By IANS,
Mumbai : The retail food sector in India is expected to grow from the current $70 billion to $150 billion by 2025, according to consultancy firm McKinsey & Co.
Speaking at the inaugural session of the two-day India Food Vision 2020, which opened here Tuesday, McKinsey & Co principal Ireena Vittal said that in comparison, the world food industry, which stands at $175 billion, will grow up to $400 billion by 2025.
There are 10 million street vendors in India, of whom six million sell only food items. Moreover, Indian consumers are happy with store goods than branded goods and are very conservative when it comes to packaged goods, she said.
“India is likely to become the second largest dairy products producer, next to the US, in the years to come. Food prices in India are the lowest in the world. India has the highest per capita consumption of sugar in the world and it is still growing. The agriculture sector has moved into higher value crops in the last 10-15 years,” Vittal said.
Agricultural and Processed Food Products Export Development Authority (Apeda) director S. Dave said retail stores needed to empower stakeholders and deliver what the consumer wanted.
“The vision for 2020 should be appropriate extension network, implementation of appropriate practices at farmers’ level and infrastructure in the country,” Dave said.
The inaugural day also witnessed the launch of the India Retail Directory 2008, which includes a chapter on the India Food Report 2008 to be released later this month.
As per the report, in the overall retail sector, food and grocery is the dominant category with 59.5 percent share, valued at Rs.7,920 billion ($198.2 billion), followed by clothing and accessories with a 9.9 percent share at Rs.1,313 billion ($32.9 billion).
In the organised retail segment, clothing and fashion accessories is the largest category with 38.1 percent of the market share, valued at Rs.298 billion ($7.5 billion), followed by food and grocery accounting for 11.5 percent of the organised retail market at Rs.90 billion ($2.3 billion).