The future of Food Industry in India

1. The Future of Food Industry in India One of the biggest sectors in India is food processing, and it is expected to grow rapidly in the next few years.Before determining the business’s future, we must first understand how it is now operating. In terms of production, consumption, and exports in the financial year 2016, the food sector in India was one of the largest in the country and placed fifth. The following are some intriguing details concerning the Indian food sector: ● Greatest producer of milk in the world. ● The number two producer of fruits and vegetables. ● India is the sixth-largest food and grocery market in the world, with retail accounting for 70% of all sales. ● Food items that are traditional or authentic are offered for sale in advance packing like khakhra. There are more than 200 Khakhra makers in the Gujarati city of Rajkot alone. Future Of Indian Food Industry One of the biggest sectors in India is food processing, and it is expected to grow rapidly in the next few years. Even yet, the Indian government is aware that the future is too promising for the country’s food industries. Since the retail industry in India, which was valued at USD 490 billion in 2013, includes food as one of its main categories. By 2020, it is anticipated that the Indian food retail market will be worth USD 894.98 billion. According to officials, the food processing industry has been expanding at a rate of 12% each year. Arun Jaitley, the finance minister, predicted in November 2017 that the whole Indian agricultural value chain will undergo significant change and that food processing would eventually become one of the nation’s primary businesses. And as of right now, we feel good. It keeps expanding. For their packaged food items, many large western food and beverage firms are already looking to work with Indian businesses. Businesses that produce complete food processing lines are also interested in this region of the world. Every time I go to a trade event, there are more exhibitors of processed foods than the year before. In India, the online meal ordering industry is still in its infancy but is growing exponentially. Corriander Leaf will help prospective business owners who want to enter the food processing industry with the following ideas: FDI POLICY 100% FDI allowed in trading, including through e-commerce, for food products made and produced in India with government authorisation. FISCAL INCENTIVE Food processing businesses are exempt from income taxes entirely for the first five years of operation, and then pay a 25 percent rate for the following five. Machinery used in the dairy industry for pasteurizing, drying, evaporating, and other processes is exempt from excise duty. Refrigerated container excise tax is reduced from 12.5% to 6%. Budget 2016–17 includes a reduction in customs duties on goods connected to cold storage. MEGA FOOD PARK On the basis of the general region or a difficult area to set up Mega Food Park, the government provides grant aid up to 75%. SPECIAL FUND IN NABARD

2. They have amassed Rs. 2000 crore of the fund to NABARD for food processing industries in order to offer loans with terms of up to seven years. These are just a few instances, but the government is making hundreds of arrangements to support the Indian food industry. So the future is unquestionably quite promising. In addition to these, the following factors are also responsible for the promising future of the food industry: ● Expanding populace and their enormous food demand ● Consumers’ purchasing power/level is increasing. ● Availability of all branded food products, even in the village level ● Changing lifestyle patterns The India Brand Equity Foundation’s analysis indicates that by 2025, the middle class’s disposable income will have doubled. The Indian middle class will have a large purchasing capacity on ready-to-eat meals and other food goods due to the increase in disposable income and easier access to credit, which was not the case ten years ago. Organic Food: Given the industry’s double-digit growth from 2013 to 2017. It is reasonable to predict that it will do well starting in 2020. Numerous elements have contributed to this progress up to this point. First off, the expansion of e-commerce has helped the organic food industry connect with potential customers in Tier II and Tier III cities. Second, with free or inexpensive Internet access, more and more individuals are discovering the advantages of eating organic food. As a result, demand increased in 2018 Last but not least, as more and more competitors enter the market. It is becoming more competitive. Trends that will Outlast the Pandemic Consumers learned to cook more meals at home as a result of the epidemic. This led to an increase in food purchases but a decline in restaurant visits. Additionally, there has been a significant trend toward working from home, which is likely to reduce traffic to eateries in cities. Nearly two years into the epidemic, it is obvious that COVID-19 and the new customer habits it has spawned will forever alter the restaurant sector. The pandemic moved the entire restaurant sector forward a few years. It encouraged trends like multichannel marketing and online ordering, forcing (or enabling?) restaurants to think of fresh, innovative ways to serve their clients. While many of these modifications were unavoidable, some of them might endure far beyond the pandemic. Let’s look at seven ways that the restaurant business has changed irrevocably. 1. Off-premise orders won’t disappear anytime soon. Online meal delivery and takeaway soared early in the pandemic, gaining pace years before the crisis. We can only presume that online food ordering will remain popular in the years to come. As customer behavior shifts even more in favor of convenience and quick delivery. When done properly, online ordering and off-premises sales channels boost client engagement in addition to generating additional money. The secret is to provide clients with a consistent customer journey from browsing and ordering through paying for their orders to fulfillment.

