Potential for growth
Times
Food Processing Journal presents excerpts from the IBEF Report elucidating
the food processing industry’s potential for continual growth based
on industry segments like dairy, fish processing and more
Most
sectors in the food processing industry are growing at a significant
rate. The industry shows the potential for sustained growth based on
different aspects such as growth in the domestic market, trade and foreign
direct investment. These are discussed in detail in the following sections.
Significant growth, across all segments
Dairy India is the largest producer of milk in the world. Milk and milk
products account for a significant 17 per cent of India’s total
expenditure on food. India’s total milk production is projected
to grow to 108 million tonnes by end of 2007, according to the Tenth
Five-Year Plan estimates. India is on the verge of assuming an important
position in the global dairy industry.
The 50,000-ton branded butter market, valued at US$ 133 million is estimated
to be growing at 8–10 per cent per annum. The cheese market is
estimated to be US$ 110 million in value terms and an estimated 54,000
tonnes in volume terms, and has been growing at a compounded annual
growth rate (CAGR) of 8–9 per cent during 1999–2003. The growth
in urban areas has been higher at about 15 per cent per annum. The ice
cream market in India is estimated to be about US$ 199 million per annum.
A few corporate players, including MNCs are now focusing on the dairy
market. For example, Nestlé and Britannia have forayed into emerging
segments such as Ultra Heat Treatment (UHT) and flavoured milk. Ultra
Heat Treated milk is becoming popular and the market is estimated at
US$ 33.4 million (Rs 1.5 billion). The growth and future potential in
the dairy sector have resulted in significant investments into this
sector in the last decade.
Total investment during 1991–2002 was around US$ 3.3 billion, of
which foreign investment was of US$ 245.5 million. Current consumer
trends like increasing urbanisation indicate that this segment will
continue to be attractive in the future.
Fruit and vegetable processing The installed capacity of the fruit and
vegetable processing industry has increased from 1.11 million tonnes
in 1993 to 2.33 million tonnes in 2004. The industry, however, is still
nascent and just about two per cent of the total output of fruits and
vegetables was processed in the organised and unorganised sectors.Over
the last few years, the industry has seen a positive growth in ready-to-serve
beverages, fruit juices and pulps, dehydrated and frozen fruits and.
