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CHAPTER 1

1.1 INTRODUCTION

Fun Foods is not a term which has been defined by industry leaders across the world but it
remains a category which is consumed by one and all. Fun Foods are basically ‘munching
foods’, for lack of a better term. Fun-Foods have been divided into three sub-categories into.
They are-

Carbonated Drinks- soft, energy and fruit drinks

Chips/Crisps- branded, local

Confectionary Products- these include cookies

They are those food products that do not satisfy one’s appetite but only leave behind the drastic
ill-effect of obesity among other health problems. This category of food products is infamous for
using chemicals like food additives to increase the shelf life of the food product. The addition of
these additives also enhances the taste and flavour of the product which may also lead to
increased craving for the same. With the changing face of technology, new and more potent
food additives have been discovered by scientists. Studies have conclusively shown that in the
last two decades, obesity rate in children has been on the rise with fun foods being one of the
major causes. This research is confined to India. July 1991, marked the beginning of
globalization and liberalization for India, which was also the time when she opened the door for
hungry MNC’s from across the globe. Big players in this field like Pepsi co, Coca Cola, Nestle,
to name a few entered the Indian market and spread their wings in every corner of the country in
less than a decade. With time, inflation rate began its upward climb and prices were hiked, which
led to increment in household expenditure. This category of food products became necessity for
younger generation. With changing trends scene everywhere in the world and now in India is
that these products have carved a prominent niche for themselves in nearly every household.
There has been a slowdown when it comes to these products; increasing demands have yielded
increasing profits. Looking to the future consumption of these products, over the next 50 years,
the scale of profit margin is unimaginable to say the least. With intense and vigorous marketing
and advertising campaigns splashed across televisions, banners, hoardings, bill boards, etc, it has
become very tough to distinguish the reality from the fake antics these advertisements bank
upon. The munching sounds, savouring expressions, inconceivable stunts after gulping down an
carbonated drink are all fake yet effective mechanisms for attracting consumers. Indian cuisine
has always favoured fresh flavours and products over stale ingredients or inorganic additives.
The main aim of discussion on this topic is to study food additives that are used across the world,
the health problems that they are responsible for, and finally to raise and mobilize awareness
against them so that their consumption through various food products is restrained.

1.2 AIM

The research is about the food additives and health effects from fun foods on the human race.
The study will help people to understand those chemicals and there ill-effects. The goal is to
gather as much information from electronic sources about food additives and having a direct
conversation with the medical practitioner about the excess intake of these additives on a human
body.

The other target of the study is to study the average consumption rate of these products in Indian
market and comparing it with its past and future.

1.3 RESEARCH STRUCTURE

The theme of the research of the researcher’s title is based on Fun Foods and its
dominance in Indian market. The theme of the research will include the food
additives, ill-effects of additives due to excess consumption by the consumer,
consumption rate in Indian household and comparing consumption of these
products with the developed nations like United States of America, United
Kingdom and Australia etc.

The researcher will do the primary research which is the field


research taking interviews of managers of Mega-Stores (Spencer, Big Bazzar) to
understand the consumption of city Lucknow, doctors to have a detailed
knowledge of the ill-effects on human body due to excess dosage of additives and
getting questionnaire filled from people of various age groups to understand the
consumption rate of these products. The inadequacy of the research will be limited
to India; no other country other than India is emphasized for research.
1.4 OBJECTIVES

Globalization in 1991 made these Fun Food companies enter the market and in less than two
decades these products are easily available in every corner of the country. The first objective is
to study the consumption pattern and popularity of these products after 1991. The second and the
most important objective of the study is about the food additives and there ill-effects of them due
excessive consumption of these products.

Developed nations like U.K., U.S.A, Japan, Germany etc are the countries which consumed these
products during World Wars and adapted these products when India wasn’t aware of these food
items. The third objective talks about the comparison of the consumption between India and
these developed nations.

India is becoming the biggest profit generating country for these MNC’s and huge investment
has been by the company to meet the hungry demands of this country. The projections for soft
drink market growth in India till 2014-15 is 6%. Seeing at this kind of growth in Indian market
future seems unpredictable hike for this segment. This calls for the fourth objective future
consumption rate of these products and comparing Indian market with developed nations.

