High Growth Segments Of The Indian Food & Beverage Industry
The economic growth of a country mainly depends on the improvement in the food supply, both quantitatively and qualitatively, and India is no exception to this. The Indian food and beverage industry has constituted over 40 per cent of its consumer-packaged goods industry, and the market size is estimated to be around $46 billion in 2020. With the aim to achieve a bigger contribution to the world food trade every year, India is emerging as a high growing and profitable sector to bolster the food processing industry. Furthermore, India, one of the largest F&B sectors in the world, has witnessed exponential growth, with its online delivery services such as Food Panda, Swiggy, and Zomato, setting up their partnerships with the restaurants and food outlets across the country.
The rising awareness towards environ mental degradation has caught the interest of many entrepreneurs who are seeking new opportunity to bring change, with an environment-friendly approach in the business
The entry of multinational companies and their expansion in the market has made India a production hub for processed foods; that is increasingly consumed and exported around the globe. With the main purpose for the development of a new product in improving the health, convenience, and sustainability, the food ecosystem of India offers huge opportunities for investments with stimulating growth, favourable economic policies and attractive fiscal incentives. Moreover, the new foods, based on fruit and vegetables, are fulfilling the demand of consumer and are highly sought in the global marketplace.
Accomplishing the vigorous demand, India offers the largest diversified production base in the food sector. The bold reforms and progressive measures by the government involving the introduction of Goods and Services Tax (GST) has replaced the Foreign Investment Promotion Board with the online Foreign Investment Facilitation Portal. It has obtained 100 percent FDI for retail trading in the food processing sector for food products which are manufactured or processed within India, increasing investment in infrastructure projects, Food Safety and Standards Authority of India (FSSAI) aligning with Codex Alimentarius(food code) international food standards. Further, this is reflecting a positive outlook and buoyant development in the food sector. As one of the fastest growing economies in the world, the Indian food & beverage industry stands in the ten high growth segments, recording a steady growth in the food sector.
Another segment which is growing very high in India's F&B market is the vegan or plant based food industry. It is seen that many solopreneurs and startups have entered into veganism, knowing that the Indian market is too fresh for this concept. At the same time, western markets are making huge profits today. However, India has already set her foot in the world of veganism, and many people have whole heartedly accepted the plant based food industry.
The rising awareness towards environmental degradation has caught the interest of many entrepreneurs who are seeking new opportunity to bring change, with an environment friendly approach in the business to bring its true sense. In fact, the increasing animal friendly culture among the highly educated youth of the country is switching many to veganism from the conventional lifestyle. The plantbased products are hitting the shelves of all the leading food retail brands in malls and supermarkets. Whether it is about producing a vegan platter or serving raw fruits and vegetables in a restaurant, the food market is celebrating an all new concept in the highly evolving food market of India.
Today, millennials are bending towards vegan food with full passion. They are taking rigorous steps to promote a culture, which is actually the need of the time. Various large scale events such as the 18-day Ahimsa Festival in Mumbai and vegan master chef challenge and FIAPO's boot camps are the testimonies of their obsession for making people aware of the benefits of vegan food and lifestyle. Besides, celebrities like Sonam Kapoor, Kiran Rao, Neha Dhupia, Richa Chadha, and Kangana Ranaut are an inspiration to thousands of people.