Industry

Analysis

FOOD & BEVERAGES

Kavyanshi Garg (80303180048)

Diksha Sinha (80303180189)
Vaybhav Shetty (80303180178)

Shashank Nuti (80303180133)

Shashank
Nanjundeswar(80303180130)
Mohit Agrawal(80303180097)
Deepak Bora(80303180028)
Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

DECLARATION
We hereby declare that the project report titled “Industry Analysis of Food and
Beverage sector” is a record of independent work carried out by the team as a part of
Industry Analysis curriculum for the PGDM course in Narsee Institute of Management
Studies (NMIMS)- Hyderabad.
This has not been submitted for the purpose of any award or degree of any other
university or institution. All the information presented in the report has been thoroughly
researched and studied by the team.

Place: NMIMS, Hyderabad

Date: 2nd September, 2018

1
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

TABLE OF CONTENTS

Chapter 1: The Scope of the Industry

1.1 Introduction ..........................................................................................................................................................................3
1.1.1 Brief profile of the Industry......................................................................................................................................4
1.2 The Stakeholders of the Industry .................................................................................................................................6
1.3 Market Structure ................................................................................................................................................................9
1.4 Financial Analysis of 7Companies………………………………………………………………………………………………………..11

1.4.1 RatioAnalysis………………………………………………………………………………………………………………………………...11

1.4.2 Du Pont Analysis……………………………………………………………………………………………………………………………13

1.4.3 Common Size and Comparative Analysis………………………………………………………………………….…………….14

Chapter 2: PESTEL Framework …………………………………………………………………………………………………………………….15

Chapter 3: Summary and conclusion………………………………………………………………………………………………………….…18

3.1 References and Bibliography……………………………………………………………………………………………………………

.................................................................................................................................................................................................... 19

2
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry
CHAPTER 1
1.1 INTRODUCTION
FMCG SECTOR

Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian economy. The sector is further
segmented into three parts – Food and Beverages, Healthcare and Household and personal care.

The growth of FMCG sector is from US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017-18. It is further
expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach US$ 103.7 billion
by 2020.The revenue of FMCG sector grew 14.8 per cent during October-December 2017 and is expected to
register net revenue growth of 11.8 per cent in Q4 March 2018. Indian FMCG sector is forecasted to report
revenue growth of around 11-12 per cent in FY19 from 8 per cent in FY18.It’s urban segment is also
expected to have a steady revenue growth at 8 per cent in FY19 and the rural segment is forecasted to
contribute 15-16 per cent of total income in FY19.

Indian FMCG Market Share, By Segment (%),

2020(Forecast)

FOOD AND BEVERAGE SECTOR

The food and beverages industry comprise of companies that are involved in the operation of processing raw
food materials, packaging, and distributing them. This includes fresh, prepared foods as well as packaged
foods, and alcoholic and non-alcoholic beverages. Any product that is meant for consumption by humans
excluding pharmaceuticals is an integral part of this sector.

The food processing industry boasts of being one of the largest industries in India and is ranked fifth in
terms of production, consumption, export, and expected growth.

Growing food services sector that includes both Indian and foreign food services restaurants boosted growth
of organized food services sector in India. Furthermore, various policies undertaken by the government such
as allowing 100% FDI in food services sector in 2012 catalyzed growth in Indian food services market.

3
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry
1.1.1 BRIEF PROFILE OF THE INDUSTRY

Leading FMCG Companies in Food & Beverages Segment along with key products

Aashirvaad, Sunfeast, Bingo! Yippee! Kitchens of India, B Natural, mint-o,

ITC Candyman
Amul Milk, Cheese, Ice Cream, Mithai Range, Chocolates, Butter milk,
Amul Beverages
Frooti, Café Cuba, Hippo, Maaza, Parle-G, Melody, Mango Bite, Poppins,
Parle Agro Kismi Toffee Bar, Monaco and Krack Jack
Dairy products, Biscuits (Vita Marie Gold, Tiger, Nutrichoice Junior, Good day,
Britannia Industries 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon), breads, etc.
Nestle Nescafé, Kit Kat, Maggi, etc.

VALUE CHAIN
The industry's value chain is examined in six aspects:
(1) Input industry
(2) Farmers
(3) Traders
(4) Food and Beverage companies
(5) Retail
(6) Consumption.

