PART – 1 GENERAL INFORMATION
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Indian Processed Food Industry
India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing industry. Health food and health food supplements are another rapidly rising segment of this industry which is gaining vast popularity amongst the health conscious.
The Indian food processing industry accounts for 32 per cent of India's total food market. The industry is estimated to be worth US$ 121 billion, it is one of the largest industries in India, and is ranked fifth in terms of production, consumption and exports. The fruits and vegetables export from India in April-December 2012 was recorded for Rs 37.02 billion (US$ 681.14 million). Of the total exports, fresh grapes was recorded to Rs 5.45 billion (US$ 110.72 million), while walnuts were Rs 1.29 billion (US$ 23.76 million) and fresh mangoes stood at Rs 2.23 billion (US$ 40.99 million).
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The Ministry of Food Processing receives a number of proposals from private industries for establishing food processing industries in the country. The total amount released by the Ministry under the aforesaid scheme during 2012-13 (as on February 15, 2013) is worth Rs 145.74 crores (US$ 26.81 million). India presents a huge untapped opportunity for the food processing sector enhanced with low
penetration levels and a liberal regulatory regime. Increased economic growth, evolving foodconsumption patterns, a higher standard of living due to rising disposable incomes and a trend towards nuclear dual-income families all present considerable potential. Government studies show that an average Indian spends majority of his income on food consumption.
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CHAPTER-1 INTRODUCTION OF FROZEN CONCEPT
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Frozen Food/Freeze Drying Concept
Frozen vegetables were one of the first frozen foods introduced in the 1930s.They have become favorite for quick-fix meals. Freeze drying is a relatively recent method of preserving food. It involves freezing the food, then removing almost all the moisture in a vacuum chamber, and finally sealing the food in an airtight container. Freeze-dried foods can be easily transported at normal temperatures, stored for a long period of time, and consumed with a minimum of preparation. Once prepared, freeze-dried foods have much the same look and taste as the original, natural products. Freezing methods for food are convenient and easily applied. As freezing is one of the few methods which allow preservation of food attributes such as taste, texture while maintaining the nutrition. Frozen products are similar to fresh product if good handling and safety practices are used before as well as after such freezing. Frozen prepared foods are easy to make and often tasty.
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(Source: http://www.europeanfreezedry.com/ui/process_en.jpg) Frozen food has been around since 3,000BC, when the ancient Chinese started using ice cellars to preserve food through the cold winter months and beyond. The Romans also used to store provisions in compressed snow in insulated cellars. So, at least in principle, frozen food has been with us for a long time! The modern frozen food industry, however, only dates back to the early 20th century when Clarence Birdseye - fur trading in Labrador, Canada in 1917 - observed how local inhabitants preserved fresh fish and meat by letting it freeze rapidly in the cold Arctic temperatures. (Source: http://www.bfff.co.uk/about-us/information-frozen-food) The ability to preserve the food has enabled the producer to make its product available to consumers sitting in the other corner of the world. Added to this is the advantage of convenience, which has become very relevant in today’s world as people are leading busier lives. Retention of quality and safety are better achieved when frozen foods are kept at maximum temperatures of -18 °C or even lower. Frozen agricultural products can retain their quality over long storage periods if the correct procedures are applied.
About Food Industry
The food production is a complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. The food industry will continue to evolve in response to specific consumer demands in individual markets, with significant differences between industry strategies in the developing and the developed countries. Across all countries, modern food markets are responding to consumer preferences at a local level, even as the food industry becomes more global. In a food industry driven by consumers’ retail pull, food manufacturers have to continuously reorient themselves to remain competitive. Firms that respond to market signals are better able to adjust and maintain their positions in the industry.
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India is one of the major food producers in the world. The food sector contributes to about 28 % of India’s GDP.
In terms of world ranking India stands: • 1st in the production of Cereals, Milk & Livestock population • 2nd in producing Fruits & Vegetables Total market for food products Rs. 2,500 Billion, of this, processed food Rs. 1,400 Billion.
SECTORS IN FOOD INDUSTRY IN INDIA
Dairy & Food Processing Canning Frozen Food / Freeze Drying Products
Thermo Processing Specialty Processing
According to the recent survey, the Indian food market is all set to be double by the year 2025. The rapid economic development, innovative technology and food production, growing consumerism and improved lifestyle are the main reasons behind this growth. Today, Indian consumers are paying for branded and value added food products which have led to the introduction of new segments in the manufacturing and retail market. The Indian food services industry is estimated to be nearly worth Rs 75,000 crore and is growing at a healthy compound annual growth rate (CAGR) of 17 per cent, according to a Franchise India report released at the Indian Restaurant Congress.
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1.1 About Frozen Food Industry
The introduction of frozen foods into the marketplace in the early 1930s marked a significant milestone in the food industry, offering consumers convenience, value and quality — all at a reasonable price. By “quick freezing” different foods, the frozen food industry also opened up new opportunities to consumers that previously were unavailable. Those living thousands of miles from the ocean could enjoy the luxury of cod and haddock shipped frozen from the coasts. And consumers could enjoy fresh tastingfruits and vegetables year-round, thanks to the frozen food industry. By the 1950s, frozen foods became a billion dollar industry. Frozen fruits and vegetables became standard food service fare at this time, and the growing popularity of television brought with ita new culinary innovation: the frozen TV dinner. Today, frozen foods are a dietary staple in most countries around the globe. Retail sales of frozen foods in the U.S. was $27.5 billion in 2005 — a 3.1percent increase over the preceding year. Frozen foods account for approximately one-third of foodservice sales in the U.S., climbing above $40 billionin annual sales.In various regions throughout Europe, the consumption of frozen food has continued to climbas well. In Germany, frozen food consumption has grown at an annual rate of 2.6 percent from 2000 to 2005. In particular, frozen fruits and vegetables — which are among the main product applications for FLoFREEZE freezers — represent 25 percent of total frozen food consumption in Europe. As consumers become more health–conscious, the fruit and vegetable segment of theEuropean frozen food market is expected to grow. Rising living standards in emerging economies alsohave spurred a growing demand for conveniencefoods, including frozen food products. For example,from 2000-2005, China’s frozen food market grew atan impressive average annual rate of 10.5 percent. Frozen food industry is progressively moving from bulk un-processed food market to manufactured and processed food market. The increase in demand for processed food is directly influencing food processing and packaging equipment manufacturing industry.
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In wider terms, the frozen food market has following segments: Frozen ready meals, frozen fish/seafood, frozen meat products, frozen vegetables, frozen potato products, frozen desserts and others. In recent years, due to the changing consumer profile, the frozen food industry has changed significantly. The major trend in consumer behavior documented over the last half century has been the increase in the number of working women and the decline in the family size.
These two factors resulted in a reduction in time spent preparing food. The frozen foods industry is considered expensive, mainly due to the high initial investment cost for the equipment, but the freezing process and storage costs about 10 percent of the total cost of production.
Frozen foods have won the hearts of Indians by offering a variety of ready-to-eat foods which can be cooked in the least possible time. Frozen foods are available in a wide spectrum of flavours which are consumed heavily by majority of the Indian middle class households. The advent of frozen foods in the Indian food industry led to a massive change in the lifestyle of the Indian middle class. Earlier it used to take hours in kitchen but frozen foods have ensured mouth watering dishes in no time.
With the emergence of frozen food in the Indian food industry, there has been an upsurge of processed foods in the domestic markets. The income of the middle class people in India has grown in recent years. This gave rise to the increasing consumption of processed foods in India as it provides good food with lesser cooking time. Frozen food has now become a demand driven industry in India and occupies a huge market in the country. Around 30 million Indians which comprise of both upper and middle class consume packaged foods in high quantities. This figure is likely to reach 200 million within the next three year.
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1.1.1 BENEFITS OF FROZEN FRUITS & VEGETABLES: Nutrition:Frozen fruits and vegetables are packed within hours of harvest, so their peak flavor and nutritional value are preserved. Frozen fruits and vegetables contribute a number of nutrients that are under-consumed in the United States, help reduce the risk of chronic diseases and are relatively low in calories. Frozen fruits and vegetables provide the unrivaled combination of great taste, nutrition, abundant variety and multiple product forms. From a nutrition and sensory standpoint, recipes prepared with frozen ingredients have been rated as comparable to those prepared with cooked fresh ingredients Convenience Frozen fruits and vegetables are often available in easy-to-open resealablepackaging allowing for longer storage and portion control without waste. New steam-in-bag technology also provides added convenience by allowing frozen vegetables to be cooked right in the package. Frozen fruits and vegetables come peeled, pre-cut and ready to cook or eat. No washing or cutting is required, which saves time and reduces waste. It’s easy to toss your favorite frozen vegetables in with chicken and rice, or to pack a frozen fruit cup with a brown bag lunch.
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1.2 Overview of World Market
The frozen food market is one of the largest and most dynamic sectors of the food industry. The frozen food market consists of frozen bakery products, frozen desserts, frozen fish/sea food, frozen fruit, frozen meat products, frozen pizza, frozen potato products, frozen ready meals and frozen vegetables. In spite of considerable competition between the frozen food industry and other sectors, extensive quantities of frozen foods are being consumed all over the world.
The US is the single largest market for frozen foods while Asia and Russia offer huge potential, as the markets are relatively immature due to late adoption of frozen foods.
Today, market studies indicate that considering overall consumption of frozen foods, frozen vegetables constitute a very significant proportion of world frozen-food categories (excluding ice cream) in Austria, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Switzerland, UK, and the USA. Global market players in this industry are Del Monte Foods Inc., Birds Eye Foods Inc., H.J.Heinz, Ardovries N.V., Dean Foods, Froza, etc.
The global market for frozen foods is projected to reach US$136.5 billion by 2015, registering a Compounded Annual Growth Rate (CAGR) of 3.7% during the period 2006-2015. The market for frozen foods is estimated at US$113.1 billion in 2010.
The global frozen food industry recorded close to 4% growth in 2010 to exceed $192 billion, reports Market Line. The market is expected to see 19% expansion over five years to exceed $228 billion in 2015. In terms of volume the market is expected to exceed 14% growth in the same period to reach almost 43.5 billion kilograms. Frozen meat represents the leading segment, accounting for more than 41% of the overall market in terms of value.
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Growing consumer awareness concerning the benefits of a fresh foods diet has proven an obstacle to growth in the frozen food production industry, reports Ibis World. Over coming years, frozen food manufacturers will concentrate on product innovation to offer a wider range of products and market their goods to emphasize nutrition and convenience.
Convenience is the major driving factor for the global frozen foods market. Unorganized sector comprising unbranded products is the biggest challenging factor to the organized sector of global frozen foods market. The market is highly fragmented with the top players together accounting for less than 20%. A large number of companies hold significant shares in their respective local markets. However, at the global level, their share is very low. Frozen pizza is the fastest growing segment in the frozen ready meals segment with an estimated CAGR of 4% with U.S. and is expected to continue its dominance in the segment from 2010 to 2015.
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1.3 Overview of Indian Market
The Indian food processing industry is one of the largest in the world in terms of production, consumption, export and growth prospects. Earlier, food processing was largely confined to the food preservation, packaging and transportation, which mainly involved salting, curdling, drying, pickling, etc.
However, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like ready-to-eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products, etc. It also includes establishment of post-harvest infrastructure for processing of various food items like cold storage facilities, food parks, and packaging centres, etc.
India is a large producer of food and is offering different opportunities and business propositions in food and food processing technologies, skills and equipment. Products which come under the frozen food industry are fruits, vegetables, fisheries, milk products, meat, poultry and other packaged and convenience foods. Although it is a huge producer of food products, India still has immense untapped potential in the frozen food export industry.
Frozen foods have won the hearts of Indians by offering a variety of ready-to-eat foods which can be cooked in the least possible time. Frozen foods are available in a wide spectrum of flavours which are consumed heavily by majority of the Indian middle class households.
With the emergence of frozen food in the Indian food industry, there has been an upsurge of processed foods in the domestic markets. The income of the middle class people in India has grown in recent years. This gave rise to the increasing consumption of processed foods in India as it provides good food with lesser cooking time. The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010.
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Tata Strategic Management Group has reported that the Indian frozen food market is likely to touch USD 727.09 million by the year 2015 from the current USD 32.09 million in the year 2008. Some of the biggest contributors to this growth are ITC Foods, MTR Foods, Kohinoor, Amul, Rajbhog Foods, Ethnic Kitchens and Tasty Bite.
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The food processing industry in India contributes to 6.3 percent to India's Gross Domestic Product, 19 percent to India's industrial growth and 13 percent to the export production from the country as per estimates of early 2008.
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There has been an outstanding 193.83% growth in the processed food market in India which accounted for a rise from USD 6.98 billion in 2002-03 to USD 20.51 billion in 2006-07.
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The Government of India has decided to invest a whopping USD 25.07 billion by the year 2015 to extend India's share in the global food trade. This is approximately a rise from 1.6 % to 3 %.
Hind Agro Industries Ltd holds a strong position in the market for frozen vegetables in India. The second-largest player was EMKE Group, with Amalgam Enterprises in third place.
The Indian exports of frozen fruits and vegetables have shown signs of growth only for UK and USA. France also has also been a major importer of Indian FFV products but has recently shown decline. Japan has shown a major decrease in Indian exports.
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1.3.1 GROWTH DRIVERS: Frozen foods are still a nascent segment for the Indian market, but it is fast growing. The Indian frozen food market, including sales to restaurants and hotels, was worth Rs 1,400 crore in 2011. The biggest growth driver of the category is the time pressed consumers looking for convenience. Other drivers include, increased disposable income, changing tastes (greater consumer acceptance), rising number of quick service restaurants, hygiene (particularly for nonvegetarian items) and the fact that frozen foods deliver better value for money than snacks prepared from scratch. The frozen food market is witnessing innovative initiatives across different categories of products. Apart from good taste, imagination and creativity are strong distinguishing factors among players in the industry.
