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Food and Health Beverages |
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India's Food and Beverage industry is valued at Rs. 3584 billion. India produces above 600
million tonnes of food products every year and is one of the major producers of food in the world.
The food and beverage industry registered a growth rate of 8.5% in 2005-06. According to Mckinsey's report, the total beverage consumption will grow at 9% over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage will see a spurt of 9.6% and 8.8% respectively.
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Classification of Food and Health Beverages Sector
Food and health beverages sector includes branded flour, branded sugarcane, bakery products such as bread, biscuits etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc., snack food, chocolates, etc.
Growth Prospects
With increase in disposable income of consumers, growing awareness among consumers about health products, rapid urbanization, and increasing popularity of convenience foods, food and beverage sector is expected to grow at a high rate. This sector holds a huge potential to grow because of the increase in advertisement spending, awareness campaign about products in urban as well as rural areas, and large scale transformation.
Major Players
The major players in the "Food and Beverage" Industry is:
Heinz, Mars, Marico, Conagra, Pepsi, HLL, Pillsbury, Nestlé, Amul, ITC, Dabur, Britannia, Cadbury, Smith Kline Beecham, The Surya Food and Agro Private Ltd.
Challenges in the Food and Beverage sector-
- Poor infrastructure
- Lack of adequate facilities for storage, transportation, and cold chain facilities
- No common food law (13 laws are enforced by 9 ministries)
- Food standards are confusing and contradictory
- High cost of raw material and packing material and high railway freight put pressures on margins
- Different rules and regulations and licensing are defined for different commodities
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