Modern seafood trade in India

India is the third largest economy in the world in PPP terms (Euromonitor). The retail sector is emerging as one of the largest sectors of the Indian economy & contributes 10% to GDP and 8% to employment generation of India (IBEF, 2019). India ranked 63rd as per the World Bank’s ‘Doing Business 2020’ report and 2nd according to the 2019 Global Retail Development Index.

Modem trade comprises of supermarkets, hypermarkets, large format chain of stores which cater to all kinds of household needs right from food, non-food, apparels etc. It includes both lead retail chains (like Big Bazar, Reliance, Aditya Birla Retail More, D-Mart etc) and cash and cany players like METRO Cash and Cany India Pvt Ltd, Best Price Modem Wholesale, Booker Wholesale, Reliance Cash and Cany etc. Modem Trade has strong presence across many cities of India. Normally retail chains are of B2C concept (Business to Consumer) whereas Cash and Cany segment is of B2B concept (Business to Business). Any individual can purchase from any of the retail stores as per their buying pattern; all kinds of customers are allowed to shop in retail stores where as in case of Cash and Cany segment, one may requir e to produce documents of business based on which that particular cash and cany store issues a card necessary while buying.

Fresh seafood is one of the important categories in ‘perishables' division of any Hypermarket, Supermarket or Cash and Cany chains. Modem chains take extra care to keep the products fresh by following appropriate standards of quality as per norms. Though the price may be higher, buyer may find it worth as it assures good quality, hygiene and traceability of the products. Many of the lead Modem Trade and/or Cash & Cany players follow the НАС CP standards which are usually being adopted for export of seafood products. It implies that the Indian consumer is more aware of eating healthy & safe seafood.

Demographically, India is the youngest consumer market with 33% of the population less than 15 years and 50% less than 24 years (Teclmopak). Customers visit both traditional ‘mom and pop’ (Kirana) stores and modem stores in the ratio 5:1 time on a weekly basis (India Retailing). Rising urbanization leading to changing lifestyles with less time to prepare food at home has changed the taste and preference of Indian consumers. Increase of tourism in India and international travel by Indians increased the interest of Indians in international food products in addition to innovative advertisements, rise in supermarkets and e-commerce boom, increased awareness among consumers and easy accessibility of products to the consumers.

Retail landscape & food service industry in India

The Indian retail market is one of the fastest growing markets in the world with the economic growth the country is currently experiencing that is expected to reach *926 billion by 2020. The Food & Grocery (FG) categoiy is expected to capture 66% of the total retail sector by 2020. Within Indian retail, there is a strong distinction between organized and unorganized retailing. The unorganized sector is dominated by the ‘Kirana’ (“mom-and-pop stores”), general stores, street markets and convenience stores whereas the organized retail encompasses department stores, gourmet stores, supermarkets and hypermarkets and e-commerce retailers. However, the organized retail sector only accounted for 9% of the total retail sector in 2017, valued at *48.6 billion (IBEF)

Modem trade is an important contributor in the retail industry of India. There are many players, some of the known formats for seafood retail comprises of Spencer Retail; Aditya Birla “More” ; Spar; Star Bazaar; Big Bazaar; Best Price Modem Wholesale; and METRO Cash and Cany India Pvt Ltd.

India is booming with food joints and new restaurants are constantly coming up. Systems of online ordering, home delivery, cashback facilities, reward points and heavy discounts have changed the Indian consumer pattern. By 2021, the restaurant sector will contribute almost 2.1% to the nation’s GDP witnessing a CAGR of 10%. Delhi, Mumbai, Ahmedabad, Pune, Chennai, Kolkata, Bangalore and Hyderabad together contribute around 42% to the food sendee market of India. The organized standalone market share in the total food sendees market is projected to rise to 29% in 2022 from 24% in 2017. In case of independent restaurants (in hotels), the market share is estimated to remain constant at 3% till 2022. However, this segment is still expected to grow at a CAGR of 9% from 2017 to 2022.

Source: Flanders,2018

Among modem hotels and restaurants, opportunities are typically for foods or ingredients that are not readily available in India. Among four and five-star hotels, casual and fine dining restaurants, imported food and ingredients are typically limited to products that cannot be sourced in India, or products which cannot match the imported quality. Imported products primarily include wine, other alcoholic beverages, daily products, meat, seafood, fruits, frozen French fries, sauces, seasonings, drink mixes and food ingredients.

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