Analysis of the baby canned meat market in India
The relevance of research
According to their composition, canned meat for children is divided into purely meat and meat-and-vegetable. Purely canned meat is minced meat, to which broth, butter and vegetable oil, shaping agents (starch, flour), onions, and salt can be added. Meat-vegetable canned foods are complementary foods on a mixed basis, which, in addition to meat, include various vegetables, cereals, pasta and other components. The combination of various components in canned food increases their value due to the mutual addition of nutrients and significantly improves the taste of the product.
Purpose of the study
Analysis of the state of the market for canned meat for children, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the market for canned meat for children
Content
Part 1. Overview of the Indian baby canned meat market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of canned meat for children 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Stage of the life cycle of the market of canned meat for children
1.5. Competition from substitute products
Part 2. Competitive analysis in the baby canned meat market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the production of canned meat for children
3.1. Volume and dynamics of domestic production of canned meat for children
3.2. The share of exports in the production of canned meat for children
3.3. Segmentation of the production of canned meat for children by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of canned meat for children
4.1. The volume and dynamics of imports of canned meat for children
4.2. Import structure
4.3. The volume and dynamics of exports of canned meat for children
4.4. Export structure
Part 5. Analysis of the consumption of canned meat for children
5.1. Dynamics of consumption of canned meat for children
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the baby canned meat market until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian baby canned meat market
1.1. Main characteristics of the market
A child's need for nutrients and their balance is completely different from that of adults, and special children's products made from special raw materials and adapted to the needs of the child's body can satisfy this need.
Baby food products can be divided into two groups: basic food (milk formulas, cereals) and complementary foods (vegetables, fruits, canned meats, juices).
According to their composition, canned meat for children is divided into purely meat and meat-and-vegetable. Purely canned meat is minced meat, to which broth, butter and vegetable oil, shaping agents (starch, flour), onions, and salt can be added. Meat-vegetable canned foods are complementary foods on a mixed basis, which, in addition to meat, include various vegetables, cereals, pasta and other components. The combination of various components in canned food increases their value due to the mutual addition of nutrients and significantly improves the taste of the product.
In addition, canned meat for children is minced to a degree that is almost impossible to achieve at home. Moreover, the degree of grinding canned food for children of different ages is different. Domestic canned food is made homogenized (finely ground) for children from 7 months of age, puree - for children 7-8 months of age and coarsely ground - for 9-12 months and older. Foreign canned goods, like Indian ones, are also differentiated by the age of the child.
Strengthening the activity of key Indian manufacturers of canned meat for baby food in the domestic market corrects the current market structure for the better.
Chart 1. The ratio of imported and domestic products in the market of canned meat for children, %, 2015-2019
1.2. Dynamics of the market volume of canned meat for children 2015-2019 Potential market capacity
The volume of the baby canned meat market as a whole has an upward trend over the period under study.
The National Nutrition Optimization Program for infants recommends introducing mashed meats at six months for formula-fed infants and eight months for fully breastfed infants.
Before this, it is desirable that the child has already gained experience in eating fruit and vegetable purees, as well as baby cereals. Meat should be introduced into complementary foods, consistently increasing the portion from 20 g at the beginning of complementary foods to 50-70 g by the beginning of the second year of a child's life.
1.3. Assessment of factors affecting the market
Социальные
Real disposable money income
Real disposable money income per capita is income minus mandatory payments, adjusted for inflation. This factor determines the level of effective demand of buyers, is one of the key reasons for the formation of the dynamics of both retail turnover and demand for services.
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Population
During 2012-2017 India's population aged 0-4 years showed a positive trend.
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Changing the lifestyle of families
The lifestyle and culture of consumption is gradually changing. More and more parents stop spending time on cooking, preferring ready-made baby formulas, canned food and cereals. Women's employment is growing, and because of this, the need for ready-made children's products - high quality, diverse and safe. An important role is played by the recommendations of pediatricians who advise feeding the child with industrial baby food.
technological
Lack of quality raw materials for production
With the increase in the age of animals, meat becomes more rigid due to structural changes in tissues. Muscle fibers coarsen, the ability of collagen to hydrothermal destruction decreases, and the amount of fat increases. It has been established that in the production of canned food for children, the amount of fat in meat should not exceed 9%.
For the production of canned food for baby food, which is sent for processing in the form of half carcasses or quarters. Each half carcass must be packed in a cotton or plastic bag to avoid additional contamination of the meat with microflora. The meat is cooled in a separate chamber in compliance with increased sanitary requirements. Half carcasses are transported only in a suspended state in specially equipped vehicles.
