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Exporter Guide
FOOD & BEVERAGE
IN INDIA

Market Profile
J anuary 2012

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 2/
CONTENTS

1 MARKET STRUCTURE 3
1.1 Market Overview 3
1.2 Market Drivers 4
1.3 Market Potential 7
1.4 Import Trends 7
1.5 Key Players in the Market 8
1.6 Regulatory 11
1.7 Sustainability 13
2 MARKET ENTRY AND DEVELOPMENT 14
2.1 Market Entry Strategies 14
2.2 Long Term Strategic Issues for Exporters to Consider 15
2.3 Distribution Channels 15
2.4 Pricing 16
3 MARKET RESOURCES AND CONTACTS 17


Exporter Guide | INDIA | Food & Beverage| J anuary 2012 3/
1 MARKET STRUCTURE
1.1 Market Overview
India is one of the largest countries in the world, with a growing population of 1.2 billion
people. Indias GDP was US$1,843 billion in 2011 and is forecast to rise to US$2,013
billion in 2012. GDP is expected to continue growing at rates around 78 percent per
annum for the next few years.
i
There has been a discernible increase in purchasing power
in many parts of the country and rising affluence in many urban pockets.
However, income distribution in India remains uneven between a wealthy urban
population and a low income rural population. Almost a quarter of the population is living
on less than US$1 per day, even though GDP per capita is US$3,787. The income split
essentially means that India has two separate consumer segments, which are further split
by strong regional differences.
i
Throughout India there are 20 official languages, 3 main
religions and 14 main cuisine styles.
ii

India is one of the worlds largest food producers and has a large agriculture industry.
This, combined with a cultural preference for fresh food, means that India supplies the
majority of its own food for consumption. However, India is a growing market for
processed food imports, which are becoming more popular with the younger population,
especially in urban areas.
i
Consumption of food and beverages was estimated at
US$366.8 billion in 2011.
i
Processed foods
The overall packaged food industry reached US$25.4 billion in 2011 and is forecast to
grow to US$38.5 billion by 2016. The highest value segments of packaged foods in 2011
were to be dairy (at US$9.1 billion), followed by bakery (at US$4.9 billion), and oils and
fats (at US$4.1 billion).
iii

The West India region has the highest value sales of packaged foods in India. A large
number of brands from domestic and multinational players are present in the region and
many international brands are imported. Consumer awareness of packaged foods is also
high in North India, which is one the most affluent regions in the country with areas such
as New Delhi, NCR, Chandigarh, J aipur and Lucknow. This has resulted in packaged
foods seeing good growth in the region and this trend is expected to continue. East and
Northeast India are the smallest markets in India for packaged food, due to the
underdeveloped nature of these areas and continued political instability.iii






Exporter Guide | INDIA | Food & Beverage| J anuary 2012 4/
Wine
India does not have a culture of wine drinking and many Indians do not consume alcoholic
beverages for religious reasons, therefore there is a low wine drinking consumer base.
Imported wines also face high tariffs. However, the New Zealand India Free Trade
Agreement (FTA) under current discussion is likely to reduce tariffs and open
opportunities for New Zealand wine exporters.
The overall wine industry is estimated to reach INR12,716.5 billion in 2011 and is forecast
to grow to INR23,140.2 million by 2015. The highest value segments are estimated to be
still light grape wine (at INR7,884.7 billion), followed by sparkling (at INR1,846.8 billion),
and fortified wines (at INR1,213.2 million).
Fish and seafood
The fish and seafood market has continued to grow strongly as middle-class Indian
consumers purchasing power continues to grow. However, this is starting from a very low
base. Fish and seafood are consumed in greatest proportion in coastal areas such as
Kerala, Mangalore and Tamil Nadu, due to the lack of cool chain/storage infrastructure
making it less practicable to transport to inland areas. However, inland fish is becoming
more popular. Molluscs and cephalopods are the fastest-growing categories of fish and
seafood.
iv

Indias National Fisheries Development Board is spending Rs6.2 billion (US$123 million)
to expand the use of intensive aquaculture in India, providing money to help farmers adopt
technologies for sustainable fish farming and fish seed production.iv

