India Focus: Our Top 10 most read India food and beverage stories from 2024

Top 10 India 2024
Top 10 India 2024 (William Reed)

See our top 10 most-read India food and beverage industry stories from 2024, featuring animal antibiotic concerns, plant-based brands avoiding dairy terms, Unilever India’s eye on premiumisation and more.

Antibiotic misuse in Asian food animal production poses grave public health threat: Indian study

Researchers in India have posited that the misuse of antibiotics in food animal production in Asia poses a serious danger to public health in the region.

The World Health Organisation (WHO) has identified antimicrobial resistance (AMR) as a significant global threat, causing substantial economic losses and an estimated annual loss of 700,000 lives.

Researchers at the Veterinary and Animal Sciences University in Punjab have noted an alarming rise of antibiotic resistance and its potential transmission to humans through the food chain.

They also shed light on the pervasive use of critically important antibiotics in food animal production across Asia, as well as how limited surveillance and regulatory controls had amplified concerns over antibiotic resistance.

Results from the review of 108 selected publications revealed a staggering 1,126 scientific publications on antibiotic use in food animals, wherein the study identified a concerning trend of antibiotic misuse in livestock, poultry and aquaculture.

The study also revealed widespread use in livestock, poultry and aquacultured fish, raising critical food safety concerns as the development of resistant microflora in animal-derived products poses a direct risk to human health.

‘No clarity’: India plant-based milk brands veer away from conventional dairy terms

Plant-based dairy brands in India have continued to steer away from using conventional dairy terms on their product labels until there is greater clarity on what is permitted.

Back in 2020 and 2021, the Food Safety and Standards Authority India (FSSAI) announced a ban on the use of conventional dairy terms such as ‘milk’ and ‘cheese’ for plant-based products. It also directed plant-based manufacturers to modify the product labels of all such products and e-commerce platforms to delist these as well.

This order was successfully stayed by the Delhi High Court later in 2021 after five companies took action. Despite this, industry uncertainty has remained.

“The ban is essentially still a motion in hearing at the court level at this time,” Rohit Jain, Co-Founder and CEO of Drums Food International which was one of the five companies that contributed to the initial ban being stayed, told FoodNavigator-Asia.

“Right now there is not yet complete clarity on these regulations by the regulators, and we have adopted the stance that we will respect the ruling.

“So until there is clarity, we will stay in compliance with the initial order and have stopped using the term ‘milk’ for our oat and almond products – we have moved to use other terms such as ‘beverage’ instead.”

Indeed, ‘beverage’ was one of the suggestions made by FSSAI back when the ban was issued, highlighting this as nomenclature that was ‘indicative of the dairy analogue’s true nature’.

Premium push: Unilever India believes food sector growth lies in higher-priced value-added products

Hindustan Unilever India (HUL) highlighted a continued focus on its premium strategy in order to sustain continued growth in the country, citing products such as Horlicks Plus as a major example.

HUL announced its Q3FY2023 financial results ending 31 December 2023 earlier this year, reporting near-flat percentage growth of 0.1% to INR154.6bn (US$1.86bn) and a -2% drop in Profits After Tax to INR34.6bn (US$416.4mn).

The firm attributed the drop in profits to both its attempts to bring end-product prices down for tea, as well as ongoing climate and economic challenges.

“We have taken price cuts in the past few quarters in commodity-linked categories [in order] to pass on the benefits of lower material prices to our consumers,” HUL CFO Ritesh Tiwari told the floor at an investors conference announcing the financial results.

“Consequently, we saw an overall negative price growth of 2%, leading to a flat Underlying Sales Growth [and with] the Food and Refreshment category continuing to see positive pricing due to inflation in commodities like coffee and sugar, profits after tax [declined].”

HUL CEO Rohit Jawa further emphasised that the current operating environment in India calls for a more cautious outlook, particularly when it comes to the food and beverage category.

Building a community: How Indian startup Salud Beverages is driving expansion in ready-to-drink cocktails

Indian startup Salud Beverages has expanded its range of ready-to-drink alcoholic drinks while also branching out into a fashion line, music playlists, and a collection of NFTs to appeal to consumers new to the market.

India’s diverse cultural landscape sees residents in the suburbs and lower-tier cities favouring local drinks like Toddy, while those in larger cities lead towards Whiskey.

Over 65% of India’s population is below the age of 35, a demographic wielding increasing spending power in personal care and entertainment and characterised by a preference for convenience.

