How profitable and sustainable is the health food segment in the Indian F&B industry?
Is that the question that keeps your entrepreneurial instinct boggling day and night? Well, it’s time to make merry and raise the toast to this fast emerging concept of healthy eating and healthy serving.
Due to the high demand of healthy food, F&B entrepreneurs are focused to serve quality and balanced diet from their kitchens to the customers' table. Kudos to our very own Yoga Guru Baba Ramdev, who is promoting the idea of healthy eating and healthy living to the core. Even his homegrown FMCG brand Patanjali has created a rage amongst the diet conscious lot. Patanjali Group is targeting revenues of about Rs 5,000-10,000 crore in the next few years. The brand has also joined hands with the Future group for organised retail in the country.
Baba Ramdev says: "We were looking for a swadeshi retail chain to sell our products and Future Group's Big Bazaar fitted the bill." While Kishore Biyani of Future Group is of the opinion: "We are looking at business worth Rs 1,000 crore with Patanjali in 20 months.”
Health food market encompass bakery, beverages, FMG and even new restaurant concepts. The fruit juice market is one of the fastest growing categories in the beverages segment, growing at a CAGR of over 25-30 per cent over the past decade. The growing trend of fitness and keeping oneself healthy is driving the juice business in India ahead. Opening of juice/ smoothies bars and salad cafes are majorly witnessed in metros like Mumbai, Delhi, Bengaluru, Hyderabad, Pune and Chennai.
This sector primarily dominated by the unorganised players or the local vendors is cashing in on the rising demand. That is why many start ups are roping in this segment of F&B industry. Rivoli Sinha, an HM graduate who runs nine 'Joost Juice' bars in Delhi NCR and Mumbai shares her idea behind taking up this juicy concept. “It was during my family visit to Australia back in August 2008 when I first came across the concept of juice parlours and realised it as an interesting opportunity for a country like India, where there is the need for a healthy beverage segment. Joost Juice is standing strong in its fourth year and we have recently opened our store at the Mumbai airport. We wanted to enter the West India market which started from Mumbai and will continue in Pune operations this year. We are also looking for franchisees for our business,” shares Sinha.
= Indian food industry is estimated to reach almost
Rs 18 lakh crore in 2016 while the health food segment is pegged at Rs 1000 crore.
= As per Technopak reports, juicing business is standing at over Rs 1200 crore today. It is one of the most promising and profitable business.
= Baba Ramdev holds no stake in Patanjali Ayurveda. However, its products across 4,000 Patanjali outlets in the country are sold because of his name.
= Market analysts say that Patanjali's products can pose risk to competition in the FMCG space as they are priced lower than those of other players in the market.