coastal states of south India and the west coast of the
country prefer seafood . However, consumption of seafood
has increased in metros also.
โขโฏ Canned fish is mainly imported from Korea, Singapore,
Thailand, Japan, and increasingly the UAE.
21. Market trends and Import procedure
โขโฏ There is limited scope for the Horticulture produce.
โขโฏ Hospitality sector has reasonable scope for them
โขโฏ 'Import Procedure'
โขโฏ Issue of Import Permit
โขโฏ Inspection of imported agricultural commodities
on arrival at the port of entry
โขโฏ Undertaking Post Entry Quarantine Inspection
in respect of identified planting materials
23. Market Analysis
โขโฏ Pulse is an important group of crops in India and is
the major sources of protein in the diet.
โขโฏ India is one of the major importers of pulses owing
to a large population largely dependent on pulses
and imports 2-3 million MT.
โขโฏ Historically, chickpeas have been India s single
largest pulse import. Recently, however, peas have
overtaken them.
โขโฏ India also offers market potential for various types
of beans and lentils, as long as pricing is
competitive.
24. Consumer trends
โขโฏ Pulse consumption in India differs by region:
โโฏ Throughout country: Chickpeas, green peas, yellow peas,
and black eye beans.
โโฏ Northern India: Kabuli chickpeas, lentils, and kidney
beans.
โโฏ Southern India: Pigeon peas and lentils.
โขโฏ Most pulses in India are either split or used in the
production of flour. Except chickpeas and green peas.
โขโฏ Split and whole pulses are usually cooked and served as
part of a meal with rice or traditional Indian bread.
โขโฏ All are important ingredients used in the preparation of
snack foods in India.
โขโฏ
25. Potential of U.S. Pulses in India
โขโฏ Pulses, such as beans, lentils and chickpeas, are the "meat" of Indiaโthe
main source of protein for most of its 1 billion people.
โขโฏ Indian importers acknowledge that U.S. peas are superior due to their
stricter grading and more sophisticated processing.
โขโฏ The US pulses are costlier as compared to the other imported varieties
27. Market Analysis and Consumption
trends
โขโฏ Chocolate consumption in India has almost doubled since 2008,
with sales of $857 million in 2012.
โขโฏ Luxury and premium chocolate increasingly preferred by
Indians.
โขโฏ Chocolate assortment boxes considered more hygienic and
longer-lasting than traditional Indian sweets.
โขโฏ Increased popularity of seasonal gifting of chocolate,
particularly during Diwali.
โขโฏ As the chocolate confectionery category suffers from being
associated with negative health, brands are working to manage
this perception and introduce elements of enhanced health
messaging.
29. Market Analysis and Consumption trends
โขโฏ India has experienced strong growth in demand for dairy products
โขโฏ the Indian consumer preferences and trust for branded milk products
โขโฏ The Indian processed dairy sector is expanding.
โขโฏ Industry estimates project 15 percent growth in the processed dairy segment in the next five years.
โขโฏ Products such as yogurts, ice creams, dairy drinks, and western-style cheeses, as well as dairy products with
enhanced nutritional properties are growing in popularity.
โขโฏ FSSAI sets standards for the safety of domestically produced and imported milk and milk products into India.
โขโฏ The Ministry of Agriculture s DAHD is responsible for issuing sanitary permits for milk and milk product imports
into India.
โขโฏ
31. Market Analysis
โขโฏ The market for carbonated drinks in India is worth
US$ 1.5 billion
โขโฏ The juice and juice-based drinks market is worth
US$ 0.25 billion.
โขโฏ Fruit-drink market is growing at the rate of 25%.
โขโฏ It is the one of the fastest growing in the beverage
market.
โขโฏ Sports and energy drinks too have a good market
in India.
โขโฏ The market for alcoholic drinks has been growing
consistently.
33. Market Analysis
โขโฏ Total vegetable oil imports stands at 7.1 million
tons .
โขโฏ The import forecast includes palm oil, soybean and
sunflower seed oil and other edible oils.
