The Indian food and beverage industry is rapidly growing, contributing 3% to the GDP and projected to reach a market volume of $1,264 million by 2024 due to urbanization and changing consumption habits. Key trends include growth in gourmet brands, dairy, bakery segments, and packaged foods, driven by increasing health consciousness among consumers. Foreign businesses aiming to invest should focus on market-centric strategies and consider consulting local firms to navigate the evolving competitive landscape.

1. -
-
COONS®
MR. NITIN ZELE
Director
Zele Foods International Pvt.Ltd.

26. Recent Developments in the Indian Food and Beverage Industry
The Indian Food and Beverage Industry is emerging as a high-profit sector. It accounts for about 3%
of India's GDP and around 213rd of the total retail market in India. In fact, the revenue in the food and
beverage business segment is estimated to show a CAGR growth rate of 14.2 % from 2020-2024.
Also, the projected market volume is USO 1,264 million by 2024.
There are several factors that are driving this growth like rapid urbanization, changing lifestyle and
food habits of the surging generation, increasing household consumption rate, etc. Hence, foreign
firms that are willing to capture India's food and beverage industry must research these recent
market developments to ensure unmatched returns on investment. For detailed insight, consulting
with food and beverage consultants in India can be of great help.
Let's delve into the market size and recent trends shaping the future of the food and beverage
industry in India.
Market Size
The current market size of the Indian Food and Beverage Industry
shows great potential for higher profit and, therefore, is attracting
enormous foreign investments. The number of users in the F&B
market is estimated to reach 346.9 million by 2025. There is also a
great potential for the user penetration rate to hit 24.0% by FY 2025.
Hence, foreign businesses willing to invest in the Indian Food and
Beverage Industry can secure unmatched growth. However, the
focus must be given to frame market-centric business strategy by
taking into account the current trends and with all-inclusive
assistance from reliable food consultants in India.
Key Trends Shaping the Indian Food and Beverage Industry Opportunities
in India
· Increasing Gourmet Brands
The gourmet food market in India has been experiencing significant expansion for the last few years.
This has occurred due to the shifting consumption habits of Indian consumers from traditional food
flavours to global food.
With increasing middle-class income, there is a growing demand for high nutritional food products,
sophisticated palates, and premium products. In fact, currently, the value of the Indian gourmet food
market is around USO 1.3 billion.
The gourmet market will grow in categories like exotic sauces, olives, honey syrup, spreads,
cereals, etc. Foreign brands can earn unmatched profit by expanding their production and supply in
these food ranges. For comprehensive planning, they can collaborate with top business consulting
firms in India.
· Growth in the Dairy market
According to current statistics, the Indian dairy industry grew by about 9 to 11% by 2022. According
to IBEF, the packaged milk segment itself is projected to grow to USO 32.9 billion by 2030
Increasing per capita consumption and demand for milk and milk products is steering the
improvement. The ICRA Vice President and Sector Head state that while growth in the liquid milk
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27. segment will remain stable at 6-7 percent in FY22, the value-added dairy products (VOAP) like
ice-creams, frozen yogurt, etc., will rise by 13 to 15%.
· Growth in Bakery Segments
The Indian bakery market has emerged as the largest food processing segment. Increasing consumption
of biscuits and cookies which accounts for about 72% of the total sales in the F&B industry is primarily
boosting the growth in this segment. Also, several popular reports state the cake market will reach a
valuation of USO 882.24 million by 2024. However, the market competition in this segment is also
compelling. Hence, foreign investors in these segments need to frame strategic planning by collaborating
with a business advisory consulting firm to receive unmatched ROI.
· Growing Demand for Packaged Foods
As reported by Nestle India, the demand for packaged food in the Indian market will double in the coming
5 to 10 years. It is estimated to grow up to USO 100 billion creating lucrative business opportunities for
foreign players. Several factors like growing e-commerce, demographic dividend, and overall economic
growth have promoted the change. With detailed market insight from top food and beverage consultants
in India, new investors can strategize the production and distribution of packaged food products like
instant noodles, biscuits, snacks, and more.
· Healthy Alternatives and Growth in Nutraceutical Market
The new-age Indian consumers are growing extremely health conscious. By ga1rnng a better
understanding of food labels, they are more prone to substituting their earlier food habits with healthy
alternatives. This has consequently prompted the growth of the nutraceutical market.
Also, consumers in India are showing a great shift towards sugar replacers for health benefits. Therefore,
the demand for sugar-free products and artificial sweeteners is on the rise and is here to stay. Foreign
investors can take advantage of this opportunity with thorough market research from trusted Indian
business consulting.
How Can Business Consulting Firms in India help?
To establish and grow in the Indian Food and Beverage Industry, foreign firms need to acquire a thorough
market analysis and frame an India-specific market entry strategy. This is where the importance of food
consultants in India is undeniable.
A trusted business advisory consulting firm in India like Tecnova offers all-inclusive assistance to
foreign investors by offering-
• A customized study on addressable markets
• Quantitative and qualitative research on consumer demand
• Product launch and PR management
• Help in manufacturing plant set-up
• Retail roll out support
• Establishing brand and distribution network etc.
