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Food Consultants in Andhra Pradesh

Investment in food and beverage business in India is a new buzz created for all good reasons. Since the last few years, the government has shifted  its eye on food sector which is poised to see tremendous growth in coming future. The numbers say it all: The total consumption of the food and beverage segment in India is expected to increase from US$ 369 billion to US$1.142 trillion by 2025, output of the food processing sector (at market prices) is expected to increase to US$ 958 billion for the same period. The government has accorded it a high priority sector and the estimates clearly evidence the vast market opportunity offered by the Indian food processing.

Why Andhra Pradesh?

The State, popularly known as ‘Rice Bowl of India’  has a large and diverse raw material base suitable for food processing industry. In recent years, Government of Andhra Pradesh has adopted various industry friendly initiatives under its ‘Andhra Pradesh Food Processing Policy’ wherein it  offers single window clearance for Food Processing Units, thereby, eradicating the archaic complexity of regulatory environment.

The Government provides a conducive environment for such units in terms of subsidies on capital, interests, stamp duty,  tax incentives, certifications, patent registration , supplying 24X7 reliable and quality power.

One out of three Mega Food Parks, Srini Food Park Private Limited in Chittoor, is already functional. The other two Mega Food Parks in the state are Godavari Mega Aqua Park Pvt. Ltd., West Godavari and Andhra Pradesh Industrial Infrastructure Corporation (APIIC), Krishna

The State has the second longest coastline in India and is also one of the largest producers of marine products which offers a strategic location for exports.

Owing to its bountiful natural resources and huge impetus provided by Government of Andhra Pradesh,  this state acts as a food processing hub for the following value added sub sectors :
  • Fruits and Vegetable Processing:  Only 2% of fruits and vegetables are processed in India as against 65% in US. Andhra Pradesh ranks first in India in production of Mango, Papaya, Lemon and Tomato. Some of the major value added products that can be delved into are mango pulp, concentrate, Juice, squash, fruit jelly, jam, pickles, ketchup, sauces and of course, any innovative product that you have in your mind.
  • Dairy processing: Andhra Pradesh is the third largest milk producing state in India. While share of processing in dairy is high at around 35% only 15% of the processing is done by organised players. So, there is still huge opportunity in processed products like Cheese, Ice Cream, Pasteurized and Flavored Milk, Butter, Paneer, Ghee, Butter Milk, Curd.
  • Poultry & Marine Processing : Andhra Pradesh ranks first in India in Egg production, and has strong position with respect to milk and meat production. Only 6% of poultry and 26% of marine product are processed in the country.
  • Spices: Being the largest producer of turmeric and third largest producer state of chillies , Guntur offers as oleoresins hub in the state.
Food Consultant in Andhra Pradesh

So, you can see, the biggest challenge is that the food processing sector is dominated by unorganised players who contribute to 80% of the food processing industry (by volume) unlike other sectors viz. Pharma, Automobile and IT where over 90% of the sector constitutes organised players. There is a conversion of un-organised to organised sectors but this still needs to cover quite a distance.

Market for your product?

Now, let’s answer a frequently asked question- Is there any market for your product?

Well, Food continues to be the biggest expense for an urban Indian household. Rising income levels and a growing middle class is leading to increased desire for branded and packaged food. Also, with favourable economic & cultural transformation, shift in attitudes & lifestyles, consumers are experimenting with different cuisines, tastes and new brands.

So, if you  provide a better taste, convenience and nutritive quality product to customers, they are willing to pay a premium for it.

Want to jump on the bandwagon?

Don’t worry we have got your back. We, at Foodbuddies  along with our expert team of food technologists provide services from the idea generation all the way through product development, marketing, branding to the final commercialization.

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