Market analysis of cauliflower and broccoli in India
The relevance of research
Broccoli and cauliflower are rare types of cabbage crops. They are gradually becoming familiar foodstuffs and are used in home cooking and for industrial processing. The nutritional and dietary benefits of cauliflower and broccoli are promising for expanding the range of cultivated vegetable crops in India.
Purpose of the study
Analyzing the state of the cauliflower and broccoli market, assessing the market size, analyzing competitors, and identifying factors affecting the cauliflower and broccoli market
Content
Part 1. Overview of the Indian market of cauliflower and broccoli
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of cauliflower and broccoli 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of cauliflower and broccoli market
1.5. Competition from substitute products
Part 2. Competitive Analysis in the Cauliflower and Broccoli 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 cauliflower and broccoli production
3.1. Volume and dynamics of domestic production of cauliflower and broccoli
3.2. Share of exports in cauliflower and broccoli production
3.3. Segmentation of cauliflower and broccoli production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of cauliflower and broccoli
4.1. The volume and dynamics of imports of cauliflower and broccoli
4.2. Import structure
4.3. The volume and dynamics of exports of cauliflower and broccoli
4.4. Export structure
Part 5. Analysis of consumption of cauliflower and broccoli
5.1. Dynamics of consumption of cauliflower and broccoli
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. Market forecast for cauliflower and broccoli until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian market of cauliflower and broccoli
1.1. Main characteristics of the market
Broccoli and cauliflower are among the least common types of cabbage crops in India. At the same time, these vegetables are widely grown in many countries of the world. In the US and Western Europe, broccoli occupies more acreage than cauliflower. Significant volumes of cauliflower and broccoli are frozen and exported, including to India. The demand for cauliflower and broccoli is constantly growing. They are gradually becoming familiar foodstuffs and are used in home cooking and for industrial processing. The nutritional and dietary benefits of cauliflower and broccoli are promising for expanding the range of cultivated vegetable crops in India.
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1.2. Dynamics of the market volume of cauliflower and broccoli 2015-2019 Potential market capacity
The volume of the cauliflower and broccoli market is mainly affected by imports.
Diagram 2. Dynamics of the market volume of cauliflower and broccoli, 2015 - 2019, thousand tons
A number of researchers suggest that, with some support, import substitution will make it possible to achieve the necessary level of food security in India if the country's domestic market is supplied with domestic products similar to imported ones or with higher consumer properties. Of fundamental importance is the cost of production, which should not exceed the cost of imported products.
Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, demand.
Economic
GDP dynamics
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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Thus, experts disagree significantly about the real dynamics of India's GDP in 2020:
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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.
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“The situation in April – in its regional aspect – can be characterized by the words “worse ever,” the HSE review says: an economic downturn of unprecedented proportions has engulfed the states that account for 80% of the country's GDP. The recession promises governors a landslide drop in tax collections - on the profits of organizations, on the income of individuals and on property, while it requires increasing spending on social policy, medicine and national projects.
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Социальные
Population decline
During 2012-2017 India's population has shown a positive trend. However, in 2018, the vector changed - the population decreased due to the natural population decline in 2016-2019.
The current demographic situation in India is characterized by natural population decline (since 2017), which is accelerating, and migration growth, which does not compensate for natural decline.
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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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Healthy lifestyle fashion
A healthy lifestyle is becoming an increasingly fashionable and relevant topic for young and active residents of large cities. It requires a conscious attitude to many habits, especially those related to physical activity and human nutrition.
Thanks to the constant access to information, today's healthy users are much more aware of what and why they eat than previous generations. They are responsible for building a diet and the foods they eat. Vegetables top the list of healthy foods, including cauliflower and broccoli.
We also note that Alexander Myasnikov, a doctor and TV presenter, in October 2020, on the air of the India 1 channel, called broccoli the most useful product for human health.
Political
State support
Concessional lending has become one of the most popular and effective instruments of state support for Indian farmers.
In 2019, banks entered into more than 19 thousand agreements ...
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It will be easier for novice farmers to receive Agrostartup grants, and agricultural cooperatives will be allowed to buy equipment and machinery for the sale of products on state subsidies. In August 2020, the Ministry of Agriculture submitted changes to the agricultural development program for discussion.
The current tax legislation provides for the right of agricultural organizations to apply the general taxation regime or a special one, and in some cases a single agricultural tax is provided. In recent years, under the conditions of international sanctions, the issue of replacing food products of a foreign manufacturer with goods on the domestic market (import substitution) has become particularly relevant. Along with measures of state support and incentives, an important role is assigned to tax policy.
The approach to taxation of agricultural organizations is hampered by such factors as seasonality, dependence on natural conditions, and peculiarities of the sale of goods received. Agricultural production is always burdened with high risks. Therefore, it was expedient to introduce separate benefits within the framework of the general taxation system, as well as the introduction of a special tax regime - a taxation system for agricultural producers.
The tax legislation also contains a number of benefits for the distributors of agricultural products.
Tax legislation aimed at supporting and stimulating the development of agriculture is moving towards simplifying and reducing the number of taxes. Over the 25 years of existence of the Indian tax system, a general preferential approach to the taxation of agriculture has been developed, which provides for the use of a general taxation system, a simplified system and a special tax regime.
The single agricultural tax is a system of taxation for agricultural producers, which can be used by those enterprises that meet the requirements of the tax legislation.
