The Indian food services industry is expected to grow at a compound annual growth rate (CAGR) of around 12 per cent during 2012-2015, according to a RNCOS research report, 'Indian Food Services Market Forecast to 2015'.
According to another report, the industry is estimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015, according to a Franchise India report released at the Indian Restaurant Congress. "In the future, the organised market is expected to grow even faster - at around 20 to 25 per cent per annum," says Mr Gaurav Marya, President of Franchise India.
India has emerged as the fifth most favourable destination for international retailers, according to A T Kearney's Global Retail Development Index (GRDI) 2012. The country is fast becoming an important investment destination for foreign players with companies such as Starbucks and American brand Dunkin' Donuts marking their entry into the country.
India has also been recognised as one of the largest potential market for organic food consumption worldwide. The organic food is invariably increasing among the Indian retailers, especially with the niche retailers, as per RNCOS research report titled, ‘Indian Organic Food Market Analysis’. The report further expects that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent.
The major players operating in the Indian food and beverages industry include Dabur India Ltd, Godrej Industries Ltd, Hindustan Lever Ltd, Britannia Industries Ltd, ITC Ltd, Nestle SA, PepsiCo, Inc, Cadbury Schweppes PLC, Future Group, RPG Enterprise and Godrej Agrovet Ltd.
According to a new research report by RNCOS, the demand for various fast food items is consistently rising in India. The most delectable of them all is Pizza, which has now emerged as one of the most favourite fast food items of the Indians especially the young generation. As per market estimation, the Indian organised pizza market will surge at a CAGR of more than 27 per cent during 2012-2015.
Furthermore, management consulting firm Tecnova estimated the Indian packaged food market at US$ 10 billion in 2010 and expects it to grow 20 per cent CAGR to US$ 30 billion by 2015.
With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast emerging as a sourcing hub of processed food. India's food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, beverages, fisheries, plantation, grain processing and other consumer product groups such as confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.
India is the world’s largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, ‘Indian Dairy Industry Analysis’. The study anticipates that the milk production in India will grow at a CAGR of around 4 per cent during 2011-2015.
The food processing industries attracted foreign direct investments (FDI) worth US$ 1,456.20 million between April 2000 to June 2012, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).