There was a time when Indian consumers had little choice but to buy food products available in the market without expecting much variety, both nutritional and sensory.
However, beginning in the 1990s there have been phenomenal changes in the food industry with several new companies (both small-sized and multinational) foraying into the market with diverse range of products. Over a period of time, consumer demand has undergone a sea change and the government has also adopted a liberal approach to promote the food industry.
In the past few years, several additives that have been used across the world for many decades and proven safe have entered the Indian market. A wide range of new ingredients are available for use in processing food products.
In addition, there are many ingredients manufactured to cure certain diseases and ailments ranging from cardio-vascular diseases and hypertension to bone, eye and memory problems. Hence, according to industry experts, there will be many challenges as well as opportunities for ingredients manufacturers and developmental scientists in the future.
Industry overview
The fast growing Indian food industry is currently pegged at around Rs 4,00,000 crore. Industry experts foresee the Indian food industry to outpace its American and European counterparts in the near term.
Another segment that is growing at a steady pace in recent times is Functional Foods. The world market for functional foods is about $75 billion. This industry is mostly concentrated in North America, Europe and Japan.
Significantly, the Indian market is also fast catching up with products like cholesterol management functional foods, high fibre bakery products and other functional ingredients, herbal tea etc. Considering the high demand for healthy and functional food products in India, this market is expected to grow exponentially in the next five years.
Growth potential
There are several factors that will stimulate the growth of health and wellness food products in India. Urbanisation, consumer consciousness and increasing instances of ailments are driving the demand for health and wellness foods. Consumers have become health conscious and have been opting for foods with high nutrition value.
Some products containing ingredients like omega-3 fatty acids, fibre, isoflavonols, probiotics etc have got a good response in India. Such products will not only help improve sales but also provide solution to health problems faced by a large section of urban Indian population.
Road ahead
In the US, the Food and Drug Administration (FDA) has enforced some strict guidelines to ensure that health and wellness food product manufacturers do not mislead consumers. These laws forbid the promotion of foods and ingredients as cures for ailments. Indian government should also take similar steps to ensure that these products are packaged and labelled properly.
By spreading awareness, Indian consumers can be made aware of the nutritional value of the food products they intend to purchase. Products like atta or flour that forms staple diet for millions in India would be ideally suited for iron fortification. It is also necessary to supplement food products with foliate and other B-vitamins.
With the demand for health foods increasing steadily, the market for health and wellness foods will grow in India. It would thus be important for the government to promote the food industry by introducing incentives, tax breaks and additional sops. Dr JS Pai is the Executive Director of Protein Foods and Nutrition Development Association of India (PFNDAI), an independent food association. |