The fifth objective is about the preferences of the vast Indian consumers. India being the second
largest populated country with various age groups everyone likes to consume these products but
they have their own preferences which every company can’t deliver to all the customers. This
object would be fulfilled by interacting with different age groups and getting a questionnaire
filled by them.

1.5 MOTIVATION

Fun foods have become available for everyone. These products are becoming meals for
many students and single people working. But the awareness about the additives and
health disorders caused by excess intake is still not spread to masses.
For example, In April 2003, Pepsi Co and Coca-Cola were accused of using surplus
amount of pesticide residue according to global standards. The tests were conducted by
Pollution Monitoring Laboratory (PML). Three bottles out of twelve bottles of Pepsi and
Coca-Cola across the city were found to surplus amount of pesticide residue surpassing
the global standards by 30-36times. The bottles contained Lindane, DDT and Malathion
which were known to cause cancer, damage to nervous system and reproductive system
and birth defects.
The motive for the study is to examine food additives used in Fun-Foods and there
harmful effects on human body which would be carried to local masses.
CHAPTER 2

2.1 TITLE

The Dominance of “Fun Foods” on the Indian Consumers- A Culinary Investigative Study. This
topic has been chosen by the researcher to understand the overview of a part of food industry
which involves addition of chemical additives which are harmful to a human body. A lot of
articles have been written in recent times and there was scandal in which pesticides were found
in soft drinks in 2003. People are kept on informing by all means of media technology but there
always seen a rise in consumption of these products. A teenager nearly spends around half of its
pocket money in which additives are added.

2.2 AIM

The main aim of the study is to understand the world of additives and its harmful effects on
human body due to excess consumption. These food products have become prominent in our
lives but people are not aware of their harmful effects on human body. Maggi plays an important
role in lives of students staying in a hostel. Maggi has Monosodium Glutamate (MSG) as
flavor enhancer which is a substitute of common salt. Some of the problems due to excess
sodium are kidney stones, high blood pressure or stomach cancer. Soft drinks have a high rate of
consumption among youngsters but many of them are not aware of the simple food additives in
them. Sugar in soft drinks can lead to health problems like dental caries; obesity; Neuro-toxicity;
teratogen; devoid of nutrition and Caffeine can lead to Cancer; hyperactivity; insomnia,
glaucoma, arrhythmia; affects blood sugar levels.

India is the world’s second largest country next to China. The MNC’s interest has been shifted
towards India after seeing the potential of the middle class and huge population to cater. Since
globalization in Aug’91 and up-till Feb 2000 proposals for projects in food and agro sector have
been over Rs.53, 800 crores. It includes establishing manufacturing units for Pepsi, Coca-Cola
and Lays etc. The industry has witnessed fast growth in most of the segments.

India’s middle class segment holds the key to success or failure of the fun-food market in India.
Of the country’s total population of one billion, the middle class segments account for about 350-
370 million. It has been found out that an Indian household is spending huge amounts on these
items. Snack food market which includes chips, noodles and cookies is estimated to grow at an
annual rate of 18% to 20% according to projections in 2008. With time these products have been
prominently seen in every household in India which shows a huge success of these products.

The fun-food industry in future has potential for a changing the consumption pattern of
household. The factors which will make the change are increase in income levels, increasing
numbers of women joining the work force; rapid urbanization, changing lifestyles, and mass
media promotion are fuelling the growth of these products. Many foreign companies have
entered this market and many more are evaluating their options to enter. Other factors which will
help these products to rise are the increasing population, rise in income, changing lifestyles due
to which these products are and will be included in the diet of changing India. Projections made
by the MOFPI for soft drinks are- for 2009-10-2014-15 the market will grow by 3.5% and they
are expecting it to grow by 5.2% in near future. For biscuits they have projected for 2009-10-
2014-15 the growth would be 6.2% and in future it will be 7.2%.