4
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

ECONOMIC IMPACT

The contribution ranges around 8.80% and 8.39% of Gross Value Added (GVA) to Manufacturing and
Agriculture respectively, 13% of India’s exports and 6% of total industrial investment. The market value of
Indian gourmet food market is currently at US$ 1.3 billion and the growth is at a Compound Annual Growth
Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020.

The online food ordering business in India is in its nascent stage but is witnessing exponential growth.
Players like FoodPanda, Zomato, TinyOwl and Swiggy are building scale through partnerships, the
organised food business has a huge potential and a promising future. The online food delivery industry grew
at 150 per cent year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300 million.

INVESTMENTS
The food processing sector in India has received around US$ 7.54 billion worth of Foreign Direct
Investment (FDI) during the period April 2000-March 2017,according to the data provided by the
Department of Industrial Policies and Promotion (DIPP). The estimation by the Confederation of Indian
Industry (CII) is 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 person-days. Some of the
major investments in this sector in the recent past are:
 E-commerce giant, Amazon is planning to enter the Indian food retailing sector by investing US$ 515


million in the next five years
 Frooti Fizz, a succession of the original Mango Frooti, is being launched by ParleAgro Pvt Ltd which
will be retailed across 1.2 million outlets in the country as it targets increasing its annual revenue from Rs

2800 crore (US$ 0.42 billion) to Rs 5000 crore (US$ 0.75 billion) by 2018.
 US-based food company Cargill Inc. aims to increase its branded consumer business in India by at least 2
times by 2020, it aims to double its retail reach to about 800,000 outlets and increase market share to
become national leader in the sunflower oil category which will boost the companies chances of being

among the top three leading brands in India.
 Mad Over Donuts (MoD), outlined plans of expanding its operations in India by opening nine new MOD


stores across the country.
 Danone SA plans to tap the potential of nutrition business in India by launching 10 new products in 2017,


and is aiming to double its revenue in India by 2020.
 Uber Technologies Inc. launched UberEATS, its food delivery service to India, with investments made
across multiple cities and regions.

5
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

1.2 THE STAKEHOLDERS OF THE INDUSTRY:

Who is a 'Stakeholder'?
A Stakeholder is any person, group, or party that has ass interest in an organization and the results of its activities.
Common examples of stakeholders include employees, customers, shareholders, suppliers, communities, and
governments. Different stakeholders have different interests, and companies often face trade-offs when trying to
please all of them.

Principle Food &Beverage chain Stakeholders in various sectors

6
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

The food and beverage industry consists of a variety of companies that includes industries involved in
processing raw foods, as well as industries involved in the packaging and distribution of the finished
products.

 SUPPLIERS

The Agriculture industry is the major supplier of raw Ingredients of the Food Industry. The suppliers
involved in Food & Beverages include industry farmers, seed producers, Dairy Farm, Food Grain Mills,
Fruits & Vegetables Producers, milk producers, farmers involved in Animal Husbandry.

 CONSUMERS

The consumer is the most important element of the food chain .So it is important to consider the consumer
viewpoint while developing new food products and processes to meet the consumer demand to large extent.

For consumers, safety is the most important. The food scandals have caused a sense of insecurity and worry
among consumers.
Therefore the consumer now demands additional information about the systems of production (Food safety,
environmental impact) and of the composition of the food (major ingredients, quality attributes of the food).

Household consumption pattern: Food and beverages are the top consumption items in a typical Indian
family. Indians spend around 51% of the total expenditure on food. It is 45% in urban areas and 55% in rural
areas.

Consumer Preference Change

a) Sustainable and local food choices

The people now prefer to have healthy food because they understand eating local and sustainable produce is
the best choice for the body and the environment. This trend has given local farmers the new opportunity of
increased bargaining power, also introduced food items which are having minimum chemicals and
hormones.

b) Healthy snack items

Snacking is now the vital part of everyone’s diet.
As consumers are getting more health-conscious,
Major brands are working to offer healthy snack
options. Apart from energy-boosting snacks like
nuts, fruits, and yoghurt, plant-based snacks have
emerged.

c) Minimally processed foods

In today’s world, Obesity and cardiovascular
diseases have become prime health issues. The risk
of sugar, sodium, and saturated fats are the major
concern which forced stakeholders in the industry
to supply healthier substitutes. Manufacturers must
accept the fact that customers now prefer to have foods that are as close to their natural state as possible.
So they should offer minimally processed food.

