Analyzing the Pate Market in India
The relevance of research
Pate (Italian pastetto) is minced game, meat, liver, eggs, mushrooms, truffles, etc., prepared in a special way. Pates are a high-calorie homogenized product, with a predominant meat content. A delicate texture is achieved by special methods of processing raw materials and selecting the ingredients of the recipe. Pates packaged in optimally convenient packaging are in great demand among the population and are considered a delicacy product.
Purpose of the study
Analyzing the state of the pate market in India, assessing the market size, analyzing competitors, as well as determining the factors affecting the pate market
Content
Part 1. Overview of the Indian Pate Market
1.1. Main characteristics of the market
1.2. Dynamics of the pâté market volume 2017-2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Pâté Market Life Cycle Stage
1.5. Competition from substitute products
Part 2. Competitive Analysis in the Pate 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 pate production
3.1. Volume and dynamics of domestic pâté production
3.2. Export share in pâté production
3.3. Segmentation of pâté production by region
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of pate
4.1. Volume and dynamics of pate imports
4.2. Import structure
4.3. The volume and dynamics of pate exports
4.4. Export structure
Part 5. Analysis of pate consumption
5.1. Pate consumption dynamics
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. Pâté market forecast up to 2026
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian Pate Market
1.1. Main characteristics of the market
Pate (Italian pastetto) is minced game, meat, liver, eggs, mushrooms, truffles, etc., prepared in a special way. Pates are a high-calorie homogenized product, with a predominant meat content. A delicate texture is achieved by special methods of processing raw materials and selecting the ingredients of the recipe. Patés packaged in optimally convenient packaging are in great demand among the population and are considered a delicacy product. They produce canned, weight, piece pates, in a shell.
There are liver pates (the most common in India and Ukraine), goose, duck, fish, chicken,pork. In recent years, manufacturers have diversified the range of meat pies, releasing a line of pates with additives, for example, mushrooms, herbs and other components that add piquancy to the taste. Such pastes are in demand among consumers.
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The subject of this study is the pate market as part of the meat and fish processing market in India. The pate market in this study is understood as a set of enterprises that form the market supply, the number of consumers that form the market demand, as well as the relationship that arises between sellers and consumers.
For the purposes of this study, we will define market participants that are pâté producers - companies operating in the industry of processing various types of meat and fish, producing, among other things, pates, consumers of pâtés - individuals purchasing pâtés for personal use, and organizations purchasing pâtés for catering purposes for employees or guests. Manufacturers organize the sale of finished products through their own branded stores or through large retail chains or retail outlets.
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1.2. Dynamics of the pate market volume 2017-2021 Potential market capacity
Pate market growth rate in 2017-2021 allow us to state that the market is in a stagnation stage with prospects and potential for further growth with ambiguous growth rates, this is indicated by a positive trend in the development of the agricultural industry and an increase in meat production in India, the development of the meat processing industry, as well as a low share of pate imports, which is compensated increase in domestic production.
Diagram 3. Dynamics of the pâté market volume, 2017-2021
The dynamics of the volume of the Indian pate market in physical terms, during the study period, has multidirectional dynamics, with a clearly positive development trend, which is due to slight fluctuations in the volume of domestic production of pate, as well as fluctuations in the volume of imports and exports of these products.
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In the structure of proceeds from the sale of pâté across the union territories, the absolute leader is the Central Federal District, its share is ...
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand in the Indian pâté market.
- Economic forces
Gross domestic product (GDP) is one of the most important macroeconomic indicators.
It reflects the market value of all final goods and services intended for direct consumption, which were produced for a certain period (quarter, year) in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used.
GDP is expressed in national currency, or (if necessary) converted into foreign currency at the exchange rate, and can also be presented at purchasing power parity.
- Social factors
an increase in the consumption of pates due to the desire to diversify the diet, and also, as mentioned earlier, due to the long shelf life of products, the purchase of pates for future use with the further development of the current crisis;
change in consumer behavior - the reorientation of customers from hypermarkets to convenience stores and an increase in the frequency of purchases have already led to a decrease in the volume of one-time purchases, as well as an increase in the share of piece products and small volumes. The younger generation, 20-35 years old, prefer to avoid communication with sellers and purchase light weight packaged products. In addition, the pate is already ready to eat, which saves time.
