Food Processing, and Food Packaging & Marketing

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Food Processing, and Food Packaging & Marketing

  • Food Processing Industry (FPI) in India is a sunrise sector that has gained prominence in the recent years. Easy availability of raw materials, changing lifestyles and favourable fiscal policies has given a considerable push to the industry’s Growth.
  • FPI serves as a vital link between the agriculture and manufacturing sectors of the economy.
  • Strengthening this link is critical to reduce wastage of agricultural raw materials, improve the value of agricultural produce by increasing shelf-life as well as by fortifying the nutritive value of the food products and ensure remunerative prices to farmers as well as affordable prices to consumers.
  • India has a Population of one hundred crore plus and feeding this large a population calls for a strong FPI.
  • The industry also assumes importance in the national economy due to the immense EMPLOYMENT generation opportunities it offers and the export revenue it earns. India is one of the leading exporters of the processed food products.
  • It has a competitive edge over other countries due to the wide variety of crops cultivated as a result of geographical and climatic diversity.Food Processing, and Food Packaging & Marketing
  • Government too is trying to support the industry by formulating favourable policies. With adequate government focus on the infrastructural support, research and development and technological innovation in this sector, India could alleviate its domestic concerns on Food Security, Malnutrition and food Inflation.

Introduction

  • As per Ministry of Food Processing of India (MOFPI), the term ‘food processing’ is mainly defined as a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging.
  • In other words, it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful.
  • It covers a wide spectrum of products from sub- sectors comprising agriculture, Horticulture-2/”>Horticulture, plantation, Animal Husbandry and Fisheries-2/”>Fisheries. It also includes other industries that use agricultural inputs for manufacturing of edible products.

SEGMENTS IN THE FPI

  • The food processing sector comprises of three segments based on the levels of processing

Primary processing of food

  • Primary processing of food comprises of sorting, grading and packaging of fruits and vegetables, milk, rice, spices, etc.

Secondary Processing of Food

  • Secondary processing of food comprises of re-shaping of food for ease of consumption. It includes flour, Oil Cakes, tea leaf and beverages powder etc.
  • Together with primary processing, the two segments constitute around 62% of the processed foods in value terms.

Tertiary Processing of Food (or) Value Added Food Segment

  • Value added food segment includes processed fruits and vegetables, juices, jam & jelly etc and holds around 38 % share in the total processed food market.
  • MOFPI indicates the following segments within the food processing industry on the basis of the raw material used:
  1. Fruits& Vegetables –Beverages, Juices, Concentrates, Pulps, Slices, Frozen & Dehydrated products, Wine, Potato wafers/Chips etc.
  2. Fisheries -Frozen & Canned products mainly in fresh form
  3. Meat & Poultry -Frozen and packed food mainly in fresh form, Egg powder
  4. Milk & Dairy -Whole milk powder, Skimmed milk powder, Condensed milk, Ice cream, Butter and Ghee
  5. Grain and Cereals–Flour, Bakeries, Biscuits, Starch, Glucose, Cornflakes, Malted foods, Vermicelli, Pasta foods, Beer and Malt extracts, Grain based alcohol
  6. Consumer Foods– Chocolates, Confectionery, Soft/Aerated beverages

Advantage India in Food Processing

  1. India is one of the largest food producers in the world.
  2. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies.
  3. India is looking for Investment in Infrastructure-2/”>INFRASTRUCTURE, packaging and marketing.
  4. India has huge scientific and research talent pool.
  5. Well developed infrastructure and distribution Network.
  6. Rapid Urbanization, increased Literacy, changing life style, increased number of Women in workforce, rising per capita income leading to rapid growth and new opportunities in food and beverages sector.
  7. 50 per cent of household expenditure by Indians is on food items.
  8. Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia).