Such end-to-end assistance from business consulting firms in India will reduce investment risk in the long
run.
The food and beverage segment in India is anticipating unmatched business opportunities in the future.
However, with such impressive investment scope, the F&B segment in India is also growing extremely
competitive. Furthermore, the consumer demand in the Indian market is constantly shifting. Also, there
are several ongoing shifts in e-commerce and retail operations that must be taken care of.
Hence, a thorough analysis of recent food & beverage market trends is imperative. For comprehensive
assistance, foreign organizations must collaborate with popular food and beverage consultants in India.
This will help reduce investment risk and ensure sustainable business development in the long run.
Source: https:llwww.tecnovaglobal.comlbloglindian-food-and-beverage-industry-recent-trendsl
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28. Non-alcoholic beverages are fast gaining popularity in Asia
Pacific, owing to a growing consumption of tea and coffee in
the region, particularly in countries like India. The
consumption of non-alcoholic beverages in Asia Pacific stood
at 200 Bn liters in 2016 and this is expected to increase to
301 Bn liters by the end of the forecast period in 2027.
Global Non-alcoholic Beverages Market Value Share(%)
ByRegion (20l 7I
30.3%
p,s,oflxlflc
2017-'2027ol a
CAGRot4.4%
North America is a close second in terms of non-alcoholic
beverages consumption, with a recorded 169 Bn liters in 2016 expected to increase to 256 Bn liters
by the end of 2027. Consumers in North America are moving towards a healthier lifestyle and seem
to prefer sports and energy drinks to keep themselves fit and hydrated through the day. This factor
is primarily responsible for the boost in consumption of non-alcoholic beverages across the region.
In terms of volume CAGR, both Asia Pacific and North America are slated to witness a growth rate
of 3.9% over the forecast period. The billion dollar global non-alcoholic beverages market is highly
concentrated in these two regions, with Asia Pacific estimated to reach a market valuation in excess
of US$ 650 Bn by 2027 end and North America anticipated to cross US$ 600 Bn towards the close
of 2027. While Asia Pacific will register a value CAGR of 4.6%, North America will record 4.7% during
the decadal study.
Trends likely to be witnessed across the key regional non-alcoholic beverages markets -
North America: Health conscious Americans are looking for healthy alternatives to traditional soda
beverages and this has prompted non-alcoholic beverages manufacturers to launch innovative
products such as cold-pressed juices, craft sodas, and other low-calorie beverages.
New flavors of sparkling water and energy drinks are fast replacing soda beverages in the region.
Also, North America is witnessing a rapid growth in the functional beverages segment. Beverages
double up as guilt-free snacks, drinkable breakfasts, or even meal replacements. With consumers in
North America demanding more nutritious, alcohol-free beverages, there has been a sharp rise in
naturally produced functional beverages with inherent benefits such as blood sugar management,
energy, refreshment, and immunity boosting properties.
Asia Pacific: The Asia Pacific region is witnessing an increased consumption of protein drinks, and
this is not limited to just athletes and sportspeople. Women and senior citizens across the region are
also showing an inclination towards protein drinks owing to health and wellness trends prevalent
among the general population, especially among working women and the health conscious geriatric
population in Asia Pacific.
Further, there is a high preference for soft drinks among the young population in Asia Pacific. The
APAC region supposedly offers the best income growth prospects in the world, and several young
professionals from different parts of the world are moving to Asia Pacific for career prospects. This
has fueled the demand for and consumption of RTD beverages and soft drinks as well as healthier
functional beverages among the millennial working class.
Europe: Europe is the third largest consumer of non-alcoholic beverages after Asia Pacific and
North America and the primary reason for this is an increasing consumer shift towards non-alcoholic
beverages and a growing popularity of specialty tea across the region. In Europe, an emerging trend
of adult or spicy drinks is being noticed of late.
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29. Spices are no longer used only in cooking; today, spices find application in non-alcoholic drinks
production as well. Spices such as chili and ginger provide strong flavors to non-alcoholic beverages
and are preferred by health conscious people who wish to avoid alcoholic and sugary beverages.
This increasing preference for adult drinks has boosted market demand and subsequently
production in the Europe non-alcoholic beverages market. Further, European consumers are shying
away from sugar in a bid to promote a healthy lifestyle, and this has negatively impacted the sales of
non-alcoholic beverages in the region. To boost sales and increase market share, non-alcoholic
beverages manufacturers in Europe are launching old consumer favorites with a new touch and
flavor. The launch of non-GMO labeled Tropicana is a classic example.
Source: https:llwww.persistencemarketresearch.comlmarket-researchlnon-alcoholic
beverages-market.asp
U.S. non-alcoholic drinks market size, by product, 2015 - 2025 (USD Billion)
Bottled Water
2015 2016 2017 2018 2019 2020 2021
■ Soft Drinks Tea & Coffee
2022 2023 2024 2025
■ Juices ■ Dairy Drinks
Non-Alcoholic Beverages Market: Market Size(%), By Geography, Global, 2021
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