2.3OBJECTIVES

2.3.1 To study the consumption pattern of Fun-Foods in India after globalization -1991-
India has always been a lucrative destination because of its vast population and untapped
consumer base. The government of India wanted the country to be exposed to some changes
so in 1991 Indian globalization started. The MNC’s entered Indian market with a sole
purpose of profit and provided many jobs to people and lead to an increase in middle class
segment. With increase in middle class segment and income to afford new food products in
the market it made these companies to touch new profits which were not projected.

The country is seeing a tremendous hike in the consumption of these products. Soft
drinks is said to be the third largest market in India and the industry estimated that it will
grow at twice the rate of GDP growth. The growing rate has been 6% which was
estimated for 12% (twice the GDP of India).
In 1990-91 105million cases were sold in 2003-04 291million cases and in 2009-10
203million cases were sold of soft drinks.

With globalization a lot of MNC’s started entering which provided many jobs to people
and lead to an increase in middle class segment.

2.3.2 To study the different chemicals used in “Fun-Foods” and their harmful effects
on human body- Eating is becoming a dangerous business day by day. Food
additives sound like the product of a chemical factory but there is no such reason to
be afraid of them. The effect of any chemical substance depends not only on its
composition and basic properties but also on its dosage by an individual. The
companies don’t mention the chemical name they write them as the use in that
product with numbers which are provided by scientist. The list of additives in soft
drinks are-
Sugar- it is Also known as Cane sugar, also known as Sucrose. It serves as a sweetener,
preservative. The ill effects of it are dental caries; obesity; Neuro-toxicity; devoid of nutrition.

Colour (150d) Also known as Caramel, Caustic Sulphite, Ammonia, Sulphite Ammonia
Caramels; may be GE. It provides brown and flavouring to soft drink.

Food Acid (338) Also known as Phosphoric Acid and is made from phosphoric rock. The ill-
effects know to humans due to excess intake are Neuro-toxicity; severe eye & skin irritation;
tooth enamel erosion; osteoporosis

Caffeine Obtained as a by-product of decaffeinated coffee. The ill-effects are Cancer;


hyperactivity; SIDS; insomnia, glaucoma, restlessness, arrhythmia; liver- neuro- gastrointestinal-
kidney- and musculoskeletal- toxicity; affects blood sugar levels; teratogen.

Phenylalanine it is known as Amino Acid. It serves as artificial sweetener. It leads to mental


deterioration in children.

Food Acid (330) chemically it is known as Citric Acid and derived from citrus fruits which adds
flavouring and food acid in soft drinks. Excess dosage leads to aggravate celiac disease, tooth
erosion with large doses.

Food Acid (331) chemically it is known as Sodium Citrates, Monosodium citrate. Harmful effect
on human body is it alters urinary excretion.

Sweetener (950) it is known as Acesulphame Potassium Acesulfame K. The purpose in soft


drink is to provide artificial sweetener. Excess dosage may lead in increased levels of cholesterol
in the blood or cancer.

Sweetener (951) it is known as Aspartame. It is used as an artificial sweetener. The ill-effects


are Cancer, asthma, MS -like symptoms, headache, hyperactivity, fatigue, anxiety, dizziness,
migraine, memory loss, depression, insomnia, irritability.

Preservative (211) it is known as Sodium Benzoate. It helps to preserve drink for a long time
which helps to increase the shelf life of the product. Excess dosage leads to Liver-, kidney- and
neuro-toxicity, asthma, gastric burning, hyperactivity.

2.3.3 To study the consumption pattern of fun-foods in last couple of years and what
will be the future consumption level of these products- fun foods have gone global
for more than 50years. These products have become popular and common
everywhere in the world. The leading companies in this field are experimenting and
introducing new products every year to make a tight grip on their segment of food
industry.
The chips market is reported to be growing at7-8% annually and to meet to this demand
an increase in production of potatoes have been seen. In 2009-10 the output of potatoes
rose by 5.1% to a record of 32.7million tones.
The Indian Non-Alcoholic market (soft drinks) in 2001-02-2006-07 read a growth of
6.5% the reading for 2009-10-2014-15 is expected to grow at 3.5%.
The confectionary products saw deterioration in demand by 1% in 2004-05- 2009-10
when compared to 2001-02-2006-07. The demand in 2001-02- 2006-07 was 6.4%. The
expected demand in this market for 2009-10-2014-15 is expected to be 5%. The biscuits
demand for the years have been

Year Market Demand (in %)


2001-02-2006-07 7.4
2004-05-2009-10 6.4
2009-10-20014-15 6.2

Soft drinks entered the market as a middle class drink but in less than a decade it has
made entry in every household. In this table number of cases that have been sold when it
was introduced in 1990-91 and compared its sales with recent years and made a
projection for the year 2014-15.