- Technological factors
- automation of production - a decrease in the share of manual labor, the introduction of software for accounting and control;
- dependence on foreign suppliers of equipment for meat processing, which is produced mainly abroad. In India, equipment is also produced, but spare parts for it are imported;
- the development of online trading is a definite plus for the convenience of ordering and paying; after the coronavirus pandemic and the restrictions imposed, operators and market experts note an increase in online sales of meat processing products;
- the possibility of making pate at home - if there is time and desire, consumers purchase liver, butter and other necessary ingredients and can cook pate, not only liver, at home.
- Political factors
- control by sanitary services over food production;
- state support of staff for SMEs in the processing industries - various grants, subsidies, concessional lending;
- support within the framework of the federal project ""Export of the Agro-Industrial Complex"" - compensation of part of the costs of transportation, compensation of part of the costs incurred for certification of products in foreign markets for all manufacturers of food and processing industries.
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Based on the results of the analysis of the factors affecting the Indian pate market, there is a balance of the influence of positive and negative factors on the market, and, accordingly, on demand.
Significant constraining factors include dependence on retail chains, declining purchasing power and population, instability of the rupee and a decline in GDP in the short term, rising costs, as well as dependence on foreign suppliers of equipment and components. In the context of declining incomes of the population, it is also worth noting such a deterrent as the possibility of making pate at home.
The following political, technological and some social factors have a stimulating effect on the analyzed market: government regulation of the industry and support for SME staff in meat processing, the development of online tools and production automation in order to reduce manual labor and reduce costs, as well as changing consumer habits and increasing the consumption of pâtés.
1.4. Pâté Market Life Cycle Stage
The pâté market in India has reached a stage of maturity, close to saturation. The maturity stage represents the stage of stability in terms of demand, technology and level of competition.
The maturity stage is characterized by a stable level of sales with a slowdown in growth rates. The product reaches its peak of sales and provides a stable income due to the formed consumer base with the preferences that have developed at that moment. The level of profit at the stage of maturity may decrease slightly. To maintain and increase profits, it is necessary to: increase investment to maintain sales levels, price reduction and deep price reduction promotions for large buyers, regular customers, research and development to stimulate a new stage of growth.
The maturity stage is the longest of all life cycle stages. It is characterized by stable consumption, popularity and wide exposure of the product or service, all of which ensures a stable level of sales over a long period.
The level of competition in the market becomes maximum and stabilizes, which, in the face of slower growth, creates a more aggressive struggle for existing consumers. A high value at the stage of maturity gets the speed of the company's reaction to the actions of competitors.
At this stage, the average price level is formed, and each market participant has an established price positioning. Price competition is decreasing, the role of the product brand is increasing, and sales promotion by lowering the price is short-term.
The breadth of the assortment at the stage of maturity does not increase, but undergoes a number of modifications and improvements to existing proposals. All changes in the assortment are aimed at maintaining the relevance and modernity of the product by tracking trends in consumer preferences and technologies. The emergence of new technologies, the improvement of previous approaches at the stage of market maturity are characteristic.
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1.5. Competition from substitute products
The competition for canned meat is the actively developing category of meat (meat-containing) semi-finished products. A special place in the Indian canned meat market is occupied by pates, which are especially popular with consumers as a high-calorie ready-to-eat product that can act as an alternative to meat and sausage products.
In addition, pates are actively consumed for breakfast and for a snack, like sausage. Sandwiches for breakfast are chosen not only by schoolchildren and students - entrepreneurs agree that this is a good time saver.
It is worth noting that eating pâté for breakfast is more beneficial than sausage, which is noted by healthy nutrition experts. They claim that 100 gr. liver pate provide the body with 300 kilocalories. The pate contains B vitamins, phosphorus, sodium, potassium, iron, iodine. There are a lot of essential amino acids in the liver, such as lysine, methionine and tryptophan. A well-prepared pate has a good effect on the functions of the skin, eyes, promotes the proper functioning of the stomach, has a beneficial effect on growth and metabolism, increases hemoglobin, and improves immunity. The liver is especially useful (in the form of a pate, including) for people in the postoperative period, since the liver contains glycogen, which acts as a building material for tissues and cells. Chicken sausage is also a useful product in the diet. It has a balanced vitamin and mineral complex. The chemical composition of chicken sausage is worthy of attention, it contains choline, B, D, E and PP vitamins, as well as minerals necessary for the human body: potassium, calcium, magnesium, zinc, selenium, copper and manganese, iron, phosphorus and sodium.
