Food Imports In India - Satisfying The Evolving Indian Palate
Biz@India|September - November 2017

Catering to the preferences of consumers and their willingness to spend more on new items, shelves in Indian supermarkets are being packed with an array of processed, imported foods. But are the industry watchdogs filtering all that is reaching the consumers?

Surbhi Kapila
Food Imports In India - Satisfying The Evolving Indian Palate

In a supermarket of a neighbourhood in New Delhi, food shelves are packed with boxes of breakfast cereals, flavoured yoghurts, canned fruits and bottled juices. There are also racks of candies, sundried fruits, olives, cheeses and much more. Among the plethora of packed foods, products made in India seem to be fighting for space with international labels. In another aisle, an employee is moving around with a tray, offering people to sample and buy the new chips and sauces they have in the store.

The food import industry in India has been witnessing a surge. Demand for imported processed foods is increasing as a new consumer class – with higher disposable income and evolved tastes – is emerging, giving an upward push to the retail segment in the country.

At an approximate worth of USD 22 trillion, retail is one of the largest sectors in the global economy, and it is going through a transition phase in India as well. Globally, more than 72 pc of food sales happen through super stores and India presents a huge opportunity in this regard as it is moving towards a major retail revolution. Although it is the least saturated of global markets with a small, organised retail sector, and also the least competitive, the Indian retail market stands promising.

Consumers are receptive to all kinds of new food products, but certain products have an edge over others; the reason being their early footprint in the booming import segment of India. Olive oil for instance, has for long been on shelves at super markets and is now easily available at local ration stores in India. For all the goodness it has, it was very smartly marketed in a country fast becoming increasingly health conscious. Otherwise an expensive product, cheaper versions of olive oil were initially introduced for a market that used oil for cooking and not for seasoning or garnishing.

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