โขโฏ Anticipating a rise in consumption demand vegetable
oil imports in 2012/13 could surpass 10 million tons.
34. Products performing well in the market
โโฏ Juices
โโฏ Jams
โโฏ Mustards
โโฏ Jellies
โโฏ Snack foods
โโฏ Apples
โโฏ Dairy Products
โโฏ Preserves
โโฏ Dressings
โโฏ Canned fruits and vegetables
Chocolates and candies
Products with longer shelf life, have more opportunity in Indian market.
โโฏ Salsas
โโฏ Candies
โโฏ Chips
โโฏ Cookies
โโฏ Mayonnaise
โโฏ Pasta Sauce
โโฏ Non-alcoholic Beverage
โโฏ Ready โ to โ eat food
โโฏ Cake mixes
โโฏ Pears
36. Challenges before Southern Exporters in 2012
โขโฏ Competition from countries with closer geographic
proximity to India, which enjoy shorter shipping times and
low cost freight advantage.
โขโฏ Competition from Domestic Products in terms of pricing
โขโฏ Competition from products imported via grey market
โขโฏ Lack of education on labeling requirements with US
exporters
โขโฏ Diverse food preferences throughout the country.
37. โขโฏ India works on the basis of relationships and
they take time to form.
โขโฏ Cold-chain infrastructure and
transportation facilities in their nascent
stage.
โขโฏ Constraints of U.S. exporters to meet Indian
importers requirements like mixed
shipments (consolidation).
38. Ingredients restricted in India
โขโฏImport of Beef is Prohibited
โขโฏMeats allowed with Sanitary Permits.
โขโฏImport of Poultry is Restricted
โขโฏPhyto-Sanitary Regulations for Agricultural produce needs to be
followed.
โขโฏImport of Alcoholic Beverages is Regulated.
โขโฏFood Products must have 60% shelf life at the time of import.
โขโฏProducts containing cow renette are not allowed.
39. Roadmap for Market Entry in India
โขโฏ U.S. exporters should survey existing and potential
markets for their products before initiating sales.
โขโฏ A visit to India to gain a first-hand feel of the Indian
market, preferably coinciding with any major food
shows or outbound trade missions could be useful.
โขโฏ The successful introduction of a new product to India
depends on good local representation and an effective
pricing strategy.
โขโฏ The local representative should preferably be the
importer or distributor.
40. โขโฏ Most Indian processed food importers prefer to:
โโฏ Purchase mixed containers with smaller
quantities of individual products.
โโฏ Seek exclusive agreements from exporters.
โโฏ Use the services of freight consolidators to
handle their orders from various exporters.
โขโฏ The key to success is to focus on a reasonable entry
pricing strategy as Indian consumers are price
sensitive.
โขโฏ Potential exporter should be familiar with India s
varied food laws.
41. Market channels in food retail sector
Helping southern U.S. companies export food & agricultural products around the world.
www.susta.org
42. Cost margins of the intermediaries
On what margins importers, distributors and retailers work on?
Importers 15-20% apx
Distributors 12 โ 14% apx
Retailers 20% apx
Big Retailers 30 โ 35% apx
Helping southern U.S. companies export food & agricultural products around the world.
www.susta.org
45. Labeling Requirements.
Goods must be labeled at the time of Import.
All prepackaged commodities, Imported into India,
shall in particular carry the following declarations.
โขโฏName and address of the importer;
โขโฏGeneric or common name of the commodity
packed;
โขโฏNutritional content details
46. โขโฏNet quantity in terms of standard
unit of weights and measures.
โขโฏMonth and year of packing in
which the commodity is
manufactured or packed or
Imported;
โขโฏMaximum retail sale price
inclusive of all taxes local or
otherwise.
47. Indicators for Meat or Animal Products
Items containing Meat or Animal products must be
Marked as per labeling norms for domestic sales with
help of visual indicators.
Vegetarian & Non Vegetarian products must be marked
Veg & Non Veg & include respective Color Dots in
Green & Brown.