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1.4 IQF Fruits & Vegetables
Capricorn Food Product India introduced Individual Quick Freezing (IQF)/ Bulk Freezing in the Vegetable and Fruit Processing industry.
IQF commonly known as Flash freezing is a commercial freezing technology that allows fruits and vegetables to retain its quality and original nutritive value by preventing the formation of large ice crystals in the fruit cells. Since each whole fruit is individually frozen, particles do not cohere and the final product is not frozen into a solid block. IQF products eliminate reprocessing and thus considerably reduce the drop loss during thawing & refreezing. It also gives a longer shelf life to the fruits and vegetables. Individual consumers in importing countries prefer IQF products, for the sake of convenience and its longer shelf life.
IQF generally takes place in two stages. In the first stage, the product is partly frozen to a pre-determined point and thereafter, fluidized to a semi-weightless stage by partially suspending it in the air in the second stage. The velocity and pressure of air in the process is adjusted to ensure ultra rapid freezing in IQF form.
Over the years, volume of exports of frozen fruits and vegetables from India has increased in manifold. We export to countries such as Germany, France, UK, USA, Japan and many more across the globe. The product basket has also increased to cover more value added products. Currently, the ranges of products exported in this category are: ? ? ? ? Frozen fruit pulps Frozen fruits – chunks, cubes and slices Frozen mainstream vegetables Frozen Indian ethnic vegetables
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CHAPTER-2 ABOUT MAJOR COMPANIES IN INDUSTRY
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Nowadays, Frozen foods are becoming the hot favorite food to most of the Indian consumers particularly in the present busy scheduled of the people. This is because, there is a variety of frozen food available in the market that is ready-to-eat and these foods can be cooked at the least possible time. The majority of Indian middle-class households are turning towards frozen foods since they are being offered in different flavors. Among the different reasons for the popularity of frozen foods in India, the improving standard of living of the middle-income grouped people in India has also contributed towards the development of companies in the frozen food industry in India. The names of the companies that are leading the frozen food industry in India are given below:
2.1TOP FIVE FROZEN FOOD COMPANIES IN INDIA:
• Forstar Frozen Foods Private Limited • Sterling Foods • Petonia Foods Private Limited • Ovobel Foods • Hak Agro Foods
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1) Forstar Frozen Foods Private Limited:
Forstar Frozen Foods Private Limited is operating from their registered office in the city of Mumbai and they have their plant in New Bombay. In the frozen food industry they are dealing with fish products and some of the products dealt by them are king fish, croaker, ribbon fish, pomfrets, octopus, cuttle fish, squids, lobsters and shrimps. Some of their ready-to-eat products are rice meals, seafood soups and fish curries. Brands: Forstar Seacatch Sea Treasure Ocean's Delight
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2) Sterling Foods:
Sterling Foods has entered into agreement with international seafood export companies for the past 30 years with a view of creation and maintenance of international standards in the Marine food processing industry in India. In the frozen food sector, the company has established their own brands of seafood being David’s and Yacht not only in India, but also in foreign countries as well.
3) Petonia Foods Private Limited:
Petonia Foods Private Limited has made their market presence in the canned, cooked and readyto-eat food sector and due to their maintenance of higher standards they have earned a competitive edge in the frozen food sector in India. Some of their products in the frozen food sector are instant snacks, south Indian dishes, parathas & chapatis, mithas frozen sweet dishes, instant food, frozen fruits, fresh & frozen vegetables and express veggies.
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4) Ovobel Foods:
Ovobel Foods is operating from the city of Bangalore in Karnataka and they are mainly dealing with egg products in the frozen food category. Some of their products under this category are Hen Egg Yolk Powder and Hen Whole Egg Powder, Hen Egg Albumen Powder (High whip) Stabilized, Hen Egg Albumen Powder (High Gel) Stabilized, Pasteurized Frozen Hen Whole Egg, Pasteurized Frozen Hen Egg Yolk and pasteurized frozen hen egg albumen. 5) Hak Agro Foods:
Hak Agro Foods came into existence in the year 1998 and they are dealing with natural fruits and vegetables in the frozen foods sector. Some of the processed food offered by them are frozen green peas shelled corn, frozen sweet corn on cob, frozen sweet corn, frozen strawberry pulp, frozen totapuri pulp, frozen mango pulp, frozen fruit puree, frozen pomegranate, etc… Other Export companies include IQF (Bangalore), Pagro foods ltd. (Chandigarh), Himalayan International (Delhi), Vadilal Group (Ahmedabad), Capital Foods Exports pvt ltd. (Mumbai), Mother Dairy (Delhi).
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2.2 FROZEN FOOD COMPANIES IN GUJARAT: 2.2.1 Vadilal:
Today, the name Vadilal conjures images of lip-smacking ice cream in a whole gamut of flavours. Vadilal spells quality, availability, variety and state-of-the-art machinery and equipment. It has, however, been a long journey for the group, which traces its origins way back to 1907, when a certain unassuming gentleman, by the name of Vadilal Gandhi, the great-grand father of Virendra R Gandhi, Rajesh R Gandhi and Devanshu L Gandhi, started a soda fountain. He passed on the business to his son, Ranchod Lal, who ran a one-man show, and, with a hand cranked machine, started a small retail outlet in 1926.
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Vadilal entered the Horticulture Processing Industry in May 1991. India identifies with its rich traditions, diverse customs and culinary expertise along with kaleidoscopic people. Freshness of food is a backbone for winning the hearts and company determined to strengthen the same and to enhance the shelf life. So, to process the food, company use “Individually Quick Frozen” (IQF) technique, which involves fluidized belt type continuous freezing.
Company’s endeavors to provide quality products are endorsed by ISO 9001:2000 and ISO 22000 (HACCP) certifications. Vadilal is also awarded the certificate of merit for excellence in export performance by APEDA.
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2.2.2. Mother Dairy:
Mother Dairy was set up in 1974 under the Operation Flood Programme. A wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy manufactures, markets & sells milk and milk products under the Mother Dairy brand (Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of edible oils, Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed Fruit & Vegetable Products, Fruit Pulps & Concentrates in bulk aseptic packaging and fruit juices at a national level through its sales and distribution networks for marketing food items.
Mother Dairy, Delhi is an IS/ISO - 9001:2000 and Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Envoirnment Management System (EMS) Certified organisation. Mother Dairy was the first Dairy in the country to implement ISO-14031 (Envoirnment Performance Evaluation) project. Thecomany's Quality Assurance Laboratory is ISO/IEC17025:1999 certified by NABL (National Accreditation Board for Testing and Calibration Laboratory), Department of Science & Technology, India.
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Safal is the market leader in the organized fruit & vegetable retail business in Delhi NCR where it sells an average of 300 MT/day through a network of 350+ exclusive retail outlets under brand name Safal/ Safal Pure Veg, supported by a state-of-the-art large and ultramodern Central Distribution Facility located in Delhi with an annual capacity to handle and process 2,00,000 MT of fresh fruits and vegetables. Safal today operates the largest number of F&V Stores in Delhi NCR and has further expansion plans in place. Retail Outlets are also present in Bangalore under the brand name Safal Daily Fresh. ally and interncradle of knowledge and best practices for the Fruit
and
Frozen Peas
Frozen Corn
Frozen Mix Veg
Corn Chatkara
ozen Aloo Tikki
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V2.2.3 Godrej:
Godrej Industries Ltd, a member of the Rs. 45 billion (US$ 1 billion) Godrej Group is India's leading manufacturer of oleo chemicals and food products. The foods division of Godrej Industries produces and markets edible oils, vanaspati, bakery fats, fruit drinks, fruit nectar and tomato puree.
The division has two state-of-the-art manufacturing facilities: at Wadala in Mumbai, the capital of the western Indian state of Maharashtra; and at Mandideep near Bhopal in the northern Indian state of Madhya Pradesh. It has a national distribution network consisting of 800 distributors and 24 consignment agents. The plants are equipped with the best of modern equipment for the processing and packaging of a wide variety of food products.
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CHAPTER-3 PRODUCT PROFILE & QUALITY STANDARDS
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Baby Potato (Aloo)
Indian Gooseberry (Amla)
Colocasia Root (Arwi)
Okra Cuts (Bhindi Cuts)
String Beans (Chauli)
Beet Root (Chukandar)
Moringa Oleifera (Saragawa)
Bottle Gourd (Dudhi)
Sweet Corn Kernets (Makai Dana)
F
Purple Beans (Mogri)
Pointed Gourd (Parwal)
Green Peas (Mutter)
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Snake Gourd (Pandola)
Surti Papdi (Pauchi Papdi)
Indian Baby Pumpkin (Punjabi Tinda)
Shallots - Red Onion (Pyaz lal)
Violet Yam (Ratalu)
Mustard Leaves (Sarson)
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3.1 USDA: QUALITY GRADES FOR FROZEN VEGETABLES
US Department of Agriculture (USDA) grades the canned and frozen vegetables based on their quality. USDA also provides an inspection program to certify the quality of frozen vegetables. Highly qualified scientists are employed to examine the quality of the processed vegetables against the established US grade standards. The grades assigned to the products acts as a guide to the consumers during purchasing of canned and frozen vegetables.
1. US Grade A: Grade A vegetables are known for their softness, color, and texture. These vegetables are most juicy and highly flavored. The other name for Grade A products is “fancy” which is mentioned on the label.
2. US Grade B: Grade B vegetables possess superior quality but are not on par with Grade A vegetables, in terms of color and texture. These vegetables are fully-grown when compared with Grade A vegetables. Therefore they taste slightly different from Grade A type. Other name for Grade B product is “Extra Standard”.
3. US Grade C: Grade C vegetables are mainly used as constituents in preparing casserole or stew, and soup, as they are fully-grown. These vegetables are les flavored. Grade C products are also known as “Standard”.
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PART 2 PRIMARY STUDY
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CHAPTER-4 LITERATURE REVIEW
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Urban consumers in India have been increasing consumption of frozen processed food. With more supermarkets opening, especially in cities, women are increasingly shopping in these outlets as they are more convenient, comfortable and have the space to keep large refrigerators to store frozen processed food. The convenience of frozen processed vegetables, meats and ready meal has encouraged many women to increase the usage of these products as they reduce the preparation time. Peas are used in many vegetables and are demanded round the year by all the families and are also required in catering industry. The fresh peas are available only during winter season but are generally required in all the seasons. Also their harvest is limited to certain states. This gap between demand and supply is being managed by frozen peas available in the Indian market. (Rajneesh Mahajan, Suresh Garg, P.B. Sharma, Int. J. of Globalization and Small Business, 2011 Vol.4, No.2, pp.154 – 169).
Indian middle and upper middle class population is growing rapidly with an increase in the number of young working couples. Consumption of fast foods, packed foods and ready to make foods is rapidly increasing. Change in tastes and consumption patterns of basic foods, longer working hours, increase in double income families, increased exposure to advertising etc., are leading to dramatic change in agri supply chains. More and more career minded working couples are looking for comfort and convenience and are also becoming more and more health and hygiene conscious. In place of conventional wet markets, they prefer to buy vegetables, fruits and other agri-products from the super markets and modern retail stores, and this leads to the entry of more and more corporate into the agri-based business market. The tendency that more and more supermarkets are selling fresh produce is determined by the changes in consumer?s demand. Markets with poor environment and no guarantee of quality cannot satisfy the demands of consumers pursuing high quality life. They want to buy desirable food in a comfortable environment. (Abhinav Journal, Commerce & Management, March 2012)
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The frozen food market is the one of the largest sector amongst the food sector. The frozen food market consists of frozen fish/ seafood, meat products, potato products, vegetables, fruits, pizza, ready meals, bakery products and desserts. The frozen food market grew at a CAGR 3.6 % between 2004-2008 to reach a value of US$ 103.9 billion in 2008. In terms of volume the market grew at a CAGR of 3.1% during the same period to reach 41.7 million tonnes in 2008. The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet. India’s exports of frozen fruits and frozen vegetables stand at 0.12% and 0.33% of total world exports of frozen fruits and vegetables respectively. Top ten export markets for Indian frozen vegetables during 2008 had been USA, UK, UAE, Saudi Arabia, Australia, Sri Lanka, Canada, Germany, Kuwait, and Nepal. (Agri Export Advantage by EXIM Bank of India, Vol VIII Issue V, March 2009)
Products which come under the frozen food industry are fruits, vegetables, fisheries, milk products, meat, poultry and other packaged and convenience foods. The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010. In spite of such growth, there are some challenges which are being faced by this industry are Development of marketing channels, low price elasticity for processed food products, development of linkages among industry, government and institutions. Ministry of food processing industries is the main agency responsible for promoting and regulating food processing sector. Food Safety and Standards Act, 2006 is applicable to food and related products in India. And the food processing industry has to comply with this legal requirement. (Processed and frozen foods: Indian Scenario, Nov 2011 by Man Mohan Malik)
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4.1 BACKGROUND OF THE STUDY
Frozen foods have become a staple of the modern diet. Freezing allows consumers to have access to foods previously unavailable or available only seasonally, and it provides convenience for many families. And also the market is growing on a faster rate in India and globally also. So we conducted the research regarding Awareness & Perception of Customers towards Frozen Fruits & Vegetables in Ahmedabad City. For which we have taken responses from the general public using questionnaires. The areas we have covered are Ranip, Shahibaug, Vastral, Ashram Road etc. And the report also include sectors In food industry in India, major companies of India and Gujarat, product profile and its quality standards, the market scenarios of India And Global Market, Growth perspective of the market, factors that affect the consumer behavior for buying frozen vegetables and fruits, growth drivers for the market and data analysis on bases of the responses from general public.
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4.2 Problem Statement
Current literature review suggests that there are very less study conducted in India specifically focusing on understanding about the awareness of consumer about frozen vegetables & fruits as well as their perception. Hence, main problem of the research study is to see how many customers are aware of frozen vegetables and fruits and what are their perceptions about with respect to use of such products.
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4.4 Objective of the Study
? To study about the awareness of frozen vegetables & fruits. ? To study the customers’ perceptions with respect to frozen vegetables & fruits. ? To see how much portion of total spending of customers is allocated to frozen vegetables & fruits. ? To study whether customers prefer such products or will start using such products in future. ? Whether customers are satisfied with the usage of product or not.
