Packaged Foods & Meats in India

Industry Profile

Reference Code: 0102-2121 Publication date: December 2006

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
Market Value The Indian packaged foods and meats market grew by 5.6% in 2005 to reach a value of $65.3 billion. Market Value Forecast In 2010, the Indian packaged foods and meats market is forecast to have a value of $83.4 billion, an increase of 27.8% since 2005. Market Volume The Indian packaged foods and meats market grew by 3.3% in 2005 to reach a volume of 131.4 billion kg. Market Volume Forecast In 2010, the Indian packaged foods and meats market is forecast to have a volume of 155.7 billion kg, an increase of 18.5% since 2005. Market Segmentation I Sales of dried food account for 53.3% of the market's value. Market Segmentation II India accounts for 13.8% of the Asia-Pacific market's value. Distribution Independent retailers form the largest distibution channel, accounting for 74.2% of the market's value.

India - Packaged Foods & Meats Datamonitor (Published December 2006) Page 3

CONTENTS

TABLE OF CONTENTS

EXECUTIVE SUMMARY CHAPTER 1

1.1 1.2 1.3

3 7
7 7 8

Market Overview

Market Definition Research Highlights Market Analysis

CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7

7.1 7.2 7.3 Nestle S.A.

Market Value Market Volume Market Segmentation I Market Segmentation II Competitive Landscape Leading Companies

9 10 11 12 13 14
14 14 14

General Mills, Inc. Gujarat Cooperative Milk Marketing Federation Ltd.

CHAPTER 8 CHAPTER 9
9.1 9.2

Distribution Market Forecasts

15 16
16 17

Market Value Forecast Market Volume Forecast

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CONTENTS
CHAPTER 10 CHAPTER 11
11.1 Sources 11.2 Related Datamonitor Research

Macroeconomic Indicators Further Reading

18 20
20 20

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CONTENTS

LIST OF TABLES
Table 1: Table 2: Table 3: India Packaged Foods & Meats Market Value: $ billion, 2001-2005 ...................9 India Packaged Foods & Meats Market Volume: Kg billion, 2001-2005 ............10 India Packaged Foods & Meats Market Segmentation I: % Share, by Value, 2005 .................................................................................................................11 India Packaged Foods & Meats Market Segmentation II: % Share, by Value, 2005 .................................................................................................................12 India Packaged Foods & Meats Distribution: % Share, by Value, 2005 ............15 India Packaged Foods & Meats Market Value Forecast: $ billion, 2005-2010 ..16 India Packaged Foods & Meats Market Volume Forecast: Kg billion, 2005-2010 . .........................................................................................................................17 Table 8: Table 9: Table 10: Table 11: India Size of Population (million) , 2001-2005...................................................18 India GDP (1995=100), 2001-2005...................................................................18 India Inflation, 2001-2005 .................................................................................18 India Exchange Rate, 2001-2005 .....................................................................19

Table 4:

Table 5: Table 6: Table 7:

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MARKET OVERVIEW

CHAPTER 1

MARKET OVERVIEW

1.1

Market Definition
The packaged foods and meats market consists of the total revenues generated through the sale of bakery and cereal products, canned food, chilled food, confectionery, dairy food, dried food, frozen food, ice cream, meat, fish and poultry, oils and fats, pasta and noodles, ready meals, sauces, dressings and condiments, savory snacks, soup and spreads. Any currency conversions used in the creation of this report have been calculated using constant 2005 annual average exchange rates. For the purposes of this report, Asia-Pacific consists of Australia, China, India, Japan, Taiwan, Singapore and South Korea.

1.2

Research Highlights
The Indian packaged food and meat market generated total revenues of $65.3 billion in 2005, this representing a compound annual growth rate (CAGR) of 6.4% for the five-year period spanning 2001-2005. Dried food sales proved the most lucrative for the Indian packaged food and meat market in 2005, generating total revenues of $34.8 billion, equivalent to 53.3% of the market's overall value. The performance of the market is forecast decelerate, with an anticipated CAGR of 5% for the five-year period 2005-2010 expected to drive the market to a value of $83.4 billion by the end of 2010.

