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India's tourism sector to boost food, beverage imports
By agencies
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Thursday, 16 June 2005, 19:30 IST
NEW DELHI: India's booming tourism sector and its rapidly growing Western-style fast food joints offer unlimited opportunities for foreign food and beverage exporters, as Indian food imports are likely to grow 6-7 percent over the next few years, says a study.
Eyeing the over 250 million-strong middle class, a U.S. department study says the prospects for investment in Indian markets could be gauged from the fact that total hotel, restaurant and institutional (HRI) service sector sales of F&B amounted to $8 billion in 2003-04.
An upswing in the Indian hotel industry since 2003 following a turnaround of the global tourism industry, the positive impact of the 'Incredible India' tourism promotion campaign and the world's increasing interest in India's rapidly growing economy are some of the main reasons cited for growth.
Though Indian consumers, on average, spend only 2.5 percent of their food expenditure in hotels and restaurants, the HRI service sector is expected to grow by 6-7 percent over the next few years.
"Though new, unorganized and untapped so far, the HRI service sector in India has vast potential for growth, as there are approximately 55,000 registered restaurants in the organized sector and in the range of 100,000 to 500,000 in the unorganized sector, comprising innumerable roadside eateries and tea/snack shops," the study noted.
The institutional food service sector consists of food service facilities for railways, government and corporate offices, education institutions, hospitals, prisons, armed services, and airlines.