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CHAPTER-5 RESEARCH METHODOLOGY
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5.1 Research Design
Research Instrument:A research instrument is a survey, questionnaire, test, scale, rating, or tool designed to measure the variables, characteristics, or information of interest, often a behavioral or psychological characteristic. Research instruments can be helpful tools to research study. Here in our study of report research instrument that we have used is Conducting market survey through the use of questionnaire.
5.2 Data Collection
While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data viz, primary data and secondary. The primary data is collected afresh and for first time and thus happens to be original in character. The secondary are those which have been collected by someone else and which have already been passed through statistical process. The researcher would have to decide which sort of data he would be using for his study. The method collecting primary and secondary data differ since primary data are to be originally collected while in case of secondary data the nature of data collection work is merely that of compilation. There are several ways of collecting primary data. They are: 1. Observation method 2. Interview method 3. Through questionnaire In our research we have used questionnaires to collect the primary information from the respondents.
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COLLECTION OF SECONDARY DATA Secondary data means that are already available that is they refer to the data, which have already been collected and analyzed by someone else. Secondary data may be either published or unpublished data usually published data are available in: Various publications of the central, state and local government Various publications of foreign government or of international bodies and their subsidiary organization. Technical and trade journals Books magazines and newspapers Reports publication of various associations connected with business and industry, banks, stocks exchanges etc Reports prepared by various scholars’ universities economists etc in different field Public records and statistics, historical documents and other sources of publishin formation. The sources of unpublished data are many; they may be found indiaries, letters unpublished biographies and autobiographies and also may be available with scholar’s research workers.
5.3
Sampling
Sample Size:300 respondents will be taken from Ahmedabad City
Sampling Technique:There are several alternative ways of taking a sample. The major alternative sampling plans may be grouped into probability techniques and non-probability techniques. In probability sampling every element in the population has a known nonzero probability of selection. The simple random is the best known probability sample, in which each member of the population has an equal probability of being selected. Probability sampling designs are used when the representativeness of the sample is of importance in the interest of wider generalisability. When time or other factors, rather than generalisability, become critical, non-probability sampling is generally used.
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In non-probability sampling the probability of any particular element of the population being chosen is unknown. The selection of units in non-probability sampling is quite arbitrary, as researchers rely heavily on personal judgment. It should be noted that there are no appropriate statistical techniques for measuring random sampling error from a non-probability sample. Thus projecting the data beyond the sample is statistically inappropriate. Nevertheless, there are occasions when non-probability samples are best suited for the researcher's purpose. In non-probability sampling designs, the elements in the population do not have any probabilities attached to their being chosen as sample subjects. This means that the findings from the study of the sample cannot be confidently generalized to the population. However the researchers may at times be less concerned about generalisability than obtaining some preliminary information in a quick and inexpensive way. Sometimes non-probability could be the only way to collect the data. Convenience Sampling Convenience sampling (also called haphazard or accidental sampling) refers to sampling by obtaining units or people who are most conveniently available. For example, it may be convenient and economical to sample employees in companies in a nearby area, sample from a pool of friends and neighbors. The person-on-the street interview conducted by TV programs is another example. TV interviewers go on the street with camera and microphone to talk to few people who are convenient to interview. The people walking past a TV studio in the middle of the day do not represent everyone (homemakers, people in the rural areas). Likewise, TV interviewers select people who look "normal" to them and avoid people who are unattractive, poor, very old, or inarticulate
Data Analysis:? Data analysis will be done through SPSS software.
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5.4
Future Scope of the study :-
? The study can be expanded to understand consumer behavior and perception for use of frozen vegetables & fruits for specific companies like Vadilal, Safal, etc. ? Other aspects such as attitude of consumers, factors that affect the bu yers’ purchasing behavior, etc can be very well known. ? Through this study, the possible solutions for factors that restrain consumers from using such productts can be found out. ? This study can be used as a tool to create awareness and promotion of such products among health conscious people. ? Also, the opportunities for this sector can also be known.
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CHAPTER-6 DATA ANALYSIS & INTERPRETATION
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TOTAL FAMILY INCOME PER MONTH
FREQUENCY TABLE AND CHART ON TOTAL FAMILY INCOME PER MONTH:
TOTAL FAMILY INCOME (PER MONTH) Frequency Percent Valid Percent Cumulative Percent 25000-30000 30001-35000 Valid 35001-40000 >40000 Total 99 63 59 79 300 33.0 21.0 19.7 26.3 100.0 33.0 21.0 19.7 26.3 100.0 33.0 54.0 73.7 100.0
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CROSS TAB ANALYSIS OF TOTAL FAMILY INCOME AND EXPENSE ON VEGETABLES & FRUITS
TOTAL FAMILY INCOME (PER MONTH) * EXPENSE ON VEGETABLES & FRUITS Crosstabulation Count EXPENSE ON VEGETABLES & FRUITS 1000-2000 25000-30000 TOTAL FAMILY INCOME (PER MONTH) 30001-35000 35001-40000 >40000 Total 57 24 13 14 108 2001-3000 24 26 15 19 84 3001-4000 17 12 27 25 81 >4000 1 1 4 21 27 99 63 59 79 300 Total
H0 : Total Family Income and Expense on vegetables & fruits are independent. H1 : Expense on vegetables & fruits is dependent upon Total Family Income.
Chi-Square Tests Value Df Asymp. Sig. (2sided) Pearson Chi-Square N of Valid Cases 80.117a 300 9 .000
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 5.31.
? = 5% DF = 9 Chi square tabular value 3.325 As tabular value < calculated value, H0 is rejected. So, we can say that, Expense on fruits and vegetables is dependent upon Total Family Income.
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AWARENESS ABOUT FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART ON AWARENESS OF FROZEN VEGETABLES & FRUITS
AWARE OF FROZEN VEGETABLES & FRUITS Frequency Percent Valid Percent Cumulative Percent YES Valid NO Total 267 33 300 89.0 11.0 100.0 89.0 11.0 100.0 89.0 100.0
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USE OF FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART ON USE OF FROZEN VEGETABLES & FRUITS
USE OF FROZEN VEGETABLES & FRUITS Frequency Percent Valid Percent Cumulative Percent YES Valid NO Total 168 132 300 55.3 44.7 100.0 55.3 44.7 100.0 55.3 100.0
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CROSS TAB ANALYSIS ON AWARENESS OF FROZEN VEGETABLES & FRUITS AND ITS USE
AWARE OF FROZEN VEGETABLES & FRUITS * USE OF FROZEN VEGETABLES & FRUITS Crosstabulation Count USE OF FROZEN VEGETABLES & FRUITS YES AWARE OF FROZEN VEGETABLES & FRUITS Total YES NO 168 0 168 NO 103 29 132 271 29 300 Total
H0 : Awareness of Frozen V & F and Its use are independent. H1: Usage of Frozen V & F is dependent upon its awareness.
Chi-Square Tests Value Df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 39.582
a
9 9 1
.000 .000 .014
35.425 6.036 168
a. 4 cells (25.0%) have expected count less than 5. The minimum expected count is 3.38.
? = 5%, DF = 9 tabular value = 3.325 tabular value < calculated value, so, H0 is rejected. So, it is said that customers’s usage is dependent upon whether customers are aware about such products or not.
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FREQUENCY OF PURCHASING FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART OF PURCHASE OF FROZEN VEGETABLES & FRUITS
FREQUENCY OF PURCHASE Frequency Percent Valid Percent Cumulative Percent WEEKELY FORTNIGHTLY Valid MONTHLY OCCASIONALLY Total Missing Total 99 72 33 36 27 168 132 300 24.0 11.0 12.0 9.0 56.0 44.0 100.0 42.9 19.6 21.4 16.1 100.0 42.9 62.5 83.9 100.0
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SATISFACTION LEVEL FROM USING FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART OF SATISFACTION LEVEL ON USAGE OF FROZEN VEGETABLES & FRUITS
SATISFIED WITH FROZEN VEGETABLES & FRUITS Frequency Percent Valid Percent Cumulative Percent HIGHLY SATISFIED SATISFIED Valid NEUTRAL HIGHLY DISSATISFIED Total Missing Total 99 40 100 28 3 171 128 299 13.4 33.4 9.4 1.0 57.2 42.8 100.0 23.4 58.5 16.4 1.8 100.0 23.4 81.9 98.2 100.0
Descriptive Statistics N SATISFIED WITH USAGE Valid N (listwise) 61 61 Minimum 1 Maximum 3 Mean 1.85 Std. Deviation .654
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CROSS TAB ANALYSIS ON USE OF FROZEN VEGETABLES & FRUITS AND ITS SATISFACTION ON USING
Case Processing Summary Cases Valid N USE OF FROZEN VEGETABLES & FRUITS * SATISFIED WITH FROZEN VEGETABLES & FRUITS 171 57.2% 128 42.8% 299 100.0% Percent N Missing Percent N Total Percent
USE OF FROZEN VEGETABLES & FRUITS * SATISFIED WITH FROZEN VEGETABLES & FRUITS Crosstabulation Count SATISFIED WITH FROZEN VEGETABLES & FRUITS HIGHLY SATISFIED USE OF FROZEN VEGETABLES & FRUITS Total YES NO 40 0 40 100 0 100 28 0 28 SATISFIED NEUTRAL HIGHLY DISSATISFIED 3 0 3 171 0 171 Total
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REASONS BEHIND USING FROZEN FRUITS & VEGETABLES
Multiple Responses
Case Summary Cases Valid N $USEa 171 Percent 57.0% N 129 Missing Percent 43.0% N 300 Total Percent 100.0%
a. Dichotomy group tabulated at value 1.
$USE Frequencies Responses N NUTRITION BENEFIT $USE
a
Percent of Cases
Percent 56 106 48 20 230 24.3% 46.1% 20.9% 8.7% 100.0% 32.7% 62.0% 28.1% 11.7% 134.5%
TIME CONVENIENCE PRICE ADVANTAGE HYGEINE BENEFITS
Total a. Dichotomy group tabulated at value 1.
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REASONS BEHIND NOT USING FROZEN FRUITS & VEGETABLES
Multiple Response
Case Summary Cases Valid N $NO
a
Missing N 171 Percent 57.0% N
Total Percent 300 100.0%
Percent 129 43.0%
a. Dichotomy group tabulated at value 1.
$NO Frequencies Responses N COSTLY NOT USEa LACK OF KNOWLEDGE PSYCHOLOGY INEFFECTIVE PACKAGING Total a. Dichotomy group tabulated at value 1. 44 35 56 7 142 Percent 31.0% 24.6% 39.4% 4.9% 100.0% Percent of Cases 34.1% 27.1% 43.4% 5.4% 110.1%
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CHAPTER-7 STRATEGIC ANALYIS & OPPORTUNITIES
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7.1 OPPORTUNITIES FOR INDIA IN FROZEN FRUITS & VEGETABLES
The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet. Market Segmentation Frozen F&V segment is one of the largest sub-segment amongst the frozen food sector constituting around 16 % of the total frozen food market. Frozen potato products are the largest segment accounting for around 6.3 % of the total frozen food market. MAJOR MARKETS
Europe
Europe is the largest frozen food market in the world accounting for 38.3 % of the global frozen food market in terms of value in 2008. Frozen F&V and frozen potatoes together constitute around 18% of the total frozen food market in Europe. Germany is the largest market for frozen food in the Europe accounting for 21.9 % of the total market value, followed by United Kingdom (18 %) and France (7.70%). However, sector wise analysis reveals that France is the largest market for frozen fruits and vegetables and potato products, accounting for around 26.3 % of the total frozen food market in France in 2008, followed by United Kingdom (24.3%), Belgium (22.1%), and Germany (10.4%). The Netherlands is the largest market for frozen potato products accounting for 19.4 % of the total Dutch frozen food market value in the same year.
Asia-Pacific
With a 36.8% share in the total global frozen food market, Asia-Pacific is the second largest market for frozen food. The frozenfood market grew at a CAGR of 4.3 % between 2004-2008 to reach a value of US$ 35.8 billion in 2008. Frozen F&V and potato products constitute 13.8 % of the total frozen food market value in Asia-Pacific. Japan constitutes the largest frozen food market in Asia-Pacific, accounting for 59.5% of the overall value. Frozen F&V and potato products constitute 15.2 % of the total Japanese frozen food market value.
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United States
The United States (US) frozen food market constitutes 24.9 % of the total global frozen food market by value. The US frozen food market grew at a CAGR of 2.6% for the period 2004-2008, to reach a value of US$ 24.2 billion in 2008. Frozen F&V and potato products account for around 7.9% of the total US frozen food market value.
Trade
Among frozen F&V, frozen vegetables are traded the most. The frozen vegetable production and trade may be broadly classified into: potato bi-products; and vegetables such as green peas, green beans, cauliflowers, cabbages, sweet corns, spinach, sweet peppers, mushrooms, and carrots.
Top ten exporters of frozen vegetables are Belgium, China, Spain, Netherlands, France, Mexico, Poland, USA, Canada and Germany. Saudi Arabia is the largest exporter of frozen potato products. China is the leading exporter of frozen leguminous vegetables and USA is the largest supplier of frozen sweet corn.
Top ten importers of frozen vegetables are Germany, USA, France, Japan, UK, Belgium, Italy, Netherlands, Spain and Korea.
Distribution Channel
Globally, frozen F&V are marketed through supermarkets & hypermarkets (71%), and by a mix of formats like convenience stores (7.5%), independent retailers (14.5%) discounters (5.2%) that offer huge discounts on all products and others (1.8%).
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7.2 FROZEN FOOD INDUSTRY ANALYSIS
BARGAINING POWER OF SUPPLIERS – LOW In food business, there are plenty of suppliers who sell raw material such as vegetables, meats, and other ingredients that used in the process of producing frozen foods. Since lots of supplier who sell the same kinds of raw materials, all of these suppliers must compete against each other to get the customers because we have the same target market. They suppliers sell them at the low price because when the frozen food companies purchase the raw materials, they must be in large quantities.
