Expanding Horizons of the Food and Beverage Industry

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“We see all these as opportunities, because finding uniquely Indian solutions to these challenges can unlock the latent growth in the market. We have undertaken several innovations to address these challenges. For example, we address the lack of regular electricity through solar powered and ‘eutectic’ coolers. We reach the highly dispersed rural retailer through a ‘hub and spoke’ distribution model,” explained Gupta.

Adding to this, Dr Maitin expressed some of the common challenges faced in the alcohol beverage industry: “There is a high degree of competition. Increasing raw material prices with strict governmental regulations is proving to be a challenge for industry growth. Unfavorable climate and scarcity of input materials such as water, fruits, etc., could also pose a challenge to the growth of this market. Hence, it is critical to combat rising costs in the coming years and meet the fast-evolving needs of the market.”

A Sizeable Potential for Food

Momaya agreeing with the sentiment that the industry is well positioned for growth but the premium frozen goods division faces numerous challenges. He affirmed, “Apart from the already mentioned challenges, creating awareness about healthy and natural ingredients with a limited budget at times proves to be difficult. Also, a majority of consumers do not read the product label, and the consumer needs to be educated on this front.

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In addition, finding suppliers that source ingredients that comply with the changes in the Food Safety and Standards Authority of India (FSSAI) is also a difficult task.” He went on to explain that while the global average for ice-cream consumption stands at 2.3 liters per person, the per capital consumption in India is only 400 ml per person (in 1996, it was a mere 100 ml per person). “This is because ice-creams in India are still perceived as an aspirational albeit impulsive purchase as compared to the developed countries where ice creams are a habitual purchase. Moreover, when it comes to desserts, Indians also have the option of a wide variety of traditional sweets which compete with the ice creams. Thus, India presents a sizeable market with huge potential for domestic and international ice creams brands.”

Wate Management Schemes for F&B

With changing palettes, the way the food and beverages need to be delivered to the consumer has changed tremendously, especially over the past decade. Being ecofriendly is no longer a fashion statement, but rather a norm that is constantly being addressed by most companies in the sector.

President, Active Solutions, Subba Bangera iterated, “The whole country is aware that waste management is the key to growth and environment safety. The plastic industry is on toes to give good name to plastics and the need for educating people to sort plastics from other waste by luring the people with a value chain which will be attractive. PET is very distinct from other packages as there is a clear recycling chain with well built value chain. Today there is more than 70 per cent PET waste collection and recycling happening and this may rise to above 80 per cent with more education given out to the public.”

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