49. โขโฏ The Indian hotel industry, at Rs.131 billion in 2012
โขโฏ India has many excellent hotel chains, including Indian
Hotels Ltd. (Taj Group); East India Hotels Company
Limited (Oberoi group); ITC Limited (Welcome
Group); Asian Hotel; and Leela Venture.
โขโฏ Several international chains have also established a
presence through franchising.
โขโฏ The Indian restaurant sector has shown impressive
growth in recent years through franchises.
โขโฏ While leading hotels appreciate the excellent reputation
of U.S. food products, higher costs are a constraint.
โขโฏ
The Food service industryโฆ..the new buzz
50. โขโฏ Coffee shop culture has spread throughout major cities and poised for further growth.
โขโฏ This should provide an opportunity for U.S. companies to supply products such as
syrups, and ingredients like dried fruits and nuts etc.
โขโฏ Hotels are increasingly coming out with Gift hampers for festivals and wedding season
with US food products.
โขโฏ US imported foods as beverages, packaged food, snack items and nuts finding space in
the Mini bars in the rooms of the hotels.
51. โขโฏ The hotels source their products from local importer/distributors who have the
expertise in clearing, storing and transporting products.
โขโฏ Most hotel chains purchase through centralized procurement offices on annual
contracts with local importers, ordering small quantities of food products as needed and
minimizing food storage at hotels.
โขโฏ Restaurants also rely on local distributors for their needs and some require importers to
become an approved supplier.
โขโฏ Fast food chains source most of their raw materials locally, products such as French
fries, specialty cheeses, some meat and fishery products, flavors, condiments, and
ingredients, are often imported.
โขโฏ Duty free imports is allowed to Food Service Sector based on their foreign currency
earning.
Sourcing pattern of Food Service industry
52. Mode of import and associated cost margins
10%
20%
20-25 %
53. Best product prospects for food service
sector
โขโฏ Beverages
โขโฏ Snack foods
โขโฏ Fresh fruits & vegetables
โขโฏ Sauces, spreads, salad dressings, condiments, soups, broths
โขโฏ Frozen French fries, vegetables
โขโฏ Fish and marine products
โขโฏ Chocolates, chocolate syrups & other cocoa products
โขโฏ Jams, jellies, fruit juices, etc
โขโฏ Preserved, dried vegetables
โขโฏ Kitchen Ingredients
54. Retail V/s Food Service
Description Retail Food Service
Opportunity Excellent with FDI in
multibrand retail and
changing patterns of the
consumer
Excellent with greater
eating out patterns among
consumer and preference
for international cuisines
and ingredients
Value added Preferred preferred
Seafood Low Preferred
Horticulture Low Preferred
Fresh fruits and vegetables Preferred Preferred
Steps to enter Discussed in detail earlier Discussed in detail earlier
Costs associated Discussed in detail earlier Discussed in detail earlier
55. Events
Category Event Details
Value Added Trade Shows: Annapoorna, Fine food, Aahar.
Trade Missions and reverse trade Missions
In- store promotions in retails outlets
Sea food Trade Shows: India International Seafood Show IAI Aquaculture
Expo
Trade Missions and reverse trade Missions
In- store promotions in retails outlets
Horticulture Trade Shows: International Nursery, Horti and Landscape Expo,
Landscape & Gardening Expo
Trade Missions and reverse trade Missions
Fresh Fruits and
vegetables
Trade Shows: International Horti Expo, Aahar, Fine Food India,
Annapoorna
Trade Missions and reverse trade Missions
In- store promotions in retails outlets
56. Events that generated export sales in 2012:
โโฏ Trade Mission
โโฏ Trade shows
โโฏ In store Promotions
โโฏ Public Relation activities and media outreach
58. AFRIS. AsianFoodRegulationInformationService.
We have the largest database of Asian food regulations in the world and itโs
FREE to use.
We publish a range of communication services, list a very large number of
food events and online educational webinars and continue to grow our Digital
Library.
We look forward to hearing from you soon!
www.asianfoodreg.com
adrienna@asianfoodreg.com