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Duo trade shows in India focus on rising food and beverage packaging in India

Source:Source: CPRJ Editorial Team Date :2014-06-19 Editor :(AL)

The trade fair duo drink technology India and International PackTech India will take place from September 25-27 in Mumbai, presenting the complete value chain for food processing, liquid food, beverage and packaging technology.

drink technology India is being held for the third time in conjunction with International PackTech India. The organizers of this trade show double feature (Messe Düsseldorf for the International PackTech India and Messe München International for the drink technology India) expect about 260 exhibitors from all over the world and around 8,500 trade visitors from India and neighboring regions.

The packaged food industry is the 5th largest sector in India, which is worth US$39.7 billion and is expected to reach US$65.41 billion by 2020. With a sales volume of 30 million tons in 2013, India is one of the largest markets for packaged food in the world, just behind the US, China, Brazil and Mexico, and the second largest in Asia. But with a per capita consumption of 24kg per year the Indian packaged food market is still at an early stage.

With a consumption of 22 billion liters of drinks (alcoholic drinks and soft drinks) India is the fourth largest sales market for beverages in Asia. Soft drinks are the largest segment while the Indian non-alcoholic beverage market was growing at an annual compound growth rate of 23% between 2010 and 2013.

Within the soft drinks market bottled water is the largest category and the demand will double until 2017. Packaged juice shows also a strongly increasing demand. It is expected that the consumption of juice in India will rise by an annual compound growth rate of 20% until 2017 up to 1.2 billion liters.

With more than 50% of the population younger than 25 years, increasing disposable incomes, a growing middle class, ongoing urbanization, changing lifestyles and a rising number of modern retail formats like supermarkets, the country enjoys highly favorable demographic patterns.

These will enable shifts in the Indian food and drinks industry, as the young people are one of the key drivers in the demand of processed and hygienic packaged foods.

The Indian middle class is growing rapidly and they simply love to buy. They are on the lookout for premium brands, especially for confectionery products like chocolate. But the premiumization trend is not only noticeable in chocolates but also in biscuits. These trends are expected to continue even years from now.

Almost 70% of the Indian population lives in rural regions. The rural population benefits from investment in infrastructure and rising wages. Food processing companies are realizing the potential of rural India and are trying to expand their presence in these areas.

All these developments result in a continuously growing demand for packaged food and beverages in India, says the organizers. It is expected that the demand for packaged food in India will rise by an annual compound growth rate of 6% to reach an amount of 37 million tons by 2017. The beverage consumption will grow by an annual compound rate of 15% to reach an amount of 38 billion liters in 2017.

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