Analysis of the champignon market in India
The relevance of research
Currently, the production of cultivated mushrooms is one of the most promising areas in agriculture. Mushrooms are rich in proteins, vitamins and microelements. At the same time, mushroom cells contain a significant amount of chitin, due to which the calorie content of mushroom dishes is low.
Purpose of the study
Analysis of the state of the champignon market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the champignon market
Content
Part 1. Overview of the Indian mushroom market
1.1. Main characteristics of the market
1.2. Dynamics of the mushroom market volume 2014-2020 (fact + forecast). Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Mushroom Market Life Cycle Stage
1.5. Competition from substitute products
Part 2. Competitive analysis in the mushroom 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 mushroom production
3.1. Volume and dynamics of domestic production of champignons
3.2. The share of exports in the production of champignons
3.3. Segmentation of champignon production 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 champignons
4.1. Volume and dynamics of champignon imports
4.2. Import structure
4.3. Volume and dynamics of champignon exports
4.4. Export structure
Part 5. Analysis of consumption of champignons
5.1. Dynamics of champignon consumption volume
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. Mushroom Market Development Forecast until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian mushroom market
1.1. Main characteristics of the market
Currently, the production of cultivated mushrooms is one of the most promising areas in agriculture.
One of the main reasons for the growth in popularity and production of mushrooms is their high dietary properties. Mushrooms are rich in proteins, vitamins and microelements. At the same time, mushroom cells contain a significant amount of chitin, due to which the calorie content of mushroom dishes is low.
From the point of view of production technology, three key areas can be distinguished:
mycorrhizal mushrooms: habitual white, boletus, russula, etc. Their peculiarity is that the mycelium develops in symbiosis with tree roots, forming mycorrhiza. This natural technology is not yet reproducible.
There is no industrial production of mycorrhizal fungi;
cellulose-destroying mushrooms: various oyster mushrooms, mushrooms, shiitake, etc. Their peculiarity is that a nutrient medium with a high content of cellulose is used for cultivation. Mushrooms effectively decompose it and process it. The technology for growing oyster mushrooms, etc. is relatively simple and accessible to farmers.
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The production of champignons is the most complex, investment-intensive, large-scale. It is mandatory to comply with strict requirements for the microbiological cleanliness of premises and raw materials (compost). If the requirements are violated, the yield drops sharply - instead of champignons, non-marketable mushrooms and molds begin to grow.
Such differences in technologies create two almost non-overlapping niches: farmers and small producers specialize in projects for the cultivation of cellulosic mushrooms, while large companies organize commercial production of champignons. According to industry experts, effective large-scale production is at least 2,5 thousand tons of champignons per year.
The production of champignons in the official statistics of India is recorded under the OKVED2 code 01.13.6 ""Cultivation of mushrooms and champignons"". Foreign economic activity - according to the TNVED code 07.09.51 “Other fresh and chilled vegetables. Mushrooms of the species Agaricus.
Industrial production of champignons is one of the most attractive branches of Indian agriculture. The state stake on import substitution contributed to the growth of investments in this sector.
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Diagram 1. The ratio of imported and domestic products in the Indian mushroom market in 2014-2020 (estimate), %
According to estimates, in 2020 the share of domestic production in the volume of consumption will be …%.
1.2. Dynamics of the mushroom market volume 2014-2020 (fact + forecast). Potential market capacity
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In physical terms, in 2019, the volume of the champignon market in India amounted to …thousand tons. tons,
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1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand for champignons in India.
Economic
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects the total value of goods, works and services that were produced and provided in the country in a year. Gross domestic product is the main indicator on the basis of which the level and pace of the country's economic development are determined.
The chart below shows India's GDP growth rate from 2007 to 2019 at comparable prices (at 2016 prices).
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Regarding India, experts predict a difficult and unpredictable period. Firstly, because the entire global economy has entered a recession triggered by the coronavirus. Secondly, there was a drop in world oil prices, which is extremely painful for the Indian economy. As a result, it is highly likely that in the medium term many markets will experience a negative impact from the negative processes in the global and Indian economies. The strength and duration of the impact will depend on: the demand for oil and gas and the level of world prices for them, the duration of the period of low prices, as well as the duration of the coronavirus pandemic in the world and India.