India - Packaged Foods & Meats Datamonitor (Published December 2006) Page 7

MARKET OVERVIEW

1.3

Market Analysis
During the past five years, the Indian packaged food and meat market has grown strongly in volume and value. Some deceleration is forecast, but the Indian market will remain one of the fastest-growing in the Asia-Pacific region. The Indian packaged food and meat market generated total revenues of $65.3 billion in 2005, this representing a compound annual growth rate (CAGR) of 6.4% for the five-year period spanning 2001-2005. In comparison, the Chinese and Japanese markets grew with CAGRs of 9.4% and 1.1% over the same period, to reach respective values of $152.8 billion and $179.8 billion in 2005. The market consumption volumes increased with a CAGR of 3.3% between 20012005, to reach a total of 131.4 billion kg in 2005. The market's volume is expected to rise to 155.7 billion kg by the end of 2010, this representing a CAGR of 3.5% for the 2005-2010 period. Dried food sales proved the most lucrative for the Indian packaged food and meat market in 2005, generating total revenues of $34.8 billion, equivalent to 53.3% of the market's overall value. In comparison, sales of bakery and cereal products generated revenues of $2.2 billion in 2005, equating to 3.4% of the market's aggregate revenues. The performance of the market is forecast decelerate, with an anticipated CAGR of 5% for the five-year period 2005-2010 expected to drive the market to a value of $83.4 billion by the end of 2010. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 9% and 1.2% respectively over the same period, to reach respective values of $235.1 billion and $191.1 billion in 2010.

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MARKET VALUE

CHAPTER 2

MARKET VALUE

The Indian packaged foods and meats market grew by 5.6% in 2005 to reach a value of $65.3 billion. The compound annual growth rate of the market in the period 2001-2005 was 6.4%. Table 1: India Packaged Foods & Meats Market Value: $ billion, 20012005 $ billion 51.0 54.2 58.1 61.8 65.3 INR billion 2,248.7 2,390.4 2,562.7 2,725.8 2,878.9 % Growth

Year 2001 2002 2003 2004 2005 CAGR, 2001-2005:

Source: Datamonitor

6.30% 7.20% 6.40% 5.60% 6.4%

DATAMONITOR

Figure 1:

India Packaged Foods & Meats Market Value: $ billion, 20012005

$ billion 70 60 50 $ billion 40 30 20 10 0 2001 2002 2003

% Growth 8.0% 7.0% 6.0% % Growth 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2004 2005

Source: Datamonitor

DATAMONITOR

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MARKET VOLUME

CHAPTER 3

MARKET VOLUME

The Indian packaged foods and meats market grew by 3.3% in 2005 to reach a volume of 131.4 billion kg. The compound annual growth rate of the market volume in the period 2001-2005 was 3.3%. Table 2: India Packaged Foods & Meats Market Volume: Kg billion, 20012005 Kg billion 115.6 119.1 123.1 127.2 131.4 % Growth

Year 2001 2002 2003 2004 2005 CAGR, 2001-2005:

Source: Datamonitor

3.10% 3.40% 3.30% 3.30% 3.3%

DATAMONITOR

Figure 2:

India Packaged Foods & Meats Market Volume: Kg billion, 20012005

Kg billion 140 120 100 Kg billion 80 60 40 20 0 2001 2002 2003

% Growth 3.40% 3.35% 3.30% 3.25% 3.20% 3.15% 3.10% 3.05% 3.00% 2.95% 2.90% 2004 2005

% Growth

Source: Datamonitor

DATAMONITOR

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MARKET SEGMENTATION I

CHAPTER 4

MARKET SEGMENTATION I

Sales of dried food account for 53.3% of the market's value. In comparison, sales within the bakery and cereals segment generate 3.4% of the market's revenues. Table 3: India Packaged Foods & Meats Market Segmentation I: % Share, by Value, 2005 % Share 53.30% 3.40% 0.30% 0.20% 42.80% 100.0%
DATAMONITOR

Category Dried Food Bakery & Cereals Frozen Food Meat,fish & Poultry Other Total
Source: Datamonitor

Figure 3:

India Packaged Foods & Meats Market Segmentation I: % Share, by Value, 2005

Other 42.8% Meat,fish & Poultry 0.2% Frozen Food 0.3% Bakery & Cereals 3.4% Dried Food 53.3%

