SCOPE OF FOOD PROCESSING INDUSTRY

Current status of food processing industry, different sectors of processing, CAGR OF different products.

1. DEPARTMENT OF DAIRY SCIENCE AND FOOD TECHNOLOGY INSTITUTE OF AGRICULTURAL SCIENCES (IAS,BHU VARANASI ) SCOPE OF FOOD PROCESSING INDUSTRY SUBMITTED TO: SUBMITTED BY: DR. ANIL KUMAR CHAUHAN (HOD) TANISHA GUPTA DR. D.S. BUNKAR (ASSISTANT PROFESSOR) MSc FOOD TECHNOLOGY (FIRST YEAR) 22412FST024 SESSION: 2022-24

2. FOOD PROCESSING INDUSTRY NATIONALLY AND GLOBALLY

3. Food processing Definition: Food processing is the transformation of raw ingredients into food products that can be eaten by physical or chemical means. Food preservation slows or stops food spoilage by various methods, including drying, freezing, pickling, and irradiation . Food processing and preservation benefits include increased food safety, improved nutrition, longer shelf life, and increased economic opportunities. Food processing is any method used to process food to reduce the number of undesired microorganisms and improve its stability and safety margins to make it more suitable for human consumption. It includes any physical process, chemical process, or a combination of the two that changes the physical characteristics of food to make it safer or more convenient to use. Processing also improves palatability and appearance. SOURCE: IBEF REPORT 2020

4. CHICKEN PROCESSING Source: poultry-farming-meat-production-vector-infographic-chicken-factory-processing-line-distribution-sale-food-industry

5. INDUSTRY VISION The aims of the food industry today, as in the past, are fourfold: To extend the period during which a food remains wholesome (the shelf life) by preservation techniques which inhibit microbiological or biochemical changes and thus allow time for distribution, sales and home storage . To increase variety in the diet by providing a range of attractive flavours , colours , aromas and textures in food (collectively known as eating quality, sensory characteristics or organoleptic quality); a related aim is to change the form of the food to allow further processing (for example the milling of grains to flour). To provide the nutrients required for health (termed nutritional quality of a food). To generate income for the manufacturing company. SOURCE: FOOD PROCESSING BY FELLOWS

6. SEGMENTATION OF FODD PROESSING INDUSTRY IN INDIA Cereal/ pulse milling Fruit & vegetable processing Milk & milk products Beverages like coffee, tea & cocoa Fish, poultry, eggs & products Meat & meat products Aerated waters/soft drinks Beer/alcoholic beverages Bread, biscuits & other bakery products Edible oil/fats. Confectioneries Breakfast cereals, malt protein, weaning, extruded food products

7. CEREAL BASED CANNED ,PICKLED TEA POULTRY PRODUCTS MILK PRODUCTS COFFEE

8. Indian processing Industry scenario India’s food processing sector is one of the largest in the world and its output is expected to reach $470 Bn by 2025-26 . India's food processing sector is a sunrise sector that has gained prominence in recent years. Major processed food products exported from India include processed fruits and juices, pulses, guar gum, groundnuts, milled products, cereals preparations, oil meals and alcoholic beverages.  India created history in agriculture and processed food exports by exporting products worth US$ 25.6 billion in FY22 . Export of APEDA products stood at US$ 7.4 billion as of April-June 2022, up 31% compared with US$ 5.7 billion over the same period last fiscal, according to the Directorate General of Commercial Intelligence and Statistics.  Furthermore, exports of processed fruits and vegetables grew by 59.1%; cereals and miscellaneous processed items grew by 37.66%; meat, dairy and poultry products grew by 9.5%; basmati rice grew by 25.5%; non-basmati rice grew by 5%; and miscellaneous products grew by 50%.  The food sector is currently undergoing a transition in India. The Agricultural and Processed Food Products Export Development Authority (APEDA) forecasts that the sector will grow at a compounded annual growth rate (CAGR) of 3% between 2022 and 2030. SOURCE: IBEF REPORT

9. CONTINUE.. The Food Processing sector in India has a quintessential role in linking Indian farmers to consumers in the domestic and international markets. The Ministry of Food Processing Industries ( MoFPI ) is making all efforts to encourage investments across the value chain. The food processing industry has a share of 12.38% (at 3-digit of NIC classification) in the employment generated in all Registered Factory sector engaging approximately 1.93 Mn people. Unregistered food processing sector supports employment to 5.1 Mn workers as per the NSSO 73rd Round report. Major sectors constituting the food processing industry in India are grains, sugar, edible oils, beverages, and dairy products.