BARGANING POWER OF BUYERS - LOW The same type of company join together to purchase the raw material so they get the same price. As this reason the power of the customers for bargaining will be low because the suppliers sell the product at the same price.
RIVALRY When mentioning about the frozen food that sells the ready meal to the customers in the USA, it is considered to be less number of Frozen Foods Company. There are not many companies that provide Pat-Thai ready meal to the customers.
SUBSTITUTE PRODUCTS - HIGH As the many companies are there in the food industry, there are so many substitute products that can provide the same need to the consumers such as other types of food and will replace the demand for our products. For example, the restaurant, the Canned Fruit beverages that are sold in retail shops for food industry; there are a lot of foods that can substitute the dishes of frozen foods, which can easily find everywhere. THREAT OF NEW ENTRY - LOW As the few companies are having competitive advantage in frozen food industry, threat to new entry is low as the entry of new players in frozen food market is tough due to availability of other well known brands and customers’ loyalty to brand.
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7.3 VALUE CHAIN ANALYSIS
7.3.1 KEY PLAYERS IN THE FFV VALUE CHAIN
The following major business partners can be distinguished for exporters of most Preserved fruit and vegetables.
Agents - Agents are intermediaries executing the buying and selling orders of a customer against commission (between 2 and 5 percent of the purchasing price). The agents never actually take possession of a shipment. Moreover, the products do not pass physically through the agents’ hands and often not even through their countries of operation. Two types of agents can be distinguished: buying agents and selling agents. The former represents the buyers, such as the food processing industry, compound houses or re-exporters. The latter represents the sellers, mainly exporters. Agents are usually well informed about the current market trends, prices and users.
Importers - Importers buy and sell preserved fruit and vegetables on their own account, mainly to the food processing industry and for re-export. Importers take ‘long’ or ‘short’ positions in the market depending on their expectations of future price trends. If an importer sells ‘short’, he is contracting to sell products, which he does not yet possess, while taking a ‘long’ position means that he has unsold products in his trading account. Processing industry (processing importer) – Processing manufacturers/processing importers buy raw materials and semi-finished products to process them further, with the goal of selling these to the end-product manufacturers. For example, in the case of dried vegetables the processing importers clean, grade, reduce the humidity content and bacteria count before selling to the food industry. The processing manufacturers purchase preserved fruit and vegetables either directly or from importers or through the services of an agent. Specialized fruit processing industries supply semi-manufactured products to the bakery, dairy and ice-cream industry. Cargill and the compound houses are examples of leading Processing importers in The
Netherlands. The compound houses supply their compounds in the first place to the beverage industry, the dairy industry and the ice cream industry
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End-product manufacturers - Some end-product manufacturers who need large quantities (on a regular basis) of ingredients purchase their ingredients directly from producers abroad, such as the beverage industry in the case of fruit juice and fruit juice concentrate. Another example is the jam industry, which buys substantial amounts of fruit pulp and frozen fruit directly from producers abroad. Leading importing manufacturers in EU countries are Unilever, Cadbury Schweppes and Danone. Many end-product manufacturers use processing importers or agents, as these offers a reference point situated within their own country.
Retail and food service organizations - Retailers carry out the final stage of selling preserved fruit and vegetables to consumers, accounting for a very large share of the total sales. The retail sectors hardly ever import directly, but buy from wholesalers or importers. In the case of jam and canned vegetables, retailers have a strong negotiating position due to the many sourcing possibilities between products and suppliers, as well as the practice of private labeling. In the EU, large supermarket buying groups are Ahold (The Netherlands), Carrefour (France), Metro (Germany), Tesco (United Kingdom) and Aldi (Germany). Because of their much smaller size, the food service sectors do not usually import directly from source.
Packers - These organizations pack goods in standard packs for the European market. The (re) packers keep the goods on stock in their warehouse, at their own risk, and sometimes under their own brand or the private label of a customer. These packers sometimes function as importers as well. More or less the same trade structure applies to all the products discussed in this survey. Many importers, agents, or re-packers are specialized in more than one product group. For example, Cats Int. is specialized in dried fruit and frozen fruit and vegetables. Some importers also act as an agent. Moreover, most importers trade in preserved fruit and vegetables in consumer packs and catering packs, but also in preserved fruit and vegetables for industrial use.
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7.4 INFRASTRUCTURE DEVELOPMENT IN PROCESSED FOOD SECTOR
There is a lack of suitable infrastructure in the shape of cold chain, packaging centres, value added centre, modernized abattoirs etc. Improvement in general infrastructure is also an aid for energizing of sector. Government attaches highest priority to development and expansion of physical infrastructure for facilitating prompt growth of industries. In order to address the problem of infrastructure in food processing sector, the Government has implemented the scheme for infrastructure development comprising the following components: Food Park Scheme The idea behind setting up of food parks is that small and medium entrepreneurs find it difficult to invest in capital-intensive activities. Therefore, as a part of the strategy to develop food processing infrastructure, the Ministry has been pro actively pursuing the task of setting up of food parks in different parts of the country. In the food parks, common facilities like cold storage, food testing and analysis lab, affluent treatment plant, common processing facilities, packaging centre, power supply, water supply, seminar / conference / training facilities etc can be assisted. Financial assistance for food parks is provided at 25 per cent for general and 33.33 per cent for difficult areas subject to a maximum of Rs. 40 million. 22 food parks have become operational. In a bid to boost the food sector, the Government is working on agrizones and the concept of mega food parks. Twenty such mega parks will come up across the country in various cities to attract Foreign Direct Investment (FDI) in the food processing sector.
Packaging Centres The Scheme aims to provide facilities for packaging, which may help in enhancement of shelf life of food products and make them internationally acceptable. Assistance at 25 per cent of the project cost in general areas and 33.33 per cent in difficult areas subject to a maximum of Rs. 20 million is provided for establishment of packaging centre. Assistance is available to all implementing agencies. So far assistance of Rs. 1450 million has been sanctioned to one packaging centre in Jammu & Kashmir.
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Integrated Cold Chain Facility The scheme is intended to improve viability of cold storages and enhance cold storage capacity. Assistance at 25 per cent of the project cost in general areas and 33.33 per cent in difficult areas subject to a maximum of Rs. 7.5 million is provided for establishment of cold chain facilities. During 10th Plan an amount of Rs. 4010 million has been sanctioned towards assistance for three cold storages in Gujarat, three in Maharashtra, one each in U.P., Kerala, Manipur, Meghalaya, Andhra Pradesh, Haryana, Delhi and Goa. During 9th Plan, assistance of Rs. 148.6 million was extended to 53 cold storages.
Value Added Centre (VAC) The Scheme is intended to enhance value addition leading to enhanced shelf life, higher total realization and value addition at each level of handling and also to facilitate traceability. Assistance at 25 per cent of the project cost in general areas and 33.33 per cent in difficult areas subject to a maximum Rs. 7.5 million is provided for establishment and modernization of value added centre. So far, three VACs i.e. one each in Maharashtra, Himachal Pradesh and Punjab have been sanctioned assistance involving an amount of Rs. 1100 million during 10th plan.
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CHAPTER-8 RESULTS & FINDINGS
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? The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet.
? From analysis, it is seen that approximately 100 respondents are satisfied with usage of frozen fruits & vegetables which suggests that there are some people who don’t use products due to their psychology or lack of knowledge.
? However, the awareness level of frozen fruits & vegetables is 89% which indicates that the efforts are required to be done to aware people for such products.
? Also, it is seen that mostly people use the frozen products due to time convenience. So it can be said that frozen vegetable and fruits are able to save time of people by providing them such products.
? Thus we can say that the future of frozen F & V is very bright. Day by day awareness is increasing and people are changing their psychology towards these products. So an increasing trend is for Frozen foods market.
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CHAPTER-9 LIMITATIONS OF STUDY
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? As we are not professional researchers it may possible that the research not cover all possible areas related to study.
? The data provided in this report are estimates, based on information obtained from consumers that may include bias on side of the consumer.
? There is also some limit of time as the report need to have more study of market aspects. ? Also as we are students and not working professional having limited amount of budget we cannot spend more for the wide study.
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CHAPTER-10 CONCLUSIONS / SUGGESTIONS
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From the report it can be concluded that India is one of the major food producers in the world. The food sector contributes to about 28 % of India’s GDP. In terms of world ranking , India stands 1st in the production of Cereals, Milk & Livestock population, 2 nd in producing Fruits & Vegetables. Rising living standards in emerging economies also have spurred a growing demand for convenience foods, including frozen food products. For example, from 2000-2005, China’s frozen food market grew at an impressive average annual rate of 10.5 percent. According to some sources, frozen food sales in India have grown at an estimated annual rate of10 percent in recent years, too. Frozen foods are available in a wide spectrum of flavours which are consumed heavily by majority of the Indian middle class households. The advent of frozen foods in the Indian food industry led to a massive change in the lifestyle of the Indian middle class. The global market for frozen foods is projected to reach US$136.5 billion by 2015, registering a Compounded Annual Growth Rate (CAGR) of 3.7% during the period 2006-2015. The market for frozen foods is estimated at US$113.1 billion in 2010.The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010. And from the Data Analysis it can be concluded that Expense on fruits and vegetables is dependent upon Total Family Income. And most of the people are aware about the frozen vegetables and fruits. And customer’s usage is dependent upon whether customers are aware about such products or not. The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet. Market Segmentation Frozen F&V segment is one of the largest sub-segment amongst the frozen food sector constituting around 16 % of the total frozen food market. Frozen potato products are the largest segment accounting for around 6.3 % of the total frozen food market.
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CHAPTER-11 BIBLIOGRAPHY
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http://www.agriculturalproductsindia.com/processed-foods-snacks/processed-foods-snacks-frozenvegetables.html - what are frozen foods – 2nd Dec 2012 http://entrance-exam.net/top-frozen-food-companies-in-india/ - frozen food companies in india – 15th Dec 2012 http://smallb.in/sites/default/files/knowledge_base/reports/FrozenFruitsandVegetablesExportReport_o pt.pdf - market opportunities for frozen fruits and vegetables – 9th Mar 2013 http://etd.uasd.edu/ft/th9589.pdf - USDA Quality standards – 9th Mar 2013 http://www.packagingconnections.com/sites/default/files/HealthCafe_APRIL_2012%20p%205861_Sanex.pdf – Benefits from use of frozen products – 12th Mar 2013 http://www.thehindubusinessline.com/multimedia/archive/00792/Click_here_for_pdf_792312a.pdf Indian food processed industry and companies in Gujarat – 4th April 2013 http://www.frozenfoodfacts.org/assets-foundation/misc/files/Frozen_FoodsA_Healthy_Wealthy_and_Wise_Choice.pdf - History of Frozen foods – 2nd Dec 2012
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CHAPTER-12 ANNEXTURE
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Questionnaire on Awareness & Perception of Customers towards Frozen Fruits & Vegetables in Ahmedabad City
Dear Respondents, We are students of Shayona Institute of Business Management. We are undertaking Grand Project as a part of our curriculum which requires a kind of Research in open market. So, we are carrying out a survey on “Awareness & Perception of Customers towards Frozen Fruits & Vegetables in Ahmedabad City”. We request you to co-operate with us and give responses to the questionnaire. The data collected is purely for academic purpose & would be treated with utmost Confidentiality. 1. Name :2. Area :3. Contact No :4. Gender
a) Male [ ] (b) Female [ ] ______________________________________________ ____________________________ ____________________________
5. Occupationa) Student (c) Housewife 6. Family members:7. No of members earning:[ ] [ ] (b) Professional (d) Others _________ _________ [ ] [ ]
8. Total Family Income (per month)a) (c) 9. 25000-30000 35001-40000 [ [ ] ] (b) 30001-35000 (d) > 40000 (b) Rs.2001 – Rs.3000 (d) > Rs.4000 [ ] [ ]
How much amount do you spend per month in buying vegetables & fruits? (a) Rs.1000 – Rs.2000 (c) Rs.3001-Rs.4000 [ ] [ ] [] []
10. Are you aware of frozen vegetables & fruits?
(a) Yes
[ ]
(b) No
[ ]
11. Do you use frozen vegetables & fruits?
(a) Yes
[ ]
(b) No
[ ]
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If yes, which factors influence you to buy such products? (a) Nutrition benefits (b) Time convenience (c) Price advantage (d) Hygeine benefits [ ] [ ] [ ] [ ]
(e) Others ____________________________ If No, go to Que. 17 12. Frequency of Purchasea) Weekely [ ] (b) Fortnightly [ ] (c) Monthly [ ] (d) Occasionally [ ]
13. How much amount do you spend per month in buying frozen vegetables & fruits? (a) < Rs. 500 (c) Rs. 1001- Rs. 1500 [ ] [ ] (b) Rs. 500- Rs. 1000 (d) > Rs. 1500 [ ] [ ]
14. From where, do you purchase frozen fruits & vegetables? (a) Mall (b) Retail shop [ ] [ ] ]
(c) Company owned Outlets [ (d) Others , specify
_________________
15. Which brand do you prefer? (a) Quick treat (b) Garden fresh (c) Safal (d) Godrej Yummiez (e) Amul (f) Others [] [] [] [] [] ___________________________
16. Are you satisfied with the usage of frozen foods & vegetables? Highly satisfied [ ] Dissatisfied [ ] Satisfied Highly Dissatisfied [ ] [ ] Neutral [ ]
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17. Reasons behind not using productsa) Costly (b) Lack of Knowledge (c) Psychology [ ] [ ] [ ]
(d) Ineffective packaging [ ] (e) Others , Please specify ________________________ 18. Would you prefer these kinds of products in future? ___________ 19. Any suggestions :________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ____________________________________________________________________
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doc_169447462.pdf
1
Indian Processed Food Industry
India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing industry. Health food and health food supplements are another rapidly rising segment of this industry which is gaining vast popularity amongst the health conscious.