Meat
Imports into India of beef, or products that contain beef, are prohibited. This ban applies to
beef imports from all countries and is in place for religious reasons. New Zealand
lamb meat is unable to be imported into India due to India's sanitary
regulations. Other key lamb meat exporting countries are similarly affected by these
requirements and also cannot export lamb meat to India. New Zealand officials are
continuing to discuss with Indian Ministry of Agriculture counterparts how lamb access
issues can be resolved to open up this trade for exporters.
1.2 Market Drivers
There are a number of trends driving growth in the food and beverage industry. These
include:
Rising incomes: Indias strong economic growth is increasing consumers incomes.
It is estimated that by 2025, India will have 583 million people living on incomes of
above US$4,380 (around US$23,530 after accounting for the purchasing power
parity). Furthermore, around 65 percent of the population are under the age of 35,

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 5/
which means there more and more people who are capable of earning and have
rising disposable incomes. Rising incomes are also driving up demand for specialty
and value-added food products.
v

Urbanisation: The typical Indian lifestyle is becoming more urbanised and Western.
This is leading to higher consumption of processed, packaged, branded and value-
added food and beverage products. Urban consumers are increasingly willing to pay
for premium products. However, the majority of the population are still located in rural
areas and consume only subsistence foods such as cereals and breads.
i

Diet diversification: Indian consumers, particularly the younger population, are
becoming more accepting of different food and drink products. There is increased
demand for product variety, as well as products from different countries. The number
of imported food products is increasing in retail stores.
vi
This trend is evident not only
in organised retail, but also in the small family-owned stores which dominate the
market.
Glocalisation: Glocalisation is the localisation of globalised products or services and
has caused international food products to be adapted to suit Indian consumers. For
example, McDonalds in India provide vegetarian rather than beef burgers and pizza
chains serve pizzas with Indian toppings such as curry. This has resulted in greater
acceptance and increased demand for international food and beverage products in
India.
iv

Meal portions and timings: With busier lifestyles, Indian consumers are moving
away from the traditional three meals per day schedule. Smaller and more frequent
meals are becoming common, resulting in higher demand for convenient products
and snacks.
iv

Health consciousness: Indian consumers are becoming more careful about their
health. Heart disease and diabetes are major concerns in India. Nutrition is starting to
become an important consideration when purchasing food. In general, older and
female consumers tend to be the most health conscious when making purchase
decisions.
iv

Women in the workforce: As more women join the work force and households
become smaller, packaged and processed products such as ready to eat meals,
canned foods and snacks will be in higher demand.
vii
The most popular ready to eat
products are those based on traditional Indian recipes.
viii

Special festivals: Demand for specialty and high value foods such as chocolates,
almonds and other dried nuts, cakes and pastries, imported fruits, fruit juices, and
Indian sweets peaks during the festive season, especially at Deepawli (Diwali)- the
festival of lights.
ix


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Wine
xv

The key consumers of wine in India are mainly affluent urban men in the 30-50 years age
group, who are familiar with wine, usually from their foreign travel. However, the
consumption of wine among young working male and female professionals in metro cities
has been rising as wine becomes more fashionable and widely available at affordable
price points in off-trade and on-trade outlets.
xv

In urban areas, serving wine at dinner events is becoming increasingly common and
consuming wine can be considered a sign of status. Mumbai, Delhi, Chandigarh and
Bangalore are typically considered the major wine consuming cities. Given the higher
costs, imported wines are typically consumed on special occasions or given as gifts.
x

Port and fortified wine is popular with entry level consumers who are not knowledgeable
about wine in general and favour the sweet taste and high alcohol content of Indian port
wine as an alternative to spirits. Indian port wines are also extremely cheap compared to
other types of wines. Indian consumers also tend to prefer red wine over white wine due
to taste and their impression that red wine is healthier than white wine. Domestic
manufacturers have also generally been more successful in producing higher quality and
affordable red wines than white wines.
High taxes make imported wines and those produced outside of a particular state
significantly more expensive. This poses a threat to wine sales growth, given that higher
prices are expected to restrict consumers to the cheapest of wines, and exposure to poor
quality wines during their initial trials may deter consumers from learning more about
wines and trying mid-priced or premium wines. Young consumers might instead be drawn
towards premium beers or spirits, which are more affordable.
Fish and seafood
xi

