Latest news with #AnandRamanathan
Time of India
24-05-2025
- Business
- Time of India
$8 billion and rising: How processed food exports can unlock growth for India in global food trade
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's agricultural exports reached $48 billion in FY24, solidifying its position as a major player in the global food trade. However, processed food exports , currently valued at $8 billion, offer significant headroom for growth, according to Deloitte & FICCI's latest report 'Spurring growth: Driving innovation and unlocking opportunities in the Indian food processing sector'.'There is potential to move up the value chain from primary commodities to value-added processed foods , which could be achieved by establishing Indian food products as a mainstream global phenomenon. Few opportunities to help enable this transition include scaling healthy Indian food products, such as millets and makhana; upgrading commodity value chains for highly exported products such as groundnut; and building strategic branding around globally trending products and India's GI-tagged products,' the report the report highlighted that processed food exports would also generate broader ecosystem benefits, including the reduction of post-harvest losses and the enhancement of employment opportunities and improved returns for farmers, all without the need for higher growth in the food processing industry, according to Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte South Asia, can only come if the export market is looked at more conscientiously. 'Such exports will also help in more value addition, which one can use in the domestic market. Currently we are doing a very small percentage of exports, and most of it is for the Indian diaspora. We must start looking at the needs of the wider market and start exporting to them as well,' Ramanathan toldon the sidelines of the Ficci Foodworld India 2025 event held recently in the report sheds light on the contribution of the food processing sector, which accounts for 7.7% of India's total manufacturing GVA (gross value added) and plays a critical role in generating employment, fostering rural development, and enhancing value addition. With a valuation of about $160 billion, the sector reflects India's economic rise, marked by the country's rank as the fifth-largest economy and a doubling of per capita income to Rs 1.97 lakh over the past nine years, the report highlighted. It also noted how tier II and tier III cities are fast becoming engines of economic growth due to consumption trends aligning across urban and rural conducted a survey involving over 1,200 urban consumers to capture insights into prevailing behaviours, attitudes and the consumer trends gaining traction, protein has been highlighted as one of the strongest trends within the health food space. 'This growing awareness is leading to healthier dietary habits and a stronger focus on incorporating diverse protein sources into daily meals. According to the survey, 43% of urban respondents consider protein content very important, while 32% regard it as extremely important,' the report this, the report finds that Indian consumers are increasingly prioritising digestive health as a core component of overall wellness, leading to a surge in demand for processed foods that support gut health. Products enriched with probiotics and prebiotics—such as functional beverages, fortified dairy products and gut-friendly snacks—are witnessing growing report also highlights the rise of Indian superfoods , noting that millets are gaining popularity due to their impressive nutritional profile. 'Their low Glycemic Index (GI) makes them diabetic-friendly, helping to manage blood sugar levels effectively. The urban youth population is increasingly becoming health-conscious and shifting towards millet consumption. The growth in demand is evident in urban and semi-urban areas and is expected to continue rising through 2030,' it millets, the rise of Indian products such as(fox nuts) is also a reflection of the growing demand for healthy and nutritious snacks in India, the report said. 'Makhana, known for its low-calorie and high-nutrient profile, has seen a significant increase in popularity due to its health benefits and versatility. This trend is part of a broader movement towards healthier eating, driven by an increasingly health-conscious consumer base,' the report says consumer demand is shifting towards clean-label, protein-rich and gut-friendly foods, driving a structural evolution in how India consumes food. 'India's agri and food processing sector is on the brink of a transformative leap, where tradition meets cutting-edge technology to build a future-ready food ecosystem. India is poised to lead the global narrative on health-driven, tech-enabled and inclusive food systems, fuelled by advancements in AI, IoT and blockchain. With the right focus, India's food processing industry can set the benchmark for inclusive, responsible growth in the global food economy.'The report suggests that companies may benefit from refining their strategies, with a greater focus on cost management and innovation to drive sector growth. 'Companies may look beyond operational improvements and explore initiatives, such as reformulation, packaging innovation and rapid prototyping of localised offerings. To stay competitive, large incumbents and emerging players may consider building structured, continuous innovation pipelines that respond swiftly to evolving consumer expectations. Collaboration between industry players, government bodies and academic institutions can further drive innovation,' it said.