The Indian food processing industry accounts for 32 per cent of India's total food market. The industry is estimated to be worth US$ 121 billion, it is one of the largest industries in India, and is ranked fifth in terms of production, consumption and exports. The fruits and vegetables export from India in April-December 2012 was recorded for Rs 37.02 billion (US$ 681.14 million). Of the total exports, fresh grapes was recorded to Rs 5.45 billion (US$ 110.72 million), while walnuts were Rs 1.29 billion (US$ 23.76 million) and fresh mangoes stood at Rs 2.23 billion (US$ 40.99 million).
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The Ministry of Food Processing receives a number of proposals from private industries for establishing food processing industries in the country. The total amount released by the Ministry under the aforesaid scheme during 2012-13 (as on February 15, 2013) is worth Rs 145.74 crores (US$ 26.81 million). India presents a huge untapped opportunity for the food processing sector enhanced with low
penetration levels and a liberal regulatory regime. Increased economic growth, evolving foodconsumption patterns, a higher standard of living due to rising disposable incomes and a trend towards nuclear dual-income families all present considerable potential. Government studies show that an average Indian spends majority of his income on food consumption.
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CHAPTER-1 INTRODUCTION OF FROZEN CONCEPT
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Frozen Food/Freeze Drying Concept
Frozen vegetables were one of the first frozen foods introduced in the 1930s.They have become favorite for quick-fix meals. Freeze drying is a relatively recent method of preserving food. It involves freezing the food, then removing almost all the moisture in a vacuum chamber, and finally sealing the food in an airtight container. Freeze-dried foods can be easily transported at normal temperatures, stored for a long period of time, and consumed with a minimum of preparation. Once prepared, freeze-dried foods have much the same look and taste as the original, natural products. Freezing methods for food are convenient and easily applied. As freezing is one of the few methods which allow preservation of food attributes such as taste, texture while maintaining the nutrition. Frozen products are similar to fresh product if good handling and safety practices are used before as well as after such freezing. Frozen prepared foods are easy to make and often tasty.
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(Source: http://www.europeanfreezedry.com/ui/process_en.jpg) Frozen food has been around since 3,000BC, when the ancient Chinese started using ice cellars to preserve food through the cold winter months and beyond. The Romans also used to store provisions in compressed snow in insulated cellars. So, at least in principle, frozen food has been with us for a long time! The modern frozen food industry, however, only dates back to the early 20th century when Clarence Birdseye - fur trading in Labrador, Canada in 1917 - observed how local inhabitants preserved fresh fish and meat by letting it freeze rapidly in the cold Arctic temperatures. (Source: http://www.bfff.co.uk/about-us/information-frozen-food) The ability to preserve the food has enabled the producer to make its product available to consumers sitting in the other corner of the world. Added to this is the advantage of convenience, which has become very relevant in today’s world as people are leading busier lives. Retention of quality and safety are better achieved when frozen foods are kept at maximum temperatures of -18 °C or even lower. Frozen agricultural products can retain their quality over long storage periods if the correct procedures are applied.
About Food Industry
The food production is a complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population. The food industry will continue to evolve in response to specific consumer demands in individual markets, with significant differences between industry strategies in the developing and the developed countries. Across all countries, modern food markets are responding to consumer preferences at a local level, even as the food industry becomes more global. In a food industry driven by consumers’ retail pull, food manufacturers have to continuously reorient themselves to remain competitive. Firms that respond to market signals are better able to adjust and maintain their positions in the industry.
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India is one of the major food producers in the world. The food sector contributes to about 28 % of India’s GDP.
In terms of world ranking India stands: • 1st in the production of Cereals, Milk & Livestock population • 2nd in producing Fruits & Vegetables Total market for food products Rs. 2,500 Billion, of this, processed food Rs. 1,400 Billion.
SECTORS IN FOOD INDUSTRY IN INDIA
Dairy & Food Processing Canning Frozen Food / Freeze Drying Products
Thermo Processing Specialty Processing
According to the recent survey, the Indian food market is all set to be double by the year 2025. The rapid economic development, innovative technology and food production, growing consumerism and improved lifestyle are the main reasons behind this growth. Today, Indian consumers are paying for branded and value added food products which have led to the introduction of new segments in the manufacturing and retail market. The Indian food services industry is estimated to be nearly worth Rs 75,000 crore and is growing at a healthy compound annual growth rate (CAGR) of 17 per cent, according to a Franchise India report released at the Indian Restaurant Congress.
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1.1 About Frozen Food Industry
The introduction of frozen foods into the marketplace in the early 1930s marked a significant milestone in the food industry, offering consumers convenience, value and quality — all at a reasonable price. By “quick freezing” different foods, the frozen food industry also opened up new opportunities to consumers that previously were unavailable. Those living thousands of miles from the ocean could enjoy the luxury of cod and haddock shipped frozen from the coasts. And consumers could enjoy fresh tastingfruits and vegetables year-round, thanks to the frozen food industry. By the 1950s, frozen foods became a billion dollar industry. Frozen fruits and vegetables became standard food service fare at this time, and the growing popularity of television brought with ita new culinary innovation: the frozen TV dinner. Today, frozen foods are a dietary staple in most countries around the globe. Retail sales of frozen foods in the U.S. was $27.5 billion in 2005 — a 3.1percent increase over the preceding year. Frozen foods account for approximately one-third of foodservice sales in the U.S., climbing above $40 billionin annual sales.In various regions throughout Europe, the consumption of frozen food has continued to climbas well. In Germany, frozen food consumption has grown at an annual rate of 2.6 percent from 2000 to 2005. In particular, frozen fruits and vegetables — which are among the main product applications for FLoFREEZE freezers — represent 25 percent of total frozen food consumption in Europe. As consumers become more health–conscious, the fruit and vegetable segment of theEuropean frozen food market is expected to grow. Rising living standards in emerging economies alsohave spurred a growing demand for conveniencefoods, including frozen food products. For example,from 2000-2005, China’s frozen food market grew atan impressive average annual rate of 10.5 percent. Frozen food industry is progressively moving from bulk un-processed food market to manufactured and processed food market. The increase in demand for processed food is directly influencing food processing and packaging equipment manufacturing industry.
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In wider terms, the frozen food market has following segments: Frozen ready meals, frozen fish/seafood, frozen meat products, frozen vegetables, frozen potato products, frozen desserts and others. In recent years, due to the changing consumer profile, the frozen food industry has changed significantly. The major trend in consumer behavior documented over the last half century has been the increase in the number of working women and the decline in the family size.
These two factors resulted in a reduction in time spent preparing food. The frozen foods industry is considered expensive, mainly due to the high initial investment cost for the equipment, but the freezing process and storage costs about 10 percent of the total cost of production.
Frozen foods have won the hearts of Indians by offering a variety of ready-to-eat foods which can be cooked in the least possible time. Frozen foods are available in a wide spectrum of flavours which are consumed heavily by majority of the Indian middle class households. The advent of frozen foods in the Indian food industry led to a massive change in the lifestyle of the Indian middle class. Earlier it used to take hours in kitchen but frozen foods have ensured mouth watering dishes in no time.
With the emergence of frozen food in the Indian food industry, there has been an upsurge of processed foods in the domestic markets. The income of the middle class people in India has grown in recent years. This gave rise to the increasing consumption of processed foods in India as it provides good food with lesser cooking time. Frozen food has now become a demand driven industry in India and occupies a huge market in the country. Around 30 million Indians which comprise of both upper and middle class consume packaged foods in high quantities. This figure is likely to reach 200 million within the next three year.
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1.1.1 BENEFITS OF FROZEN FRUITS & VEGETABLES: Nutrition:Frozen fruits and vegetables are packed within hours of harvest, so their peak flavor and nutritional value are preserved. Frozen fruits and vegetables contribute a number of nutrients that are under-consumed in the United States, help reduce the risk of chronic diseases and are relatively low in calories. Frozen fruits and vegetables provide the unrivaled combination of great taste, nutrition, abundant variety and multiple product forms. From a nutrition and sensory standpoint, recipes prepared with frozen ingredients have been rated as comparable to those prepared with cooked fresh ingredients Convenience Frozen fruits and vegetables are often available in easy-to-open resealablepackaging allowing for longer storage and portion control without waste. New steam-in-bag technology also provides added convenience by allowing frozen vegetables to be cooked right in the package. Frozen fruits and vegetables come peeled, pre-cut and ready to cook or eat. No washing or cutting is required, which saves time and reduces waste. It’s easy to toss your favorite frozen vegetables in with chicken and rice, or to pack a frozen fruit cup with a brown bag lunch.
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1.2 Overview of World Market
The frozen food market is one of the largest and most dynamic sectors of the food industry. The frozen food market consists of frozen bakery products, frozen desserts, frozen fish/sea food, frozen fruit, frozen meat products, frozen pizza, frozen potato products, frozen ready meals and frozen vegetables. In spite of considerable competition between the frozen food industry and other sectors, extensive quantities of frozen foods are being consumed all over the world.
The US is the single largest market for frozen foods while Asia and Russia offer huge potential, as the markets are relatively immature due to late adoption of frozen foods.
Today, market studies indicate that considering overall consumption of frozen foods, frozen vegetables constitute a very significant proportion of world frozen-food categories (excluding ice cream) in Austria, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Switzerland, UK, and the USA. Global market players in this industry are Del Monte Foods Inc., Birds Eye Foods Inc., H.J.Heinz, Ardovries N.V., Dean Foods, Froza, etc.
The global market for frozen foods is projected to reach US$136.5 billion by 2015, registering a Compounded Annual Growth Rate (CAGR) of 3.7% during the period 2006-2015. The market for frozen foods is estimated at US$113.1 billion in 2010.
The global frozen food industry recorded close to 4% growth in 2010 to exceed $192 billion, reports Market Line. The market is expected to see 19% expansion over five years to exceed $228 billion in 2015. In terms of volume the market is expected to exceed 14% growth in the same period to reach almost 43.5 billion kilograms. Frozen meat represents the leading segment, accounting for more than 41% of the overall market in terms of value.
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Growing consumer awareness concerning the benefits of a fresh foods diet has proven an obstacle to growth in the frozen food production industry, reports Ibis World. Over coming years, frozen food manufacturers will concentrate on product innovation to offer a wider range of products and market their goods to emphasize nutrition and convenience.
Convenience is the major driving factor for the global frozen foods market. Unorganized sector comprising unbranded products is the biggest challenging factor to the organized sector of global frozen foods market. The market is highly fragmented with the top players together accounting for less than 20%. A large number of companies hold significant shares in their respective local markets. However, at the global level, their share is very low. Frozen pizza is the fastest growing segment in the frozen ready meals segment with an estimated CAGR of 4% with U.S. and is expected to continue its dominance in the segment from 2010 to 2015.
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1.3 Overview of Indian Market
The Indian food processing industry is one of the largest in the world in terms of production, consumption, export and growth prospects. Earlier, food processing was largely confined to the food preservation, packaging and transportation, which mainly involved salting, curdling, drying, pickling, etc.
However, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like ready-to-eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products, etc. It also includes establishment of post-harvest infrastructure for processing of various food items like cold storage facilities, food parks, and packaging centres, etc.
India is a large producer of food and is offering different opportunities and business propositions in food and food processing technologies, skills and equipment. Products which come under the frozen food industry are fruits, vegetables, fisheries, milk products, meat, poultry and other packaged and convenience foods. Although it is a huge producer of food products, India still has immense untapped potential in the frozen food export industry.
Frozen foods have won the hearts of Indians by offering a variety of ready-to-eat foods which can be cooked in the least possible time. Frozen foods are available in a wide spectrum of flavours which are consumed heavily by majority of the Indian middle class households.
With the emergence of frozen food in the Indian food industry, there has been an upsurge of processed foods in the domestic markets. The income of the middle class people in India has grown in recent years. This gave rise to the increasing consumption of processed foods in India as it provides good food with lesser cooking time. The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010.
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Tata Strategic Management Group has reported that the Indian frozen food market is likely to touch USD 727.09 million by the year 2015 from the current USD 32.09 million in the year 2008. Some of the biggest contributors to this growth are ITC Foods, MTR Foods, Kohinoor, Amul, Rajbhog Foods, Ethnic Kitchens and Tasty Bite.
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The food processing industry in India contributes to 6.3 percent to India's Gross Domestic Product, 19 percent to India's industrial growth and 13 percent to the export production from the country as per estimates of early 2008.
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There has been an outstanding 193.83% growth in the processed food market in India which accounted for a rise from USD 6.98 billion in 2002-03 to USD 20.51 billion in 2006-07.
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The Government of India has decided to invest a whopping USD 25.07 billion by the year 2015 to extend India's share in the global food trade. This is approximately a rise from 1.6 % to 3 %.
Hind Agro Industries Ltd holds a strong position in the market for frozen vegetables in India. The second-largest player was EMKE Group, with Amalgam Enterprises in third place.
The Indian exports of frozen fruits and vegetables have shown signs of growth only for UK and USA. France also has also been a major importer of Indian FFV products but has recently shown decline. Japan has shown a major decrease in Indian exports.
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1.3.1 GROWTH DRIVERS: Frozen foods are still a nascent segment for the Indian market, but it is fast growing. The Indian frozen food market, including sales to restaurants and hotels, was worth Rs 1,400 crore in 2011. The biggest growth driver of the category is the time pressed consumers looking for convenience. Other drivers include, increased disposable income, changing tastes (greater consumer acceptance), rising number of quick service restaurants, hygiene (particularly for nonvegetarian items) and the fact that frozen foods deliver better value for money than snacks prepared from scratch. The frozen food market is witnessing innovative initiatives across different categories of products. Apart from good taste, imagination and creativity are strong distinguishing factors among players in the industry.
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1.4 IQF Fruits & Vegetables
Capricorn Food Product India introduced Individual Quick Freezing (IQF)/ Bulk Freezing in the Vegetable and Fruit Processing industry.
