Small and Medium Scale Food Processing Project Report
There are different industries of the food processing industry, including consumer goods (snacks, drinks, etc.), dairy, meat and poultry, fish, grains and cereals, and fruit and vegetables. The lion’s share of about 40 % of overall household intake is made up of fruits and vegetables and meat and poultry. The food industry in India is primed for
Significant development, increasing its contribution each year to the world’s food trade. In India, because of its immense value-adding capacity, especially within the food processing industry, the food sector has emerged as a high-growth and high-profit sector.
The Indian food processing industry accounts for 32% of the total food market of the world, one of India’s largest industries, and is ranked fifth in terms of manufacturing, consumption, export, and projected growth. It accounts for about 14 % of Gross Domestic Product (GDP) output, 13 % of exports from India, and 6 % of overall industrial investment. India is renowned for its food and beverage service market. It is one of the most competitive markets that has seen exponential growth in the recent past. The sector continues to grow exponentially. This trend can be due to shifting demographics, rising disposable income, urbanization, and retail business expansion.
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Food-processing investment opportunities in India
The large agricultural resources of India alone produce an immense opportunity for investment in its food processing and machinery business. The key fields of value-added manufacturing are canning, packing, milk and food processing, frozen food, and frozen food processing.
Food manufacturing accounts for about one-third of India’s overall food industry. The food processing industry is estimated at US$258 billion and is the country’s fifth-largest domestic industry in terms of production, demand, export, and anticipated expansion.
Driven by growth in organized retail, evolving customer conduct, and growing consumerism in Tier II and Tier III cities, the country’s food processing industry is expected to hit US$482 billion by 2020.
What key growth factors are associated with the food processing business?
- Market Food Expenditure
The Indian food and grocery market are the sixth-largest in the country, with retail accounting for 70% of overall revenue. Indians spend an average of 31% of their gross earnings on food and groceries. In comparison, consumers invest just 9 % in the US, while food spending in Brazil and China is 17 % and 25 %, respectively.
- The shift of taste and desire of customers
With increasing awareness, improved health awareness, the need for convenience and lifestyle improvement, and the share of processed food on consumer plates across the globe is gradually and steadily increasing.
This transition is supported in India by growing per capita income, a strong young population (60% under the age of 35), deeper market penetration, and an increasing number of nuclear families. Therefore, India’s demand for packaged food is projected to increase, at the end of 2017, to around 8.5 %.
- The rise in exports of food
In the foreign market, there is a growth in demand for Indian packaged food. About 30,843,41916 individuals of Indian origin live abroad, in addition to changing customer tastes in foreign markets. The overall exports from this sector saw positive growth of 0.55 % in 2016-17 to cross US$ 24657.09 million, thereby occupying an 8.92 % share of India’s total exports.
As the economies of these nations strengthen and more individuals are elevated into the middle class, the rise of the food and beverage sector is driven primarily by developing countries such as India, China, and Brazil.
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India’s Agriculture and Food industry
In the economy of India, agriculture plays a crucial role. More than 58% of rural households depend on agriculture as their main means of subsistence. The main manufacturer, buyer, and exporter of spices and spice goods in India. Fruit production in India has risen faster than vegetables, making it the world’s second-largest producer of fruit.
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