Key growth drivers of Food Processing Sector in India

  1. Increasing spending on Health and nutritional foods.
  2. Increasing number of nuclear families and working women
  3. Changing lifestyle
  4. Functional foods, fresh or processed foods
  5. Organized retail and private label penetration
  6. Changing demographics and rising disposable incomes

Key opportunities in Food Processing Sector

  1. Processable varieties of crop
  2. Contract Farming
  3. Investments in infrastructure through Public Private PARTNERSHIP (PPP)
  4. Mega Food Parks
  5. Logistics and cold chain infrastructure
  6. Food safety Management Systems
  7. Machinery and packaging

Introduction to food Packaging:

  • In today’s Society, packaging is pervasive and essential. It surrounds, enhances and protects the goods we buy, from processing and manufacturing, through handling and storage, to the final consumer.
  • Without packaging, materials handling would be a messy, inefficient and costly exercise and modem consumer marketing would be virtually impossible.
  • The packaging sector represents about 2% of Gross National Product (GNP) in developed countries and about half of all packaging is used to package food

Developments in Indian packaging:

  1. Metal cans and glass bottles have lost large markets to rigid and flexible plastics and printed monocartons.
  2. Flexible packaging has replaced all forms of rigid packaging. The flexible packaging segment has seen many new innovations. The concept of the single use unit pack is now globally acknowledged as a marketing first.
  3. Laminate tube has almost entirely replaced the aluminium collapsible tube for toothpaste packaging, now making inroads into the pharmaceutical sector.
  4. PET bottles & Jars have made a spectacular entry into the Indian market, recording annual growth rates in excess of 20% per annum; in its wake, the demand for a whole new range of plastic closures has also emerged replacing metal closures.

PET bottles are used for mineral water, edible oil, carbonated soft drinks and a host of other products.

Definition of packaging

  • Packaging has been defined as a socioscientific discipline which operates in society to ensure delivery of goods to the ultimate consumer of those goods in the best condition intended for their use.
  • The Packaging Institute International (PII) defines packaging as the enclosure of products, items or packages in a wrapped pouch, bag, box, cup, tray, can, tube, bottle or other container form to perform one or more of the following functions: containment, protection, preservation, Communication, utility and performance.
  • If the device or container performs one or more of these functions, it is considered a package.
  • Other definitions of packaging include a co-ordinated system of preparing goods for transport, distribution, storage, retailing and end-use, a means of ensuring safe delivery to the ultimate consumer in Sound condition at optimum cost, and a techno-commercial function aimed at optimizing the costs of delivery while maximizing sales.

Levels of Packaging:

  • A primary package is the one which is in direct contact with the contained product. It provides the initial, and usually the major protective barrier. Example: Metal cans, paperboard cartons, glass bottles and plastic pouches, aerosal spray can, Beverage can, cushioning envelopes, plastic bottles, skin pack.
  • A secondary package contains a number of primary packages. It is outside the primary packaging perhaps used to group primary packages together. It is the physical distribution carrier and is sometimes designed so that it can be used in retail outlets for the display of primary packages. Ex. Corrugated case, Boxes
  • A tertiary package is made up of a number of secondary packages. It is used for bulk handling. Example being a stretch-wrapped pallet of corrugated cases.
  • A quaternary package is frequently used to facilitate the handling of tertiary packages. This is generally a metal container up to 40 m in length which can be transferred to or from ships, trains, and flatbed trucks by giant cranes. Certain containers are also able to have their temperature, humidity and gas Atmosphere controlled. This is necessary in particular situations such as the transportation of frozen foods, chilled meats and fresh fruits and vegetables.

Shelf life of processed foods

  • Shelf life is the length of time that foods, beverages, and many other perishable items are given before they are considered unsuitable for sale, use, or consumption.
  • It is the time between the production and packaging of a product and the point at which the product first becomes unacceptable under defined environmental conditions.
  • It is a function of the product, package and the Environment through which the product is transported, stored and sold.
  • Factors influencing shelf life: These include product, package and the environment.
  • Product: Products differ greatly in their susceptibility to various agents.
  • These agents cause different charges which affect the shelf life. Examples include:
  1. Aroma loss as in freshly ground pepper or roasted coffee which results in loss of palatability
  2. Pick up of a foreign odour. Ex. Absorption of onion odour by butter when these two items are placed together.
  3. Loss of carbonation as in the case of soft drinks or beer
  4. Ex. Honey when kept in cold for a long time.
  5. Moisture gain as in dry or dehydrated foods such as ready-to-eat breakfast cereals, snack foods which destroys their crisp texture
  6. Rancidity of snack items such as potato chips due to the oxidation of the oils absorbed during frying
  7. Browning reactions as in case of freshly cut fruits

Indian food industry- Facts and Statistics

Introduction

The Indian food 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.

