With a view to providing a platform for exploring new business opportunities, ASSOCHAM organised the seventh International Summit on Food Processing, Agribusiness and Dairy (FAD) at Ahmedabad recently.
On the occasion of the event, Sadhvi Niranjan Jyoti, minister of state for food processing industries, released a research report. According to the report, India food processing market is highly fragmented with a large number of players operating in the market. The market is segmented into grain and oil seeds, packaged food, meat and marine products, fruits & vegetables, beverages and dairy products.
It adds, food processing market in India has been growing at a significant rate due to continuous efforts of the government, aimed at boosting the country’s exports of processed food products. Moreover, 100% FDI under the automatic route, along with government plans to develop mega food parks, is expected to further supplement market growth.
As per the report, the Indian food processing market is dominated by grain and oil seeds segment. This segment held a major share of around 48.87% in the market in 2014. This large share can be attributed to the importance and prominence of grain and oil seeds in the food consumption pattern of Indian consumers. In addition, increasing use of genetically modified crops to provide better yield, has been backing the productivity of grains and oil seeds in the country. Grain and oil seeds segment is anticipated to retain its dominance in the market through 2020.
Further, though, grain and oil seeds segment is the dominant segment in the market, meat and marine products segment has been the most promising segment in terms of growth rate. The market for meat and marine products in India exhibited growth at a CAGR of 16.29% during 2010-2014. The growth rate is anticipated to surge to 16.73% during 2015-2020, owing to rising demand for frozen meat. Packaged food is the second-largest segment in Indian food processing market in terms of both value share and growth rate.
The summit enabled government organisations and leading industry players impart their key insights and knowledge about food processing, agribusiness & dairy markets, to the audience.
“The summit provided insights regarding the underlying opportunities and challenges in the market, along with remedies so as to minimise the effect of various restraints on market growth,” stated Bhagyesh Soneji, chairperson, ASSOCHAM Gujarat Council.
