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“India shows growing demand for convenience and packaged foods”
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Monday, 25 March, 2024, 08 : 00 AM [IST]
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 Cargill, which is engaged in developing food, ingredients and providing agricultural solutions in safe, responsible, and sustainable way, partners with farmers to propel its supply chain, to source, innovate and providing customers with value added products. With premiumisation happening across categories, there is a growing demand for convenience and packaged foods. With increased demand there is immense scope for innovation and diversification within the sector, said Kunal Yadav, B2B commercial leader, Cargill Food Solutions, South Asia, in an email interaction with Nandita Vijayasimha. Excerpts:
How would you describe the current scenario for food processing sector in India?
Current landscape for food processing sector in India is extremely dynamic. There are significant growth opportunities for the food processing industry. This growth is fueled by factors like urbanisation, technological advancements, evolved consumer taste and preferences.
With premiumisation happening across categories, there is a growing demand for convenience and packaged foods. With increased demand there is immense scope for innovation and diversification within the sector. This also presents opportunities for both domestic and international companies to invest in India’s growing food processing market and contribute to its continued growth.
What are the visible trends you can see in this space?
Coming to the visible trends in this sector, Cargill's proprietary TrendTracker 2023 study on the Global Food and Beverage Industry sheds light on the key trends that the company too is actively addressing in India along with its customers. The include: a surge in demand for food that builds immunity, digestive wellness, gut health, and has higher fiber content, particularly evident in the post-pandemic landscape.
Consumers are increasingly indulging with their food choices, seeking sensory-rich experiences. Attributes such as texture, mouthfeel, crunchiness, creaminess, and chewiness are gaining importance.
Our study reveals a 28% increase in the consumption of indulgent snacks among Indians over the past year, with 39% expressing a preference for snacks that are both tasty and nutritious.
Preference for healthier ingredients, with an emphasis on products featuring fewer, recognizable, and more natural components. Notably, 82% of Indian consumers prioritize on-pack health claims when making purchases.
Further, clean label products are resonating with consumers, with 9 out of 10 actively seeking recognizable ingredients in the products they consume. Besides there is also rise of a more proactive consumer approach towards health & nutrition is drawing attention to fiber. There has been a notable shift towards sustainable and ethically sourced ingredients, reflecting evolving consumer values and preferences.
What are the challenges faced by the sector and the start-ups in this space?
While the future of the sector looks promising, certain factors such as infrastructure limitations, stringent regulatory requirements, supply chain challenges, cost pressure and intense competition hinders the growth prospects. Collaborative effort by government agencies, industry stakeholders, financial institutions, and support organisations is required to create an enabling environment for innovation, investment, and growth, especially for the new entrants in this this sector.
Cargill provides food and agricultural solutions. How is the company positioned to support the growth of Indian food processing industry?
Over the years, Cargill has consistently evolved to tailor its solutions to meet customer needs. In India, we are committed to collaborating with local partners, investing in innovation, and aligning with market trends to deliver value-added solutions to our customers. We provide comprehensive food solutions to our customers, bringing our global expertise in food and agriculture backed by our insights-led innovations.
Since its launch in 2022, our Innovation Center in Gurgaon has been co-creating innovative food solutions in India for Indian customers with product offerings, including Modified Lipid/Emulsifier, Gluten Plus, flavoured bakery shortening and pea protein.
What are the some of the products that are key to the Indian market?
In line with the consumer trends and demand, in Cargill Innovation Center (CIC), we have several developed tailored solutions to meet these demands. Protex DS, a groundbreaking substitute for Vital Wheat Gluten developed by CIC, enhances cost-efficiency and functional superiority in baking. Elite Choice, another innovation from CIC, is India's first flavored aerated cookie shortening, elevating the cookie experience for consumers.
Moreover, CIC adapts global innovations from Cargill to suit the Indian market such as RadiPure and Protex E8001G, natural plant-based pea proteins, and Epicor, a post-biotic ingredient that supports gut health and boosts the immune system. These innovations reflect our commitment to meeting evolving consumer preferences while driving growth in the sector.
What are the likely future efforts of the company in this space?
As global food production and agriculture evolve, we will need innovative solutions to meet changing consumer preferences. Looking ahead, we aim to further strengthen our presence in the Indian market by expanding our portfolio of innovative products and solutions, forging strategic partnerships with key partners, and investing in capabilities to meet the evolving needs of our customers and consumers. Through our innovation center, we will continue to help our customers reformulate products that are lower in fat, salt and sugar, while maintaining taste and texture, to promote a healthy and nutritious diet in line with the progressive food standards in India.
If you could elaborate on the company’s best practice on eliminating trans-fatty acids faring?
Starting January 1, 2024, the company's fats and oils from Cargill worldwide meet WHO recommended limit for industrially produced trans-fatty acids (iTFA). Cargill is the first global supplier to achieve this milestone, ensuring that its entire edible oils portfolio contains no more than two grams of iTFA per 100 grams of fats/oils, even in regions without legislative mandates.
Cargill's iTFA journey, spanning over 25 years, involved significant investments in innovation, capital, and resources, along with thousands of R&D hours. This effort has assisted over 400 customers in creating nutritious and delicious products, removing over 1.5 billion pounds of iTFA-containing products from the global food supply. Cargill remains committed to eliminating trans-fatty acids by employing advanced technologies, reformulating recipes, and maintaining rigorous quality control measures through continuous research and development.
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