3. Consumers no longer merely see restaurants as somewhere to have dinner and sit down. They now view a restaurant as a food brand that they can engage with in a variety of ways through a variety of touchpoints and platforms. 2. Technology will be essential for the restaurant of the future. Restaurants will need to make an investment in contemporary technology to accommodate new consumer demands. Restaurants can get back to business, speed up transactions, and increase order accuracy by utilizing the appropriate technologies. Additionally, it will support a secure dining experience for customers. A smart POS system, tableside ordering and electronic menu technologies, mobile ordering technology, contactless payment options, possibly even self-order kiosks, and guest interaction apps are all part of the current restaurant tech stack. Don’t forget about inventory management, menu management, and tools for staff scheduling. Even more significant than having all these various technological advancements in place is actually putting them to good use. They connect to various business systems and POS systems used by eateries, enabling interoperability. Streamlined operational efficiency is the result of the integration. Additionally, restaurant management solutions increase profit margins, automate corporate processes, and improve customer satisfaction. 3. To stay in the game, menu engineering is essential Restaurant supply chains have been disrupted by COVID-19, which has increased the cost of raw materials. This made it challenging for some establishments to obtain their usual ingredients. Restaurants were compelled by the crisis to cut their menus and switch to more regional ingredients. Smaller menus are more cost-effective and simpler to execute, even with a small team, which boosts operational effectiveness. Of course, the idea of a menu that is small yet extremely effective is not new. It has been used by dark kitchens for a few years now. And the restaurant business discovered it during the pandemic. Menu engineering then began to assume an even greater significance. The goal of menu engineering is to create a successful menu that only includes extremely profitable and popular menu items. You must comprehend the psychology underlying a menu’s presentation, promotion, pricing, and ordering in order to streamline it. When you carefully arrange your menu, you can boost profit margins while reducing waste and food prices. 4. There will be a shift in how restaurant staff operates It goes without saying that the pandemic had a devastating impact on the hospitality sector. And many workers were let go or placed on furlough. The foodservice sector is currently facing a workforce shortage despite increased traffic and sales. Restaurants are having trouble keeping up because laid-off employees have moved on to other jobs or left the industry altogether. The restaurant business has often had a high personnel turnover rate. Given the current labor scarcity, staff training is more crucial than ever. Restaurants must be able to train new employees as quickly and effectively as humanly can, including untrained ones. Additionally, they must achieve this without placing undue stress on present workers. Fortunately, cutting-edge digital alternatives are available. 5. Chains and franchising will receive a larger share of the action

4. In the US prior to COVID-19, there were about 370,000 privately operated eateries. According to estimates, 10 to 15 percent of those could close their doors permanently, leaving $20 to $35 billion in sales on the market. Who will then intervene and seize these shares? ● Franchise models could. They demonstrated during the epidemic that they could deal with difficulty in ways that independent rivals simply couldn’t equal. Today, prospective franchisees research a franchisor’s crisis management strategy before deciding to purchase a franchise. This can cause franchise sales to soar when combined with excellent real estate, inexpensive mortgage rates, and sizable numbers of unemployed restaurant personnel. ● Chain restaurants are a different conceivable option. Since many years ago, large investors and chains have been buying independent catering and restaurant businesses. Once again, the current environment of high unemployment and low real estate and mortgage rates may cause the market share of restaurant chains to consolidate. Most hospitality enterprises may operate as a part of a chain or label in a few years. 6. Real-estate footprints will shrink The value of the global market for dark kitchens in 2019 was estimated to be over $40 billion. But due to the pandemic, the market has grown years faster than usual in recent months. According to a Euromonitor analysis, the global market for dark kitchens could grow to $1 trillion by 2030. It’s not just industry insiders that see the possibilities in this cutting-edge business strategy. As dark kitchens continue to gain popularity. At the height of the pandemic, restaurants started using virtual restaurant brands in an effort to reach customers. They were able to generate income thanks to this idea without having to make any changes to their current real estate. Given the rapid growth of delivery and takeaway, the rise of virtual brands is not anticipated to slow down anytime soon. Restaurants may reconsider their real-estate footprints as internet ordering grows in popularity. Restaurants may reduce the amount of space available for dine-in customers while expanding the cooking, take-out, and pick-up sections in order to accommodate greater off-premises sales. In order to prioritize the customer and increase earnings, they do this. 7. Customers will require assurances about cleanliness and safety Although food safety and cleanliness have always been crucial components of the hospitality sector. They now matter much more for obvious reasons. Even after the epidemic, taking safety precautions to ensure that eating at home is a safe experience will remain a top concern. A restaurant’s success depends on including safety rules and effectively and openly speaking about them. Restaurants will need to keep reassuring both patrons and staff. Therefore, safety precautions like gloves, face masks, and temperature gauges are probably here to stay. Contactless ordering and payment methods as well as hands-free handwashing facilities will become standard. The same is true for air filtration and CO2 monitoring technology. However, there’s more. The physical layout of restaurants will also need to adapt to accommodate more flexible seating. There will be fewer tables placed more evenly around the dining space, and there will also be additional lounge-style outdoor seating. Restaurants will continue to use plexiglass partitions and other moveable obstacles to maintain social

5. segregation policies. These modifications all put the safety and comfort of the guests first. Restaurant owners who are ready to adjust to these new requirements will discover it is a great method to attract customers back to their establishment. The future Of The Food Industry Will Look Like this The hospitality industry has shown it is robust, resourceful, and prepared to succeed in the future by surviving one of the most trying periods in its history. However, a restaurant’s success will ultimately depend on what it does after that. The secret is to keep up with current trends that concern clients and avoid becoming static in daily operations. Future dining establishments are ready to make the switch to digital ordering, leveraging state-of-the-art tools to increase efficiency and enhance customer experience. It also knows how to create an effective menu, effectively training staff. Keep them on board, and convert them into brand ambassadors for food. Future-proof dining establishments are aware that bad days can happen, but not when it comes to sanitation and food safety. They’re open to rearranging their seating arrangement to fit new seating preferences. The restaurant of the future adjusts experiences in accordance with what matters most to its patrons. Restaurants must remain adaptable and have the capacity to change course swiftly in response to market conditions and constraints if they are to secure their continued success. Hence for more relevant information related to food or the food industry you can reach out to Corrainder Leaf.