There is a preference for fresh fish products in India, as consumers prefer the taste of
fresh fish and believe it to be healthier and cleaner. Unsurprisingly, the coastal areas of
India have the highest rate of fish consumption per capita.
Fish consumption is not restricted to the middle class, but is also consumed across lower
castes and minority religious groups (such as Christians). This is because locally caught
fish is not sold at a price prohibitive to working-class people in these areas and as such
forms a steady part of their diet.
Inland fish has become much more popular and catches of inland freshwater fish have
become higher than catches of marine fish in recent years.

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 7/
Products like fish fingers, breaded fish fillets, cutlets and nuggets are also popular among
Indian consumers.
1.3 Market Potential
Overall food and beverage consumption is expected to grow at rates between 611
percent for the next few years.
i
The products and sectors that are expected to have the
highest potential for growth are:
Processed food: Ready to eat meals, canned foods and snacks are forecast to be in
higher demand.
i

Milk and dairy: There is high growth for processed dairy and milk products.
Additionally, the dairy processing industry in India is growing and demanding milk and
dairy ingredients.

Cheese, butter, whey, yoghurt and ice cream are some of the major
dairy products that are imported with cheese being the most popular.
Beverages, including wine: In India, tea is one of the only beverage products that
has a mature market. Other beverages such as coffee, carbonated drinks and
functional drinks all are experiencing high growth. Coffee consumption is expected to
grow 2030 percent per year for the next few years.
i
Demand for wine is also
growing, but the market is still captured mostly by domestic suppliers due to high
tariffs on imported wines. Domestic wine production in India grew almost 300 percent
in the past 10 years. Still red wine sales are forecast to grow by 17.6 percent
compound annual growth rate (CAGR) between 2010 and 2015, fortified wine by 15.9
percent and still white wine by 15.2 percent.
xii

Fish and seafood: Fish consumption is currently low due to low incomes and
generally poor cool chain infrastructure. However, as incomes rise, the consumption
of fish is expected to increase 17 percent by 2015. The challenge for fish
consumption growth is that it is not traditionally part of Indian cuisine and, similar to
meat, Indians primarily prefer fresh fish so inland areas tend not to consume it.
i

1.4 Import Trends
New Zealand exported NZ$178 million of food and beverage products to India in 2010, an
increase of 106 percent from 2009. Food and beverage exports to India are dominated by
dairy products which have been performing well in recent years. Butter exports to India
increased by 4,156 percent in 2009 and milk and cream exports increased by 4,032
percent in 2010.



Exporter Guide | INDIA | Food & Beverage| J anuary 2012 8/


New Zealands top food and beverage exports to India in 2010 were:
xiii

Product
2010 Exports
($NZ millions)
Increase from
2009
% of NZs Food &
Beverage Exports to
India
Butter & Other Fats 87.5 31.7% 49.2%
Milk & Cream 63.7 4,031.7% 35.8%
Apples, Pears &
Quinces (Fresh)
8.81 10% 4.95%
Sugars & Other
Sugar Products
3.86
24.1%

2.17%
Whey 3.66 1,455.7% 2.06%
Bovine, Sheep &
Goat Fats
2.58 41.3% 1.45%
Cheese & Curd 2.22 77,553.5% 1.25%
Fruit Not Elsewhere
Specified (Fresh)
2.19 21.2% 1.23%
Processed foods
In 2009, Brazil was the most significant supplier of processed food and beverage items to
India supplying 64 percent of all imported goods. The next biggest suppliers were
Thailand (7 percent), the United Kingdom (4 percent) and the United States (3 percent).
New Zealand was the 32nd largest supplier with US$2.47 million of processed food and
beverage products imported in 2009.
Over the past five years, the fastest growing processed food exports from New Zealand
by compound average growth rate (CAGR) have been spirits and liqueurs (207%),
sweetened bottled water (206 percent), prepared fish products (77 percent), infant formula
and malt extract products (64 percent), food preparations (55 percent), and sugars (26
percent).
Wine
In 2010, Singapore was the most significant supplier of wine to India (52 percent of all
imported product), but this is due to its role as a re-exporter of many F&B products.
Outside of this anomaly, the key suppliers are France (17 percent), Australia (10 percent)

