India Sees Growth

My friends in the industry have been excited lately about expanding their businesses in India. I share their sentiment.

Despite the economic uncertainly worldwide, India shines as a potential market worth anyone’s while. Despite the wide income gap between the haves and the have-nots, there are rapid developments of new supermarkets and hypermarkets, shopping malls and fast food outlets in the country’s bustling cities.

A RNCOS Indian Food and Drinks Market: Emerging Opportunities report released early last month cites the country’s vast population base, growing middle class and strong macroeconomic environment as reasons for rapid growth in its food and drinks market.

Rapid transformation in the lifestyle of Indians, particularly those living in urban areas, has led to a significant demand for processed and health foods, as well as packaged and ready-toeat products.

The presence of food multinationals and the rapid growth of fast food outlets have also fueled growth in the industry.

The numbers are encouraging. The report says the food and beverage industry currently dominates the Indian retail industry, and it is anticipated to grow at a compound annual growth rate (CAGR) of nearly 8% from 2008 to 2012.

Meanwhile, the soft drinks market is figured to grow at a CAGR of nearly 12% from 2008 to 2012, with major demand for health and energy drinks, bottled water and fruit juices.

Trade fairs organizer Kolnmesse predicts that India’s demand for process technologies and packaging facilities would increase by an average annual rate of at least 10% in the coming years.

Demand for investments is expected to total around 18 billion euros ($25.69 billion) through 2015.