Importance Of Food And Beverage Industry

Instructional Objectives

After completing this chapter, you should be able to:

• Define the scope and importance of food and beverages marketing

• List different classes of Food and Beverages Industries

• Describe cost and market orientation in food and beverages industry

• Explain the roles and responsibilities of an food and beverage manager

• Identify the different constrains on food and beverages management

Learning Outcomes

At the end of this chapter, you are expected to:

• Recall the scope and importance of food and beverages marketing

• Categorise different classes of Food and Beverages Industries

• Identify cost and market orientation features in food and beverages industry

• Describe the roles and responsibilities of an food and

Right now Food and grocery market is increased by 31 per cent of India’s consumption basket.

According to the Government of India, recently India acquires 32 per cent of the country’s total food market. Government is also taking action for the development of the food processing industry.

Ministry of Food Processing Industries, controlled by the Indian government, is making all efforts to encourage investments in the business. The Ministry has approved proposals for foreign collaborations, industrial licenses as well as joint ventures and 100 per cent export oriented units.

In India food processing industry and beverage industry is one of the largest industries. India ranks fifth in terms of production, consumption and exports. This is mainly because of cosmopolitan lifestyle, shortage of time and easily available to people. Food processing industry's annual turnover is more than 2, 50,000 crore. It contributes 14% to India's GDP through

Food processing industry is a part of whole food market and it accounts for 32 per cent of the country’s total food market. o The recent food market of India is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate of 20 per cent every year. o The packaged food industry includes dairy products, baked goods, convenience food, cookies, and confectionaries. One of the most popular baked goods in India is cookies and the other is biscuits. o In the category of hot beverages tea is the most common beverage in India, especially in eastern, northern, western and regions. Coffee is also very popular among Indians. o India is a country of different habits. Northern, eastern and western part of India like to have tea where southern continent is very fond of coffee both brewed and instant, including coffee blended with chicory. o Food sector of India has received around US$ 7.47 billion worth of Foreign Direct Investment during the period April 2000-December 2016. o The Confederation of Indian Industry (CII) stated that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment of nine million