Whether purchasing drinks at a neighbourhood liquor store or during the COVID-19 pandemic when home consumption surged, the demand for hassle-free enjoyment persisted - This is the market gap that Salud Beverages wanted to tap into.

“Our goal is always to create something new. No one in India has ever thought of making gin & tonic in a bottle, so we did. In a market saturated with coloured ready-to-drink (RTD) beverages, we focus on making clear spirits with natural flavours,” shared Ajay Shetty, Founder and CEO of Salud Beverages, with FoodNavigator Asia.

“As more individuals enter the workforce, we want our brand as the go-to choice for first-time drinkers. That’s why we made our own merchandise, music production, and even ventured into the world of NFTs. We are not just building a brand, but a community that is continuously reaching out to people from all walks of life.”

Cracking the code: Kikkoman develops data-backed flavour pairing system to localise products for Indian market

Japanese brand Kikkoman has used research and data to identify Indian ingredients that are best paired with its soy sauce, in an effort to accelerate product development and further penetrate the local market.

The firm has devised a system called KIP (Kikkoman Ingredients x Seasoning Pairing), which “scientifically evaluates” the taste compatibility of its signature soy sauce with Indian ingredients and seasonings.

“India is known for its unique food culture, including vegetarianism and extensive use of spices and herbs. It also has the largest population in the world. Understanding Indian cuisine is important for global food companies and has been one of Kikkoman’s goals since entering the market two years ago.

“Flavour pairing is a method for identifying the compatibility of foods based on their aroma and taste characteristics. We conducted a study to find out how Indian ingredients and seasonings work together by making some modifications to the traditional flavour-pairing method. This system has enabled us to scientifically prove combinations that are preferred in India,” Harry Hakuei Kosato, Director of Kikkoman India, told FoodNavigator-Asia.

In addition, the KIP system would allow Kikkoman to develop new products specifically tailored for the market based on data, and not guesswork or intuition.

Tracing rice fortification: India orders firms to adopt traceability application to prevent adulteration

The Food Safety and Standards Authority of India (FSSAI) ordered all manufacturing firms of fortified rice to integrate a new national traceability application into their operations earlier this year in order to prevent adulteration of the final product.

India has mandated the fortification of various food staples progressively since 2019 in an effort to reduce malnutrition in the country, with rice being a key target for iron, vitamin B9 and vitamin B12 fortification.

But adulteration pertaining to cases of false or fraudulent claims being made regarding the fortification content of the rice (e.g. the iron content not being added in sufficient amounts to meet mandatory standards) has been rife, not least because it costs more to manufacture such products.

In order to nip these issues in the bud, FSSAI ordered all relevant rice producers to integrate the Fortified Rice Traceability (FoRTrace) Application into their operations, having made this a core part of the national Food Safety and Compliance System (FoSCoS).

“All manufacturers of the [fortified] Premix of Food Rice Kernels (FRK) and FRK itself must upload lab test reports of every batch of their production on FoSCoS along with the declaration of the source of iron and the blending ratio,” FSSAI Regulatory Compliance Division Director Rakesh Kumar said via a formal statement.

“We recognise that there are inherent complexities in rice fortification involving multiple stakeholders and issues related to transparency, quality control and traceability [so have] seamlessly integrated the FoRTrace application with the FoSCoS.

“This application aims to unite the diverse stakeholders engaged in rice fortification onto a single platform and foster transparency in record-keeping regarding production, raw materials and sales to enable end-to-end traceability within the value chain.”

Fortified rice producers have also been required to maintain daily records of their production, raw material utilisation and sales as well as ensure Clean-In-Place systems for regular cleaning of their machines and equipment where necessary, as part of their conditions of licensing.

India’s ProV Foods taps into unseized opportunities in functional and convenient snacking

Mumbai-headquartered ProV Foods has doubled down on healthy on-the-go snacks and flavour innovations, amid rising demand for snacks with functional benefits in the country.

Several categories have remained untapped in India’s nascent healthy snacking sector, according to Shalin Khanna, co-founder and CMO of ProV Foods.

“One category that is underserved and has lots of space for innovation is ‘bars and bites’, such as nutrition bars. Post-COVID, increased health consciousness is a global phenomenon. In India, curated meals and diets such as paleo, ketogenic, and Mediterranean have picked up a lot of steam.

“At the same time, consumers are looking for functional foods that are convenient to eat. Moreover, taste preferences among Indian consumers differ greatly across the country, so it is important to localise flavours to cater for people in each state. On-the-go snacking and flavour innovations are areas worth tapping into,” Khanna told FoodNavigator-Asia.

