The food processing industry is one of the largest industries in India and is ranked 5th in terms of production, consumption and exports. The food processing industry in India accounts for around 32% of India’s food market. There has been around 11.60% share of employment in the domestic food industry and FDI inflows from this sector accounts for 2.2% in India. India’s food processing sector was valued at INR 30,938 billion in 2020 and is expected to reach around INR 53,435 billion by 2024-25.
The global market size of the food processing industry was estimated at $143.51 billion and is expected to grow at a CAGR of 6.6% till 2028 with a projected value of $235.67 billion. The favourable agro-climatic conditions and a promising infrastructure, makes business in food processing profitable.
But there are many challenges which come along with setting up a business in food processing— finance, availability of raw materials, transportation, storage facilities etc. Having guidance from a food consultant is necessary to overcome the challenges faced by new business setups.
How market is segmented
The food processing sector is segmented into various sectors like
- Dairy processing
- Fruits and vegetables processing
- Meat and Poultry processing
- Marine processing
- Consumer goods processing
- Sugar and Khandsari processing
- Pulses and spices processing
- Edible oil and fat processing
Steps necessary for starting a food processing business
1. Research the market well
Knowing the customers and having a full fledged market research is necessary to have a successful business in food processing. Knowing the target market, competitors, entry barriers, the demand for your product and what are the trends in the food industry is required to plan a successful marketing. But without expert guidance, it becomes difficult to have an in-depth market analysis and now the role of food processing consultants comes into being.
2. Get FSSAI License registration
According to Food Safety and Standards Act 2006, it is mandatory for all the food businesses to get an FSSAI registration done. Under the act, following set of registrations are included:
● Basic registration:
Every kind of small business or startups that are having an annual turnover of INR 12 Lakh and above needs to register under this. Once the sales increases, it is possible to upgrade the registration to a state license.
● State FSSAI License
The mid-sized companies are required to register under the state license with an annual turnover of INR 12 to 20 crores.
● Central FSSAI License
These licenses are required for large companies with an annual turnover of over and above INR 20 crores. This is required for supply, import and export of food products to government offices.
3. Apply for Trademark
When setting up a business, making sure that your brand is recognisable amongst the customers is necessary and applying for a trademark is one important step to withstand a competitive market.
4. Acquiring an organic testing certificate
Quality serves value. Providing good quality products is of utmost importance and it is required to ensure that food ingredients used are fresh and free from any type of chemicals and reactants. Whether you’re manufacturing fruit juice products or any kind of consumer goods, quality assurance is mandatory to build trust in the market.
5. Location of the Organization
A manufacturing unit should be located at a place where logistical cost is reduced. Also it must be close to the place where you will be selling your products.
Opportunities in Food Processing sector
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Dynamic food habits
With the growth in this sector, the market trends keep changing over time. With health consciousness rising amongst the people, food habits have shifted to consumption of organic items. Also trends suggest an increase in demand for snacking in between meals, ready to cook products, on-the-go meals and this has led to rise of new business opportunities in this sector.
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Agri-Export Zones (AEZ’s)
With advancements in technology and development in rise, India is becoming a global outsourcing hub because of its strategic locations having connectivity with export market destinations. Also there have been fair improvements in the infrastructure availability to establish Agri- Export Zones.
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Mega Food Park Projects
The Make in India Campaign did fundamental works like establishing 40 Mega Food Parks and providing infrastructure to operationalize new companies rapidly. There has been around USD 2.2 billion of investment by the government towards this initiative.
- Governmental Initiatives
Around 5% of the food produced is processed in India and although Food park projects have been growing at a fast pace, still to achieve the target of National Food Processing Policy of attaining the position of World’s Food factory, government has launched scheme like SAMPADA aiming to create a contemporary infrastructure with efficient supply chain management from farmer to point of purchase by the customer.
How is the role of a food consultant significant in the food processing industry
There are some basic set of responsibilities of food technology consultants in the industry who help out the businesses to withstand the market effectively.
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Storage and Quality Inspection
The first and foremost role of food business consultants is to help out the businesses to guide them on foodborne illness and its prevention measures. Food quality and safety in the food processing industry is a mandatory requirement and food business consultants will ensure the necessary storage and safety requirements so that business is operated hassle free.
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Garbage disposal/ pest control
A restaurant or an eatery is marketable and profitable only till it has a proper garbage disposal system. Having poor waste management and disposal facilities will lead to pest problems. Food technology consultants guide you to have a proper system of garbage disposal and pest control to maintain a sanitary environment for your kitchen as well as for customers.
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Food Production
It refers to any process of converting fresh food to consumable food products like chopping, freezing, fermenting etc. Understanding the correct way of producing edible food items is necessary for everyone involved in the supply chain. Food technology consultants analyze the food production methods and give a well researched methodology to make food production healthy and effective.
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Equipment Assessment
Quality equipment is necessary to make a business successful as well as it ensures customer’s safety. Now, the food business consultants assess and analyze the quality of equipment and help you to improve in certain areas wherever required.
A food technology consultant not only advises you but also trains the employees to operate the latest technology in the food processing industry.
A food consultant makes your business better and thrive for better profitable opportunities in this sector. A well researched market analysis and proper guidance of a food business consultant accelerates the growth of your business by making it strong and safe in terms of customer evaluation.