IQF commonly known as Flash freezing is a commercial freezing technology that allows fruits and vegetables to retain its quality and original nutritive value by preventing the formation of large ice crystals in the fruit cells. Since each whole fruit is individually frozen, particles do not cohere and the final product is not frozen into a solid block. IQF products eliminate reprocessing and thus considerably reduce the drop loss during thawing & refreezing. It also gives a longer shelf life to the fruits and vegetables. Individual consumers in importing countries prefer IQF products, for the sake of convenience and its longer shelf life.
IQF generally takes place in two stages. In the first stage, the product is partly frozen to a pre-determined point and thereafter, fluidized to a semi-weightless stage by partially suspending it in the air in the second stage. The velocity and pressure of air in the process is adjusted to ensure ultra rapid freezing in IQF form.
Over the years, volume of exports of frozen fruits and vegetables from India has increased in manifold. We export to countries such as Germany, France, UK, USA, Japan and many more across the globe. The product basket has also increased to cover more value added products. Currently, the ranges of products exported in this category are: ? ? ? ? Frozen fruit pulps Frozen fruits – chunks, cubes and slices Frozen mainstream vegetables Frozen Indian ethnic vegetables
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CHAPTER-2 ABOUT MAJOR COMPANIES IN INDUSTRY
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Nowadays, Frozen foods are becoming the hot favorite food to most of the Indian consumers particularly in the present busy scheduled of the people. This is because, there is a variety of frozen food available in the market that is ready-to-eat and these foods can be cooked at the least possible time. The majority of Indian middle-class households are turning towards frozen foods since they are being offered in different flavors. Among the different reasons for the popularity of frozen foods in India, the improving standard of living of the middle-income grouped people in India has also contributed towards the development of companies in the frozen food industry in India. The names of the companies that are leading the frozen food industry in India are given below:
2.1TOP FIVE FROZEN FOOD COMPANIES IN INDIA:
• Forstar Frozen Foods Private Limited • Sterling Foods • Petonia Foods Private Limited • Ovobel Foods • Hak Agro Foods
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1) Forstar Frozen Foods Private Limited:
Forstar Frozen Foods Private Limited is operating from their registered office in the city of Mumbai and they have their plant in New Bombay. In the frozen food industry they are dealing with fish products and some of the products dealt by them are king fish, croaker, ribbon fish, pomfrets, octopus, cuttle fish, squids, lobsters and shrimps. Some of their ready-to-eat products are rice meals, seafood soups and fish curries. Brands: Forstar Seacatch Sea Treasure Ocean's Delight
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2) Sterling Foods:
Sterling Foods has entered into agreement with international seafood export companies for the past 30 years with a view of creation and maintenance of international standards in the Marine food processing industry in India. In the frozen food sector, the company has established their own brands of seafood being David’s and Yacht not only in India, but also in foreign countries as well.
3) Petonia Foods Private Limited:
Petonia Foods Private Limited has made their market presence in the canned, cooked and readyto-eat food sector and due to their maintenance of higher standards they have earned a competitive edge in the frozen food sector in India. Some of their products in the frozen food sector are instant snacks, south Indian dishes, parathas & chapatis, mithas frozen sweet dishes, instant food, frozen fruits, fresh & frozen vegetables and express veggies.
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4) Ovobel Foods:
Ovobel Foods is operating from the city of Bangalore in Karnataka and they are mainly dealing with egg products in the frozen food category. Some of their products under this category are Hen Egg Yolk Powder and Hen Whole Egg Powder, Hen Egg Albumen Powder (High whip) Stabilized, Hen Egg Albumen Powder (High Gel) Stabilized, Pasteurized Frozen Hen Whole Egg, Pasteurized Frozen Hen Egg Yolk and pasteurized frozen hen egg albumen. 5) Hak Agro Foods:
Hak Agro Foods came into existence in the year 1998 and they are dealing with natural fruits and vegetables in the frozen foods sector. Some of the processed food offered by them are frozen green peas shelled corn, frozen sweet corn on cob, frozen sweet corn, frozen strawberry pulp, frozen totapuri pulp, frozen mango pulp, frozen fruit puree, frozen pomegranate, etc… Other Export companies include IQF (Bangalore), Pagro foods ltd. (Chandigarh), Himalayan International (Delhi), Vadilal Group (Ahmedabad), Capital Foods Exports pvt ltd. (Mumbai), Mother Dairy (Delhi).
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2.2 FROZEN FOOD COMPANIES IN GUJARAT: 2.2.1 Vadilal:
Today, the name Vadilal conjures images of lip-smacking ice cream in a whole gamut of flavours. Vadilal spells quality, availability, variety and state-of-the-art machinery and equipment. It has, however, been a long journey for the group, which traces its origins way back to 1907, when a certain unassuming gentleman, by the name of Vadilal Gandhi, the great-grand father of Virendra R Gandhi, Rajesh R Gandhi and Devanshu L Gandhi, started a soda fountain. He passed on the business to his son, Ranchod Lal, who ran a one-man show, and, with a hand cranked machine, started a small retail outlet in 1926.
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Vadilal entered the Horticulture Processing Industry in May 1991. India identifies with its rich traditions, diverse customs and culinary expertise along with kaleidoscopic people. Freshness of food is a backbone for winning the hearts and company determined to strengthen the same and to enhance the shelf life. So, to process the food, company use “Individually Quick Frozen” (IQF) technique, which involves fluidized belt type continuous freezing.
Company’s endeavors to provide quality products are endorsed by ISO 9001:2000 and ISO 22000 (HACCP) certifications. Vadilal is also awarded the certificate of merit for excellence in export performance by APEDA.
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2.2.2. Mother Dairy:
Mother Dairy was set up in 1974 under the Operation Flood Programme. A wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy manufactures, markets & sells milk and milk products under the Mother Dairy brand (Milk, Cultured Products, Ice Creams, Paneer and Ghee), Dhara range of edible oils, Safal range of fresh Fruit & vegetables, Frozen Vegetables, Processed Fruit & Vegetable Products, Fruit Pulps & Concentrates in bulk aseptic packaging and fruit juices at a national level through its sales and distribution networks for marketing food items.
Mother Dairy, Delhi is an IS/ISO - 9001:2000 and Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Envoirnment Management System (EMS) Certified organisation. Mother Dairy was the first Dairy in the country to implement ISO-14031 (Envoirnment Performance Evaluation) project. Thecomany's Quality Assurance Laboratory is ISO/IEC17025:1999 certified by NABL (National Accreditation Board for Testing and Calibration Laboratory), Department of Science & Technology, India.
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Safal is the market leader in the organized fruit & vegetable retail business in Delhi NCR where it sells an average of 300 MT/day through a network of 350+ exclusive retail outlets under brand name Safal/ Safal Pure Veg, supported by a state-of-the-art large and ultramodern Central Distribution Facility located in Delhi with an annual capacity to handle and process 2,00,000 MT of fresh fruits and vegetables. Safal today operates the largest number of F&V Stores in Delhi NCR and has further expansion plans in place. Retail Outlets are also present in Bangalore under the brand name Safal Daily Fresh. ally and interncradle of knowledge and best practices for the Fruit
and
Frozen Peas
Frozen Corn
Frozen Mix Veg
Corn Chatkara
ozen Aloo Tikki
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V2.2.3 Godrej:
Godrej Industries Ltd, a member of the Rs. 45 billion (US$ 1 billion) Godrej Group is India's leading manufacturer of oleo chemicals and food products. The foods division of Godrej Industries produces and markets edible oils, vanaspati, bakery fats, fruit drinks, fruit nectar and tomato puree.
The division has two state-of-the-art manufacturing facilities: at Wadala in Mumbai, the capital of the western Indian state of Maharashtra; and at Mandideep near Bhopal in the northern Indian state of Madhya Pradesh. It has a national distribution network consisting of 800 distributors and 24 consignment agents. The plants are equipped with the best of modern equipment for the processing and packaging of a wide variety of food products.
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CHAPTER-3 PRODUCT PROFILE & QUALITY STANDARDS
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Baby Potato (Aloo)
Indian Gooseberry (Amla)
Colocasia Root (Arwi)
Okra Cuts (Bhindi Cuts)
String Beans (Chauli)
Beet Root (Chukandar)
Moringa Oleifera (Saragawa)
Bottle Gourd (Dudhi)
Sweet Corn Kernets (Makai Dana)
F
Purple Beans (Mogri)
Pointed Gourd (Parwal)
Green Peas (Mutter)
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Snake Gourd (Pandola)
Surti Papdi (Pauchi Papdi)
Indian Baby Pumpkin (Punjabi Tinda)
Shallots - Red Onion (Pyaz lal)
Violet Yam (Ratalu)
Mustard Leaves (Sarson)
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3.1 USDA: QUALITY GRADES FOR FROZEN VEGETABLES
US Department of Agriculture (USDA) grades the canned and frozen vegetables based on their quality. USDA also provides an inspection program to certify the quality of frozen vegetables. Highly qualified scientists are employed to examine the quality of the processed vegetables against the established US grade standards. The grades assigned to the products acts as a guide to the consumers during purchasing of canned and frozen vegetables.
1. US Grade A: Grade A vegetables are known for their softness, color, and texture. These vegetables are most juicy and highly flavored. The other name for Grade A products is “fancy” which is mentioned on the label.
2. US Grade B: Grade B vegetables possess superior quality but are not on par with Grade A vegetables, in terms of color and texture. These vegetables are fully-grown when compared with Grade A vegetables. Therefore they taste slightly different from Grade A type. Other name for Grade B product is “Extra Standard”.
3. US Grade C: Grade C vegetables are mainly used as constituents in preparing casserole or stew, and soup, as they are fully-grown. These vegetables are les flavored. Grade C products are also known as “Standard”.
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PART 2 PRIMARY STUDY
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CHAPTER-4 LITERATURE REVIEW
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Urban consumers in India have been increasing consumption of frozen processed food. With more supermarkets opening, especially in cities, women are increasingly shopping in these outlets as they are more convenient, comfortable and have the space to keep large refrigerators to store frozen processed food. The convenience of frozen processed vegetables, meats and ready meal has encouraged many women to increase the usage of these products as they reduce the preparation time. Peas are used in many vegetables and are demanded round the year by all the families and are also required in catering industry. The fresh peas are available only during winter season but are generally required in all the seasons. Also their harvest is limited to certain states. This gap between demand and supply is being managed by frozen peas available in the Indian market. (Rajneesh Mahajan, Suresh Garg, P.B. Sharma, Int. J. of Globalization and Small Business, 2011 Vol.4, No.2, pp.154 – 169).
Indian middle and upper middle class population is growing rapidly with an increase in the number of young working couples. Consumption of fast foods, packed foods and ready to make foods is rapidly increasing. Change in tastes and consumption patterns of basic foods, longer working hours, increase in double income families, increased exposure to advertising etc., are leading to dramatic change in agri supply chains. More and more career minded working couples are looking for comfort and convenience and are also becoming more and more health and hygiene conscious. In place of conventional wet markets, they prefer to buy vegetables, fruits and other agri-products from the super markets and modern retail stores, and this leads to the entry of more and more corporate into the agri-based business market. The tendency that more and more supermarkets are selling fresh produce is determined by the changes in consumer?s demand. Markets with poor environment and no guarantee of quality cannot satisfy the demands of consumers pursuing high quality life. They want to buy desirable food in a comfortable environment. (Abhinav Journal, Commerce & Management, March 2012)
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The frozen food market is the one of the largest sector amongst the food sector. The frozen food market consists of frozen fish/ seafood, meat products, potato products, vegetables, fruits, pizza, ready meals, bakery products and desserts. The frozen food market grew at a CAGR 3.6 % between 2004-2008 to reach a value of US$ 103.9 billion in 2008. In terms of volume the market grew at a CAGR of 3.1% during the same period to reach 41.7 million tonnes in 2008. The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet. India’s exports of frozen fruits and frozen vegetables stand at 0.12% and 0.33% of total world exports of frozen fruits and vegetables respectively. Top ten export markets for Indian frozen vegetables during 2008 had been USA, UK, UAE, Saudi Arabia, Australia, Sri Lanka, Canada, Germany, Kuwait, and Nepal. (Agri Export Advantage by EXIM Bank of India, Vol VIII Issue V, March 2009)
Products which come under the frozen food industry are fruits, vegetables, fisheries, milk products, meat, poultry and other packaged and convenience foods. The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010. In spite of such growth, there are some challenges which are being faced by this industry are Development of marketing channels, low price elasticity for processed food products, development of linkages among industry, government and institutions. Ministry of food processing industries is the main agency responsible for promoting and regulating food processing sector. Food Safety and Standards Act, 2006 is applicable to food and related products in India. And the food processing industry has to comply with this legal requirement. (Processed and frozen foods: Indian Scenario, Nov 2011 by Man Mohan Malik)
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4.1 BACKGROUND OF THE STUDY
Frozen foods have become a staple of the modern diet. Freezing allows consumers to have access to foods previously unavailable or available only seasonally, and it provides convenience for many families. And also the market is growing on a faster rate in India and globally also. So we conducted the research regarding Awareness & Perception of Customers towards Frozen Fruits & Vegetables in Ahmedabad City. For which we have taken responses from the general public using questionnaires. The areas we have covered are Ranip, Shahibaug, Vastral, Ashram Road etc. And the report also include sectors In food industry in India, major companies of India and Gujarat, product profile and its quality standards, the market scenarios of India And Global Market, Growth perspective of the market, factors that affect the consumer behavior for buying frozen vegetables and fruits, growth drivers for the market and data analysis on bases of the responses from general public.
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4.2 Problem Statement
Current literature review suggests that there are very less study conducted in India specifically focusing on understanding about the awareness of consumer about frozen vegetables & fruits as well as their perception. Hence, main problem of the research study is to see how many customers are aware of frozen vegetables and fruits and what are their perceptions about with respect to use of such products.
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4.4 Objective of the Study
? To study about the awareness of frozen vegetables & fruits. ? To study the customers’ perceptions with respect to frozen vegetables & fruits. ? To see how much portion of total spending of customers is allocated to frozen vegetables & fruits. ? To study whether customers prefer such products or will start using such products in future. ? Whether customers are satisfied with the usage of product or not.