7
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry
d) Hybrid cuisine
As an extension of fusion food, the food and beverages industry is experimenting with hybrid
cuisine. Cuisine that combines elements of different culinary traditions has won the taste buds of the
masses. According to our industry experts, this can be a trend that may have a major spill over into
2019.

e) Cocktails and Mocktails

The increased purchasing power and the emergence of millennia’s as the major consumer base resulted in
the increase of demand for mocktails and cocktails.
Another trend which changed the beverages industry is the high preference for local wines and locally
brewed craft beers. For non-drinkers, vendors of non-alcoholic beverages are offering alcohol-free
cocktails and mixed drinks with infusions of fresh fruits.

f) Homemade food
People who reside away from their family, homemade food have become a luxury. That’s why most
stakeholders want to invest in small companies that make homemade food available to the customers.
Customers now prefer to have highly personalized food items like an authentic pickle, spreads, cakes which
match their tastes
Homemade has changed the way the food and beverages industry functions. In this case, the competition
is more at a local level, and the customer behaviour can be studied in a more direct manner.

 REGULATORY BODIES IN FOOD & BEVERAGES INDUSTRY IN INDIA

Food Safety and Standards Authority of India
Food Safety and Standards Authority of India (FSSAI) is an autonomous body set up under the Ministry of
Health & Family Welfare, Government of India. The FSSAI has been established under the Food Safety and
Standards Act, 2006 which is a regulatory act related to food safety and regulation in India. FSSAI is
responsible for protecting and promoting public health through the regulation and supervision of food safety.

Ministry of Food Processing Industries (MOFPI)

The Ministry of Food Processing Industries (MOFPI) is responsible for formulating and implementing the
policies and plans that are associated with the food processing industry. The site provides useful
information for investors and stakeholders, current research projects, and related government agencies, as
well as statistics about food-processing in India.

8
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

1.3 MARKET STRUCTURE

FY18-19 is as of now demonstrating solid guarantee for remote growth in F&B Business, with $263 million
already invested in the April - June quarter (FY18 Q1), as per Department of Industrial Policy and
Promotion (DIPP) Quarterly Fact Sheet. India is quickly turning into a generation centre point for processed
food, which are incessantly consumed in India and in also exported to nations in South Asia, the Middle
East and Africa.

FOOD PROCESSING INDUSTRY

 The food processing industry accounts for 31% of the country’s total food market, one of the largest
 industries in India
  Is ranked fifth in terms of production, consumption, export and expected growth.
 It contributes around 8.82 and 8.41% of Gross Value Added (GVA) in manufacturing and agriculture
 respectively.
  Food processing accounts for 6% of total industrial investment.
 As per the 2016-2017 Annual Survey of Industries, there are 37,185 registered food processing units
 in the country that employ approximately 1.7 million people in food and beverage manufacturing.
 Indian food processing sector has the potential to attract $33 billion in investment and provide
employment for 9 million persons by 2024.

FOOD RETAIL INDUSTRY

 The Indian food and grocery market is the world’s sixth largest. The F&G retail business is estimated
 at U.S. $380 billion.
 The F&G retail sector is dominated by traditional trade formats like neighbourhood shops or kirana
 stores, which hold about 98 percent of the total market share.
 The market share held by modern trade formats like supermarkets and hypermarkets is expected to
double from two to four percent by 2020 as stores fulfill the evolving needs of consumers.

Revenue in the F&B segment amounts to US$364m in 2018 and it is expected to show annual growth rate
(CAGR 2018-2022) of 22.9% resulting in a market volume of US$829m by 2022.

Revenue
900 829
800
702
700
577
600
462
500
400 364 in Million US$
238 288
300
200
100
0
2016 2017 2018 2019 2020* 2021* 2020*
9
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

In Global comparison, most revenue is generated in China (US$18,521m in 2018)

Revenue(in US$)
20000 18521
16246 15330
15000
12353
10000
Revenue(in US$)

5000
364
0
China U.S Japan U.K India

THE MARKET FOR IMPORTED FOODS IN INDIA

The business of importing food is relatively new in India and consumer awareness of imported foods is
limited. In 2017, India's imports of consumer-oriented food products were valued at over US$ 3.8 billion, up
from US$ 1.7 billion in 2015. Nuts, dried fruit and fresh fruit account for more than half of consumer-ready
imports, but imports of other products are growing at strong rates, albeit from a very small base.

