Over the past few decades, India has witnessed a substantial increase in agro, dairy, and poultry food production, surpassing the growth rate of its population. This surge has created ample processing opportunities, as highlighted by R S Sodhi, the president of the Indian Dairy Association.
Sodhi, the former managing director of the dairy brand Amul, remarked at the 16th edition of the India Food Forum conclave, “While the population has grown by 2.5 times, cereal production has grown by 2.8 times, fruits and vegetables by six times, dairy by 10 times, and poultry by 2.5 times.”
The rise in primary output has resulted in the emergence of regional and local brands, posing a challenge to national brands, as noted by experts at the forum.
“Local regional brands are emerging. National brands are trying to be positioned now as regional brands,” said Sodhi.
Sodhi highlighted that the Indian supply chain operates with remarkable efficiency, featuring minimal margins and logistics compared to global standards. This efficiency contributes to enhanced livelihoods for farmers and improved nutrition for consumers.
During the day, Kanaka Bhagwat, Retail Vertical Lead (FMCG) at NielsonIQ, a consulting firm, emphasized that local brands were fueling growth in rapidly expanding super-categories. She noted that these local brands consistently maintain their momentum year by year, now representing nearly 70 percent of APAC sales.
In the APAC region, consumers express concerns about the rising food prices. However, Bhagwat noted that the growth narrative is largely dominated by local brands, constituting a robust foundation with over two-thirds of the overall APAC FMCG sales.
Bhagwat highlighted the swift progression of digitization in India, marked by approximately 25 crore UPI users and around 6 crore QR codes replacing POS machines. This transformation indicates a significant change in the income and consumption structure within the Indian food retail landscape. In contrast, the APAC region is witnessing the rapid evolution of the omni-shopper generation, characterized by the growth of small-format stores due to a boost in tourism and market stabilization.