The project report includes Present Market Position and Expected Future Demand, Market Size, Statistics, Trends, SWOT Analysis and Forecasts. Report provides a comprehensive analysis from industry covering detailed reporting and evaluates the position of the industry by providing insights to the SWOT analysis of the industry.
Seasonal vegetables are part and parcel of household diet across India and fruits consumption is also picking up due to increasing income and health consciousness. Therefore, demand for fruits and vegetables are prevalent across length and breadth of the country throughout the year. However, due to specific climatic requirements availability/supply of most of these crops is seasonal. Price fluctuations between on and off season further makes it more complicated for both producers and consumers as producers get extremely low price during production season and consumers pay accessibly high price during off season. Therefore, preservation through dehydration technique can play an important role in bringing the demand and supply gap narrower and make win-win situation for both producers and consumers.
India is the world’s second-largest producer of fruits and vegetables. To reduce wastage of fresh fruits and vegetables, and to add value to them, processes like canning, dehydration, pickling, provisional preservation and bottling have been introduced. However, percentage of processing of fruits and vegetables is currently less than 3% as compared to countries like China (23%), the United States (65%) and Philippines (78%).
The Indian fruit and vegetable processing industry experiences conducive growth environment, wing to the abundant supply of raw materials and favourable government policies like Pradhan Mantri Kisan Sampada Yojana (PMKSY). Rising consumer affordability and rapid urbanization resulted in lifestyle changes, following which the preference for processed fruits and vegetables increased substantially.
Nevertheless, several factors like the lack of required infrastructure, and higher cost of processed fruits and vegetables are the major hurdle to the growth of the industry. The industry is witnessing an increased application of innovative technology to increase productivity. Artificial intelligence (AI) is being implemented to examine fresh fruits and vegetables for defects, and accurately predict the exact date of decay.
Currently, commercial processing of fruits and vegetables is extremely low in India, at around 2.2% of the total production as compared to countries like Philippines at 78%, China at 23% and the United States (U.S.) at 65%
The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The industry is poised for huge growth, increasing its contribution to world food trade every year.
In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry.
Although there are many similarities between fruits and vegetables, there is one important difference that affects the way that these two types of crop are processed. This is important because food poisoning bacteria cannot grow in more acidic fruit products. Even if a processor makes a mistake in processing, fruit products cannot cause food poisoning. If the mistake allows moulds and yeasts to grow, they produce obvious signs of spoilage, which stops consumers eating the food. If a contaminated product is eaten, yeasts and moulds rarely cause food poisoning.
Vegetables are less acidic than fruits and food poisoning bacteria are able to grow in many vegetable products. Some types of bacteria produce poisons in the food without signs of spoilage and consumers may be unaware of the contamination and eat the poisoned food.
It is therefore especially important that vegetable processors carefully follow the correct processing methods and pay strict attention to hygiene and sanitation to reduce the risk of harming their customers.
Characteristics of fruits and vegetables
After harvest, micro-organisms and naturally occurring enzymes rapidly change the colour, flavour and texture of fruits and vegetables. The speed varies with different types of crop, but, compared to other crops (such as cereals), there is a limited amount of time available before they must be processed.
Other problems that face fruit and vegetable processors include:
• Most fruits and vegetables are seasonal. For a business to operate throughout the year, crops must be either part-processed for temporary storage, or a succession of crops must be processed as they come into season
• Raw materials have to be bought during a relatively short harvest period when prices are lowest. There is therefore the need to have sufficient cash available to buy a year’s supply of crop.
In FY 2019, ~8.31 Million Tons of fruits and vegetables were processed in India, which is expected to reach 16.39 Million Tons by 2024, expanding at a CAGR of ~14.84% during the FY 2020-FY 2024 period.
It is intended to prepare a Feasibility Report to install a Vegetable & Fruit Processing production facility with an installed capacity of 750000 Kgs / Year as a Green Field Project.
