Inflation will have impact on food industry as well
There will be direct and indirect impact of the rising inflation rate on the performance of the processed food industry as well. Let us examine the kind of impact inflation can have on our processed food industry.

Retail Revolution is Finally Arrived: Impacting Our Food Industry
Wal-Mart, the world’s number one company in the fortune 500 list has finally firmed up a plan to enter India through a 50 : 50 joint venture with Bharti Telecom. Bharti Group had been discussing their retail business with the Tesco for quite sometime and it was reported earlier that they are going together.

Some New Food Ventures Encashing on Huge Opportunity from Global Retail Giant
With increasing globalization and integration of markets Indian companies have found new opportunities to tie up with large global players with assured market. There are a few companies who are encashing on these opportunities.

In alcoholic beverages Focus is Shifting to Wine
Alcoholic beverages industry is experiencing a growth of over 10 percent in the recent years. In that, white spirit such as gin and vodka are leading. Beer is also growing at around 12 percent during the same period. But major shift in the growth is seen to be happening in wine.

Food Research Institutions in India Produce Little Value
Crores of rupees have been spent by young food researchers reproducing the knowledge which are either known and or explored elsewhere. This therefore has put the industry, in particular and the nation, in general into the back gear...

Orgaised retailing can bring in the expected growth in the food and agriculture based industry
The organized retailers will eliminate the losses and therefore the prices will come down and quality will improve. It was reported in a study by ICRIER that prices of certain products including poultry in Bangalore have reduced after Metro Cash & Carry streamlined the supply network and reduced the number of intermediaries.

Health foods are getting more focus
Health food and nutraceuticals are increasingly gaining grounds and the category is growing fast. This trend is now more visible and as younger generation has become more health conscious marketers are trying to focus on this attribute.

Acquisition of Domestic Food Business by MNCs
Liberalisation has brought in through the entry of large multinational and transnational corporations, foreign investment in this sector. This resulted in competition, technological upgradation and market expansion. In the face of the competition, domestic Industries are gradually losing market share and thus selling their businesses to the new entrant MNCs well before the value of the brand and businesses drops further due to ongoing onslaught of multinational brands.

Global Competition
Ten years ago Indian processed food industries were crying about high taxation, lack of infrastructural support, nonavailability of quality raw material at competitive price, nonavailability of latest packaging machinery and packing material etc. as the major reasons for poor or sluggish growth of this sector.

Technological Upgradation Leading to Superior Quality
Food processing industry in India has undergone a total metamorphosis over the last six to seven years, in terms of types, variety, quality and presentation which is a result of liberalisation leading to foreign direct investment in frontiers of processed food sectors.

Proliferation and Extension of Food Brands
Depending upon what consumer segments we are targeting the processing methods, type of food and its taste and packaging and total presentation varies widely. In a country like India where local taste preferences differ from region to region it poses a much bigger problem to produce food products which can have a much larger acceptance and hence a bigger market potential.

MNCs' Entering Traditional Foods Sectors
Historically, traditional food items were the domain of small local players. Grocery items earlier were sold loose and unbranded. Then some progressive traders started the cleaning, grading and primary packaging. And the next stage of development was branding of primary foods such as Atta (wheat flour), Rice etc. but those were mainly regional brands. Popular among these were "Rose" and "Shakti Bhog" brands in northern India.

Food Retailing Has Now Become Industry
Shopping foods is no longer a strenuous and uncomfortable affair. Instead, it is a pleasurable experience. From simple trading activity, food retailing is now graduating to a status of an industry. Food retailing has come of age -- from a period when food items were sold in small road side grocer shops & mandis and bazzars to a stage when food products are retailed through supermarket stores where consumers can inspect, select and pick up the products they like in a comfortable ambient and still pay a fair price for the product and the merchandise and sometimes even pay less than the price they would have paid at the nearest food stores.

Imported Foods in Indian Market
Not too long ago for buying imported foods we had to go to select markets -- such as Modern Bazar, Vasant Vihar in Delhi or Fort in Mumbai. In other places one has to literally search for such choice food items. In those days importing foods were not permitted. In the last couple of years these imported foods are available almost in all leading shops in most of the shopping centres in the city.

Fads in Processed Food Industry
Fashion changes, so also has been seen for many processed food items which came and gone. Like fashion designers, marketers of food products translated the ideas and dreams of nutritionists, technologists and investors to create the demand of new types of food but many of these were shortlived. Investors rushed to make significant new investment in those processed food industries which disappeared like fads.