  • Accounting for about 32 per cent of the country’s total food market, The Government of India has been instrumental in the growth and development of the food processing industry.
  • The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business.
  • It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export oriented units.

Market Size

  • The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales.
  • 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.
  • It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
  • The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India’s organic food market is expected to increase by three times by 2020#.
  • The online food ordering business in India is in its nascent stage, but witnessing exponential growth.
  • With online food delivery players like FoodPanda, Zomato, TinyOwl and Swiggy building scale through partnerships, the organised food business has a huge potential and a promising future.
  • The online food delivery industry grew at 150 per cent year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300 million in 2016.

Investments

  • According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US$ 7.54 billion worth of Foreign Direct Investment (FDI) during the period April 2000-March 2017.
  • The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment of nine million person-days.

Some of the major investments in this sector in the recent past are:

  • Global E-Commerce giant, Amazon is planning to enter the Indian food retailing sector by investing US$ 515 million in the next five years, as per Mr Harsimrat Kaur Badal, Minister of Food Processing Industries, Government of India.
  • Parle Agro Pvt Ltd is launching Frooti Fizz, a SUCCESSION of the original Mango Frooti, which will be retailed across 1.2 million outlets in the country as it targets increasing its annual revenue from Rs 2800 crore (US$ 0.42 billion) to Rs 5000 crore (US$ 0.75 billion) by 2018.
  • US-based food company Cargill Inc, aims to double its branded consumer business in India by 2020, by doubling its retail reach to about 800,000 outlets and increase market share to become national leader in the sunflower oil category which will help the company be among the top three leading brands in India.
  • Mad Over Donuts (MoD), outlined plans of expanding its operations in India by opening nine new MOD stores by March 2017.
  • Danone SA plans to focus on Nutrition business in India, its fastest growing market in South Asia, by launching 10 new products in 2017, and aiming to double its revenue in India by 2020.
  • Uber Technologies Inc plans to launch UberEATS, its food delivery service to India, with investments made across multiple cities and regions.

Salient Features of Mega Food Parks

  • The Mega Food Parks Scheme aims to provide a mechanism to bring together farmers, processors and retailers and link agriculture production to the market so as to ensure maximization of value addition, minimization of wastages and improving farmers’ income.
  • The primary objective of the Scheme is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market with a cluster based approach based on a hub and spokes model.
  • It includes creation of infrastructure for primary processing and storage near the farm in the form of Primary Processing Centres (PPCs) and Collection Centres (CCs) and common facilities and enabling infrastructure like roads, electricity, water, ETP facilities etc. at Central Processing Centre (CPC).
  • These PPCs and CCs act as aggregation and storage points to feed raw material to the food processing units located in the CPC.
  • Food Processing being capital incentive activity, common facilities are created at CPC to be used by the processing units on hire basis.
  • This helps in reducing the cost of individual units significantly and makes them more viable. The minimum land required for a Central Processing Centre in Mega Food Park is 50 acre and implementation period is 30 months.
  • The scheme is demand-driven and would facilitate food processing units to meet environmental, safety and social standards.
  • A cluster of 30-35 units is expected to come up in one Mega Food Park with an investment of about Rs. 250 Crore. It is likely to benefit about 6000 farmers/ producers directly and 25000-30000 farmers indirectly.
  • The financial assistance under the scheme is provided in the form of grant-in-aid @ 50% of eligible project cost in general areas and @ 75% of eligible project cost in NE Region and difficult areas (Hilly States and ITDP areas) subject to maximum of Rs. 50 crore per project.
  • Functioning of Mega Food Parks is closely monitored by the Ministry through a well-established mechanism as per the scheme guidelines.
  • This includes detailed scrutiny of the periodical progress reports of the project by the Programme Management Agency (PMA) and the Ministry, verification of the bills by the Project Management Consultant (PMC) before release of the funds from the bank account maintained for the purpose, site visits of the projects by the PMA and Ministry officers, periodic review meetings of the progress of the projects at the level of the senior officers and Minister in the Ministry etc.Ministry monitors each project very closely and regularly.