Year Cases sold (in millions)


1990-91 105
2008-09 388
2009-10 403
2014-15 479
(Figures provided by Ministry of Food Processing Industries)

The key factors that have importance in increasing demand for fun foods and are expected to
play a major role in the transformation of the demand are:
a) Rise in population and incomes- by next decade India’s population is expected to be 1.3
billion and 60% is expected to fall in the age group of below 40, making it a demanding
segment to cater to. The real per capita income is likely to nearly double in next 10years.

The demand of these products will rise with increase in population and with increase in
disposable income. If companies want to make a tight grip on the market they have to
invent new products to make tight grip.
b) Palate and lifestyle change- growing urbanization and rise in income has lead to change
in traditional Indian habits of eating healthy food. With time and globalization Indians
have led to diverse lifestyle change in India. Rise in income have led Indians to try new
taste and products available in Indian market according to palates Indians are accustomed
to.
2.3.4 To examine and compare the India’s future consuming pattern with different
countries consuming pattern of Fun Foods- The fun-food industry has changed
considerably in recent years to adapt to the demands and lifestyles of domestic
consumers, particularly the growing middle class. This is due to the rapid expansion
of the retail distribution in modern supermarkets, superstores and convenience stores.
After globalization these products have seen steep rise in their sales and slowly and
steadily the companies have captured every segment in the country. India has become
one of the largest emerging markets and India is one of the largest economies in the
world in terms of purchasing power due to which MNC have started paying attention
towards this large population to cater.
The per capita consumption of soft drinks in different countries are- India is 5-6 bottles
(same as Nepal’s), Pakistan’s 17 bottles, Sri Lanka’s 21, Thailand’s 73, Mexico 605 and
Philippines 173. Looking at the per capita consumption the figures wont differ much in
coming years when compared to countries.

2.3.5 To examine the consumer segments, consumption patterns, preferences in Indian


household- India has around 370million middle class segment people which has their
own preferences according to the taste provided by the MNC’s to cater this largely
populated country. The companies have their own clientele in the country to target. Each
company provides different taste to their customers. If you compare Pepsi with Thumbs
Up there would be people who will always like to go with Thumbs Up because of the gas
and a bit low in their sugar content. On the other side there would be people will like to
consume Pepsi because of its sweetness and maximum celebrities doing advertisement
for this company. Same goes with in the world of potato chips some will prefer Lays
compared to Bingo by ITC.
These products have taken a prominent place. These products are getting popular day by
day in youngsters and these companies promote their brand with the help of celebrities to
cater the large population of India.

2.4 RESEARCH DESIGN


For this research, the collection of data is done by primary and secondary research. The
scholar is supposed to complete the research within a period of four months.

2.4.1 PRIMARY DATA

Primary research is being conducted by the researcher to gain firsthand knowledge about the
topic and its objectives. The primary research carried out will be qualitative in nature. The
researcher will also carry out a descriptive survey to understand the awareness and knowledge of
people about the food additives in these products. Observational survey will also be conducted to
understand these trends.
2.4.1.1 Questionnaire Administration or Survey

A descriptive survey will be conducted by the researcher to understand the preference, weekly
consumption and awareness about the food additives in fun-foods. As this study requires an
analysis of various aspects of the population, Simple Random Sampling method will be used to
collect valid data. The researcher will meet people of different ages and income groups from
different locations would be requested to fill an individual questionnaire based on their
preference and awareness of fun-foods.

2.4.1.2 Observational Surveys

The researcher will visit different supermarkets or superstores to better understand the preference
of these products.

2.4.2 SECONDARY DATA:


Secondary research will be conducted by the researcher to understand and examine what authors,
reports by various organization and doctors have to say about the additives and there harmful
effects on the body, increase in consumption of these products and the future of these food
products. The researcher will refer to books, journal articles, magazines and websites in order to
obtain this data.

