Changing IndiaChallenges and Opportunities

Capitalizing on the

Consumer Market

Opportunity in India

Changing IndiaChallenges and Opportunities

Forum of Indian Food Importers

1600 Brands

5.2 Billion US$

167 Members

67 Countries

Changing IndiaChallenges and Opportunities

Knowing India

India At a Glance

Population 1.3 Billion

Consuming Class 300 – 350 Million

GDP Growth Rate 7.3 % (2017Est.)

Polity Democracy

Food Patterns Diversified

Agriculture Core

Regulatory WTO Signatory

Potential Huge

Changing IndiaChallenges and Opportunities

Understanding India

• Strong Economy– Resilient to the current crisis

• 350 Million Consumers!– Unified by aspiration

• Young population– Part of a global village

• Small Families– Open to change

• High disposable incomes – Willingness to spend

• Media Revolution– Part of a Global Village

• Imported Foods– Niche to Mainstream

• Now we have MODI……– No Black Money

Changing IndiaChallenges and Opportunities

Reality Check on Common Beliefs

• Too far– Direct flights

• Very High Import Duty– Sales rocketing

• Global Retailers not present– Indian retailers spending Billions

• Unsafe – Not true

• Non Payment– Proud Payers

• No Room – Tip of Iceberg

• Too Hot– You are correct!!!

Changing IndiaChallenges and Opportunities

Food Industry in a Glance

• India’s Total Food Market: US$ 530 Billion

– Projected Size: US$ 1250 Billion by 2020

• Processed Food Products: US$ 130 Billion

– Projected Size: US$ 450 Billion by 2020

• Average growth rate: 27%

• World Ranking: 10th-largest food consumer

– Projected Ranking: 5th-largest consumer food

market by 2025

Changing IndiaChallenges and Opportunities

Changing Consumption Priorities… Yet Food & Grocery To Be

By Far The Biggest For Decades To Come

Savings & investment

9%Clothing, footwear and

accessories

5%

Consumer

durable/appliances

7%

Vacation

3%

Eating out

6%

Movies and entertainment

3%

Books and Music

4%

Food and grocery

57%

Home textiles

1%Personal care items

5%

Source: NCAER

Changing IndiaChallenges and Opportunities

Changing IndiaChallenges and Opportunities

Changes in Indian Retail

• Retail revolution even without the direct entry of global retailing giants.

• Several new hypermarkets, supermarkets springing up across the country funded by domestic investment

• Likely investment in retail and supply chain to the tune of $22 billion in the next five years. Over 600 retail malls are being planned across the country.

Changing IndiaChallenges and Opportunities

Changing Retail

Changing IndiaChallenges and Opportunities

Retail Glimpse

Changing IndiaChallenges and Opportunities

What India Imports

• Food Imports growth 27%

• India Food & Grocery retail is whopping 626 Billion US$

• Fish like basa has grown more than 100% ( 50 Million US$ )

• Cocoa beans has grown more than 100% ( 228 Million US$ )

• Edible Oil has grown more than 66% ( 15 Billion US$ )

• Chocolate has grown more than 49% ( 114 Million US$ )

Changing IndiaChallenges and Opportunities

What Ecuador Export

Changing IndiaChallenges and Opportunities

FSSAI Labeling Requirements

Changing IndiaChallenges and Opportunities

IMPORT FEDERATION

at Food Shows

Changing IndiaChallenges and Opportunities

IMPORT FEDERATION

RECEPTION 2016

Changing IndiaChallenges and Opportunities

IMPORT FEDERATION HORECA

EVENT 2016

Changing IndiaChallenges and Opportunities

Steps for Future

• Have India on your radar

• Have a well defined entry strategy

• Due-diligence of partners

• Plan on promotions

– Retail Program – Sampling

– Trade Media and PR

– Trade Shows

• Sustained efforts will be the key

• Enter Establish Persevere

Changing IndiaChallenges and Opportunities

THANK YOU