10. GROWTH IN PROCESSING India’s consumer spending to grow to $6 Tn by 2030. The export of products under the Ready to Eat (RTE), Ready to Cook (RTC), and Ready to Serve (RTS) segments have registered a CAGR of 10.4% from 2011-12 to 2020-21. India exported more than $ 2.14 Bn worth of final food products in 2020-21. The major destination of RTE export in 2020-21 data is the U.S.A, U.A.E, and Nepal. The major exporting destination for RTC export in 2020-21 are U.S.A, Malaysia, and U.A.E The total FDI received in the food processing sector since April 2014 till December 2021 is $5.15 Bn.

11. F ruits and vegetables 01 Processing industry

12. PRODUCTION DATA According to APEDA data, India is the largest producer of vegetables such as ginger and okra and second largest producer of vegetables such as potatoes, onions, cauliflowers, brinjal , and cabbages. While it is the largest producers of fruits such as Bananas, Papayas, and Mangoes. There is a huge opportunity in harnessing the potential of fruits and vegetables processing in India in the form of frozen (IQF), canned, pulp, puree, paste, sauces, snacks, dressings, flakes, dices, dehydration, pickles, juices, slices, chips, jams and jelly. Andhra Pradesh, Maharashtra, Uttar Pradesh, Madhya Pradesh, Gujarat, Karnataka and Tamil Nadu are the major Fruits producing States, whereas Uttar Pradesh, West Bengal, Madhya Pradesh, Bihar, Gujarat, Maharashtra and Odisha are the major Vegetables producing States of the country (As per 3rd advance estimates of 2020-21). SOURCE:APEDA

13. CONTINUE… The Government of India through the Ministry of Food Processing Industries ( MoFPI ) is also taking all necessary steps to boost investments in the food processing industry. The government has sanctioned 41 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 22 Mega Food Parks are operational. Fruits and vegetables exports were up by 12 % to touch $1,676 Mn in 2021-22 against $1,492 Mn in 2020-21, while processed fruits and vegetables exports were up by 7 percent to reach $1,202 Mn in 2021-22 against $1,120 Mn in the previous year. Exports of Fruits & Vegetables values at $ 205.79 Mn in May 2022 and records positive growth vis-à-vis May 2021 of 15.20%. SOURCE: APEDA OFFICIAL

14. GLOBAL STATUS .

15. ANIMAL HUSBANDARY IN INDIA 02 .MEAT AND MEAT PRODUCTS

16. EGG PROCESSING SOURCE: RESEARCH GATE

17. SOURCE:COHERENT MARKET INSIGHTS

18. PRODUCTION DATA Largest producer of Buffalo Meat and 2nd largest producer of Goat Meat in the World. In the current scenario, India is the largest producer of milk and buffalo meat, 2nd largest producer of Goat meat and Egg. India ranks 1st in cattle & buffalo population, 3rd in sheep population, 6th in duck population, and 8th in chicken population. Livestock Sector grew at a CAGR of 11.2% during 2015-16 to 2020-21 (at constant prices). It contributed 6.17% of total GVA in 2020-21.  The overall Animal Feed market of India was valued at $ 35.8 Bn in 2021 and has a share 17.6% in Asia-Pacific region. Export of poultry products increased by 91.70% in nine months of FY 2022-23 as its export increased from $ 50 Mn to $95 Mn .