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 9/
and Italy (7 percent). New Zealand is the 9th largest supplier with just over a one percent
share of Indias wine imports.
Fish and seafood
New Zealands aquaculture exports to India primarily consist of mussels (not fresh) and
mussel powder, but export values are currently small (US$58,000 in 2010). India sources
most of its aquaculture products from China (34 percent of all imports) and fish and
seafood imports from Bangladesh (61 percent). Again, overall fish and seafood imports
are low at US$38.6 million.
1.5 Key Players in the Market
Retail Channels
The food and beverage retail market is primarily made up of small and independent family
owned stores, which hold over 65 percent of market share.
xiv
However, modern retail
formats such as hypermarkets, supermarkets and convenience stores are starting to take
away some market share from these smaller stores.
i

The majority of small retailers are independent family-owned stores. It is estimated that
India has eight million independent neighbourhood stores. These stores offer fresh food
and are easy to access for consumers. With the exception of stores located in wealthy
urban areas, these small retailers typically do not sell imported products.
iii

Large retailers are estimated to have less than 5 percent market share, but are growing as
they are able to benefit from economies of scale and offer lower prices.
vii
These retailers
cater to consumers who want variety in products and are able to store food in their homes
by owning a fridge. Large retailers primarily operate in urban areas where around 20
percent of the population shop with them.
iii

Food and drink specialists hold around a third of market share. Food specialists typically
operate in niche markets so that they do not need to compete on price.
vii

Leading retail companies include Reliance Retail, Pantaloon Retail (India) Ltd., Bharti
Retail, Spencers Retail, Spar, TataTrent, and Aditya Birla Retail.
Hotels, restaurants and institutions (HRI)
Indias hospitality sector is worth US$23 billion and investments into the sector for 2011-
2012 are expected to total US$11 billion. The sector is forecast to be worth US$42 billion
by 2018.
iii
Due to Indian consumers having a preference for fresh food products, the HRI
sector is the primary market that buys chilled or frozen foods.
i

Hotels: The hotel industry is dominated by the top end of the market (5 star hotels)
which account for 65 percent of revenues. These premium hotels are primarily
located in major cities such as New Dehli and Mumbai, but are starting to expand to

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 10/
medium sized cities and popular tourist destinations. Customers of this segment are
mainly business people and international tourists. Premium hotels import their food
and beverage products through agents that work with consolidators in Dubai,
Amsterdam, Singapore and Australia.
iii

Fast food outlets: The fast food industry in India is populated by chains and
franchises of both Indian and international companies. Outlets attract consumers by
adapting food to suit Indian culture and tastes. The fast food industry buys mainly
local ingredients, but they do import certain products such as cheese, meat, fish,
flavours and condiments.
iii

Restaurants: Indians have a culture of eating home cooked meals or at least, eating
at home, so the restaurant sector is small. Indian consumers will prefer to order a
take out meal to eat at home rather than dining out. Restaurant meals tend to be
perceived as less healthy and more expensive than home cooked meals.
iii

Processed food manufacturers
Some of the leading branded players in the Indian packaged food market are Hindustan
Unilever, Gujarat Co-operative Milk Marketing Federation, Nestl India Ltd, Frito-Lay
India, GlaxoSmithKline Consumer Healthcare Ltd, Britannia Industries Ltd, MTR Foods
and Karnataka Cooperative Milk Producers Federation Ltd. Private label brands outpaced
market growth in 2009, growing by more than 20 percent in value terms, versus industry
growth of 14 percent. However, this was from a very small base and private label brands
still only held approximately one percent market share in 2009.iii
Wine
India has developed a small wine industry over the past decade and there are over 80
vineyards in India. The Government of India has been very supportive of viticulture
development, however this support combined with strong optimism in the industry has led
to recent oversupply in the market. This has led to a loss of players with unsuccessful or
unsustainable ventures in wine. It is expected that manufacturers and importers will take a
more cautious approach over the next few years and the pace of new entrants will slow
considerably as the major players consolidate their shares.
xv

Samant Soma Wines (Sula Vineyards) became the leading player in wine in India in 2010
with a 20 percent volume share. United Spirits and Grover Vineyards held second and
third places respectively, with 15 percent and 9 percent volume shares. Samant Soma
Wines has a dominant position in still light grape wine and sparkling wine, while United
Spirits dominates the Indian port wine category. Indage Vintners Vineyards saw its volume
share drop from 18 percent in 2009 to 5 percent in 2010 due to its financial troubles.