Part 2. Competitive Analysis in the Pate Market
2.1. Major players in the market
In the Indian pate market, according to various estimates, there are about more than a hundred companies: manufacturers of canned food, as well as meat processing plants, for which the production of pate is a by-product.
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The largest players in the pate market are located in the Central Federal District, as well as in the North-Western Federal District. The level of competition between Indian companies is moderate, there are opportunities for new players to enter, while the required amount of initial investment directly depends on the size of the enterprise being created. The situation on the pate market allows both a small enterprise and a very large one to enter the market in case of diversification of the existing meat and/or fish processing production.
2.2. Market shares of the largest competitors
The market shares of the largest operators of the pate market are calculated in proportion to the revenue received from the production of pate sales in 2021, excluding revenue from other types of activities of enterprises.
2.3. Profiles of major players
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Part 3. Analysis of pâté production
3.1. Volume and dynamics of domestic pate production
According to Rosstat, the production of pate (including meat pates and fish pates, excluding baby food pate) in India in 2021 amounted to ...
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In general, we can say that the dynamics of production volumes correlates with the dynamics of the volume of the domestic pate market in the study period - the market under such conditions does not strongly depend on import volumes and their fluctuations. Further, a detailed examination of the indicators for imports and exports shows that the share of exports in production is small, respectively, the work of Indian manufacturers is primarily aimed at meeting the country's domestic needs.
Chart 9. Dynamics of the total revenue of the largest producers (TOP-5) of pate in India, 2017-2021
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3.2. Export share in pâté production
The share of exports in the production of pate in India during the study period remains stable and low, on average it is ...% over the study period, while considering the increase in exports with an increase in production, we can talk about the potential for export supplies for Indian producers in perspective.
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3.3. Segmentation of pâté production by region
Consider the segmentation of pate production by regions of India based on production volumes.
3.3.1. Production by Union Territories
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The dynamics of pâté production by Union Territories reflects the general dynamics of production in India as a whole.
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3.3.2. Production by states of India
The largest Indian producers of pate are located in the Vladimir, Moscow and Ryazan regions (Central Federal District), as well as in (Central Federal District) and Kaliningrad Region (North-Western Federal District).
It is worth noting that pate production enterprises are present in many states of India, while their production volumes are small, we recall that the majority of such enterprises have a market share of less than ...%.
Part 4. Analysis of foreign trade deliveries of pate
4.1. Volume and dynamics of pate imports
The share of imports in the pate market during the study period is small, has multidirectional dynamics and depends on a number of economic and political factors, while a pattern can be traced - with a decrease in pate production in India in the subsequent period, the share of imports slightly increases.
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4.2. Import structure
Table 5. Structure of pâté imports by importing countries in 2021
In the structure of pate imports by countries, Belarus is the absolute leader with a share of ...% of the total volume of pate imports to the country ...
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4.3. The volume and dynamics of pate exports
Diagram 13. Dynamics of pâté exports in physical terms
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The difference between exports and imports - the trade balance - is the annual rate of consolidation of a country's foreign trade transactions. The trade balance has a positive balance when, in monetary terms, more goods were sent abroad than received from other countries. A positive trade balance indicates the demand for the goods of a given country on the international market, as well as the fact that the country does not consume everything that it produces, and vice versa, in the case of a negative trade balance.
The volume of pate imports to India remains rather low in the study period, the share of exports in production is also low, however, the volume of imports in monetary terms exceeds the volume of exports in monetary terms, respectively, the trade balance is negative throughout the entire study period.
Export volumes are declining with a tendency to increase production volumes, import volumes remain low - all this indicates that production in recent years is increasingly oriented towards the domestic market, a small share of its products is exported by the largest manufacturers, respectively, the internal need for pate is almost satisfied at current production volumes, however, producers have the potential to increase production volumes in order to completely replace imported products and increase export deliveries.
4.4. Export structure
The export of Indian-made pate is carried out mainly to Kazakhstan, Ukraine, Vietnam, in addition, Indian producers also export pate to Belarus, Turkmenistan, Tajikistan and Israel.
Part 5. Analysis of pate consumption
5.1. Pate consumption dynamics
Diagram 17. Dynamics of consumption of pate in monetary terms, 2017-2021
The dynamics of consumption of pate in the domestic market of India in the study period was calculated taking into account current prices, as well as their changes over the years. This calculation takes into account the import of products, calculated in ruble terms in accordance with the volume of imported products and the current dollar exchange rate in each year.