19. GLOBAL MEAT MARKET The global processed meat market size was valued at $319.6 billion in 2020, and is estimated to reach $497.1 billion by 2030, registering a CAGR of 4.8% from 2021 to 2030. Meat is considered to be processed when it is preserved by curing it by smoking, salting, fermenting, and adding any chemical to extend its shelf-life and improve its taste. Meat such as beef, pork, turkey, chicken, and lamb are commonly used to produce processed meat. Various processed meat products include pepperoni, jerky, hot dogs, and sausages . Certain preservatives are added to the meat to protect it from spoiling due to bacteria and other such organisms. The global processed meat market is segmented - 1 ) By Product : Chilled, Frozen, Canned Or Preserved 2) By Processing : Fresh Processed Meat, Raw Cooked Meat, Precooked Meat, Raw Fermented Sausages, Cured Meat, Dried Meat, Other Processings 3 ) By Meat Type : Poultry, Beef, Mutton, Pork, Other Meat Types 4 ) By Nature : Organic, Conventional 5) By Distribution Channel : Supermarket Or Hypermarket, Grocery Stores, Specialty Retailers, Online Stores, Other Distribution Channels

20. EXPORT OF FOOD PROCESSED PRODUCT India's exports of Processed Food was Rs . 41,460.06 Crores/ 5,559.84 USD Millions in 2021-22 Mango Pulp - ( Rs . 924.54 Crores/ 124.11 USD  Millions), Processed Vegetables ( Rs . 3986.45 Crores/ 534.98 USD Millions ), Cucumber and Gherkins ( Prepd. & Presvd ) ( Rs . 1487.30 Crores/ 199.46 USD Millions ), Processed Fruits, Juices & Nuts ( Rs . 3626.08 Crores/ 486.58 USD Millions ) Pulses ( Rs . 2834.29 Crores/ 379.75 USD Millions), Groundnuts ( Rs . 4697.10 Crores/ 629.26 USD Millions ) Guargum ( Rs . 3334.77 Crores/ 446.77 USD Millions ) Jaggery & Confectionary ( Rs . 2797.85 Crores/ 375.18 USD Millions ) Cocoa Products ( Rs . 1145.48 Crores/ 153.71 USD Millions ) Cereal Preparations ( Rs . 4862.19 Crores/ 652.26 USD Millions ) Alcoholic Beverages ( Rs . 2070.92 Crores/ 277.85 USD Millions ) Milled Products ( Rs . 2286.11 Crores/ 306.08 USD Millions).

21. RECENT GOVERNMENT SCHEMES Launch of GIS One District One Product (ODOP) Digital Map of India : On November 18, 2020, the Ministry of Food Processing launched the capacity building component of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PM-FME Scheme) and GIS One District One Product (ODOP) Digital Map of India, which provides detailed information on ODOP products to all stakeholders. The ODOP programme was aimed to upgrade SME’s on select products (within a district) through credit linked subsidy of 35% of the eligible project cost limited to a maximum value of  Rs . 10 lakh (US$ 13.52 thousand ). The Minister for Food Processing Industries, Mr. Narendra Singh Tomar , emphasised on forming/creating a local value chain and providing training to food processing entrepreneurs through the PM-FME Scheme. These training sessions aimed to benefit ~8 lakh SME beneficiaries; will be conducted through online lectures and demonstrations. Further, on November 21, 2020, the government approved a grant of Rs . 107.42 crore (US$ 14.52 million) to implement 28 food processing projects. SOURCE:CONSUMER MARKET IBEF REPORT 2020

22. CONTINUE… New Cold Chain Projects to Reduce Food Waste and Boost Exports : In september 2020, the Ministry of Food Processing Industries (MOFPI) approved 28 new local cold chain infrastructure projects to boost the export potential of the local agri -food sector and reduce food waste. These 28 projects fall under the ‘ Pradhan Mantri Kisan SAMPADA Yojana ’  (PMKSY) scheme, with Rs . 2.08 billion (US$ 28 million) aid from the central government . MOFPI also highlighted benefits that will arise from these cold chain projects that will help India become  self-reliant . These integrated cold chain projects will be undertaken in 11 states and run by either central or state-owned enterprises, or other bodies subject to the government’s approval. While announcing these projects, Food Processing Minister, Mr. Harsimrat Kaur Badal , said that these projects will not only boost the food processing sector but also streamline the agricultural supply chain, generate employment, provide better prices to farmers, end-users and benefit the allied sectors. The Federation of All India  Vyapar Mandal  (FAIVM), the local FMCG trade and retail industry body, rejoiced over this programme and stated that this move will avoid agri -food wastage caused due to insufficient, temperature sensitive warehouses. SOURCE:CONSUMER MARKET IBEF REPORT 2020

23. CONTINUE… Under PMKSY, 41 Mega Food Parks, 356 Cold Chain projects, 60 Agro-Processing Clusters, 489 food processing units under Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC), 61 Creation of Backward and Forward Linkages Projects & 06 Operation Green projects across the country have been approved. The key sub-segments of the Food Processing industry in India are Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, dairy industry, etc. with the export of $4,663 Mn in nine months of 2022-23.