Let's take a look at some experts' assessments:
World Bank forecast. Source: https://www.vsemirnyjbank.org/. Forecast date July 6, 2020
Bank of India forecast. Source: cbr.ru Forecast date June 29, 2020
IMF forecast. Source: Expert Online. Forecast date: June 25, 2020
Forecast Expert RA. Source: https://1prime.ru/ Forecast date: June 15, 2020
Forecast of the Organization for Economic Cooperation and Development (OECD). Source: https://www.rbc.ru/. Forecast date: June 10, 2020
Forecast by Fitch Agency. Source: https://www.forbes.ru/. Forecast date: June 29, 2020
HSE forecast. Source: https://rns.online/. Forecast date: June 3, 2020
Thus, experts differ significantly in their opinions about the real dynamics of GDP ...
Socio-demographic
In India, collecting forest mushrooms and eating them processed has long been a popular phenomenon. Mushrooms, including champignons, have been a favorite food among Indian consumers since Soviet times to the present day. However, there is a risk of food poisoning due to ignorance about the edibility of certain mushrooms. Thus, cultivated champignons can become an alternative to forest mushrooms collected by the population on their own.
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Real disposable income
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Thus, at present, according to the totality of the considered economic and social factors, the following is observed:
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In the base scenario of the HSE Center for Development Institute’s forecast dated May 7, 2020, the 2020 crisis is accompanied by an increase in unemployment to …%, followed by a steady improvement in the labor market against the backdrop of a recovery in economic activity.
In the pessimistic scenario, deeper and longer than in the base scenario, …
technological
Among the technological factors influencing the champignon market in India are:
Improving the technologies for growing and storing mushrooms to increase the productivity and quality of the product, reduce its cost.
Equipment for the production of mushrooms is supplied mainly from abroad, which makes the industry dependent on imports and exchange rate fluctuations.
Political and legal
A key factor in the development of industrial mushroom growing in India was the introduction of a food embargo in 2014 in response to Western economic sanctions. From that moment on, the market has seen a surge in investment in the mushroom industry, the opening of new domestic production facilities and the expansion of existing ones, and the gradual replacement of imports.
Among the measures of state support for the mushroom industry, including the cultivation of champignons, the following can be distinguished:
Zero income tax rate for agricultural producers.
Preferential rate on a loan of 5% through the Ministry of Agriculture of India.
Reducing the VAT rate to 10% starting from 2017
At the same time, 2018 was the last year when the state compensated the capital costs for the construction of greenhouse complexes
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Table 2. STEP analysis of factors influencing the mushroom market in India
Thus, the Indian champignon market is experiencing a positive impact of environmental factors at a low (weak) level. A group of socio-demographic and political and legal factors has a more positive impact on the market, a group of economic factors has a negative impact to a greater extent, a group of technological factors has an equally negative and positive impact.
1.4. Mushroom Market Life Cycle Stage
The champignon market in India is in the late growth stage of the life cycle. This is evidenced by:
Growth in product consumption.
Active emergence of new players in the market.
Narrow range of products on the market.
Increase in retail prices for products.
The life cycle of an industry is the period during which an industry goes through four stages: inception, growth, maturity, and decline. In the early years, changes in the industry (innovation) are carried out dynamically, the life cycle of goods is short. As the industry develops, the rate of innovation decreases and growth is supported by increasing market share.
With maturity, market growth slows, competition increases, and profitability falls. Based on the model, the life cycle, all industries can be divided into three groups: innovative or developing, mature and recession industries. Firms in these industries have similar strategies, despite the fact that they may produce completely different goods.
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The market saturation stage is a turning point in the industry, when all battles for total market power are over and the search for a stable position in a stagnant segment begins.
The stage of market saturation is characterized by the following indicators: very low growth in market capacity, lack of product novelty, high competition and product variability, technological maturity of the market, a decrease in the overall profitability of the industry, a good level of consumer knowledge about product characteristics.
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1.5. Competition from substitute products
Among all cultivated mushrooms in India, champignons are the most popular.
Diagram 10. The structure of the production of cultivated mushrooms by species in India, 2018-2019,%
Mushrooms experience serious competition in the summer from oyster mushrooms, wild mushrooms, and vegetables.
