‘ver2020 Policy watch: foodzania 2018: the food sarvie rela conference organised an EMIS in,On and For Emeraing Markets January 29, 2019 | Publication: FICCI Business Digest Policy watch: foodzania 2018: the food service retail conference organised The Indian Food and Beverage (FB) service Industry is one of the most vibrant industries that has seen unprecedented growth in the recent past and continues to expand rapidly. The sector has seen exceptional growth during the past decade and continues to expand ata fast pace. Itis projected to grow at more than 10 per cent over the next five years (2018-23). This can be attributed to a high percentage of young and working population with rising disposable incomes, While traditionally this sector has been dominated by unorganised players, however, the entry of foreign and organised Indian restaurant chains in the past few years has helped in faster evolution and expansion of the entire industry. In light ofthis, FICC! organised Foodzania 2018 - The Food Service Retail Conference on 12 December 2018, which highlighted the upcoming golden decade of the growth inthe industry driven by the changing consumer behaviour and Influx of technologies within the business. Hem Pande, Former Secretary, Government of India, in his address said that it's a great time for the food industry. He, however, added that consumers in India are at the receiving end and it's important that the industry lays special attention to meet the needs of consumers. ‘Speaking on the occasion, Unnat Varma, Chairman - FICC! Task Force on Food Service Retail and MD - Pizza Hut India Subcontinent said that the Indian food service industry is at the cusp of a massive growth. ‘We are this inflection point where this industry can see sustained double digit growth for over a decade. The consumer market is growing, ‘consumer behaviour is changing, they are winning to spend more in the category and as the industry has evolved the. industry has become bigger and better and lot of good things are happening in the industry,’ said Varma in his, welcome address. The industry has been growing at 10 per cent and there are very few industries that are growing at that rate and overall recipe is right fr this industry to grow. So there is huge amount of consumer momentum and consumer story behind some of these growths. "And this is only the beginning, Itis only a matter a time that consumers in India will start consuming outside food 40 times more than they are doing today. So, food is at the hear of all the outsourcing,’ he added, \Jagbir Singh Sidhu, Chief Operating Officer-EVP North, Diageo India, agreed with Varma and added that the experience factor is also a key reason for the growth ofthe industry. ‘Undoubtedly the food and retail business is. poised for growth and today’s people's ambition and desires are changing from just satisfying basic purpose of eating food or ordering from outside to having an experience "According to a recent study on Diageo's total economic contribution to India done by Oxford Economics showed that the sales alone of our brand contribute to 3,75,000 jobs inthe food service industry and resulted in an additional INR 4000cr additional gross value to the food sector; said Sidhu during his keynote address. Sidhu also acknowledged the increasing role of women in the food and retail sector by saying that the country is ‘seeing more and more entrepreneurs coming into the business. "The growing role of women in the food service industry both as entrepreneurs, workers and consumers can be quite a hitpsilwwnemis.comyphplsearchisoc?pe=IN&dcié=842074794Brange=3658s MISAquery_enty=quickBsearch_mode=18prod_fite=prod IN. 13‘ver2020 hitpsilwwnemis.comyphplsearchisoc?pe=IN&dcié=842074794Brange=3658s Policy watch: foodzania 2018: the food sarvie rela conference organised significant contribution to bringing new opportunities for women,’ he added, Rahul Singh, President-NRAI and Founder & CEO-The Beer Cate highlighted the significant ole of food aggregators In increasing the consumption of outside food, He said that they are the creators of behavioral change among ‘consumers that is going to increase propensity of dining out. ‘Next 10 years are going to be the golden decade from the perspective of consumption, he added Pravesh Sharma was of the view that the agriculture in India is largely driven by the market. ‘Many think that government policy drives agriculture in India but the truth is at least for the last decade and a hatf, all the developments are actually been signaled or driven by market, he said "And, unfortunately, from the policy context and the approach to agriculture is stil mired in an earlier era, where we were concerned about food security and at least maintaining some sort of livelihood levels of farmers."'So, itis this, disconnect between the reality of the market and the policy context that is in my opinion the cause ofthe distress that we see in agriculture. And unless the fiction are removed and the gears are appropriately reconfigured so that the policies addressing what the market is demanding, he added. However, Sharma felt that India is entering into a phase of demographic bulge where majority ofthe Indian population will contain the young popu "We have just entered into the phase of youth bulge - 65 per cent of the population is under the age of 25 and about til 2030, we will enjoy the benefits ofthis largely youthful population. China entered its youth bulge in 2001 and they are now coming to the end of that period and you can see how they managed to leverage that youth bulge. And india is centering into the phase of demographic bulge and whether it will turn out to be demographic dividend or deficit is to be ‘seen,’ Sharma said. ‘We need to find ways to integrate the industry with the producers. This may involve easy arrangements for contract farming, for land leasing. So, the industry has to increasingly engage state governments. Itis atthe state level that the policy dialogue and policy education is most required. "Simultaneously, we have to consolidate our production base. There is also a lot of untapped talent that is there in the {ood startup space. In the last two years, we have seen a lot of innovative ideas taking root and growing at a fast clip. ‘And financially too I would urge that ifthe IT industry could attract tax breaks, the food industry is perhaps more than deserving these tax breaks,’ he added The inaugural session was followed by six brainstorming session which focussed on issues ranging from faciitating Ease of Doing Business, exploring the true potential of the Food & Beverage Service Retail Industry to finding the essential ingredients for sustainable growth of food service industry to creating a new dining and drink experience to evolving skills framework for evolving F&B businesses to the role of food services & beverages in creating a vibrant urban night-time economy. ‘Some highlights from the FICCI-PwC Report on ‘Changing Landscape of the Food Service Retail Industry’ In 2022, the Indian food service industry is forecast to have a volume of 77 billion transactions, an increase of 28.5% since 2017. The CAGR of the industry in the period 2017-22 is predicted to be 5.1% “The performance of the foodservice industry is forecast to accelerate, with an anticipated CAGR of 10% for the five- year period 2017-2022. This is expected to drive the industry to a value of INR 6,52,000 crore by the end of 2022, * Evolution of food is happening, thanks to the innovation in traditional menus. Fusion food is attracting the ‘experimental consumer, Foreign players are adapting to the local palate, whereas locals are introducing foreign flavours in thelr food. + Intemet penetration and smartphone usage to increase the demand for specialised food and gourmet. “Technology is disrupting the market withthe advent of web-based ordering and use of Al and loT in ordering. These developments are set to revolutionise home delivery with faster availabilty of food at home or offic. 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