24. MILK AND MILK PRODUCTS

25. Milk and milk product Codex Alimentarius defines a milk product as a “product obtained by any processing of milk, which may contain food additives, and other ingredients functionally necessary for the processing”. The range of milk products varies significantly from region to region and among countries in the same region, depending on dietary habits, the milk processing technologies available, market demand, and social and cultural circumstances . T he per capita consumption of milk and milk products is higher in developed countries, but the gap with many developing countries is narrowing. Demand for milk and milk products in developing countries is growing with rising incomes, population growth, urbanization and changes in diets. This trend is pronounced in East and Southeast Asia, particularly in highly populated countries such as China, Indonesia and Viet Nam. The growing demand for milk and milk products offers a good opportunity for producers (and other actors in the dairy chain) in high-potential, peri -urban areas to enhance their livelihoods through increased production. SOURCE: FAO

26. MILK PRODUCTS DESCRIPTION PRODUCTION (2020-2021) Growth and opportunities LIQUID MILK Liquid milk  is the most consumed, processed and marketed dairy product. Liquid milk includes products such as pasteurized milk, skimmed milk, standardized milk, reconstituted milk, ultra-high-temperature (UHT) milk and fortified milk. Worldwide, less and less liquid milk is consumed in its raw form. 210 Million tonnes IMARC Group expects the India liquid milk market is expected to reach INR 16,470.3 Billion by 2027, exhibiting a growth rate (CAGR) of 16.7% during 2022-2027. CAGR – 6.3% (2021) FERMENTED PRODUCTS Fermented milks  are commonly used to make other milk products. They are obtained from the fermentation of milk using suitable microorganisms to reach a desired level of acidity. Fermented products include yoghurt, koumiss, dahi , labneh , ergo, tarag , kurut and kefir. -----------------------------   Lassi market :INR 101 Billion by 2027, exhibiting a CAGR of 20.68% during 2021-2027. Indian Curd Market was estimated to be valued at INR 1184.3 Billion in 2021. CHEESES Cheeses  are produced through the coagulation of milk protein (casein), which is separated from the milk’s whey. Cheese can be soft, hard, semi-hard, hard ripened or unripened . Cheese’s diverse characteristics derive from differences in the compositions and types of milk, processes applied and microorganisms used. Traditional cheeses produced in developing countries include ayib , gibna bayda , chanco , queso fresco, akawieh and chhurpi. In the Cheese segment, volume is expected to amount to 2.06bn kg by 2027. ( statista report) The cheese market in India size reached INR 71.3 Billion in 2022. Expects the market to reach INR 262.6 Billion by 2028, exhibiting a CAGR of 24.27% during 2022-2028.