Even though policy reforms suggest progress, import of non-standardized foods and ingredients is a
challenge owing to regulatory and tariff barriers.

EXPORT POTENTIAL OF THE INDUSTRY

With the growth in the industry driven by the domestic demand, the industry has also geared up for tapping
the export potential. The share of food processing exports in total exports was around 13% in the last few
years and is likely to rise.

WHAT FUTURE HOLDS/ SCOPE OF THE INDUSTRY:

 India ranks second in terms of global food production and is the world’s largest producer of many
commodities though very little is processed owing to market infrastructure challenges. If modern
food processing technologies, cold storage techniques, and food quality grades are adopted, the
sector is expected to gain strength and the link between agriculture and manufacturing will forge.

 Analysts expect a stronger food processing sector will address some of the rising concerns of food
wastage and farmer profitability. As disposable incomes rise, consumer diets are diversifying and
people are demanding greater convenience and a higher-degree of processed and prepared products.

 With online food and grocery delivery players like Amazon, Grofers, BigBasket, FoodPanda,
Zomato, TinyOwl and Swiggy building scale through partnerships, the organized food business has
huge potential and a promising future not only for locally processed foods but also for globally
imported food and beverage brands.

10
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

 While consumption of processed foods such as domestically-produced chips, biscuits and vegetable
oils penetrates the lower income categories, current opportunities for value-added imported foods
and beverages are generally limited to higher income consumers in urban areas. With the gradual
conversion of the middle class into the higher class owing to rising incomes, there exists vast scope
for both foreign investors and exporters in the urban areas and markets of India.

 Accessibility for shoppers is getting better by the day with the revolutionizing of mobile technology.
The e-commerce players are partnering/acquiring hyper-local delivery networks and local logistics
companies to cater to the demand in small towns to grow their presence faster in the tier 2 and tier 3
cities and improve their delivery network. Thus the growth of the online retail sector will be driven
by these unexplored towns and cities as well.

1.4 FINANCIAL ANALYSIS

Seven players in Food and Beverage industry have been chosen for financial analysis. They are:
 Dabur

 ITC

 Hindustan Unilever

 Nestle India

 Manpasand Beverages

 Britannia

 Tata Beverages

1.4.1 RATIO ANALYSIS

Basic earnings per share are the important measurement of the amount of a company's profit that can be
allocated to one share of its stock. Nestle India has been showing more earnings per share compared to the
other companies also at a growing rate since 2016. Britannia Industries and Hindustan Unilever have also
been showing a growth in their earning per share but at a slow rate since March 2016 and ITC since March
2017. Manpasand Beverages showed a decline in its earnings per share since March 2017. Earnings per
share for Nestle India are expected to grow significantly for the period of 2018 to 2020. Earnings per share
for Britannia Industries and Hindustan Unilever is also expected to grow but at a slower rate for the period
of 2018 to 2020. Earnings per share for Manpasand Beverages are forecasted to be very minimal for the
period of 2018 to 2020.

11
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry
Basic EPS (Rs.)
150
100
50
0 Basic EPS (Rs.)

PBDIT Margin helps investors or analyst to compare companies of different sizes in different industries
because it breaks down operating profit as a percentage of revenue. By which an owner or investor can
understand how much operating cash is generated for each dollar of revenue earned and use the margin as a
comparative benchmark. Britannia Industries and Hindustan Unilever showed a gradual increase in its
PBDIT margin since past 5 years. PBDIT margin of Manpasand Beverages has increased for the past 4 years
whereas for ITC and Nestle India, it is fluctuating since past 5 years. ITC has the highest and Britannia
Industries has the lowest PBDIT margin as compared to all the companies as of March 2018. PBDIT margin
of F&B market in India is expected to see significant growth for the forecast period of 2018-2020 because of
the implementation of GST across the country.

PBDIT Margin (%)

50
40
30
20
10
0 PBDIT Margin (%)

Current Ratio is used to assess the abilities of companies to meet it short-term liabilities and shows the
number of times current assets are in excess of the current liabilities. Britannia Industries and Nestle India
showed a gradual increase in its PBDIT margin since past 3 years. Manpasand Beverages and ITC showed a
significant decline in its Current Ratio since March 2017. Hindustan Unilever, It is fluctuating since past 4
years. Current ratio of F&B industry is expected to grow for the period of 2018 to 2020.