Part 2. Competitive analysis in the mushroom market
2.1. Major players in the market
According to the results of 2019, the main participants in the Indian champignon market include XXX LLC (Kursk region), XXX LLC (TM Moe leto, Tula region), LLC …
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In addition to the companies considered, the following projects were launched (planned to be launched) in 2019-2020:
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2.2. Market shares of the largest competitors
The active development of investment projects in the industry entails, on the one hand, a redistribution of roles (changes in the ranking of market leaders), and on the other hand, an increase in market concentration.
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2.3. Profiles of major players
LLC ""XXX""
http://gribnaya-raduga.ru/
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LLC ""XXX""
https://moeleto.ru/
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LLC ""XXX""
https://russkiygrib.ru/
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LLC ""XXX""
http://www.ngkk.ru/
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LLC ""XXX""
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The total revenue of market leaders tends to increase.
Part 3. Analysis of mushroom production
3.1. Volume and dynamics of domestic production of champignons
Import substitution and growth in consumption create favorable conditions for domestic producers of champignons, which is favorable for consumers, since the delivery time directly affects the quality of mushrooms.
Diagram 13. Dynamics of mushroom production volume in India in 2014-2020 (actual and forecast), thousand tons
Thus, a significant increase in production is associated with the active development of investment projects, which leads not only to import substitution, but also to the gradual saturation of the market.
3.2. The share of exports in the production of champignons
Export occupies a small share in the production of champignons in India.
3.3. Segmentation of champignon production by regions
3.3.1 Production by Union Territories
According to GidMarket, the main producers of champignons in India are the Central Union Territories and the Southern Union Territories, according to an estimate for 2020, their shares in the total production amounted to …
Table 6. Mushroom production volume in India by union territories in 2020 (estimated), thousand tons
During 2018-2020 due to the launch of new projects, there is a change in the geographical structure of the market - an increase in the share of Central Union territories.
3.3.2 Production by states of India
According to GidMarket, in 2020, the main production of champignons in India falls on …
Part 4. Analysis of foreign trade supplies of champignons
4.1. Volume and dynamics of champignon imports
According to GidMarket estimates based on data from the Federal Customs Service, mushroom imports to India in 2014 amounted to …thousand tons in physical terms. tons...
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Imports of champignons in India in monetary terms are characterized by a different dynamics than in kind.
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4.2. Import structure
Before the introduction of the food embargo, Poland was the leader in the import of champignons in India ...
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4.3. Volume and dynamics of champignon exports
According to GidMarket estimates based on data from the Federal Customs Service, the export of champignons from India in physical terms during 2014-2018. was insignificant...
The export of champignons from India in terms of money is also characterized by insignificant volumes, as well as in kind.
Chart 20. Balance of exports and imports in the Indian mushroom market in 2014-2020 (estimate), thousand tons
4.4. Export structure
In 2019, Ukraine became India's key export partner, its share amounted to …% of the total supply of champignons.
Part 5. Analysis of consumption of champignons
5.1. Dynamics of champignon consumption volume
The situation on the Indian mushroom market is characterized by multidirectional dynamics.
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Diagram 22. Dynamics of mushroom consumption in India in 2014-2020 (estimate), thousand tons
By 2020 (according to estimates), the consumption of champignons in India is estimated at … thousand tons.
5.2. Analysis of the results of tenders for the purchase
Between 01.01.19/08.08.20/31 and / / . tenders for the purchase of champignons were announced. The main customers were state and municipal institutions.
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Part 6. Price Analysis
6.1. Average producer prices by union territories
According to GidMarket, as of 2020, the highest prices for champignon producers have been established in the Siberian Union Territories …
Table 11. Average prices of champignon producers by union territories in 2020, Rs./kg
Cheaper prices in the Central Union Territories are associated with a high level of supply in the district, increased competition.
6.2. Average consumer prices by states in India
Consumer prices for fresh champignons …
According to GidMarket estimates based on Rosstat data, following the results of 7 months of 2020, the highest average consumer prices for champignons in India were set at …
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Part 7. Assessment of factors of investment attractiveness of the market
The positive factors of the investment potential of the Indian champignon market dominate over the negative ones. A comprehensive assessment of investment attractiveness factors amounted to … points, which indicates a neutral investment climate.
