With the stimulating growth being witnessed in the food retail sector, favorable economic policies, and attractive fiscal incentives, India's food ecosystem offers enormous opportunities for investment. India is the world's sixth-largest food and grocery market. In India, the food and grocery retail business accounts for over 65% of the total retail market.
Food processing is critical in connecting Indian farmers to consumers in both domestic and international markets. The industry employs approximately 1.93 million people in approximately 39,748 registered units, has a fixed capital of $32.75 billion, and an aggregate output of approximately $158.69 billion. Grain, sugar, edible oils, beverages, and dairy products are the major industries that make up the food processing industry.
The food processing sector in India is indeed the largest in the world, with its output expected to reach $535 billion by 2025-26.
Everything is undergoing transformation. The way we eat, technology, and people's expectations are all having an impact on the food sector, from the materials we buy to the software we use to manufacture meals.
Let us discuss the Global Technology Trends in Food Processing Industry:
- Sustainability:
When it comes to food, consumers are concerned about sustainability. Food waste is a subcategory of food sustainability to be aware of. According to the United Nations, roughly 1.6 billion tons of “primary product equivalent” food is wasted globally, and 28% of agricultural land is used to produce food that is lost or squandered. This has a total annual economic impact of around US$750 billion.
- Changing Habits – The rise of plant-based foods:
Plant-based foods are becoming increasingly popular, and they're taking over grocery shelves and freezers all over the world. Indeed, the plant-based meat business in the United States is worth over $900 million, and 14% of US households say they buy plant-based meat. Vegans used to be the only ones who used these substitutes, but now vegetarians, flexitarians, and ordinary omnivores make up a major share of potential customers and are driving market expansion. People believe that these selections are healthier, and as we'll see later in this piece, health is a big concern for today's customers.
- Changing Habits – Healthy food, Healthy body:
Healthy foods have been popular for a long time, but the pandemic has given them a whole new meaning. AMD also emphasizes that individuals are concerned about more than just their immune systems. Concerns about cardiovascular disease, weight loss, personal nutrition, and mental health are all driving behavioral changes that are affecting product growth. To put it the other way round, nearly half of consumers intend to purchase food items related to their health and well-being, and a third of them have already done so.
- Changing Habits – Purchasing food that lasts:
While it's unlikely that these habits would last long after the pandemic has passed, experts believe they'll be around until at least 2021. (And possibly longer). A switch from fresh to frozen or processed goods — those long-lasting center-store items — is one such behavioral adjustment. When faced with stock out of the fresh item they meant to buy, 28 percent of consumers will choose a frozen or processed option. Perishables may be in jeopardy if manufacturers are unable to maintain a steady supply and maintain their appeal to strained customers.
- Disruption of JIT:
For decades, the just-in-time supply chain model has dominated the food business, assisting organizations upstream and downstream in reducing waste and controlling prices. However, under the intense strain of Covid-19, this approach has proven too brittle for the present. Experts foresee — and are seeing — a large-scale transition away from JIT and toward just-in-case in the food industry.
As a result, technology is a vital investment for food processors to explore in 2021 — anything that will help them get automated through monitoring and analysis of essential processes like inventory management in order to maintain visibility over operations and reduce the danger of excessive shrinkage.
- Huge investments in Food Manufacturing Software:
Costs are already high enough without adding to them as a result of shifting customer habits and supply chain practices. Advanced food manufacturing software is one method many food manufacturers are helping to offset — or at least control — those expenses. This type of software allows you to see and control your inventory as it enters and exits your warehouse. Food inventory management software, for example, is designed to track each item as it moves through your firm, from purchase to sale. It can keep track of the age of stock, where it's kept, bespoke recipes, and how well things are selling - basically any facet of the business.
In today's world, business information is essential for success. Visibility and real-time monitoring enable an organization to accurately control expenditures while also allowing it to make modifications in response to changing trends.
Conclusion:
The year 2020 was marked by change and turmoil. Consumers are increasingly in charge of the food they want, leaving businesses with no choice but to cater to the new demand. This, along with the necessity for technical innovation, will very certainly make 2021 a year of upgrades and research and development, particularly for those countries still fighting the pandemic.