Puree-like and coarsely ground canned food can be made from frozen (trimmed) meat in blocks, provided that the method of steam contact heating is used, which ensures the processing of frozen raw materials without preliminary defrosting.
According to GOST, raw meat must be obtained from healthy young animals grown and fattened without the use of growth stimulants, hormonal drugs, feed antibiotics, and must meet the requirements for meat raw materials for feeding young children in accordance with the law.
According to the Ministry of Agriculture, there are not enough domestic raw materials of suitable quality for the production of canned meat for children. It is difficult to find raw materials produced without antibiotics, hormones and genetically modified components.
Development of the market for organic products
Antibiotics are widely used in agriculture. The scale of their use in animal husbandry is increasing every year. In such conditions, the demand for environmentally friendly and safe products is increasing. In India, the organic market is developing slowly and lagging behind the growth rates of European countries and the United States, but attracting more and more supporters. In 2018, the Federation Council developed and approved a law on organic products and amendments to certain legislative acts of India. The law, designed to regulate relations related to the production, storage, transportation, labeling and sale of organic products, entered into force on January 1, 2020.
Producers of organic products, according to the new law, will be able to undergo voluntary certification, confirming their compliance with applicable national, interstate and international standards. After receiving a certificate of conformity, they will have the right to label their products as ""organic"" (this word can be replaced by abbreviations or derivatives). The manufacturer will be held administratively liable for the unreasonable use of such markings.
The wide distribution and demand for organic products encourage baby food manufacturers to search for new forms and improve quality, which has a positive effect on the market under study.
Economic
GDP dynamics
Data on the dynamics of GDP is a macroeconomic indicator that reflects the market value of all final goods and services produced in a year in all sectors of the economy on the territory of the state for consumption, export and accumulation.
The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
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Let's take a look at some experts' assessments:
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The depreciation of the national currency leads to an increase in the cost of goods and services, which, in the face of falling incomes of the population, has a negative impact on the market.
Retail turnover
Retail trade turnover is also a reflection of the effective demand of the population and the level of real incomes of the population.
Political and legal
Food embargo
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Production requirements
Meat for the nutrition of children is subject to increased requirements. Regulatory documents provide for a number of requirements that ensure the safety of baby food: to the raw materials used, components and food additives; to the chemical and ingredient composition of finished products; to product packaging and information printed on the label, incl. justification of the shelf life of products before and after opening the consumer packaging; to the order of production control; to the sanitary and hygienic conditions of production at enterprises and manufacturing firms.
Legal entities, individual entrepreneurs and citizens engaged in the production and circulation of baby food products are responsible for ensuring their quality and safety in accordance with the laws of India, in accordance with the certificate of state registration of the established form, which is issued on the basis of the sanitary and epidemiological examinations on compliance (non-compliance) with normative documents of baby food products and submitted technical documents for their production.
Concluding the assessment of the impact factors on the Indian baby canned meat market, let's summarize the key ones in the framework of the STEP-analysis.
Table 1. STEP analysis of factors influencing the baby canned meat market
According to the results of the performed STEP-analysis, macro-environment factors influence the development of the baby canned meat market to a greater extent ...
A negative impact is exerted by a decrease in real incomes of the population and GDP, a decrease in the population aged 0-4 years, a drop in the retail trade index, increased requirements for production, the depreciation of the rupee in recent years, and others. Changes in the way of life of families and the development of the market for organic products have a positive impact.
1.4. Stage of the life cycle of the market of canned meat for children
The baby canned meat industry is in the stage of early maturity. At the stage of maturity, the level of sales stabilizes, growth slows down. This situation is caused by the achievement of a high level of competition and market saturation. At the maturity stage, companies can also generate a good level of profit if they have a properly balanced product portfolio. The main task of the business is to maximize profits, which can be achieved by increasing the stability of work and management efficiency. All management resources are focused on internal efficiency, establishing strict control over key processes.
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1.5. Competition from substitute products
Parents can cook canned meat for children on their own. However, this solution has...
Thus, the main advantages of industrial canned meat for children compared to home-cooked dishes include a high level of safety and quality, an optimal degree of grinding, which corresponds to the age characteristics of the chewing apparatus and digestive system in children of different ages, a reduction in cooking time and the possibility creating a ""safety reserve"".
Part 2. Competitive analysis in the baby canned meat market
2.1. Major players in the market
In India, there are relatively few companies that produce baby canned meat, primarily due to strict production requirements and high initial investment.
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2.2. Market shares of the largest competitors
The assessment of the shares of the largest operators in the market of canned meat for children was carried out by GidMarket based on Rosstat data on the companies' revenue in 2019, taking into account the share of the production of canned meat for children in the total assortment of the company, as well as the volume of imports of products for foreign manufacturers.
