Indian Food Retail Market, the sixth largest food market in the world, is expected to cross Rs. 35,60,000 crore by 2017 and Rs. 61,00,000 crore by 2020, according to India Food Report 2016.
The report compiled by Images Group had pegged the current market size at Rs. 25,12,962 crore in 2014 that accounts for 65% share in the country’s total retail market pie. The report was released today by General VK Singh, PVSM, AVSM, YSM (Retd), union minister of state (independent charge) for statistics and programme implementation at the 3-Day India Food Forum held in Mumbai.
Of the current market size of over Rs. 25 lakh crore, food and grocery retail is worth over Rs. 23 lakh crore while food service market accounts for the balance.
According to the report, there is an evolution dietary habit along with the rising demand for food and its growing consumption in India. Indians are becoming more welcoming towards processed, western food options like noodles, corn flakes, juices and oats – something, which was very nascent until 10 year ago.
“Indians spend more on food than on any other consumption category and this is expected to continue in the coming decade. India is already the largest global consumer of dairy, pulses, sugar and spices,” said Amitabh Taneja, Chief Convenor of India Food Forum and CMD of Images Group.
Food retail pie, dry food grocery that includes, cereals, grains, grams, pulses, sugar, edible oil and dry fruits constitute 34.7% while milk and dairy products account for 16% of the food market. Spices (Rs. 1,50,000 crore), Fresh Produce (Rs. 3,90,000 crore) and perishables like fish, poultry and sea food (Rs. 2,00,000 crore) are the other food categories other than processed foods.
Among the seven broad components that make up the food basket, one-third of the total food market in 2014-15 was occupied by protein food, followed by cereals that covered 19%. On the other hand, edible oil is the smallest segment with a share of 7%, the report said.