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Food processing is the transformation of raw ingredients into food suitable for human consumption. It is an essential part of the food supply chain, and it has a major impact on the safety, quality, and availability of food.

Food processing can involve a variety of techniques, including cooking, freezing, canning, drying, and packaging. The specific techniques used will vary depending on the type of food being processed and the desired end product.

Food processing can improve the safety and quality of food by reducing the risk of contamination and spoilage. It can also make food more convenient and affordable by extending its shelf life and making it easier to store and transport.

However, food processing can also have some negative impacts. For example, it can lead to the loss of nutrients and the addition of unhealthy additives. It can also contribute to environmental problems, such as pollution and greenhouse gas emissions.

Despite these potential drawbacks, food processing is an essential part of the food supply chain. It helps to ensure that food is safe, affordable, and available to everyone.

Food safety is a major concern in the food processing industry. Foodborne illnesses can cause serious health problems, including death. The food processing industry has a responsibility to ensure that food is safe for consumers.

There are a number of ways to ensure food safety in the food processing industry. One way is to use good manufacturing practices (GMPs). GMPs are a set of guidelines that outline the steps that must be taken to ensure the safety of food.

Another way to ensure food safety is to use Hazard Analysis and Critical Control Point (HACCP) principles. HACCP is a system that identifies and controls potential hazards in food production.

The food processing industry also has a responsibility to label food accurately. Food labels must provide information about the ingredients in the food, the nutritional value of the food, and any potential allergens.

Food packaging is an important part of the food processing industry. Food packaging protects food from contamination and spoilage. It also makes food easier to store, transport, and display.

There are a variety of food packaging materials available, including paper, plastic, metal, and glass. The type of packaging material used will vary depending on the type of food being packaged and the desired shelf life.

Food packaging design is also an important consideration. Food packaging should be attractive and appealing to consumers. It should also be easy to open and close, and it should protect the food from damage.

Food packaging labeling is also important. Food labels must provide information about the ingredients in the food, the nutritional value of the food, and any potential allergens.

Food packaging marketing is also an important part of the food processing industry. Food packaging can be used to promote a product and to differentiate it from competing products.

Food packaging sustainability is also an important consideration. Food packaging should be made from sustainable materials, and it should be designed to be recyclable or reusable.

Food packaging trends are constantly changing. New packaging materials and technologies are being developed all the time. Food processors need to stay up-to-date on the latest trends in order to keep their products competitive.

Food Safety

  • What is food safety?
    Food safety is the practice of ensuring that food is safe to eat. This includes preventing contamination of food with harmful bacteria, viruses, parasites, or chemicals.

  • What are the most common food safety hazards?
    The most common food safety hazards include:

    • Bacteria: Bacteria can cause food poisoning, which can lead to symptoms such as nausea, vomiting, diarrhea, and fever.
    • Viruses: Viruses can also cause food poisoning. Some common foodborne viruses include norovirus, hepatitis A, and rotavirus.
    • Parasites: Parasites can also cause food poisoning. Some common foodborne parasites include tapeworms, roundworms, and Giardia.
    • Chemicals: Chemicals can also contaminate food. Some common foodborne chemicals include pesticides, herbicides, and heavy metals.

  • How can I prevent food poisoning?
    There are many things you can do to prevent food poisoning, including:

    • Cook food thoroughly.
    • Wash your hands often.
    • Keep food at safe temperatures.
    • Avoid cross-contamination.
    • Use safe food handling practices.

