Export opportunities in food process industry

Food Process

Each year the food process industry is perching for enormous development, growing its role to ‘world food trade’. The food processing domain is observed as the ‘high-growth’ and ‘high-profit’ domain accounting to its huge perspective for adding worth, especially within its domain.

A recent study has found that 32% of the entire food market of the country is playing a crucial role in the evolution of the industry. The government owing along with MoFPI (Ministry of Food Processing Industry) is taking initiatives to promote investments in this kind of business. It has permitted proposition for joint ventures, business licenses, foreign associations and 100% export related constituent.

Market Dimension

The food and grocery market is emerged to be sixth largest in the world. The retail contribution of this market is 70% of the trade. Being one of the largest commercial means, the food processing domain is marked fifth in an aspect of production, export, consumption and estimated growth. The contribution ranges from an approximate value of 8.39 and 8.80% of GVA (Gross Value Added) related to Agriculture and Mechanizing or Manufacturing respectively. In other words, 13% of the export and 6% of total trade investment.

At present, the Gourmet Food Market has a net worth of 1.3 billion US dollar. It is progressing at a CAGR (Compound Annual Growth Rate) of 20%. Besides, the organic food industry is also estimated to have grown by three times within the year 2020.

The online food ordering and delivery trade are in the blooming level which is viewing an exponential advancement. The methodical food trade will be having a large possibility and a bright future ahead as it is collaboration and making partnerships with online food delivery tycoons such as Zomato, Swiggy, FoodPanda, and TinyOwl.  With every passing year, the online food delivery business is developing at the rate of 150% with an expected GMV (Gross Merchandise Value) of 300 million US dollar in the year 2016.

Money or Investments

As per the information gathered by the DIPP (Department of Industrial Policies and Promotion), food processing industry has acknowledged 7.54 billion US dollar FDI (Foreign Direct Investment) within the tenure of April 2000-March 2017. The CII has estimated that food processing domains have the ability to draw the investment of nearly 33 billion US dollar for upcoming 10 years. The investment will also solve the problem of unemployment to a huge extent through providing employment of nine million persons.

Few of the noticeable investment in the food processing business in the near past are:

  • Worldwide e-commerce monster, Amazon is prepping up to step into the food retailing industry. They will be investing 515 million US dollar in the coming 5 years.
  • Parle Agro Private Limited is introducing Frooti Fizz, a  sequence of the primary Mango Frooti, which will, in turn, be trading across 1.2 billion outlets with a target to enhance its yearly revenue from US$ 0.42 billion (Rs. 2800 crore) to US$ 0.75 billion (Rs. 5000 crore) by the year 2018.
  • Cargill Inc, a US based food corporation targets to twice its branded customer trade by the year 2020. They will be enhancing its business through reaching approximately 800,000 outlets. This will gradually help the company to make the place among the leading three brands in the sunflower oil domain.

Increasing Income and Increasing Demand for Processed Food

  • Huge increment in per-capita income which leads to increasing demand for food stuff
  • Incomes have improved rapidly and will continue growing taking into account the well-built economic growth forecast. The supposed per capita income is likely to have a proof of CAGR of 9.2 %.

The demand has also been changed in terms of the following

  • Carbohydrates to meat products
  • Convenience foods, organic and diet foods
  • Firm economic growth since the year 1990

Gain from exporters from increasing worldwide demand

  • Development of the food product and processing exports is funded:
  • Noteworthy improvements in quality in terms of packaging and processing
  • Participation of private sector in large amount


  • Noticeable Craze in the food processing Sector
  • Change of taste of the consumers which is influenced by the rise of income, rapid growth of urbanization, young population, the popular trend of nuclear families and preference of healthier snacks.
  • The emergence of international companies such as Danone, Nestle, Kraft Foods, Mondelez International, Heinz, etc.
  • Increasing demand for products in international market
  • Consumption of Crops produced through Horticulture in the higher amount.
  • Highlighting Healthier Ingredients keeping in mind the health-conscious consumer’s preferences such as lower carbohydrate, lesser cholesterol edible oils, 0% trans-fat snacks, slim milk, whole wheat foodstuffs, etc.


  • Packaging which acts as Purchase Attractor and Insists consumer buy products
  • Innovation of Product is important as consumers not only want secure ingredients but also one that is useful
  • It will also create opportunities especially in product improvement, product specialization, and extension of the product.


  • Growing of Businesses

Companies are shifting up the value chain. Both domestic, as well as global industries, are focusing on innovation of products.

  • Strategy of Low – cost price

This kind strategy opts in order to make the product reasonably priced for the consumers besides assuring them ‘value for money’.

Contribution of export of processed foods

  • The highest value of export is contributed by animal related products which are accounted for 26.4% of the entire export value.
  • The contribution of cereals was 44.4%
  • Rising exports to economically advanced country
  • Increasing demand from developing economies.



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