Source: Datamonitor

DATAMONITOR

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MARKET SEGMENTATION II

CHAPTER 5

MARKET SEGMENTATION II

India accounts for 13.8% of the Asia-Pacific market's value. In comparison, China generates a further 32.4% of the regional market's revenues. Table 4: India Packaged Foods & Meats Market Segmentation II: % Share, by Value, 2005 Geography Japan China India Rest of Asia-Pacific South Korea Total
Source: Datamonitor

% Share 38.10% 32.40% 13.80% 11.90% 3.80% 100.0%

DATAMONITOR

Figure 4:

India Packaged Foods & Meats Market Segmentation II: % Share, by Value, 2005
South Korea 3.8% Rest of AsiaPacific 11.9% India 13.8%

Japan 38.1%

China 32.4%

Source: Datamonitor

DATAMONITOR

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COMPETITIVE LANDSCAPE

CHAPTER 6

COMPETITIVE LANDSCAPE

Due to the highly fragmented nature of the dried foods segment of the Indian packaged food and meats market, no company has a segment share greater than 0.1%. Nestle leads the dried foods segment of the Indian packaged foods and meats market, with sales in 2004 amounting to $31.5 million. Other significant players in the dried foods segment include Gujarat Cooperative Milk Marketing Federation whose market segment revenues were $16.4 million and General Mills with segment sales of $6.7 million in 2004. Independent retailers form the most significant distribution channel for the packaged foods and meat market in India, accounting for 74.2% of the market by value. Sales by supermarkets and hypermarkets account for an additional 13.6% of the market.

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LEADING COMPANIES

CHAPTER 7

LEADING COMPANIES

7.1

Nestle S.A.
Nestle is the world's largest food and beverage company in terms of sales. The company's products include beverages; milk products, nutrition and ice cream; prepared dishes and cooking aids; pet care, and pharmaceutical products. The company primarily operates in Europe, the Americas, Asia, Oceania and Africa. Its global brands include Nescafe, Taster's Choice and Kit Kat among others. The company is headquartered in Vevey, Switzerland and employs 250,000 people. The company recorded revenues of CHF 91,075 million (approximately $69,231.6 million) during the fiscal year ended December 2005, an increase of 7.5% over 2004. The operating profit of the company was CHF 11,852 million (approximately $9,009.4 million) during fiscal year 2005, an increase of 10.1% over 2004. The net profit was CHF 8,080 million (approximately $6,142.1 million) in fiscal year 2005, an increase of 22% over 2004.

7.2

General Mills, Inc.

General Mills is a leading producer of packaged consumer foods that operates exclusively in the consumer foods industry. The company operates in more than 100 countries. It is headquartered in Minneapolis, Minnesota and employs about 28,000 people. The company recorded revenues of $11,244 million during the fiscal year ended May 2005, an increase of 1.6% over 2004. The operating profit of the company was $2,270 million during fiscal year 2005, an increase of 12.5% over 2004. The net profit was $1,240 million in fiscal year 2005, an increase of 17.5% over 2004.

7.3

Gujarat Cooperative Milk Marketing Federation Ltd.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) is a co-operative made up of nearly 12,000 village societies. The group is headquartered in Anand, India. GCMMF is a private organization and as such is not obliged to release any financial information. For fiscal 2006, the company generated revenues of $850 million, an increase of 26.5% over the previous fiscal year.

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DISTRIBUTION

CHAPTER 8

DISTRIBUTION

Independent retailers form the largest distibution channel, accounting for 74.2% of the market's value. Supermarkets and hypermarkets generate a further 13.6% of the market's revenues. Table 5: India Packaged Foods & Meats Distribution: % Share, by Value, 2005 % Share 74.20% 13.60% 12.30% 100.0%
DATAMONITOR

Channel Independent retailers Supermarkets / hypermarkets Other Total

Source: Datamonitor

Figure 5:

India Packaged Foods & Meats Distribution: % Share, by Value, 2005

Other 12.3% Supermarkets / hypermarkets 13.6%

Independent retailers 74.2%

Source: Datamonitor

DATAMONITOR

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MARKET FORECASTS

CHAPTER 9

MARKET FORECASTS

9.1

Market Value Forecast

In 2010, the Indian packaged foods and meats market is forecast to have a value of $83.4 billion, an increase of 27.8% since 2005. The compound annual growth rate of the market in the period 2005-2010 is predicted to be 5%. Table 6: India Packaged Foods & Meats Market Value Forecast: $ billion, 2005-2010 Year 2005 2006 2007 2008 2009 2010 CAGR, 2005-2010:
Source: Datamonitor