Recognising the rising demand for snacks with functional benefits, ProV Foods launched a few product ranges, including the ProV Lite “Activated Nuts” series.

Through its proprietary drying method, the firm has given the traditional practice of soaking nuts overnight, known to reduce phytic acid and enhance nutrient absorption, a modern and convenient twist.

Inflation issues: Unilever India announces ‘calibrated price increases’ after being hit with major palm oil and tea cost hikes

Hindustan Unilever India (HUL) announced plans to implement ‘calibrated price increases’ in light of inflationary pressures leading to significant cost hikes in palm oil and tea.

HUL announced its Q3FY2024 financial results, reporting 2% underlying sales growth to reach INR153.2bn (US$1.8bn) in turnover but a 4% decline in profit after tax to INR26.1bn (US$310mn).

HUL CEO Rohit Jawa described the firm’s performance as a ‘competitive’ one given the current economic conditions, but warned that these conditions have finally hit the point where HUL will need to implement price increases as a significant strategy.

“Following a prolonged period of benign commodity prices in this quarter, crude palm oil and tea experienced inflation of 10% and 25% year-on-year respectively - Given our assessment that this price increase is here to stay, we are now taking calibrated price increases,” he told the floor at the financial results call.

“Crude oil remained benign during the quarter but there has been recent volatility in prices owing to geopolitical tensions [so] we remain vigilant and are watchful of any price fluctuations that seem to persist.

“In this dynamic environment, we continue to remain agile [and will take] actions to provide a competitive price-value equation to our consumers.”

HUL CFO Ritesh Tiwari added that this action has become necessary due to the current hikes in commodity prices, but promised that the firm would be strategic in its implementation.

“We are always very calibrated in the way we take price increases [and] of course we are not passing on the total amount of commodity inflation to consumers [as] we always drive savings very hard via other strategies, but the net inflation is what we will end up pricing going forward [and consumers will see],” he told the floor.

“We have only now gotten a deterministic signal that this season is an inflationary season, particularly in tea where it’s inflationary season because of the lower production.”

India snack trends data: Makhanas and dry fruits top picks for 67% of consumers

India snack specialist Farmley revealed data showing that makhanas and dry fruits are popular across generations, with chocolate and vanilla flavours among the top favourites in its 2024 Healthy Snacking Report.

Farmley conducted a nation-wide survey with over 6,000 people in India, revealing that makhanas, dry fruit, chocolate, and vanilla are top choices for a market that increasingly prioritises indulgence and health.

Farmley presented the findings at the first-ever Indian Healthy Snacking Summit held in New Delhi on 6 July 2024, which was supported by the Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Commerce, Government of India.

“Through the Healthy Snacking Report, the aim is to map the constantly evolving tastes and preferences cutting across age groups, regions, and professions. The future of snacking in India hinges on striking a balance. Consumers crave deliciousness, prioritise health and are increasingly mindful of the environment, too. India’s next big snacking revolution is fuelled by taste, health and a nation of discerning empowered snackers,” said Farmley’s co-founder Akash Sharma.

The summit explored India’s snacking habits and trend drivers of the industry.

Head of Swiggy Instamart Phani Kishan Addepalli was among the experts who shared insights at the event, and said that the trend of healthy eating has been driven by people being more mindful of their own health and their family’s health.

This has stood out in the snacking space because of the guilt associated with traditional snacks like chips and ice creams.

‘Key shortfalls’ need to be addressed to protect children from high fat, salt, and sugar food marketing in India

Analysis of India’s regulatory framework for advertising foods high in fat, salt and sugar (HFSS) need to be overhauled to better protect children, academics have argued.

Researchers reviewed the regulatory environment in India for advertising HFSS foods and non-alcoholic beverages. They found that there were key shortfalls that need to be addressed to protect children against HFSS marketing.

“A robust regulatory framework is needed to protect children from HFSS food marketing, not just what is ‘directed’ at them, with clear evidence-based food classification criteria,” said researchers in The Lancet Regional Health – Southeast Asia.

“Young children and adolescents are particularly vulnerable to HFSS food marketing as they lack cognitive ability to discern the commercial intent.”

Academics said there are worrying trends that suggest India needs to develop a more robust regulatory framework to protect children from HFSS food marketing.

An average Indian household derives more calories from processed foods than fruits, and researchers argued that the marketing of HFSS foods negatively affects consumption patterns, particularly of young children.

Additionally, with the advent of technology, children have become hooked to social networking sites and are exposed to HFSS advertising.