Current Ratio (X)

4
3
2
1
Current Ratio (X)
0

Inventory turnover measures how fast a company sells inventory and Investors compare it to industry
averages. Low turnover implies weak sales and, excess inventory. A high ratio implies either strong sales or
large discounts. Hindustan Unilever showed gradual increase in its Inventory turnover ratio since past 5
12
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry
years. Nestle, ITC, Manpasand Beverages and Britannia, It is fluctuating since past 5 years. Inventory
turnover of F&B industry is expected to grow for the period of 2018 to 2020 because of technological
advancement and use of Artificial Intelligence across F&B industry.

Inventory Turnover Ratio (X)

20
15
10
5
0 Inventory Turnover Ratio (X)

Return of Capital Employed is a useful metric of financial performance. It measures profitability after
factoring in the amount of capital used to create that level of profitability and how efficiently the resources
of the business are used. ITC, Britannia Industries, Manpasand Beverages showed gradual decrease in its
ROCE ratio since past 5 year. Nestle India and Hindustan Unilever, It is fluctuating.

Return on Capital Employed (%)

100
80
60
40
20 Return on Capital Employed
0 (%)

1.4.2 DU PONT ANALYSIS

 DuPont analysis is a fundamental performance measurement framework popularized by the DuPont

 Corporation and is also referred to as the "DuPont identity."
 DuPont analysis is a useful technique used to decompose the different drivers of the Return of
Equity (ROE).
: ÷ ℎ ℎ

 DuPont analysis is performed for 7 different companies in FMCG Food and beverages Industry:

1. Hindustan Unilever
2. ITC
3. Britannia Industries
13
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry
4. Nestle India
5. Dabur
6. Manpasand Beverages
7. TATA Global Beverages

 As per the companies Du Pont Analysis top 3 companies in the FMCG Food and Beverages
industries are performing good with consistent growth whereas the other company’s industries are
slightly performing bad compared to their growth in previous year because of the huge competition
in the industry. Manpasand Beverages has major competition from Coco-cola and Pepsico. As per
the overall industry it can be predicted that the industry in doing good compared to the previous
years.

14
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

DUPONT TABLE
2014 2015 2016 2017 2018
DABUR 0.645 0.546 0.452 0.386 0.347
TATA GLOBAL
BEVERAGES 0.545 0.551 0.495 0.456 0.412
Nestle 0.318 0.346 0.331 0.296 0.274
ITC 0.051 0.045 0.04 0.037 0.032
Britannia Industries 15.41 25.94 31.21 35.15 39.47
MANPASAND
BEVERAGES 2.2 0.79 1.01 1.26 0.87
HINDUSTAN UNILEVER 17.88 19.94 19.15 20.78 24.24

1.4.3 COMPARATIVE AND COMMON SIZE ANALYSIS

COMPARATIVE ANALYSIS
Comparative analysis of balance sheet is usually done to identify changes and trends in the various accounts of
the balance sheet over a period of time. In our analysis, we have compared the different accounts of assets
& liabilities of the seven selected companies. The data of each analysis is depicted, however for the ease of
understanding we have shown the changing trends of total assets and total liabilities in the graphs. We have
also observed how the changes in one of the accounts affect the other accounts in the balance sheet.

COMMON SIZE ANALYSIS

On the next level, to make our analysis even stronger, we have analysed each of the balance sheet account as a
percentage of company’s total assets or the total liabilities. In this process we have not only analysed how the
balance sheet is changing but also how the composition of a particular account is shifting over the years.

15
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

CHAPTER 2

PESTEL ANALYSIS
A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-
environmental factors that have an impact on an organisation or industry. This analysis is useful to identify
threats, weakness and strengths which is then used in SWOT analysis. PESTEL is an acronym for
Political, Economic, Social, Technology, Legal, Environment.

The PESTEL analysis of F&B industry has been summarised below:

a) POLITICAL:
These factors encompass the rules and regulations that any company has to comply with to be in
accordance with the country’s rules and policies. Generally most of the countries have stringent
regulations regarding wages, hygiene and food quality. Some countries are very particular about the
packaging requirement of the product and they insist on companies to mention the ingredients and
nutritional content on the packet of the products. In other cases certain countries mandate that the
packaging used for the product comply with stringent environmental norms of the nation which
limits the company’s options with regard to material and construction of the packaging.

b) ECONOMIC:
Various economic factors impact the F&B industry such as prices of commodities that serve as the
raw material for the industry. A major economic factor that impacts F&B industry is recession, this
is considered important as people prefer to eat low cost foods or homemade foods at times of
economic crunch rather than going for high end products. This forces companies to introduce low
cost items in order to attract consumers. The biggest losers in this scenario are fast food chains as
they are unable to compete with conglomerates with large resources. Other economic factors that
influence F&B industry are changing market trends mostly from tastier and delicious foods to
healthy and wholesome ones which have prompted many companies to include materials such as
herbs, naturally sourced additives and organic materials in their products.