$ billion 65.3 68.6 72.0 75.5 79.3 83.4

INR billion 2,878.9 3,026.9 3,175.5 3,331.2 3,499.9 3,678.4

% Growth 5.60% 5.10% 4.90% 4.90% 5.10% 5.10% 5.0%

DATAMONITOR

Figure 6:

India Packaged Foods & Meats Market Value Forecast: $ billion, 2005-2010

$ billion 90 80 70 60 50 40 30 20 10 0 2005 2006 2007 2008

% Growth 5.8% 5.6% 5.4% % Growth 5.2% 5.0% 4.8% 4.6% 4.4% 2009 2010

Source: Datamonitor

$ billion

DATAMONITOR

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MARKET FORECASTS
9.2 Market Volume Forecast
In 2010, the Indian packaged foods and meats market is forecast to have a volume of 155.7 billion kg, an increase of 18.5% since 2005. The compound annual growth rate of the market volume in the period 2005-2010 is predicted to be 3.5%. Table 7: India Packaged Foods & Meats Market Volume Forecast: Kg billion, 2005-2010 Kg billion 131.4 135.7 140.3 145.2 150.3 155.7 % Growth 3.30% 3.30% 3.40% 3.50% 3.50% 3.60% 3.5%
DATAMONITOR

Year 2005 2006 2007 2008 2009 2010 CAGR, 2005-2010:

Source: Datamonitor

Figure 7:

India Packaged Foods & Meats Market Volume Forecast: Kg billion, 2005-2010

Kg billion 160 155 150 145 140 135 130 125 120 115 2005 2006 2007 2008 Kg billion

% Growth 3.7% 3.6% 3.5% 3.4% 3.3% 3.2% 3.1% 2009 2010 % Growth

Source: Datamonitor

DATAMONITOR

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MACROECONOMIC INDICATORS

CHAPTER 10 MACROECONOMIC INDICATORS

Table 8: Year 2001 2002 2003 2004 2005 India Size of Population (million) , 2001-2005 Population (million) 1018.5 1034.2 1049.7 1065.1 1080.3 % Growth

1.50% 1.50% 1.50% 1.40%

Source: Datamonitor

DATAMONITOR

Table 9: Year 2001 2002 2003 2004 2005

India GDP (1995=100), 2001-2005 1995=100 140.9 146.5 157.3 167.9 179.2 % Growth

4.00% 7.40% 6.70% 6.70%

Source: Datamonitor

DATAMONITOR

Table 10: Year 2001 2002 2003 2004 2005

India Inflation, 2001-2005 Inflation Rate (%) 5.1 2.8 3.8 4.4 5.1 % Growth

-44.90% 36.10% 14.50% 16.10%

Source: Datamonitor

DATAMONITOR

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MACROECONOMIC INDICATORS
Table 11: India Exchange Rate, 2001-2005 Exchange Rate ($/INR) 0.02117 0.02054 0.02143 0.02206 0.02267

Year 2001 2002 2003 2004 2005

Source: Datamonitor

DATAMONITOR

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CONTENTS

CHAPTER 11 FURTHER READING

11.1 Sources
This report is based on a combination of primary Datamonitor research, including online, face-to-face and telephone interviews with consumer and industry players, and secondary research using various sources (including trade associations, news providers and others).

Industry Associations Confederation of Indian Food and Trade Industry (CIFTI) Federation House Tansen Marg New Delhi 110001 Tel: 91 11 373 6305 Fax: 91 11 332 9714 http://www.cifti.com/

11.2 Related Datamonitor Research

Datamonitor Industry Profiles Global Packaged Foods & Meats ($200) Packaged Foods & Meats in Europe ($200) Packaged Foods & Meats in Asia-Pacific ($200) Packaged Foods & Meats in France ($200) Packaged Foods & Meats in Hungary ($200) Packaged Foods & Meats in Japan ($200) Packaged Foods & Meats in China ($200) Packaged Foods & Meats in Taiwan ($200) Packaged Foods & Meats in Brazil ($200) Packaged Foods & Meats in Canada ($200) Packaged Foods & Meats in Mexico ($200)

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