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 11/
Domestic brands performed better than imported brands in 2009 and 2010, due to their
dominant presence in off-trade outlets and the high duties on imported wines continuing to
result in a price gap between domestic wines and imported wines.
Aquaculture
There has not been much progress or increase in imports of aquaculture. Current demand
is mostly met by local produce and only the food service imports high end products that
are not readily available in the Indian market. Another reason for imports not increasing is
the lack of local infrastructure once the fish is imported into India.
1.6 Regulatory
Information provided in this section is for reference only. When negotiating supply
contracts and before beginning actual export, companies are advised to consult closely
with their importer or distributor.
Duties and tariffs
Import tariffs vary depending on the product, but in general are quite high. Overall tariffs
paid on products generally range from 26 74.6 percent. Furthermore, the tariff system
can be complex as there are a range of taxes which must be paid on imports. The main
duties and tariffs are:
iii

Basic Duty: This tax is applicable to most imported goods and the rate is 30 percent
for most products.
Additional Duty (AD) or Countervailing Duty (CVD): An additional duty to match the
domestic Central Value Added Tax (CENVAT) for goods produced and manufactured
in India. The CVD rate is based on a products Maximum Retail Price (MRP).
Special Additional Duty (SAD) or Special Countervailing Duty (SCVD): A 4 percent
duty on most imported products. This tax is designed to match domestic taxes such as
Sales Tax and Value Added Tax.
Due to food inflation concerns and unpredictable weather that affects agriculture, there
are certain products that are exempt from import tariffs such as wheat, rice, corn and
crude vegetable oils.
iii

For more information on duties and tariffs, visit the website: www.cbec.gov.in.
Industry standards
Unprocessed food products require the following certification from the Ministry of
Agriculture:
xvi

Plant Products: Phytosanitary certificate
Animal Products: Sanitary Health Certificate

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 12/
Processed food products generally do not require certification, with the exception of
livestock products (which require export certificates from the country of origin) and
biotechnology products (which require approval from the Genetic Engineering Approval
Committee and the Ministry of Environment and Forests).
Food and beverage products exported to India will also need to conform to domestic laws
depending on the specific product. Standards are governed by the Food Safety Standards
Authority of India (FSSAI). The five major Indian ports all have FSSAI inspection officers
to ensure that imported goods conform to standards.
The primary reference document for requirements is the Food Safety and Standards
Regulations, 2010.
viii
For more information, visit the website: www.fssai.gov.in.
Labelling requirements
Chapter IV of the Food Safety and Standards Regulations 2010 outlines labelling
requirements of food and beverage products. In general, the following information should
be provided:
xvii

Name or description
Ingredients (except where the product is a single ingredient)
Net content by weight, volume, number or drained weight (in metric units)
Unique lot number, code number or batch number
Date of manufacturing and / or packing and name / address of manufacturer
Best before date and instructions for use (if applicable) and expiry date
Maximum Retail Price (MRP)
All of the above information must now be printed in the exporting country and cannot be
added onto the packaging in India.
For packaged food products, the following nutritional information should be provided:
ix

Energy value (kcal)
Amount of protein, carbohydrates (particularly the amount of sugar) and fat
Numerical information on vitamins and minerals
Amounts of other nutrient if a health claim is made
Where applicable for all food products, the following information should be provided on
labels:
ix

Purpose and licence number for irradiated food
Declaration of additives (such as colours and flavours)
Declaration of Vegetarian or Non-vegetarian (this is indicated by green and red dots
on the label)

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 13/
For imported products, the following additional information is required on labels:
ix

