Global Markets For Processed Food - S.Abidi - GOG-AMA Centre … · 2020-03-14 · Cracking Peanut...
Transcript of Global Markets For Processed Food - S.Abidi - GOG-AMA Centre … · 2020-03-14 · Cracking Peanut...
Global Markets For Processed Food
S.AbidiGOG-AMA Centre of International Trade
Ahmedabad-14 March 2020
Processed Foods & Veg.
Whole masoor dal
Processed Foods & Veg
Surimi Japanese fish paste
India is the third largest exporter in
the world
The growing demand for surimi products in nearly all markets has led to a shortage of raw material for surimi producers and
consequently prices are going up.News – FAO 2 Dec 2019
Processed Foods & Veg.
Product India Rank
Mango No.1
Banana No.1
Pomegranate No.1
Groundnut No.1
Papaya No.1
Fruits & Vegetable Juice
Veg. & Mixed Fruit Juice is the fastest growing juice category
India export rank No.65
Peanut snacksWorld No.1 snack
$2.3bn.marketChina $650mn.India $39mn. Probiotic
Drink
Processed Foods & Veg.
• Market-$USD 319.9 billion in 2020
• growing at a CAGR of 7.9% 2016 -2020.
• Developed Prosperous Countries are main markets
• Canned fruits and vegetables-20% market
High valued-added segments
Ready to Eat (RTE)Ready to Cook (RTC)
Breakfast foodJuicesSnacks
Trends in Processed Food
• Health and Wellness• Reduce fat, sugar and sodium • Pulses, sprouted grains and other plant proteins are the
new super food. (UN declared 2016-Year of the Pulses)• Functional Food• Less artificial ingredients-sweeteners, colours, MSG• All is not health – salty snacks category growing above 10%
in all markets• Netherlands-16%; Egypt-16%; Philippines-12%• Rising vegetarianism – Opportunity for meat substitutes• Sustainability – Dwindling ocean fishing, transparency • Animal protein based food rising in Emerging Markets
Ingredients Best Avoided
Natural Colours
Organic Jaggery
India-Source of PF
• Second largest Producer of Fruit, Vegetables Nuts (FVN)
• 30 Percent goes to waste
• 4% Processed
• Processed FV-Brazil 30%; US 70%; Malaysia 85%
• Low FDI investment – 2% of total FDI
Indian Food Industry
• 80% Primary Processing• Less than 10% converted to food products• Advanced countries – upto 50%• India can become one of top 5 processed food industries in the
world-McKinsey
What to do?
• Increase size of Indian market to create scale of manufacturing
• Pre & Post Harvesting agricultural Infrastructure• Supply Chain Infrastructure• Quality Branding – Woolmark, Hallmark• No compromise on advanced quality & safety standards• (Indian banana $7-8; Philippines-$13-14)• Look at new emerging markets • Invest in market creation• Invite world class expertise-e.g. POM Wonderful in
pomegranate technology
Processed Food Differentfrom Fresh Food
• Manufacture and export of processed food is different from fresh produce.
• Technology and packaging plays a large part in its acceptance.
Juice Market100% juice rising40% drink dailyCoconut waterUS Growth-15%No additives-25% growth
Growth 2% paOrange & Apple decliningVegetable juices growing
Juice & Veg. ConcentrateMarket growing at 6%Juice & Veg. Mix Juice Market fast growing
Innovation is important
Pomegranate-Suitable for Gujarat• An acknowledged superfood
• India – largest climate window for growing
• India’s season Sep-Mar; Major markets under snow
• India grows 50% of world’s production
• Profitable for small farmers-1 to 2 acres; low rainfall
• Concentrate value addition
• Liquid, powder, frozen
Coconut Water-A new entry
• Superfood “The Tree of Life”
• Global Growth 22% pa
• Coconut-Many value additions such as Desiccated coconut, cream, Milk and Spray dried milk powder
• Mixed Juice with aloe-vera etc.
• Philippines-One year’s global promotion concentrated only on coconut products
Mixed Blended Juices• Superfood vegetables-beetroot(BP), spinach and pumpkin.
• Healthy but Bitter vegetables combined with fruit juices –bitter gourd(diabetes), bottle gourd with mango etc.
• The consumption of many PFV products that are specifically useful for certain health problems is increasing on the EU market. Examples include products associated with reducing cholesterol, weight control, reducing blood pressure, promoting digestion, benefitting the heart/circulatory system, controlling diabetes and strengthening the bones/joints.
• Example-bitter gourd/pomegranate juice not yet on the market-You can be the first
• Japan, EU are growing market
Healthy Snacks Market
Trends
• Portability
• Healthy
• Natural Foods
• Trail Mix
• Transparent labels & packaging
• USA Healthy Snacks Market Growth – 5.6%pa
Peanut Snacks
Chicken tikka masala or dhania or pudina flavour next?
Cracking Peanut Snack Market• US consumption is 3kg. Per head pa
• Pub Market, College snacks market, household
• Superfood-Health benefit is a major selling point
• Cheaper than other nuts
• Pub Market is big-Sell through Pub suppliers
• In 2015 India exported $630 mn. of groundnut but only $13mn. In blanched/shelled
• USFDA revising healthy food definition- Peanut
Likely to be added to this category-healthy fats
Retail pack 24 x 50gm.Price 30-50p; selling price UKP1.-1.25)
Indian snacks for Pub, Bar, Cafe
• Many snacks not available
In supermarkets
• Larger brands don’t give high
margins to pubs
Edgar’s Choice
Cold Chain Market
• $167bn. In 2015 to $235bn. In 2020
• Growth 7%
• Frozen and Chilled Sectors
• Bakery and confectionery, fruits and vegetables, dairy and frozen desserts, and meat, fish, and seafood, chilled & frozen
• Frozen preferred choice from India due to distances involved
India-Frozen Food
• India – second largest seafood producer
• 43% seafood exported with minimal processing
• Gujarat is third largest marine food producer
• Example- Japanese food surimi fish paste exported to Japan from India (Gadre Marine)
and 26 other countries
Largest manufacturer in the world
Meal-kit Market
• Meal ingredients pack with
instructions
• Growing Trend
• Saves time, money
Seek Newer Markets• Customisation to cater to local tastes
• Indian food prepared by non-Indians do not have the same taste
• Authentic taste-Pakistan a close competitor
• Start with Indians abroad and then expand
• Explore Online Marketplace
Market Research show opportunities
Cracking Japanese Market• Curry Rice is one of the most
common meals in Japan and is just as much a national dish as sushi or ramen.
• An average Japanese family consumes this meal at least twice a week.
• There are over 20,000 curry restaurants in Japan, more than pasta restaurants.
• Over 300 Japanese residents in Ahmedabad to test curry paste & other processed food items
• Take selected portfolio of products to Foodex Japan 2021
• Promote in supermarkets
Curry Paste
Curry Restaurant Music CD
Track Global Trends Closely
• Papaya seeds-a waste product
• Today dried papaya seeds-a growing health food
• Gujarat a large papaya growing state
Granola bar is the fastest growing snack bar
Chikki Bar
Patel Motels in USA
• Gujaratis own 22,000 motels in USA
• + 4,000 more (not AAHOA members)
• 40% of all hotel properties
Gujarati Business Association (GARBO) Canada
AIANA (Association of Indian Americans of North America)
Gujarati Samaj (Many)
Government Marketing Support
• Displays in international departmental store
• Publication of world class catalogues to create brand identity for Indian products
• Publicity campaign and brand promotion
• Research and product development