The food retail business in India is growing at the rate of 47 % as comapared to the overall retail growth(oraganised) of 26 % and is expected to double at $482 billion by 2020 as against $236 billion in 2006. High disposable income and growing exposure to global lifestyle and other factors such as health consciousness, and convenience have impacted in change in consuming patterns of modern Indian consumers. Around 80 mn Indian consumers who have an annual income of over $5,000 will be the primary drivers of the food retail business, and this was reconfirmed at a CII seminar 'Foodpro 2007' in Chennai.
India is the fourth largest economy in terms of purchasing power parity and the consumer base is growing with the households of annual income of over $5,000 expected to increase from the current 81 million to 147 million by 2015. The processed food consumption is all set to treble to $300 billion by 2015 and the value of processed fruits & vegetables will increase to 10% in 2009-10 and 15% in 2014-15. All these are a clear indicator of the future the food retailing has and this gives all the agri business managers a prospective carrer in this sector.
SOURCE: CII conference"FOODPRO 2007" AND CSO
Manisha Mishra,
PGPABM-II
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3 comments:
I agree with what has been said in the article to an extent as the trends are pointing towards it. But the moot question is that there were some persons who drove this change.
Believing that Indian consumer had known the preferences in the west and there was progressive westernization in the country, still I reckon all Indian consumer is not yet ready to pick all kinds of food from the malls. We have seen food retail succeed mostly in big cities where people have less time, but I am not sure the same success can be replicated in Grade C towns of the country. I haven't seen anyone buy non-veg from a retail chain in small town(to that extent in a big city as well). Then there is chana flour(sattu)that people I ve known get from local small scale producers.
I think growth in food retail will further happen if formats change, lesser cities are targeted in a new way,not by the way grandeur of present day malls.
Anyways all growth in food sector is good for us and our sector.
well the growth of this vibrant sector will definitely open up new avenues for us
please make sure that u edit your blogs before posting it on,u know. otherwise it is defintely a nice reading:)
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