India.com
22-05-2025
- Business
- India.com
How India's Food Processing Sector Is Leading Tier 2 And 3 Indian Cities To Becoming Engines Of Economic Growth
New Delhi: India's food processing sector is on a transformative growth path, and with consumption trends aligning across urban and rural India, tier 2 and 3 cities are fast becoming the engines of economic growth, according to a new report. The sector supports over 7 million jobs across the value chain, directly and indirectly, while enabling rural industrialisation and reducing post-harvest losses. According to the report by Deloitte and FICCI, the sector accounts for approximately 7.7 per cent of India's total manufacturing GVA (gross value added), and its critical role in generating employment, fostering rural development and enhancing value addition. The agriculture and food processing sector, representing nearly 30 per cent of the national food market, is gaining momentum due to rising rural demand, digital advancements and strong policy support. 'India's agri and food processing sector is on the brink of a transformative leap, where tradition meets cutting-edge technology to build a future-ready food ecosystem. Consumer demand is shifting towards clean-label, protein-rich and gut-friendly foods, driving a structural evolution in how India consumes food,' said Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte South Asia. India is poised to lead the global narrative on health-driven, tech-enabled and inclusive food systems, fuelled by advancements in AI, IoT and blockchain. The opportunity before us is not just to feed a billion, but to do so with purpose, resilience and intelligence, he added. 'India's food processing sector holds immense transformative potential, both as a driver of economic growth and as a catalyst for inclusive development. As evolving consumer preferences and health-conscious choices reshape food systems, the need for resilience, innovation and value addition has never been greater,' said Jyoti Vij, Director General, FICCI. In addition, India's record agricultural exports of $48.2 billion in FY24 and the global recognition of GI-tagged products highlight the sector's export potential and its growing role in the world food economy.
Mint
22-05-2025
- Business
- Mint
FMCG's digital makeover: The rise of quick-commerce exclusives
New Delhi: Your favourite packaged goods might soon look different depending on whether you are buying from a kirana store or online. Some differences, indeed, have already begun to appear. Large fast-moving consumer goods (FMCG) companies such as Marico, Zydus Wellness and Godrej Consumer Products, even ice-cream makers such as Baskin Robbins are creating special versions of their products for buyers on quick-commerce platforms–from new variants to more premium offerings. Some are even testing new products there based on preferences of the urban online shopper. For instance, Marico, which sells edible oils, hair oils and oats, will take more gourmet variants of its oats to quick commerce, even as its honcho said it is looking to customize offerings for online platforms 'across all brands". Godrej Consumer Products Ltd (GCPL) is experimenting with launching products together on online and offline channels, with online showing better traction. Also read: Young Indians are drinking less but better Then, Zydus Wellness, which makes butter, sugar-free and health drinks, sells its plant-based Nutralite butter exclusively on quick commerce platforms, and more offerings are on the way. And Baskin Robbins has floated ice-cream flavours and combinations that are not available offline. The move by these companies comes in the backdrop of the surging popularity of quick commerce, even though the channel currently brings in just 2-7% of overall sales for larger companies. Overall, per data shared by Nielsen IQ, the value share of e-commerce stood at 13% in the top eight metros for the 12-month period ended 31 March. This growth was on account of increasing online shopper penetration, more purchase occasions, and increasing basket sizes, NIQ said. 'There will be a wider portfolio due to the growth in quick commerce," said Anand Ramanathan, consumer products and retail sector at Deloitte in South Asia, while pointing out that FMCG has traditionally operated with fewer assortments and a narrow portfolio. 'However, now companies will have to launch and try which products work across which platforms, adding to their complexity," he said. 'You will have more frequent product launches; that's a new capability that companies will have to build given this shift." Who's doing what In an interview with Mint last week, Saugata Gupta, managing director and chief executive officer of Marico Limited, said the company is designing a channel-wise portfolio. Also read: Marico calls it—India's FMCG sector to rebound this financial year 'The shopper in quick-commerce is different from the (online) marketplace; consequently, the portfolio and the stock-keeping unit mix that goes in these channels should be different," said Gupta, adding that the company could look at new product launches for online channels as well. 