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5.2. Analysis of the results of tenders for the purchase
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In 2021 130 tenders for the purchase of pate were held, including more than two hundred lots with various types of pate.
The main organizers of tenders for the purchase of pate are budgetary organizations whose activities relate to the management and operation of prisons, correctional colonies and other places of deprivation of liberty, hospital activities, the activities of general education and preschool institutions, that is, such activities that involve catering for people in organizations.
Part 6. Price Analysis
6.1. Average producer prices by union territories
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The average prices of pate producers are calculated by GidMarket analysts based on open data from market operators and Rosstat data. The table shows the average producer prices for the Union Territories, where the production facilities of large pâté producers are located.
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6.2. Average consumer prices by states in India
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Average consumer prices for pies are calculated by GidMarket analysts in accordance with the average producer price, average margin and normal distribution of prices across the states of India for similar types of goods, the current prices for pates are also taken into account in the calculation (monitoring).
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Part 7. Assessment of factors of investment attractiveness of the market
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The positive factors of the investment climate in the pâté market are in balance with the negative factors.
negative factors.
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The most significant positive factors.
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Part 8. Pate market forecast up to 2026
The market analysis was carried out on the basis of methods based on identifying trends over time, adjusted for expert opinion in the industry. When compiling the forecast, methods of mathematical modeling, mathematical analysis and statistics were used, adjusted for market trends and expert opinions.
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Part 9. Recommendations and conclusions
Based on the results of the analysis of factors affecting the Indian pate market, there is a balance of the influence of positive and negative factors on the market. Significant constraining factors include dependence on retail chains, a decrease in purchasing power and population, the instability of the rupee and a decrease in GDP, an increase in production costs, as well as dependence on foreign suppliers of equipment and components. In the context of declining incomes of the population, it is also worth noting such a deterrent as the possibility of making pate at home.
The following political, technological and some social factors have a stimulating effect on the analyzed market: government regulation of the industry and support for SME staff in meat processing, the development of online tools and production automation in order to reduce manual labor and reduce costs, as well as changing consumer habits and increasing the consumption of pâtés.
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In the course of marketing research, we found out consumer preferences regarding the types of meat pies and the presence of various additives in them.
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It is also worth noting that the Internet has also left its mark on the sale of pâtés - consumer culture is growing, consumers are actively looking for reviews online for the goods they buy, and negative reviews about certain products spread very quickly, which can significantly reduce sales. Consumers of processed meat products are quite conservative, so it is quite difficult to switch to new brands. This is largely due to the negative experience that some consumers had of such switching in the past.
Diagrams
Diagram 1. Pate market structure by types
Diagram 2. The ratio of imported and domestic products in the pate market,%
Diagram 3. Dynamics of the pate market volume, 2017-2021
Diagram 4. Revenue (net) from the sale of pâté by union territories for 2017-2021, %
Chart 5. India's GDP evolution, 2013-2021, available period 2022
Chart 6. Monthly dynamics of the US dollar against the rupee, 2017 - available period 2022, Rs. for 1 US dollar
Figure 1. Life cycle stage of the pâté market
Chart 7. Shares of the largest competitors in the pate market in 2021
Diagram 8. Dynamics of pate production volumes in India for 2017-2021
Chart 9. Dynamics of the total revenue of the largest producers (TOP-5) of pate in India, 2017-2021
Diagram 10. The share of exports in production for 2017-2021
Diagram 11. Volume and dynamics of pate imports in physical terms
Diagram 12. Volume and dynamics of pate imports in monetary terms
Diagram 13. Dynamics of pate exports in physical terms
Diagram 14. Dynamics of pate export in monetary terms
Diagram 15. Balance of exports and imports
Chart 16. Structure of exports by country in 2021
Diagram 17. Dynamics of consumption of pate in monetary terms, 2017-2021
Diagram 18. Forecast of market size in 2022-2026
Tables
Table 1. STEP analysis of factors influencing the pate market
Table 2. The main companies participating in the pate market in 2021
Table 3. Profiles of companies participating in the pate market in 2021
Table 4. Dynamics of pate production in India by union territories
Table 5. Structure of pate imports by importing countries in 2021
Table 6. Data on the ten largest lots of tenders for the purchase of pates held in 2021
Table 7. Average producer prices in the pate market by Union Territories in 2021
Table 8. Average consumer prices in the pate market by state of India
Table 9. Assessment of factors of investment attractiveness of the pate market
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