  • What are the symptoms of food poisoning?
    The symptoms of food poisoning can vary depending on the type of foodborne illness you have. However, some common symptoms include:

    • Nausea
    • Vomiting
    • Diarrhea
    • Fever
    • Abdominal cramps

  • How is food poisoning treated?
    Most cases of food poisoning are mild and go away on their own within a few days. However, if you have severe symptoms, you should see a doctor. Treatment for food poisoning may include:

    • Rest
    • Fluids
    • Medications to control diarrhea and vomiting

  • How can I prevent food poisoning from happening again?
    Once you have had food poisoning, it is important to take steps to prevent it from happening again. These steps include:

    • Cooking food thoroughly.
    • Washing your hands often.
    • Keeping food at safe temperatures.
    • Avoiding cross-contamination.
    • Using safe food handling practices.

Nutrition

  • What is nutrition?
    Nutrition is the study of how food affects our health. It includes the study of nutrients, which are the substances in food that our bodies need to function properly.

  • What are the six essential nutrients?
    The six essential nutrients are:

  • What are the functions of carbohydrates?
    Carbohydrates are the body’s main Source Of Energy. They are broken down into glucose, which is then used by the cells for energy.

  • What are the functions of fats?
    Fats are also a source of energy. They are also important for the absorption of vitamins A, D, E, and K. Fats also help to keep the skin healthy and protect the organs.

  • What are the functions of proteins?
    Proteins are essential for the growth and repair of Tissues. They are also important for the production of ENZYMES, HORMONES, and antibodies.

  • What are the functions of vitamins?
    Vitamins are essential for many bodily functions. They are involved in the Metabolism of carbohydrates, fats, and proteins. They are also important for the production of red blood cells and the maintenance of a healthy immune system.

  • What are the functions of minerals?
    Minerals are essential for many bodily functions. They are involved in the metabolism of carbohydrates, fats, and proteins. They are also important for the production of red blood cells and the maintenance of a healthy immune system.

  • What is a balanced diet?
    A balanced diet is one that provides the body with all the nutrients it needs. It includes a variety of foods from all food groups.

  • What are the benefits of a healthy diet?
    A healthy diet can help to prevent many chronic diseases, such as heart disease, stroke, type 2 diabetes, and some types of cancer. It can also help to maintain a healthy weight and improve overall health and well-being.

Food Science

  • What is food science?
    Food science is the study of food and its properties. It includes the study of the composition of food, the changes that food undergoes during processing and storage, and the safety and quality of food.

  • What are the different branches of food science?
    The different branches of food science include:

    • Food chemistry: The study of the chemical composition of food and the changes that food undergoes during processing and storage.

Sure, here are some MCQs without mentioning the topic Food Processing, and Food Packaging & Marketing:

  1. Which of the following is not a type of food?
    (A) Plant-based food
    (B) Animal-based food
    (C) Fungal-based food
    (D) Mineral-based food

  2. Which of the following is not a nutrient?
    (A) Carbohydrate
    (B) Protein
    (C) Fat
    (D) Vitamin

  3. Which of the following is not a food group?
    (A) Grains
    (B) Fruits
    (C) Vegetables
    (D) Water

  4. Which of the following is not a food safety hazard?
    (A) Biological hazard
    (B) Chemical hazard
    (C) Physical hazard
    (D) Nutritional hazard

  5. Which of the following is not a food preservation method?
    (A) Canning
    (B) Freezing
    (C) Dehydration
    (D) Cooking

  6. Which of the following is not a foodborne illness?
    (A) Food poisoning
    (B) E. coli
    (C) Salmonella
    (D) Scurvy

  7. Which of the following is not a food allergy?
    (A) Peanut allergy
    (B) Egg allergy
    (C) Milk allergy
    (D) Vitamin D deficiency

  8. Which of the following is not a food intolerance?
    (A) Lactose intolerance
    (B) Gluten intolerance
    (C) Fructose intolerance
    (D) Vitamin B12 deficiency

  9. Which of the following is not a food supplement?
    (A) Vitamin D
    (B) Calcium
    (C) Iron
    (D) Protein powder

  10. Which of the following is not a food trend?
    (A) Plant-based eating
    (B) Ketogenic diet
    (C) Paleo diet
    (D) Whole30 diet

I hope these MCQs are helpful!

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