'It (e-commerce) is a very good channel to test market some new products," he said. 'We will continue to do that. Some of the premiumization of the core portfolio could be led via these channels." Quick commerce is now 3% of Marico's India business as of the March quarter. Between brands such as Plix (supplements), True Elements (foods) and Saffola, the company is investing significantly in quick commerce to drive growth in its foods business. Mumbai-based GCPL has been pushing more premium products online, both e-commerce and quick commerce, before scaling them up offline. It recently launched its Cinthol range of foam body washes both via quick-commerce as well as general trade stores in Tamil Nadu as an experiment. Response on quick-commerce was relatively encouraging due to the channel's salience with more affluent shoppers, said the company's management. Last year, it launched its Hit Matic mosquito repelling machine priced around ₹550 only on e-commerce, apart from Park Avenue Deo gift scents. 'Quick commerce is a channel that we are very happy with, because it solves a genuine need of convenience," Sudhir Sitapati, chief executive officer, GCPL said at the company's media roundtable earlier this month. Sitapati said quick-commerce has experienced exponential growth over the past two years, particularly benefiting mid-sized product packs that offer higher margins for companies. Also read: Consumer goods makers' appetite for deals is only growing bigger For Zydus Wellness, the parent company of Complan drink and Nycil talc, online commerce accounts for 10-11% of its business; of this, the share of quick commerce is 40%. According to its chief executive, the share of large packs across its portfolio has been rising across online platforms. It is ramping up supplies to such packs across these platforms. 'Modern trade is a great place to buy large packs, but there are some specific packs designed for online channels—their share has been going up," said Tarun Arora, chief executive officer (CEO) at the Ahmedabad-based company, in an interview with Mint. 'Therefore, we are seeing how best we can serve urban online shoppers with specific stock keeping units whose demand has gone up." Even categories like ice cream, where impulse and instant gratification play a big role, are seeing rapid transformation in the way consumers interact with brands. 'With this behaviour in mind, we have been bringing in a range of SKUs that are tailored for this ecosystem," Mohit Khattar, CEO, Graviss Foods, Baskin Robbins, told Mint. 'These include flavour profiles and formats that appeal to the consumers who frequent these platforms." Today, nearly a third of the company's business comes from food delivery, of which a significant part can be attributed to quick commerce, he said. 'Apart from the very popular ice cream cones, bars and cups, our range also includes ice cream funwiches, ice cream cake slices, multilayered ice cream doublet bars and bite sized ice cream rocks," said Khattar. 'We have also recently introduced creamy milkshakes in low sugar and no added colours for quick commerce." What about offline India is a large general trade market. Across such stores, consumers buy small sachets of shampoos for single use, family packs of soaps, 1 kg packs of flour, biscuits, colas and chips on a daily basis. General trade continues to be stressed on account of growth in online and modern trade retail in the top 10 markets; users of general trade are also more burdened by greater inflation and buying smaller packs or switching to cheaper brands. 'E-commerce is still growing at 30-40% because it is talking to consumers who don't have a problem with inflation and are driven by convenience," said Sanjay Sharma, CEO of Orkla India that sells MTR brand of packaged foods. Sharma declined to comment on the company's quick-commerce strategy. It also helps that users of quick commerce are more insulated from the broader slowdown in the FMCG market. FMCG volumes grew 5.1% in the March quarter amid a 5.6% price hike, according to NielsenIQ. However, urban market growth decelerated in the March quarter, growing 2.6% year-on-year, declining both sequentially and annually. Offline retailers, often small family-run stores, which still represent a significant portion (over 70%) of the fast-moving consumer goods market in India, have expressed concerns regarding quick commerce platforms and their adverse impact on their business. Zydus's Arora said keeping differentiated packs also helps overcome some challenges with traditional trade. 'It also helps overcome the trade conflict…but it's more focused on what the consumer needs because there is a behaviour shift that is happening," he said. According to experts, as quick commerce continues to reshape urban shopping habits, consumers can expect to see even more tailored products hitting their screens and doorsteps.