In terms of competitive concentration, the market is highly concentrated (Herfindahl-Hirschman index (HHI >1800).
2.3. Profiles of major players
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Part 3. Analysis of the production of canned meat for children
3.1. Volume and dynamics of domestic production of canned meat for children
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Diagram 11. Dynamics of production volumes of canned meat for children in India for 2015 - 2019, thousand cond. cans
3.2. The share of exports in the production of canned meat for children
The export direction in the Indian market of children's canned meat is poorly developed. Most of the products manufactured by domestic enterprises are sold on the domestic market - ...% in 2019.
3.3. Segmentation of the production of canned meat for children by regions
3.3.1. Production by Union Territories
The leader in the production of canned meat for children among the federal districts is the Southern, which occupies about ...
It should be noted that there may be an error in the distribution of federal districts in 2015-2016, since until 2017 Rosstat did not collect data on the production of canned meat for children.
3.3.2. Production by states of India
The distribution of shares between regions is due to the location of the production facilities of the largest market operators in them.
The leading regions for the production of canned meat for children are:
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Part 4. Analysis of foreign trade supplies of canned meat for children
4.1. The volume and dynamics of imports of canned meat for children
Diagram 14. Volume and dynamics of imports of canned meat for children in physical terms, tons, 2015-2019
4.2. Import structure
In the structure of imports of canned meat for children by importing countries in 2019, the key supplier is Poland, which accounts for ...%. The second line is...
Table 6. Structure of imports of canned meat for children by importing countries
4.3. The volume and dynamics of exports of canned meat for children
In 2016-2017 exports fell to ... tons. In 2018-2019 the volume of export deliveries of canned meat for children from India shows a positive trend.
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4.4. Export structure
The main volume of canned meat for children, in value terms, exported from India in 2019 is supplied to ...
Part 5. Analysis of the consumption of canned meat for children
5.1. Dynamics of consumption of canned meat for children
The volume of consumption is calculated by GidMarket analysts based on the population aged 0 to 4 years, since it is this age category that is the consumer of canned meat for children.
Diagram 20. Dynamics of consumption of canned meat for children in physical terms, 2015 - 2019, kg/person
5.2. Analysis of the results of tenders for the purchase
The list of products purchased in tenders, in addition to canned meat for children, often includes other types of baby food (mixtures, juices, other canned children). Tenders are announced by state institutions (polyclinics, hospitals, orphanages, etc.).
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Part 6. Price Analysis
6.1. Average producer prices by union territories
In 2019, the increase in average producer prices for canned meat for children compared to 2017 amounted to ...%. In the context of federal districts, the most expensive prices for canned meat for children from manufacturers ...
Table 8. Average producer prices in the canned meat market for children in the Union Territories, 2015-2019, thousand Rs./ton
6.2. Average consumer prices by states in India
Children's canned meat is the most expensive type of canned food for children due to the high cost of raw materials. According to Rosstat, in August 2020, the average consumer price for canned meat for children was ...
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Part 7. Assessment of factors of investment attractiveness of the market
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Negative factors of the investment climate in the canned meat market for children dominate over the positive ones.
The most significant negative factors.
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The most significant positive factors.
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Part 8. Forecast for the development of the baby canned meat market until 2024
Analysis of the impact of recent crises on the industry
An economic crisis is a profound disruption of normal economic activity, which is accompanied by the destruction of habitual economic ties, a decrease in business activity, the inability to repay debts and the accumulation of debt obligations. This is a phenomenon of a market economy, repeating with a certain frequency, and depending on the scale, it can either concern a particular state or be of global importance. The crisis is accompanied by a sharp decline in production, bankruptcy of enterprises, a fall in the gross national product, a large-scale increase in unemployment, and often a depreciation of the national currency.
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Thus, canned meat for children is traditionally considered one of the most crisis-resistant categories on the grocery market.
The most significant difference between the current crisis and the previous ones is the introduction of quarantine and self-isolation, in connection with which, due to the desire to save money and against the background of the transition to remote work, some consumers began to abandon certain types of ready-made baby food in favor of home feeding. In addition, the devaluation of the rupiah and the reduction in household incomes exacerbated the effect of the continuing decline in the birth rate. Analysts are waiting for tougher competition between players and new mergers / acquisitions in the market.
Analysis of the impact on the state aid industry as of 16.10.20/ /
The Indian economy in February-March 2020 was under the powerful influence of two negative factors at once - the rapid spread of the covid-19 coronavirus infection pandemic and its detrimental impact on the global economy, as well as the collapse in oil prices. Against this background, the rupiah depreciated significantly against the dollar and the euro. In response to the situation, the government and the Bank of India have approved several packages of measures to support the economy and citizens.