27. BUTTER AND GHEE Butter and ghee  are fatty milk products. Butter is produced by churning milk or cream; in many developing countries, traditional butter is obtained by churning sour whole milk. Ghee is obtained by removing the water from butter and is especially popular in South Asia. Ghee has a very long shelf-life of up to two years. The ghee market in India size reached INR 2,907 Billion in 2022. IMARC Group expects the market to reach INR 5,137 Billion by 2028, exhibiting a growth rate (CAGR) of 9.84% during 2023-2028. CONDENSED MILK Condensed milk  is obtained from the partial removal of water from whole or skimmed milk. Processing includes heat-treating and concentration. Condensed milk can be sweetened or unsweetened, but most is sweetened. In Latin America, for example, condensed milk is often used in cooking and baking instead of jam. The global condensed milk market size was valued at $9.9 billion in 2021, and is projected to reach $15.2 billion by 2031, growing at a CAGR of 4.4% from 2022 to 2031. EVAPORATED MILK Evaporated milks  result from the partial removal of water from whole or skimmed milk. Processing includes heat-treating to make the milk bacteriologically safe and stable. Evaporated milks are generally mixed with other foods, such as in milky tea. The global evaporated milk market size to be valued at USD 5.8 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 2.3% MISCELLANEOUS Dry milk or milk powder  is obtained from the dehydration of milk and is usually in the form of powder or granules. Cream  is the part of milk that is comparatively rich in milk fat; it is extracted by skimming or centrifuging the milk. Cream products include recombined cream, reconstituted cream, prepared creams, pre-packaged liquid cream, whipping cream, cream packed under pressure, whipped cream, fermented cream and acidified cream. Whey products:  whey is “the liquid part of the milk that remains after the separation of curd in cheese making. Its main food use is in the preparation of whey cheese, whey drinks and fermented whey drinks. The main industrial uses are in the manufacture of lactose, whey paste and dried whey.” Whey can be sweet (from the production of rennet-coagulated cheeses) or acid (from the production of acid-coagulated cheeses). Casein  is the principal protein in milk and is used as an ingredient in several products, including cheese, bakery products, paints and glues. It is extracted from skimmed milk by precipitation with rennet or by harmless lactic acid-producing bacteria  Indian skimmed milk powder (SMP) market size reached INR   133.2 Billion in 2022.   IMARC Group expects the market to reach INR   262.9 Billion by 2028, exhibiting a growth rate (CAGR) of 10.9% during 2023-2028.  

28. PLANT BASED MEAT AN EMERGING INDUSTRY

29. According to the United States Department of Agriculture (USDA) industry report, India seems to be a nascent market for plant-based meat substitutes. Indians have traditionally consumed soybeans, jack fruit, dairy, and pulses for protein . According to the UN Livestock Long Shadow Report, around eight out of 21 alternate meat start-ups were launched during 2019–20 and five international and domestic players forayed into this segment during 2020–21. India has emerged as the largest consumer base in the world, with a massive scale of urbanisation and transition in income group . As per a survey conducted by the University of Bath and the Good Food Institute in 2019, 63% of Indians were either very or extremely likely to buy plant-based meat daily. PLANT BASED MEAT

30. S W O T ANALYSIS

31. CONCLUSION The Food Processing Industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government has accorded it a high priority, with a number of fiscal reliefs and incentives, to encourage commercialisation and value addition to agricultural produce. This sector is having ample sector to prosper in future years ahead. These sector could be a good potential for the Company Secretary professionals who wants to start their own enterprises. There has been a great revolution in the food ordering business in India with online food delivery players like Zomato , Swiggy , etc. Investors are more attracted to the Food processing industry, foreseeing its high potential and wider customer base. Food is a basic necessity; therefore the demands are always going to be high. There are many big companies already actively involved in the Food Processing Industry and the government is playing a vital role in promoting it.

32. REFERENCE  Rathakrishnan , L. and Sriraman , V.P. (2014), Indian Food Processing Industry – A Snapshot, Research Gate, October.  Business Sweden, Opportunities in Indian Food Processing Industry, 2015.  Food and Agricultural Sector of Excellence, Indian Food and Beverage Sector: The New Wave, Food and Beverage Tech, 2014.  The Journal of Industrial Statistics, Facts and Figures, Vol. 6, No-6, March, 2017.  Singh, Surendra P., Tegegne , Fisseha and Ekenem , Enefiok (2012), The Food Processing Industry in India: Challenges and Opportunities, Journal of Food Distribution Research, Volume 43, Issue 1 . IMRC reports Marketing journals Bhaskaran , E & D.Sc ,. (2010). THE TECHNICAL EFFICIENCY OF FOOD PROCESSING INDUSTRY CLUSTER IN INDIA. International Conference on Food Processing Industries, Indian Institute of Crop Processing Technology, Government of India. ISBN:9784-93-80235-66-0. 10. 10.13140/RG.2.2.25037.54244. https:// www.researchandmarkets.com/reports/5017312/food-processing-market-in-india-2020 PICTURES: GOOGLE SEARCH Food processing book by fellows