Indias Food Vision:

The Next Decade

Arvind Singhal

Key Emerging Themes

Fundamental Impact On Food Sector

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3 Key Themes .

Population & Income increase

Increasing Nuclear Families and Working Women

Impact on Food Demand

Palate & Lifestyle Changes

Theme # 1:

Population & Income Increase

In the next 10 years, India would have added another 180 million to its population, taking it to over 1.3 Billion inhabitants Over 65% of them will still be below 40 years of age and the caloricintake demand will therefore rise faster than the simple increase in population number. In addition, with real per-capita incomes likely to nearly double in the next 10 years and more than 2/3rds of the current population still just above or below the poverty line, as incomes increase, the first category to see increased spending will be food. For the relatively more affluent, the increase will be in meat, dairy, fresh vegetables, and fruit intake
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Theme # 2:

Palate & Lifestyle Change

Increased urbanization, increased movement within India, and increase globalization all in the context of a very young (and more adventurous and exploratory) population will see rapid changes in Indian palate: multiplicity of cuisines will become the norm having its own implications Lifestyle changes will become even more pronounced, and therefore the changes in what we eat, where we eat, and when we eat will be very significant

Theme # 3: Nuclear Families & Working Women

The impact of nuclearization of Indian family is already visible in major urban centers. As more women enter the urban workforce, touching by 2020 over 50% of all women in working age group, the impact will be profound on the dynamics of kitchen and the dining table

Key Impact Areas

Challenges & Opportunities

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Key Impact Areas

Rising consumption:
With agriculture productivity rising much slower than the consumption increase, India may see its food security eroded very substantially by 2020. Pressure on land and water resources will increase, and consumption of more meat, dairy, and horticulture will exacerbate these pressures Sustained food inflation very much a stark reality in the next decade

Key Impact Areas

Evolving palate and changing lifestyle:
Eating out and demand for multi-cuisine ready-to-eat (and ready-to-cook) food will increase as more households experiment with new cuisines and try to satisfy the newly acquired tastes that go beyond moms cooking Eating on the move / shorter meal times will lead to rise in more convenience foods with at least one main meal (week-day lunch) in urban centers likely to become more convenience driven

Key Impact Areas

Nuclearization & increase in working women:
Steadily reduced time for spending in the kitchen Steadily reduced expertise in cooking per se However, desire to have home-cooked, healthier, tastier meals will actually enhance creating new opportunities for some very different kinds of businesses and new products

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Implications & Recommendations

Intuitively Simple

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Implications & Recommendations

All stakeholders in the Food business (producers, processors, logistics and other supply-chain partners, and retailers) should very meticulously study and analyze the three key themes i.e.
Consumption changes Palate and lifestyle changes Social changes

Indias agriculture challenge will need very out-of-the-box solutions : water and arable land resource crunch will require factoring in global sourcing options rather than only India based
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Implications & Recommendations

Changes in what we will consume, how we will consume, and when we will buy and consumer will create unprecedented opportunities for producers, marketers, and retailers of food The biggest challenge of all will be to meet consumers changed value equation which will require simultaneous optimization on many dimensions including taste, quality, health, convenience, and price / affordability.

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Thank You Very Much !

For Further Dialogue, Please Contact:

Arvind Singhal Chairman Technopak Advisors Tel: +91 124 4541111 arvind.singhal@technopak.com www.technopak.com

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