Name and address of Indian importer
Common name of the product
Month and year it was manufactured, packaged or imported
Country of origin
1.7 Sustainability
The Indian population is relatively aware and concerned about sustainability and
environmental issues. A survey in 2009 showed that 67 percent of Indians consider global
warming a serious problem. In addition, 84 percent of Indians hold the opinion that the
environment should be protected even if it slows economic growth and job creation.
xviii


Exporter Guide | INDIA | Food & Beverage| J anuary 2012 14/
2 MARKET ENTRY AND DEVELOPMENT
2.1 Market Entry Strategies
At this stage India is negotiating a free trade agreement with New Zealand. It is hoped that
this may lead to reduced tariffs with regards to wine and processed food. The free trade
agreement is not anticipated to impact meat imports due to strict regulation around meat
products.
Survey markets: It is recommended that potential products are surveyed in order to find
the best potential market and to understand the import requirements. This should also
include competitor analysis. There are market research firms in India that are able to
assist or conduct the research.
iii
Business partner: Companies should aim to find a reliable agent or importer / distributor
to partner with. It is very important to ensure time and money are allocated towards
identifying the right local partners and companies, which can help establish a brand in the
Indian market. As India only lifted the ban on most food and beverage imports in 2000,
many food and beverage importers are not yet well established. Companies should
research potential business partners carefully before entering into business agreements.
Many large importers who are able to manage brands and distribute nationally are
currently interested in expanding product lines. These importers will usually require
exclusive rights to a particular product or brand. The following factors are important to
consider when selecting a business partner:
iii

Who and where their customers are and whether they are suitable for your product.
Whether or not you need flexibility in your business partner. Agents and importers /
distributors that are smaller tend to be more adaptable than larger companies.
If there are any conflicts of interest with other products that the agent / importer /
distributor is involved with.
Reputation through checking with their associations, clients and bankers.
Visits and trade shows: India has a complex food and beverage market so it is
recommended that companies interested in exporting to India visit the country itself and
visit or participate in major trade shows.
iii

Common strategies in marketing / promotion: It is essential to understand the kind of
product and the level of knowledge the consumer has of the product. The market is being
flooded with international products and the only way to create awareness and educate the
consumers is by large promotions, offers, and sampling activities, for which a reasonably
large budget is necessary. Retail chains insist on manufacturers support for promotions,
sampling, and education.

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 15/
Advice on packaging: Packaging sizes are very important, usually for Indian consumers,
the bigger the better. That being said, in most cases while packaging is large, the contents
are half the size. This gives the impression of getting better value for money, even though
it may not necessarily be the case. Indian importers and distributors generally have the
best knowledge and should be consulted when making packaging decisions.
Leverage cultural linkages: New Zealand and India both have a cricketing tradition that
a number of New Zealand companies are successfully leveraging within the Indian
market. NZTE can assist suitably qualified companies with introductions to prominent New
Zealand cricket personalities.
2.2 Long Term Strategic Issues for Exporters to Consider
While India is a growing market and is open to most new products, it is essential to
recognise that achieving high sales volumes and brand recognition can take at least a
year. Allocating more funds to advertising, marketing, promotions and sales will help
achieve targets.
It is worthwhile spending time to find the right importers and distributors initially, as they
have good knowledge of the local customs and import regulations and it can be difficult
dealing with the bureaucracy and red tape. An experienced partner will also have a
national network. It is important to note that logistics in India are at a nascent stage and
cold storage facilities and transportation are lacking.
2.3 Distribution Channels
In India, most domestic and imported food and beverage products go through several
intermediaries:
Clearing and forwarding agents: Clearing and forwarding agents (CFA) typically
work with exporters to aid transactions with stockists (distributors). CFA will transport
goods to stockists, invoice them and receive payments on behalf of the exporters.
Stockists: These are distributors that typically operate in their own exclusive
geographical area. Stockists also usually have a sales force that works with
wholesalers and large retailers.
Wholesalers: Wholesalers distribute products to rural retailers who are not large
enough to purchase from stockists.
Currently, retailers have a preference for buying from distributors or wholesalers rather
than directly importing products themselves. However, the distribution channels vary
based on the type of product imported into India.
Logistics in India are extremely underdeveloped. A lack of cold storage facilities and
transportation means that some products get air-freighted in India, which is expensive.