Time of India
21-05-2025
- Business
- Time of India
India's food processing sector powers jobs and growth, contributes 7.7% to manufacturing: Deloitte-FICCI Report
New Delhi: India's food processing sector is emerging as a key pillar of economic growth, contributing 7.7 per cent to the country's total manufacturing GVA and supporting over 7 million jobs across the value chain, according to a new Deloitte-FICCI report . Valued at USD 160 billion, the sector is enabling rural industrialisation and reducing post-harvest losses, while gaining momentum from rising rural demand, digital transformation, and policy support. As per the report, the agriculture and food processing value chain now accounts for nearly 30 per cent of the national food market. 'India's agri and food processing sector is on the brink of a transformative leap, where tradition meets cutting-edge technology to build a future-ready food ecosystem,' said Anand Ramanathan , Partner & Consumer Industry Leader, Deloitte South Asia. 'Consumer demand is shifting towards clean-label, protein-rich and gut-friendly foods, driving a structural evolution in how India consumes food. India is poised to lead the global narrative on health-driven, tech-enabled and inclusive food systems, fuelled by advancements in AI, IoT and blockchain,' he added. The report highlights India's agricultural exports, which reached a record USD 48.2 billion in FY24, signalling strong global demand. Urban consumption patterns are also evolving, with nearly 50 per cent of food budgets now allocated to packaged and prepared foods. Meanwhile, rural FMCG volumes posted a 6 per cent growth in Q3 FY24, and Tier-2 and Tier-3 cities are becoming new engines of demand. 'India's food processing sector holds immense transformative potential, both as a driver of economic growth and as a catalyst for inclusive development,' said Jyoti Vij, Director General, FICCI. 'As evolving consumer preferences and health-conscious choices reshape food systems, the need for resilience, innovation and value addition has never been greater.' While the sector shows strong potential, the report said that supply chain inefficiencies continue to pose challenges. It calls for collaboration among policymakers, industry leaders and innovators to invest in smart technologies, build resilient supply chains, and scale health-forward offerings aligned with global consumption trends.
India Gazette
21-05-2025
- Business
- India Gazette
Half of food budget is spent on packaged foods by Urban Consumers: Report
New Delhi [India] May 21 (ANI): Urban consumers allocate nearly 50 per cent of their food budgets to packaged and prepared foods, giving a significant boost to the FMCG sector, said a recent Deloitte-FICCI report. The report further adds that the rural Fast-Moving Consumer Goods (FMCG) volumes experienced a 6 per cent growth in the third quarter of the financial year 2024 (Q3 FY24). 'Urban elites increasingly spend 50 per cent of their food budget on packaged foods, dining out and deliveries, while rural consumption is shifting from cereals to beverages and processed foods,' the report added. The agriculture and food processing sector, representing nearly 30 per cent of the national food market, is gaining momentum due to rising rural demand, digital advancements and strong policy support. The report adds that with a valuation of about USD 160 billion, the agriculture and food processing sector reflects India's economic rise, marked by the country's rank as the fifth-largest economy and a doubling of per capita income to Rs 1.97 lakh over the past nine years. With consumption trends aligning across urban and rural India, Tier-2 and Tier-3 cities are fast becoming engines of economic growth, the report said. Observing the trends, Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte South Asia, said, 'India's agri and food processing sector is on the brink of a transformative leap, where tradition meets cutting-edge technology to build a future-ready food ecosystem. Consumer demand is shifting towards clean-label, protein-rich and gut-friendly foods, driving a structural evolution in how India consumes food.' He added that India is poised to lead the global narrative on health-driven, tech-enabled and inclusive food systems, fuelled by advancements in AI, IoT and blockchain. 'The way forward lies in purposeful collaboration among policymakers, industry players and innovators to build resilient supply chains, empower farmers and entrepreneurs, and cater to a conscious, global consumer,' Ramanathan added. The report says that the premiumisation of products is also an emerging trend, with higher-income consumers driving growth through demand for quality, convenience and indulgence. There is also a rising curiosity around global cuisines and regional flavours, marking a convergence of heritage and innovation in consumer preferences. The Deloitte-FICCI report observed that global research and development (R&D) hubs and startups are reformulating products for Indian tastes, focusing on health-conscious features such as clean labels, protein enrichment and gut health. (ANI)