The vast majority of the support measures announced by the president and the government concern only the industries that the government has identified as the most affected. That is, benefits apply only to legal entities and individual entrepreneurs whose main activity code (OKVED) specified in the Unified State Register (EGRLE) is included in the government list of such industries.
The industry of canned meat for children was not included in the lists of the most affected sectors of the Indian economy, therefore, there are no specific measures for government support of enterprises in the analyzed market. The measures described in the table are general business support measures that may be useful in the industry under study, and which can still be used.
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Forecast of industry development scenarios under quarantine due to COVID-2019:
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Analysis of existing cases of business restructuring in the industry
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Part 9. Recommendations and conclusions
The volume of the baby canned meat market as a whole has an upward trend over the period under study.
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Currently, macro-environment factors have a greater impact on the development of the baby canned meat market ...
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For existing and new market operators, we note the following:
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Diagrams
Chart 1. The ratio of imported and domestic products in the market of canned meat for children, %, 2015-2019
Diagram 2. Dynamics of the market volume of canned meat for children, 2015 - 2019, mln cond. bvnok
Diagram 3. Revenue (net) from the sale of canned meat for children in the union territories for 2015 - 2019, %
Diagram 4. Dynamics of real incomes of the population of India, % to the previous year, 2012-1 half of 2020
Diagram 5. Dynamics of the population of India at the age of 0-4 years, million people, as of 01 Jan. 2012-2020
Diagram 6. Dynamics of India's GDP, % to the previous year, 2012-2 quarter 2020
Chart 7. Expert forecasts for a decline in real GDP in India in 2020 (baseline/neutral scenario), %
Diagram 8. Monthly dynamics of the US dollar against the rupee, Rs. for 1 US dollar, 2015-Oct. 2020
Diagram 9. Dynamics of retail trade turnover, 2015-Aug. 2020, % to the previous period
Figure 1. Industry life cycle stage
Diagram 10. Shares of the largest competitors in the canned meat market for children in 2019,%
Diagram 11. Dynamics of production volumes of canned meat for children in India for 2015 - 2019, thousand cond. cans
Diagram 12. Dynamics of the total revenue of the largest manufacturers (TOP-5) of canned meat for children in India, 2015-2019, billion Rs.
Diagram 13. The share of exports in production for 2015–2019, %
Diagram 14. Volume and dynamics of imports of canned meat for children in physical terms, tons, 2015-2019
Diagram 15. The volume and dynamics of imports of canned meat for children in monetary terms, thousand US dollars, 2015-2019
Diagram 16. Dynamics of exports of canned meat for children in physical terms, tons, 2015-2019
Diagram 17. Dynamics of exports of canned meat for children in monetary terms, thousand US dollars, 2015-2019
Diagram 18. Balance of exports and imports, million Rs., 2015-2019
Chart 19. Structure of exports by countries in 2019, %
Diagram 20. Dynamics of consumption of canned meat for children in physical terms, 2015 - 2019, kg/person
Diagram 21. Shares of customers of canned meat for children by total amount of contracts among trades concluded in January. 2019 - Sep. 2020, %
Diagram 22. Shares of regions for the supply of canned meat for children in the total amount of contracts concluded in January. 2019 - Sep. 2020, %
Diagram 23. Forecast of the market volume of canned meat for children in 2020-2024 – under the scenario of one quarantine, mln cond. cans
Diagram 24. Forecast of the size of the baby canned meat market in 2020-2024 – under the scenario of two quarantines, mln cond. cans
Tables
Table 1. STEP analysis of factors influencing the baby canned meat market
Table 2. Advantages and disadvantages of homemade and industrial canned meat for children
Table 3. Main companies participating in the canned meat market for children in 2019
Table 4. Profiles of companies participating in the canned meat market for children in 2019
Table 5. Dynamics of the production of canned meat for children in India by union territories, ths. cans, 2015-2019
Table 6. Structure of imports of canned meat for children by importing countries in 2019
Table 7. Tenders for the purchase of canned meat for children, announced on Jan. 2019-Sep. 2020
Table 8. Average producer prices in the canned meat market for children in the Union Territories, 2015-2019, thousand Rs./ton
Table 9. Average consumer prices in the baby canned meat market by Indian states, Rs./kg, 2018-Aug. 2020
Table 10. Assessment of factors of investment attractiveness of the canned meat market for children
Table 11. Assessment of the impact of recent crises on the industry
Table 12. Analysis of the impact on the industry of the state aid proposed as of April 16.10.20,
Table 13. Forecast indicators for the basic and pessimistic scenarios for the development of the crisis, %
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