2.5 METHODS OF DATA COLLECTION

The researcher will carry out a questionnaire to understand the knowledge about the food
additives among different age groups and their consumption pattern. The researcher will also
read and examine literary data available in printed form and on the internet. All this will help the
researcher gather valid information on the topic of study.

2.5.1 SAMPLE SIZE

The researcher intends to go with a convenience sampling technique. The technique is


used in exploratory research where the researcher is interested in getting an inexpensive
approximation of the truth.
To study the objectives a questionnaire will be made which will be convenient for people
to understand and fill them. The questionnaire will be filled by various age groups.
Different age groups are selected to get a better overview of the people and which will
help the researcher to make future assumptions.
QUESTIONNAIRE FOR FUN-FOODS

1. NAME

2. AGE

3. What do you prefer to drink??


Soft Drink Energy Drink

Fruit Juices All of the above

4. Frequency of consumption of your preferred drink in a week?


Daily 2-5 times

6-10 times More than 10

5. Do advertisements affect your purchase?


Yes No

6. At what time of the year you consume your preferred drink?


Winters Summers

Monsoon Autumn

Any time of the year

7. At what time of the day you prefer to have your preferred drink?
Morning Afternoon

Evening Night

Any time of the day

8. Are you aware of the various food additives in soft drinks?

Yes No

9. Are you aware of the ill-effects caused due to excess intake of soft drinks?

Yes No

10. Which type of chips do you prefer?

Mild Flavoured Regular


Hot n Spicy Any other

11. Which brand do you prefer?

Lays ITC

Uncle Chips Kurkure

Any other

12. How often do you consume your preferred brand??

Very often Often

Sometimes Rarely

13. Are you aware of the trans-fat hidden in potato chips?

Yes No

14. Which brand do you prefer for noodles?

Maggi Cuppa Noodles

Top Ramen Foodles

Any other

15. What’s your weekly consumption of noodles?

5-10 11-15
16-20 More than 20

16. Are you aware of the various additives in noodles?

Yes No

17. Are you aware of Sodium additives and there harmful effect due to excess
intake of sodium?

Yes No
CHAPTER 4

FUTURE RESEARCH SCOPE

The food industry needs transformation to develop new products and developing technologies in
the world of food. The fun food industry now needs to deliver fresh and authentic products,
convenient and flavourful products with minimum amount of food additives in it. There is an
increase in to consume health and safe foods it is important for this industry to produce food
products with minimum artificial ingredients while utilising natural resources. The focus of
companies has seen a change to provide fresh and improving the quality of food are the main
targets for them. Nano technology is coming into picture and lot of companies and government
are investing in the application of food; in U.S.A. the Woodrow Wilson Institute has identified
160 projects in nanotechnology for agri-food applications and Danish technology foundation has
invested €2 million in research on nanotechnology for food applications in the Danish
“Nanofood” consortium since 2006. Major food and nutrition companies like H.J. Heinz, Nestlé,
Hershey, Unilever, Campina, Friesland Food, Grolsch, Kraft Foods, Cargill, Pepsi-Cola
company, ConAgra Foods, General Mills, Danisco, Arla foods are engaged in research on
nanotechnology for food applications. The technology has application in all aspects of food
sectors like food processing, food packaging, food monitoring, production of functional foods,
development of foods capable of modifying their colour, flavour or nutritional properties
according to a person’s dietary and health needs as well as production of stronger flavourings,
colourings and nutritional food additives. The technology will also help the companies to lower
the costs of adding food additives and helping to increase the shelf life of these products. In 21st
century it is essential to keep on innovating new products, introducing new technologies to keep
market leadership and to keep on delivering fresh authentic, flavoursome and convenient food
products to the world. In this revolutionized world Nano-technology is the key for the companies
to deliver what people have always been asking.

With modernization and people aware of every ill-effect of food additives on human body with
help of this technology can help companies to produce food items that will help people to
consume these products without any fear. For example the technology can produce low-sodium
foods that will taste salty and chances can be it won’t be much side effect due to excess
consumption. Food products would be there in which fat won’t be used to provide taste and
texture like in ice-cream.