16
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

c) SOCIAL:
The ultimate consumers will always have a large say in the way any change in their catering industry
comes out to be. This can’t be truer for F&B industry as consumers dictate what they prefer to eat
and drink. This has led to the industry shifting its focus on healthier options which has lesser
calorific value has the consumer has grown smarter about his choices and has become more vigilant
about his dietary intake. One of the best example about social causes impacting F&B sector would be
the wide spread retaliation of American consumers on food companies targeting children as it has
been seen that children who get hooked onto fast food since an early age are more to obesity which is
a disease that has been haunting the American populace since many years now.

d) TECHNOLOGY:
Technological factors have played a crucial role in F&B industry as it has been one of the industries
which always welcomes any new technology with open arms as it provides an opportunistic means
of attracting more consumers towards the business. Some examples of technology that have been
introduced into the F&B industry are given below:
 Introduction of digital kiosks in fast food restaurants instead of traditional menus to provide a
 better experience to the consumer.
 Development of social media pages by F&B companies to interact with customers and to
help in creating a positive brand image in their minds.

e) ENVIRONMENTAL:
As times have progressed more and more people as well as the governments have understood the
need to grow green and have started to focus on sustainability. This has led to the F&B industry to
change many of its policies. One of the most impactful consequences of this has been that all the
products of major F&B brands nowadays have recyclable packaging. Sustainability has also been a
hotbed topic as of late within the industry, with companies moving away from flora that are
endangered, as a raw material to synthetic variants of the ingredients in order to promote
sustainability.

f) LEGAL:
Legal requirement for F&B industry are significant as they involve products that are directly
consumed by the consumers. Due to this a large focus is on the nutritive value and food quality of
the product also in Muslim or Jewish dominated countries the government mandates an Halal or
Kosher certificate be associated with the products in order to comply with the regional law.

17
 Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

CHAPTER-3

CONCLUSION AND SUMMARY:

CONCLUSION
The preceding information within the report more than justifies the claim that Food and Beverage industry
has been growing at a substantial rate. Below presented diagrammatic representation gives a region and
product segmented growth profile.
Industry growth per region by category, CAGR 2016-2021

By 2021, food service sales are forecasted to go above 3,001 billion US dollars. Overall growth in the
beverage industry is expected to be moderate but there is projection that there will be a major shift in
consumer preferences as a large segment of consumers move towards new flavours and newer
products. Sales of bottled water is set to increase exponentially as a large number of the global
populous switch towards it as a healthy and safe alternative when compared to carbonates.
SUMMARY:
Food and Beverage industry is one of the most pivotal industry across all industries as it deals with one
of the most basic physiological needs of human beings that’s of eating and drinking.
Our examination of this industry looked into the financial, economic and supply chain functions of the
industry. It goes without saying that each aspect of this industry could be a dissertation of its own, what we
have tried to encompass over here is to give the reader a general gist of the inner workings of the industry
as a whole.

18
Narsee Monjee Institute of Management Studies-Industry Analysis of F&B industry

3.1 REFEERENCES

1)http://www.kpmpc.lt/Skelbimai/SEK_EN/EN-Maist.%20sekt08.07.30.pdf
2) https://www.ibef.org/industry/indian-food-
industry.aspx 3)www.moneycontrol.com
4)Gulfood global industry outlook report-2018
5)www.cheshnotes.com
6) https://www.statista.com/outlook/253/100/food-beverages/worldwide
7) http://www.careerizma.com/industries/food-and-beverage/
8) https://amritt.com/industries/india-consumer...goods.../food-beverage-market-in-india
9) http://www.grantthornton.in/globalassets/1.-member-firms/india/assets/pdfs/grant_thornton-
cii-food_and_beverage_sector-the_new_wave.pdf
10) https://www.unicef.org/csr/foodandbeverage.html

19