The most significant positive factors.
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The most significant negative factors.
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Part 8. Mushroom Market Development Forecast until 2024
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
GidMarket analysts predict…
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Part 9. Recommendations and conclusions
The situation in the market
In physical terms, in 2019, the volume of the champignon market in India amounted to … thousand tons, which
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The main producers of champignons in India are the Central Union Territories and the Southern Union Territories, according to an estimate for 2020, their shares in the total production amounted to …
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Recommendations
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Diagrams
Diagram 1. The ratio of imported and domestic products in the Indian mushroom market in 2014-2020 (estimate), %
Diagram 2. Dynamics of the volume of the Indian mushroom market in 2014-2020 (estimate), billion Rs.
Diagram 3. Revenue (net) from the sale of champignons by union territories for 2014-2020 (estimate), %
Chart 4. Dynamics of India's GDP, 2007-2019, Q1 2020, % to the previous year
Chart 5. Monthly dynamics of the US dollar against the rupee, 2015-2020 (Jan.-June), Rs. for 1 US dollar
Diagram 6. Population dynamics in India as of January 1, 2010-2020, million people, %
Diagram 7. Population forecast in India for the period 2021-2024, million people
Diagram 8. Dynamics of real incomes of the population of India, 2014 - Q1 2020, % to the previous year
Figure 9. Mushroom market life cycle stage in India
Diagram 10. The structure of the production of cultivated mushrooms by species in India, 2018-2019,%
Diagram 11. Shares of the largest competitors in the Indian champignon market in 2019-2020, %
Diagram 12. Total revenue of the Top 5 manufacturers in 2015-2019, billion Rs.
Diagram 13. Dynamics of mushroom production volume in India in 2014-2020 (actual and forecast), thousand tons
Chart 14. Share of exports in mushroom production in India, 2014-2020 (estimate), %
Diagram 15. Production of champignons by states of India in 2020,%
Diagram 16. Volume and dynamics of champignon imports in physical terms, thousand tons
Diagram 17. Volume and dynamics of champignon imports in monetary terms, mln USD
Diagram 18. Champignon export dynamics in physical terms, tons
Diagram 19. Dynamics of export of champignons in monetary terms, thousand USD
Chart 20. Balance of exports and imports in the Indian mushroom market in 2014-2020 (estimate), thousand tons
Diagram 21. The structure of exports of champignons from India by recipient countries in 2019,%
Diagram 22. Dynamics of mushroom consumption in India in 2014-2020 (estimate), thousand tons
Diagram 23. Dynamics of retail prices for champignons in India in 2014-2020 (estimate), Rs./kg
Diagram 24. Mushroom production forecast in India for the period 2020-2024, thousand tons
Diagram 25. Forecast of the volume of the Indian mushroom market in 2020-2024, thousand tons
Diagram 26. Forecast of the demand for greenhouses for growing champignons in India for the period 2021-2024, thousand square meters m
Tables
Table 1. Expert forecasts for the decline in real GDP in India in 2020, %
Table 2. STEP analysis of factors influencing the mushroom market in India
Table 3. Definition of the stage of the life cycle of the champignon market in India
Table 4. Main participants of the Indian champignon market in 2019
Table 5. Mushroom growing projects launched in 2020
Table 6. Mushroom production volume in India by union territories in 2020 (estimated), thousand tons
Table 7. Structure of champignon imports in India by sending countries in 2019, units rev.
Table 8. Producing companies that imported mushrooms of the genus Agaricus (champignons, fresh or chilled) to India in 2019, TOP-20, units rev.
Table 9. Recipient companies that imported mushrooms of the genus Agaricus (champignons, fresh or chilled) to India in 2019, TOP-20, units rev.
Table 10. Data on tenders for the purchase of champignons, announced from 01.01.19/08.05.20/20 to / / , in the amount of more than thousand Rs.
Table 11. Average prices of champignon producers by union territories in 2020, Rs./kg
Table 12. Average consumer prices for champignons by states of India, 7 months 2020, Rs./kg
Table 13. Assessment of factors of investment attractiveness of the Indian champignon market
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