A significant study released by Ficci and Ernst & Young has revealed that the

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Indian food industry is pegged to grow by a whopping 42.5 per cent from $181 billion to $258 billion by 2015. By 2020, the industry size is expected to reach a figure of $318 billion. This steady and remarkable growth is expected to boost investment across the value chain, according to the study.

The findings of the study suggest that an increase in per capita disposable income by 8 per cent over the past five years has simultaneously led to an increase in per capita consumption expenditure on food by 20 per cent over the same period. A large part of the increase in income will go towards expenditure on food, the study points out.

The study discloses that as much as 70 per cent of the current food spending by the Indian consumer is on agri-products. Additionally, two-thirds of this spending is on primary and secondary processed products. In agri-products, fruits and vegetables is the largest consumption category and accounts for over 50 per cent of the total volume of food consumption.

Milk and milk products and meat and marine products contribute the remaining 30 per cent of consumer food spending. However, they have been growing at a faster rate as compared to agri products.

Some of the opportunities in the flourishing food sector in India at present include setting up of warehouses, infrastructure, growth in food consumption and spending and creating an expanding base for value added products. Food companies can now redefine their goals. They can test the increasing per capita consumption and spending power of the Indian consumer through new product introduction, improved availability and targeted consumer education. The study states, “While India’s consumption of grains and cereals is comparable to global levels, an opportunity exists for companies to drive and increase the consumption of fruits and vegetables, milk and milk products and meat and marine products.”