To meet the growing demands, food processors are creating a new generation of microwavable
items for use at home as well as away from home, via help of microwave. Microwave cooking is
a mixture of art and science and emphasis paid on technology. Microwave food products include
meals, snacks, grilled cheese, precooked entrees, sandwiches and pizzas etc are some of the
available food products in super stores. Microwave steam cooking is coming in. In a microwave
an individual meal requires 7minutes of heating time to cook from raw in an 850W microwave
oven. A new cuisine called “Steam Cuisine” is being adapted by the companies which heats the
food product in the microwave oven. The food is packed in specially made material which
gradually expands and excess steam vents through a valve on the package lid. A packaging
concept from Finland-based Huhtamaki called “STEAM CHEF” a concept which helps food to
retain colour and nutritional values. The food is still cold, microwave energy penetrates deeply
into food tissues and convert it into heat and water content in food transforms into steam which
helps to cook the food from inside out.
Organic food or organic food products are the ones which doesn’t contains no chemical components in
the form of pesticides, fertilizers or insecticides. They are free from all the pesticides that are generally
spread on plants grown in the farm. In the past few years the organic food industry has seen an
unprecedented growth and this has mainly been possible because of the increasing awareness amongst
people about staying healthy.
The rate at which Indian population is growing and the size of middle and upper class is
projected to increase at 300% between 2005 and 2015 and youth population (15-25 years) who
are the biggest consumers of these products is expected to grow by 11% in India. A four time
growth in the size of middle class has been seen. With time a migration has been seen by rural
India to urban India which has also led a rise in consumption of these products. With rise in
population it will lead to rise in demand and production of food products which are convenient,
healthy and according to the palate of changing lifestyle and population of India. With growing
time people require products with better quality, value, taste, healthier products.
Growth in the size of the middle to upper classes which is projected to increase at more than 300% between 2005 and 2015.
During the same period the youth population (age group 15 – 25) in India is expected to grow by 11%. This will lead to an
increasing demand for food products to meet demands of convenience, variety, health and a
changing palate.

1.A four times growth in the size of Indian households in the middle to upper classes which will result in Indian household
consumption to doubling by 2015
2. Increase in the youth population
3. Growing migration from rural India to urban India

Food companies can look at increasing the per capita consumption and spending through new product introduction, improved
availability and targeted consumer education.

Consumption patterns have evolved rapidly in the last five to ten years. The consumer is trading up to
experience the new or what he hasn’t. He’s looking for products with better functionality, quality, value,
and so on. What he ‘needs’ is fast getting replaced with what he ‘wants’.

.Given the increasing accent on health and safe foods, it will become important for the
processing industry to produce food products with minimal artificial ingredients while utilising
natural resources in a sustainable manner. The role of technology (such as nanotechnology) in
bringing food to the consumer’s plate is expected to be enhanced, with technology not only
serving the key roles of preservation and the consequent increase in shelf-life of perishables but
also in delivering taste in a customised manner to serve the palate and health needs of customers.
Many food companies are now investing in nanotechnology research that could provide us with
safer, healthier, more nutritious and tastier food in the future. Food production costs are expected
to fall as techniques become more efficient, using less energy, water and chemicals, and
producing less waste.
Some of the key areas in which this emerging science will play a valuable role include food
packaging
and food safety, and ‘interactive foods’ such as an ice-cream that has the taste and texture of ice-
cream
without the use of fat or the use of nanotechnology to produce low-sodium foods that will still
taste
salty due to interactions with the tongue, and nutrient delivery systems that use nano-capsules to
deliver
micronutrients, antioxidants or even drugs to specific target areas of the body at designated
times.
In this way, foods could be customised according to the
specific¬ taste and smell preferences of the consumer, along with their needs related to health
status,
nutrient deficiencies or allergies.

Chapter 1 (30-38%)
Background study overview

Chapter 2 (15-20%) (5-7pgs)


Title (expansion of proposal)

Chapter 3 (20-30%) (5-7pgs)


Critical evaluation
Secondary research evaluation
Qualitative analysis
Chapter 4
Future research scope, recommendation

Bibliography

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