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 16/
Large retail chains are trying to develop their own logistics and distribution channels to
ensure products reach the end consumer in a good condition.
2.4 Pricing
India is a very price sensitive market. The market is open to exports from several
countries and there is no shortage of competitive products. A long-term pricing strategy is
essential to sustained competition in the market.
The mark ups at each stage of the distribution process are around the following rates:
iii

Clearing & Forwarding Agents: 2 2.5 percent
Stockists: 3 9 percent
Wholesalers: 5 30 percent
The whole distribution process usually represents 10 20 percent of the final retail price.
iii




Exporter Guide | INDIA | Food & Beverage| J anuary 2012 17/
3 MARKET RESOURCES AND CONTACTS


Disclaimer:
This publication is provided to you as a free service and is intended to flag to you market opportunities and possibilities. Use
of and reliance on the information/products/technology/concepts discussed in this publication, and the suitability of these for
your business is entirely at your own risk. You are advised to carry out your own independent assessment of this
opportunity. The information in this publication is general; it was prepared by New Zealand Trade and Enterprise (NZTE)
from publicly available and/or subscription database sources. NZTE; its officers, employees and agents accept no liability for
any errors or omissions or any opinion/s expressed, and no responsibility is accepted with respect to the standing of any
firm/s, company/ies or individual/s mentioned. New Zealand Trade and Enterprise is not responsible for any adverse
consequences arising out of such use. You release New Zealand Trade and Enterprise from all claims arising from this
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reports.

i
International Monetary Fund: World Economic Outlook Database
ii
The Economist, India Retail: Send for the Supermarketers, published April 2011, Link:
www.economist.com
iii
Euromonitor, November 2010. Packaged Foods India
iv
Euromonitor, November 2010. Fish and Seafood in India.
v
USDA Foreign Agricultural Service, India Exporter Guide, published December 2010, Link: www.usda.gov
vi
Datamonitor, Emerging Opportunities in the Indian Ready-to-Eat Foods Market, published April 2010
vii
International Monetary Fund: World Economic Outlook Database
viii
Datamonitor, April 2010. Emerging Opportunities in the Indian Ready-to-Eat Foods Market.
ix
USDA Foreign Agricultural Service, December 2010. India Exporter Guide. Link: www.usda.gov
ASSOCIATIONS
ORGANISATION WEBLINK
Food Safety Standards Authority of India
www.fssai.gov.in
Ministry of Consumer Affairs, Food and Public
Distribution
www.fcamin.nic.in
Plant Quarantine Organisation of India
www.plantquarantineindia.org
Department of Animal Husbandry, Dairying &
Fisheries
www.dahd.nic.in
Central Board of Excise and Customs
www.cbec.gov.in
TRADE EVENTS WEBLINK
AAHAR International Food & Hospitality Fair www.aaharinternationalfair.com
Fine Food India www.indiafooddrinkexpo.com
Annapoorna - World of Food India www.worldoffoodindia.com
OTHER NZTE PUBLICATIONS
REPORT WEBLINK
India Country Profile www.nzte.govt.nz
Food Processing Market in India www.nzte.govt.nz
ICT Payments Market in Inda www.nzte.govt.nz

Exporter Guide | INDIA | Food & Beverage| J anuary 2012 18/

x
USDA Foreign Agricultural Service, J uly 2011. The Indian Wine Market.
xi
Euromonitor, September 2010. Frozen Processed Food in India.
xii
Acquire Media NewsEdge, India Drinks: Domestic Wine Grows Nearly 300% Ten Years, published April
2011
xiii
World Trade Atlas, Link: www.gtis.com
xiv
Datamonitor, Food Retail in India, published J une 2010
xv
Euromonitor, March 2011. Wine in India.
xvi
USDA Foreign Agricultural Service, India Food and Agricultural Import Regulations and Standards -
Certification, published November 2010, Link: www.usda.gov
xvii
USDA Foreign Agricultural Service, India Food and Agricultural Import Regulations and Standards -
Narrative, published December 2010, Link: www.usda.gov
xviii
Pew Global Attitudes Project, Global Attitudes Survey, published J uly 2009, Link: www.pewglobal.org