PETpla.net Insider 05 / 2016

TRADE SHOW PREVIEW 32 PET planet insider Vol. 17 No. 05/16 www.petpla.net drink technology India (dti) 2016 It will soon be “that time” again. From December 15-17 this year the exhibition halls at the Bombay Exhibition Centre will, once again, be the venue for drink technology India (dti). The biennial trade show, now in its sixth incarnation and coinciding with International Packtech India, has devel- oped over the years into an established institution of the entire local drinks industry on the Subcontinent, enjoying a steadily growing number of exhibitors and visitors. The PET- planet team has been part of it since the beginning and we continue support the events as a cooperation partner. The Indian drinks market is undisputedly one of the most excit- ing markets in the world. The burgeoning middle class, with its new-found purchasing power and growing awareness of hygiene and health, is steering the packaging industry and creating room for investments by machinery manufacturers and users alike. That is why we, as a publisher, regularly take editorial trips to India, speak with the important play- ers in the market and present the trends and developments in the industry. Once again and in the context of this year’s dti, I went to visit and interview PET machine manufacturing, supplier and drinks companies across India. Over three dti specials spread through the year, we will be publishing the reports of these interviews together with helpful information about dti itself. Yours, Kay Barton Overview of the Food and Beverage Industry – Trends & Outlook Advantage India by Rajesh Nath The Indian economy – the “I” in BRICS – is one of the fastest growing in the world. It is currently ranked as the 7 th largest, based on its 2015 GDP, in US Dollars. Food, food products and beverages are the largest consumption catego- ries in India; with a population of over a billion and 300 million middle class consumers, it has an immense domestic market. Consequently, the Indian beverage and food processing industry is seen as a sunrise sector and has gained in promi- nence in recent years. Rising incomes are expected to further stimulate future sales growth. The opening up the multi-brand retail business for foreign direct investment (up to 51%), as announced in the country’s recent Budget statement, is also certain to pave the way for investment in supermarkets and hypermarkets. The Boston Consulting Group predicts an increase of expenditure in India for processed foods and bev- erages from $40 billion to $180 billion by 2020. Trends A wide array of products, coupled with increasing global connectivity, has led to a change in the tastes and prefer- ences of domestic consumers. This trend has been sup- ported by rising incomes, increasing urbanisation, a young population and the emergence of nuclear families. In addition, consumer preference is moving towards healthier drinks and snacks. Consumers have become aggressive in demanding better, safer and convenient beverage and food products and they are willing to pay a higher price for health and convenience. This creates opportunities in product inno- vation, specialised products and product extensions. Liber- alisation and growth of organised retail have made the Indian market more attractive for global players. With a large agricul- ture sector, abundant livestock and cost competitiveness, India is fast emerging as a sourcing hub of beverages and processed food. Currently the international players in beverages market in India are Coca Cola, PepsiCo, Diageo, SAB Miller, Heineken and in the food processing area Danone, Nestlé, Kraft Foods, Mondelez International and Heinz. Strategic geographic location and ongoing increase in raw material production help India to supply cheaper products to other countries. This boosts India’s exports of processed food and related items, which rose at a CAGR of 23.3% during FY11–15. Companies like Haldiram’s and Bikanervala supply Indian snacks to over 70 countries. Beverages and food packaging has enabled today’s consumers to look for various options and to compare their value offerings, before making a purchase. Packaging has helped enhance the ‘carryability’ of products, while improving their shelf life at the same time. In a symbiotic relationship, rising demand for Food and Beverage boosts the packaging industry as well. Beverage industry Sales volume of total soft drinks and of the main product cat- egories in India In litres mn 2013 2018 Growth rate 2013-2018 Soft drinks 11,755 22,937 95.1% Bottled water 8,197 16,957 106.9% CSD 2,352 3,465 47.3% Juice (fruit/vegetable) 1,132 2,413 113.2% Source: Euromonitor International 2014, VDMA Rajesh Nath, Managing Director at VDMA India