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CHAPTER-5 RESEARCH METHODOLOGY
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5.1 Research Design
Research Instrument:A research instrument is a survey, questionnaire, test, scale, rating, or tool designed to measure the variables, characteristics, or information of interest, often a behavioral or psychological characteristic. Research instruments can be helpful tools to research study. Here in our study of report research instrument that we have used is Conducting market survey through the use of questionnaire.
5.2 Data Collection
While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data viz, primary data and secondary. The primary data is collected afresh and for first time and thus happens to be original in character. The secondary are those which have been collected by someone else and which have already been passed through statistical process. The researcher would have to decide which sort of data he would be using for his study. The method collecting primary and secondary data differ since primary data are to be originally collected while in case of secondary data the nature of data collection work is merely that of compilation. There are several ways of collecting primary data. They are: 1. Observation method 2. Interview method 3. Through questionnaire In our research we have used questionnaires to collect the primary information from the respondents.
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COLLECTION OF SECONDARY DATA Secondary data means that are already available that is they refer to the data, which have already been collected and analyzed by someone else. Secondary data may be either published or unpublished data usually published data are available in: Various publications of the central, state and local government Various publications of foreign government or of international bodies and their subsidiary organization. Technical and trade journals Books magazines and newspapers Reports publication of various associations connected with business and industry, banks, stocks exchanges etc Reports prepared by various scholars’ universities economists etc in different field Public records and statistics, historical documents and other sources of publishin formation. The sources of unpublished data are many; they may be found indiaries, letters unpublished biographies and autobiographies and also may be available with scholar’s research workers.
5.3
Sampling
Sample Size:300 respondents will be taken from Ahmedabad City
Sampling Technique:There are several alternative ways of taking a sample. The major alternative sampling plans may be grouped into probability techniques and non-probability techniques. In probability sampling every element in the population has a known nonzero probability of selection. The simple random is the best known probability sample, in which each member of the population has an equal probability of being selected. Probability sampling designs are used when the representativeness of the sample is of importance in the interest of wider generalisability. When time or other factors, rather than generalisability, become critical, non-probability sampling is generally used.
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In non-probability sampling the probability of any particular element of the population being chosen is unknown. The selection of units in non-probability sampling is quite arbitrary, as researchers rely heavily on personal judgment. It should be noted that there are no appropriate statistical techniques for measuring random sampling error from a non-probability sample. Thus projecting the data beyond the sample is statistically inappropriate. Nevertheless, there are occasions when non-probability samples are best suited for the researcher's purpose. In non-probability sampling designs, the elements in the population do not have any probabilities attached to their being chosen as sample subjects. This means that the findings from the study of the sample cannot be confidently generalized to the population. However the researchers may at times be less concerned about generalisability than obtaining some preliminary information in a quick and inexpensive way. Sometimes non-probability could be the only way to collect the data. Convenience Sampling Convenience sampling (also called haphazard or accidental sampling) refers to sampling by obtaining units or people who are most conveniently available. For example, it may be convenient and economical to sample employees in companies in a nearby area, sample from a pool of friends and neighbors. The person-on-the street interview conducted by TV programs is another example. TV interviewers go on the street with camera and microphone to talk to few people who are convenient to interview. The people walking past a TV studio in the middle of the day do not represent everyone (homemakers, people in the rural areas). Likewise, TV interviewers select people who look "normal" to them and avoid people who are unattractive, poor, very old, or inarticulate
Data Analysis:? Data analysis will be done through SPSS software.
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5.4
Future Scope of the study :-
? The study can be expanded to understand consumer behavior and perception for use of frozen vegetables & fruits for specific companies like Vadilal, Safal, etc. ? Other aspects such as attitude of consumers, factors that affect the bu yers’ purchasing behavior, etc can be very well known. ? Through this study, the possible solutions for factors that restrain consumers from using such productts can be found out. ? This study can be used as a tool to create awareness and promotion of such products among health conscious people. ? Also, the opportunities for this sector can also be known.
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CHAPTER-6 DATA ANALYSIS & INTERPRETATION
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TOTAL FAMILY INCOME PER MONTH
FREQUENCY TABLE AND CHART ON TOTAL FAMILY INCOME PER MONTH:
TOTAL FAMILY INCOME (PER MONTH) Frequency Percent Valid Percent Cumulative Percent 25000-30000 30001-35000 Valid 35001-40000 >40000 Total 99 63 59 79 300 33.0 21.0 19.7 26.3 100.0 33.0 21.0 19.7 26.3 100.0 33.0 54.0 73.7 100.0
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CROSS TAB ANALYSIS OF TOTAL FAMILY INCOME AND EXPENSE ON VEGETABLES & FRUITS
TOTAL FAMILY INCOME (PER MONTH) * EXPENSE ON VEGETABLES & FRUITS Crosstabulation Count EXPENSE ON VEGETABLES & FRUITS 1000-2000 25000-30000 TOTAL FAMILY INCOME (PER MONTH) 30001-35000 35001-40000 >40000 Total 57 24 13 14 108 2001-3000 24 26 15 19 84 3001-4000 17 12 27 25 81 >4000 1 1 4 21 27 99 63 59 79 300 Total
H0 : Total Family Income and Expense on vegetables & fruits are independent. H1 : Expense on vegetables & fruits is dependent upon Total Family Income.
Chi-Square Tests Value Df Asymp. Sig. (2sided) Pearson Chi-Square N of Valid Cases 80.117a 300 9 .000
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 5.31.
? = 5% DF = 9 Chi square tabular value 3.325 As tabular value < calculated value, H0 is rejected. So, we can say that, Expense on fruits and vegetables is dependent upon Total Family Income.
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AWARENESS ABOUT FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART ON AWARENESS OF FROZEN VEGETABLES & FRUITS
AWARE OF FROZEN VEGETABLES & FRUITS Frequency Percent Valid Percent Cumulative Percent YES Valid NO Total 267 33 300 89.0 11.0 100.0 89.0 11.0 100.0 89.0 100.0
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USE OF FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART ON USE OF FROZEN VEGETABLES & FRUITS
USE OF FROZEN VEGETABLES & FRUITS Frequency Percent Valid Percent Cumulative Percent YES Valid NO Total 168 132 300 55.3 44.7 100.0 55.3 44.7 100.0 55.3 100.0
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CROSS TAB ANALYSIS ON AWARENESS OF FROZEN VEGETABLES & FRUITS AND ITS USE
AWARE OF FROZEN VEGETABLES & FRUITS * USE OF FROZEN VEGETABLES & FRUITS Crosstabulation Count USE OF FROZEN VEGETABLES & FRUITS YES AWARE OF FROZEN VEGETABLES & FRUITS Total YES NO 168 0 168 NO 103 29 132 271 29 300 Total
H0 : Awareness of Frozen V & F and Its use are independent. H1: Usage of Frozen V & F is dependent upon its awareness.
Chi-Square Tests Value Df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 39.582
a
9 9 1
.000 .000 .014
35.425 6.036 168
a. 4 cells (25.0%) have expected count less than 5. The minimum expected count is 3.38.
? = 5%, DF = 9 tabular value = 3.325 tabular value < calculated value, so, H0 is rejected. So, it is said that customers’s usage is dependent upon whether customers are aware about such products or not.
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FREQUENCY OF PURCHASING FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART OF PURCHASE OF FROZEN VEGETABLES & FRUITS
FREQUENCY OF PURCHASE Frequency Percent Valid Percent Cumulative Percent WEEKELY FORTNIGHTLY Valid MONTHLY OCCASIONALLY Total Missing Total 99 72 33 36 27 168 132 300 24.0 11.0 12.0 9.0 56.0 44.0 100.0 42.9 19.6 21.4 16.1 100.0 42.9 62.5 83.9 100.0
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SATISFACTION LEVEL FROM USING FROZEN FRUITS & VEGETABLES
FREQUENCY TABLE AND CHART OF SATISFACTION LEVEL ON USAGE OF FROZEN VEGETABLES & FRUITS
SATISFIED WITH FROZEN VEGETABLES & FRUITS Frequency Percent Valid Percent Cumulative Percent HIGHLY SATISFIED SATISFIED Valid NEUTRAL HIGHLY DISSATISFIED Total Missing Total 99 40 100 28 3 171 128 299 13.4 33.4 9.4 1.0 57.2 42.8 100.0 23.4 58.5 16.4 1.8 100.0 23.4 81.9 98.2 100.0
Descriptive Statistics N SATISFIED WITH USAGE Valid N (listwise) 61 61 Minimum 1 Maximum 3 Mean 1.85 Std. Deviation .654
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CROSS TAB ANALYSIS ON USE OF FROZEN VEGETABLES & FRUITS AND ITS SATISFACTION ON USING
Case Processing Summary Cases Valid N USE OF FROZEN VEGETABLES & FRUITS * SATISFIED WITH FROZEN VEGETABLES & FRUITS 171 57.2% 128 42.8% 299 100.0% Percent N Missing Percent N Total Percent
USE OF FROZEN VEGETABLES & FRUITS * SATISFIED WITH FROZEN VEGETABLES & FRUITS Crosstabulation Count SATISFIED WITH FROZEN VEGETABLES & FRUITS HIGHLY SATISFIED USE OF FROZEN VEGETABLES & FRUITS Total YES NO 40 0 40 100 0 100 28 0 28 SATISFIED NEUTRAL HIGHLY DISSATISFIED 3 0 3 171 0 171 Total
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REASONS BEHIND USING FROZEN FRUITS & VEGETABLES
Multiple Responses
Case Summary Cases Valid N $USEa 171 Percent 57.0% N 129 Missing Percent 43.0% N 300 Total Percent 100.0%
a. Dichotomy group tabulated at value 1.
$USE Frequencies Responses N NUTRITION BENEFIT $USE
a
Percent of Cases
Percent 56 106 48 20 230 24.3% 46.1% 20.9% 8.7% 100.0% 32.7% 62.0% 28.1% 11.7% 134.5%
TIME CONVENIENCE PRICE ADVANTAGE HYGEINE BENEFITS
Total a. Dichotomy group tabulated at value 1.
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REASONS BEHIND NOT USING FROZEN FRUITS & VEGETABLES
Multiple Response
Case Summary Cases Valid N $NO
a
Missing N 171 Percent 57.0% N
Total Percent 300 100.0%
Percent 129 43.0%
a. Dichotomy group tabulated at value 1.
$NO Frequencies Responses N COSTLY NOT USEa LACK OF KNOWLEDGE PSYCHOLOGY INEFFECTIVE PACKAGING Total a. Dichotomy group tabulated at value 1. 44 35 56 7 142 Percent 31.0% 24.6% 39.4% 4.9% 100.0% Percent of Cases 34.1% 27.1% 43.4% 5.4% 110.1%
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CHAPTER-7 STRATEGIC ANALYIS & OPPORTUNITIES
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7.1 OPPORTUNITIES FOR INDIA IN FROZEN FRUITS & VEGETABLES
The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet. Market Segmentation Frozen F&V segment is one of the largest sub-segment amongst the frozen food sector constituting around 16 % of the total frozen food market. Frozen potato products are the largest segment accounting for around 6.3 % of the total frozen food market. MAJOR MARKETS
Europe
Europe is the largest frozen food market in the world accounting for 38.3 % of the global frozen food market in terms of value in 2008. Frozen F&V and frozen potatoes together constitute around 18% of the total frozen food market in Europe. Germany is the largest market for frozen food in the Europe accounting for 21.9 % of the total market value, followed by United Kingdom (18 %) and France (7.70%). However, sector wise analysis reveals that France is the largest market for frozen fruits and vegetables and potato products, accounting for around 26.3 % of the total frozen food market in France in 2008, followed by United Kingdom (24.3%), Belgium (22.1%), and Germany (10.4%). The Netherlands is the largest market for frozen potato products accounting for 19.4 % of the total Dutch frozen food market value in the same year.
Asia-Pacific
With a 36.8% share in the total global frozen food market, Asia-Pacific is the second largest market for frozen food. The frozenfood market grew at a CAGR of 4.3 % between 2004-2008 to reach a value of US$ 35.8 billion in 2008. Frozen F&V and potato products constitute 13.8 % of the total frozen food market value in Asia-Pacific. Japan constitutes the largest frozen food market in Asia-Pacific, accounting for 59.5% of the overall value. Frozen F&V and potato products constitute 15.2 % of the total Japanese frozen food market value.
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United States
The United States (US) frozen food market constitutes 24.9 % of the total global frozen food market by value. The US frozen food market grew at a CAGR of 2.6% for the period 2004-2008, to reach a value of US$ 24.2 billion in 2008. Frozen F&V and potato products account for around 7.9% of the total US frozen food market value.
Trade
Among frozen F&V, frozen vegetables are traded the most. The frozen vegetable production and trade may be broadly classified into: potato bi-products; and vegetables such as green peas, green beans, cauliflowers, cabbages, sweet corns, spinach, sweet peppers, mushrooms, and carrots.
Top ten exporters of frozen vegetables are Belgium, China, Spain, Netherlands, France, Mexico, Poland, USA, Canada and Germany. Saudi Arabia is the largest exporter of frozen potato products. China is the leading exporter of frozen leguminous vegetables and USA is the largest supplier of frozen sweet corn.
Top ten importers of frozen vegetables are Germany, USA, France, Japan, UK, Belgium, Italy, Netherlands, Spain and Korea.
Distribution Channel
Globally, frozen F&V are marketed through supermarkets & hypermarkets (71%), and by a mix of formats like convenience stores (7.5%), independent retailers (14.5%) discounters (5.2%) that offer huge discounts on all products and others (1.8%).
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7.2 FROZEN FOOD INDUSTRY ANALYSIS
BARGAINING POWER OF SUPPLIERS – LOW In food business, there are plenty of suppliers who sell raw material such as vegetables, meats, and other ingredients that used in the process of producing frozen foods. Since lots of supplier who sell the same kinds of raw materials, all of these suppliers must compete against each other to get the customers because we have the same target market. They suppliers sell them at the low price because when the frozen food companies purchase the raw materials, they must be in large quantities.
BARGANING POWER OF BUYERS - LOW The same type of company join together to purchase the raw material so they get the same price. As this reason the power of the customers for bargaining will be low because the suppliers sell the product at the same price.
RIVALRY When mentioning about the frozen food that sells the ready meal to the customers in the USA, it is considered to be less number of Frozen Foods Company. There are not many companies that provide Pat-Thai ready meal to the customers.
SUBSTITUTE PRODUCTS - HIGH As the many companies are there in the food industry, there are so many substitute products that can provide the same need to the consumers such as other types of food and will replace the demand for our products. For example, the restaurant, the Canned Fruit beverages that are sold in retail shops for food industry; there are a lot of foods that can substitute the dishes of frozen foods, which can easily find everywhere. THREAT OF NEW ENTRY - LOW As the few companies are having competitive advantage in frozen food industry, threat to new entry is low as the entry of new players in frozen food market is tough due to availability of other well known brands and customers’ loyalty to brand.
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7.3 VALUE CHAIN ANALYSIS
7.3.1 KEY PLAYERS IN THE FFV VALUE CHAIN
The following major business partners can be distinguished for exporters of most Preserved fruit and vegetables.
Agents - Agents are intermediaries executing the buying and selling orders of a customer against commission (between 2 and 5 percent of the purchasing price). The agents never actually take possession of a shipment. Moreover, the products do not pass physically through the agents’ hands and often not even through their countries of operation. Two types of agents can be distinguished: buying agents and selling agents. The former represents the buyers, such as the food processing industry, compound houses or re-exporters. The latter represents the sellers, mainly exporters. Agents are usually well informed about the current market trends, prices and users.
Importers - Importers buy and sell preserved fruit and vegetables on their own account, mainly to the food processing industry and for re-export. Importers take ‘long’ or ‘short’ positions in the market depending on their expectations of future price trends. If an importer sells ‘short’, he is contracting to sell products, which he does not yet possess, while taking a ‘long’ position means that he has unsold products in his trading account. Processing industry (processing importer) – Processing manufacturers/processing importers buy raw materials and semi-finished products to process them further, with the goal of selling these to the end-product manufacturers. For example, in the case of dried vegetables the processing importers clean, grade, reduce the humidity content and bacteria count before selling to the food industry. The processing manufacturers purchase preserved fruit and vegetables either directly or from importers or through the services of an agent. Specialized fruit processing industries supply semi-manufactured products to the bakery, dairy and ice-cream industry. Cargill and the compound houses are examples of leading Processing importers in The
Netherlands. The compound houses supply their compounds in the first place to the beverage industry, the dairy industry and the ice cream industry
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End-product manufacturers - Some end-product manufacturers who need large quantities (on a regular basis) of ingredients purchase their ingredients directly from producers abroad, such as the beverage industry in the case of fruit juice and fruit juice concentrate. Another example is the jam industry, which buys substantial amounts of fruit pulp and frozen fruit directly from producers abroad. Leading importing manufacturers in EU countries are Unilever, Cadbury Schweppes and Danone. Many end-product manufacturers use processing importers or agents, as these offers a reference point situated within their own country.
Retail and food service organizations - Retailers carry out the final stage of selling preserved fruit and vegetables to consumers, accounting for a very large share of the total sales. The retail sectors hardly ever import directly, but buy from wholesalers or importers. In the case of jam and canned vegetables, retailers have a strong negotiating position due to the many sourcing possibilities between products and suppliers, as well as the practice of private labeling. In the EU, large supermarket buying groups are Ahold (The Netherlands), Carrefour (France), Metro (Germany), Tesco (United Kingdom) and Aldi (Germany). Because of their much smaller size, the food service sectors do not usually import directly from source.
Packers - These organizations pack goods in standard packs for the European market. The (re) packers keep the goods on stock in their warehouse, at their own risk, and sometimes under their own brand or the private label of a customer. These packers sometimes function as importers as well. More or less the same trade structure applies to all the products discussed in this survey. Many importers, agents, or re-packers are specialized in more than one product group. For example, Cats Int. is specialized in dried fruit and frozen fruit and vegetables. Some importers also act as an agent. Moreover, most importers trade in preserved fruit and vegetables in consumer packs and catering packs, but also in preserved fruit and vegetables for industrial use.
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7.4 INFRASTRUCTURE DEVELOPMENT IN PROCESSED FOOD SECTOR
There is a lack of suitable infrastructure in the shape of cold chain, packaging centres, value added centre, modernized abattoirs etc. Improvement in general infrastructure is also an aid for energizing of sector. Government attaches highest priority to development and expansion of physical infrastructure for facilitating prompt growth of industries. In order to address the problem of infrastructure in food processing sector, the Government has implemented the scheme for infrastructure development comprising the following components: Food Park Scheme The idea behind setting up of food parks is that small and medium entrepreneurs find it difficult to invest in capital-intensive activities. Therefore, as a part of the strategy to develop food processing infrastructure, the Ministry has been pro actively pursuing the task of setting up of food parks in different parts of the country. In the food parks, common facilities like cold storage, food testing and analysis lab, affluent treatment plant, common processing facilities, packaging centre, power supply, water supply, seminar / conference / training facilities etc can be assisted. Financial assistance for food parks is provided at 25 per cent for general and 33.33 per cent for difficult areas subject to a maximum of Rs. 40 million. 22 food parks have become operational. In a bid to boost the food sector, the Government is working on agrizones and the concept of mega food parks. Twenty such mega parks will come up across the country in various cities to attract Foreign Direct Investment (FDI) in the food processing sector.
Packaging Centres The Scheme aims to provide facilities for packaging, which may help in enhancement of shelf life of food products and make them internationally acceptable. Assistance at 25 per cent of the project cost in general areas and 33.33 per cent in difficult areas subject to a maximum of Rs. 20 million is provided for establishment of packaging centre. Assistance is available to all implementing agencies. So far assistance of Rs. 1450 million has been sanctioned to one packaging centre in Jammu & Kashmir.
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Integrated Cold Chain Facility The scheme is intended to improve viability of cold storages and enhance cold storage capacity. Assistance at 25 per cent of the project cost in general areas and 33.33 per cent in difficult areas subject to a maximum of Rs. 7.5 million is provided for establishment of cold chain facilities. During 10th Plan an amount of Rs. 4010 million has been sanctioned towards assistance for three cold storages in Gujarat, three in Maharashtra, one each in U.P., Kerala, Manipur, Meghalaya, Andhra Pradesh, Haryana, Delhi and Goa. During 9th Plan, assistance of Rs. 148.6 million was extended to 53 cold storages.
Value Added Centre (VAC) The Scheme is intended to enhance value addition leading to enhanced shelf life, higher total realization and value addition at each level of handling and also to facilitate traceability. Assistance at 25 per cent of the project cost in general areas and 33.33 per cent in difficult areas subject to a maximum Rs. 7.5 million is provided for establishment and modernization of value added centre. So far, three VACs i.e. one each in Maharashtra, Himachal Pradesh and Punjab have been sanctioned assistance involving an amount of Rs. 1100 million during 10th plan.
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CHAPTER-8 RESULTS & FINDINGS
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? The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet.
? From analysis, it is seen that approximately 100 respondents are satisfied with usage of frozen fruits & vegetables which suggests that there are some people who don’t use products due to their psychology or lack of knowledge.
? However, the awareness level of frozen fruits & vegetables is 89% which indicates that the efforts are required to be done to aware people for such products.
? Also, it is seen that mostly people use the frozen products due to time convenience. So it can be said that frozen vegetable and fruits are able to save time of people by providing them such products.
? Thus we can say that the future of frozen F & V is very bright. Day by day awareness is increasing and people are changing their psychology towards these products. So an increasing trend is for Frozen foods market.
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CHAPTER-9 LIMITATIONS OF STUDY
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? As we are not professional researchers it may possible that the research not cover all possible areas related to study.
? The data provided in this report are estimates, based on information obtained from consumers that may include bias on side of the consumer.
? There is also some limit of time as the report need to have more study of market aspects. ? Also as we are students and not working professional having limited amount of budget we cannot spend more for the wide study.
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CHAPTER-10 CONCLUSIONS / SUGGESTIONS
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From the report it can be concluded that India is one of the major food producers in the world. The food sector contributes to about 28 % of India’s GDP. In terms of world ranking , India stands 1st in the production of Cereals, Milk & Livestock population, 2 nd in producing Fruits & Vegetables. Rising living standards in emerging economies also have spurred a growing demand for convenience foods, including frozen food products. For example, from 2000-2005, China’s frozen food market grew at an impressive average annual rate of 10.5 percent. According to some sources, frozen food sales in India have grown at an estimated annual rate of10 percent in recent years, too. Frozen foods are available in a wide spectrum of flavours which are consumed heavily by majority of the Indian middle class households. The advent of frozen foods in the Indian food industry led to a massive change in the lifestyle of the Indian middle class. The global market for frozen foods is projected to reach US$136.5 billion by 2015, registering a Compounded Annual Growth Rate (CAGR) of 3.7% during the period 2006-2015. The market for frozen foods is estimated at US$113.1 billion in 2010.The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010. And from the Data Analysis it can be concluded that Expense on fruits and vegetables is dependent upon Total Family Income. And most of the people are aware about the frozen vegetables and fruits. And customer’s usage is dependent upon whether customers are aware about such products or not. The market for frozen fruits and vegetables (F&V) in the world continues to gain momentum, as there is a growing awareness of the benefits of fruits and vegetables as an indispensable part of healthy diet. Market Segmentation Frozen F&V segment is one of the largest sub-segment amongst the frozen food sector constituting around 16 % of the total frozen food market. Frozen potato products are the largest segment accounting for around 6.3 % of the total frozen food market.
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CHAPTER-11 BIBLIOGRAPHY
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http://www.agriculturalproductsindia.com/processed-foods-snacks/processed-foods-snacks-frozenvegetables.html - what are frozen foods – 2nd Dec 2012 http://entrance-exam.net/top-frozen-food-companies-in-india/ - frozen food companies in india – 15th Dec 2012 http://smallb.in/sites/default/files/knowledge_base/reports/FrozenFruitsandVegetablesExportReport_o pt.pdf - market opportunities for frozen fruits and vegetables – 9th Mar 2013 http://etd.uasd.edu/ft/th9589.pdf - USDA Quality standards – 9th Mar 2013 http://www.packagingconnections.com/sites/default/files/HealthCafe_APRIL_2012%20p%205861_Sanex.pdf – Benefits from use of frozen products – 12th Mar 2013 http://www.thehindubusinessline.com/multimedia/archive/00792/Click_here_for_pdf_792312a.pdf Indian food processed industry and companies in Gujarat – 4th April 2013 http://www.frozenfoodfacts.org/assets-foundation/misc/files/Frozen_FoodsA_Healthy_Wealthy_and_Wise_Choice.pdf - History of Frozen foods – 2nd Dec 2012
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CHAPTER-12 ANNEXTURE
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Questionnaire on Awareness & Perception of Customers towards Frozen Fruits & Vegetables in Ahmedabad City
Dear Respondents, We are students of Shayona Institute of Business Management. We are undertaking Grand Project as a part of our curriculum which requires a kind of Research in open market. So, we are carrying out a survey on “Awareness & Perception of Customers towards Frozen Fruits & Vegetables in Ahmedabad City”. We request you to co-operate with us and give responses to the questionnaire. The data collected is purely for academic purpose & would be treated with utmost Confidentiality. 1. Name :2. Area :3. Contact No :4. Gender
a) Male [ ] (b) Female [ ] ______________________________________________ ____________________________ ____________________________5. Occupation
a) Student (c) Housewife 6. Family members:7. No of members earning:[ ] [ ] (b) Professional (d) Others _________ _________ [ ] [ ]8. Total Family Income (per month)
a) (c) 9. 25000-30000 35001-40000 [ [ ] ] (b) 30001-35000 (d) > 40000 (b) Rs.2001 – Rs.3000 (d) > Rs.4000 [ ] [ ]How much amount do you spend per month in buying vegetables & fruits? (a) Rs.1000 – Rs.2000 (c) Rs.3001-Rs.4000 [ ] [ ] [] []
10. Are you aware of frozen vegetables & fruits?
(a) Yes
[ ]
(b) No
[ ]
11. Do you use frozen vegetables & fruits?
(a) Yes
[ ]
(b) No
[ ]
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If yes, which factors influence you to buy such products? (a) Nutrition benefits (b) Time convenience (c) Price advantage (d) Hygeine benefits [ ] [ ] [ ] [ ]
(e) Others ____________________________ If No, go to Que. 17 12. Frequency of Purchase
a) Weekely [ ] (b) Fortnightly [ ] (c) Monthly [ ] (d) Occasionally [ ]13. How much amount do you spend per month in buying frozen vegetables & fruits? (a) < Rs. 500 (c) Rs. 1001- Rs. 1500 [ ] [ ] (b) Rs. 500- Rs. 1000 (d) > Rs. 1500 [ ] [ ]
14. From where, do you purchase frozen fruits & vegetables? (a) Mall (b) Retail shop [ ] [ ] ]
(c) Company owned Outlets [ (d) Others , specify
_________________
15. Which brand do you prefer? (a) Quick treat (b) Garden fresh (c) Safal (d) Godrej Yummiez (e) Amul (f) Others [] [] [] [] [] ___________________________
16. Are you satisfied with the usage of frozen foods & vegetables? Highly satisfied [ ] Dissatisfied [ ] Satisfied Highly Dissatisfied [ ] [ ] Neutral [ ]
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17. Reasons behind not using products
a) Costly (b) Lack of Knowledge (c) Psychology [ ] [ ] [ ](d) Ineffective packaging [ ] (e) Others , Please specify ________________________ 18. Would you prefer these kinds of products in future? ___________ 19. Any suggestions :________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ____________________________________________________________________
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doc_169447462.pdf