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Regional program ""Agrostartup""
Grant ""Agrostartup"" - funds transferred from the budget to a peasant (farm) economy to co-finance its costs associated with the implementation of the project for the creation and (or) development of a peasant (farm) economy.
Participants in the selection for the provision of Agrostartup grants can be both peasant (farm) enterprises and Indian citizens who meet the requirements of the selection participants. The program “Creation and development of peasant (farming) households under the Agrostartup project” operates in many regions of India. The program will operate every year during the period 2019-2024.
This factor can become a catalyst for the development of the cauliflower and broccoli market in India.
technological
Robotization
In December 2020, Future Farming presented a small English-language catalog of modern field agrobots that will go on sale and lease in 2021. We are talking about 35 models, the manufacturers of which have produced a total of about 2 thousand units. equipment available at prices ranging from €9 to €590.
Agricultural automation has already affected cereal crops, carrots and citrus fruits, has come to orchards, vineyards, arboristry and forestry. In addition to weeding and harvesting, field robots come to the aid of farmers, automating the work of classic tractors: cultivation, sowing, crop care and mowing.
We also note that there are harvesters for harvesting cauliflower and broccoli, which allows to reduce the processing time of the harvested crop, as well as reduce the amount of waste.
Seasonality
If early varieties of cauliflower were planted, then after 2-3 months you can get the first fruits. Varieties of medium early maturity ripen in 100-130 days, and inflorescences can be collected in the second half of summer. Varieties that are late can be harvested at the end of summer or in the first autumn month, and this is due to the fact that they ripen within 5 months, but its storage is also quite long.
Broccoli most often begins to ripen in mid-August. But since this process occurs gradually (after cutting the central inflorescence, lateral shoots begin to grow, which are located in the axils of the leaves), the entire harvesting process can stretch until October.
Seasonality is a negative factor in the market.
Concluding the assessment of the impact factors on the Indian cauliflower and broccoli market, we will summarize the key ones in the framework of the STEP analysis.
Table 1. STEP analysis of factors affecting the cauliflower and broccoli market
According to the results of the performed STEP-analysis, macroenvironmental factors have a negative impact on the development of cauliflower and broccoli to a greater extent.
The decline in real incomes of the population and GDP, the decline in population, the fall in the retail trade index, the depreciation of the rupee in recent years and seasonality have a negative impact. Fashion for a healthy lifestyle, robotics and government support, including regional programs, have a positive impact.
Life cycle stage of cauliflower and broccoli market
The cauliflower and broccoli market in India is in a growth phase. The growth stage is very important for companies, as it creates the most favorable conditions for dominating the market and for increasing profitability and stability. All efforts at this stage should be aimed at extending it, at creating entry barriers for new players, at achieving maximum market coverage - all this will ensure the most comfortable existence of companies at the next stage of the life cycle.
Competition from substitute products
Substitutes for cauliflower and broccoli include other vegetables. The closest to them are Brussels sprouts and green beans, but in India these vegetables also do not have a wide consumption culture. The most popular vegetables in India, which are used in the preparation of various dishes, are traditionally potatoes, zucchini, white cabbage and carrots.
Consider the beneficial properties of these vegetables.
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Also, the choice of consumers of more traditional Indian vegetables is associated with the cheaper cost of these products.
Thus, taking into account the beneficial properties of vegetables popular with Indian consumers, as well as the price factor, we can conclude that substitute products have a significant impact on the cauliflower and broccoli market.
Part 2. Competitive Analysis in the Cauliflower and Broccoli Market
2.1. Major players in the market
It is rather problematic to identify the largest players in the cauliflower and broccoli market due to the fact that the production of cauliflower and broccoli in large Indian vegetable companies, as a rule, occupies a small share of the total output.
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2.2. Market shares of the largest competitors
The assessment of the shares of the largest operators in the cauliflower and broccoli market was carried out by GidMarket based on the data on the volume of imports and exports of products by the largest producers in 2019.
At the end of 2019, the leading import producers in the Indian cauliflower and broccoli market are:
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2.3. Profiles of major players
The cauliflower and broccoli market in India is characterized by a low level of concentration (large number of operators with relatively small market shares, Herfindahl-Hirschman HHI <1000 - low concentration market).
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LLC ""Greenhouse plant"" XXX ""
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LLC ""XXX""
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LLC ""XXX""
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KX ""XXX""
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ZAO Breeding Plant Prinevskoe
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Part 3. Analysis of cauliflower and broccoli production
3.1. Volume and dynamics of domestic production of cauliflower and broccoli
The production of cauliflower and broccoli by agricultural organizations, farmers and individual entrepreneurs in India is within ... thousand tons. According to GidMarket, in 2019, production amounted to about ...thousand tons. tons...
Manufacturers from India mostly package imported products, only a small proportion of companies are engaged in cultivation. The climate makes it possible to harvest cauliflower and broccoli twice a year, but this is not possible in all regions.
Diagram 12. Dynamics of production volumes of cauliflower and broccoli in India for 2015 - 2019, thousand tons
The cumulative revenue of the largest cauliflower and broccoli producers in India in 2019, according to GidMarket, ...
3.2. Share of exports in cauliflower and broccoli production
The export direction in the Indian market of cauliflower and broccoli is poorly developed. Most of the products manufactured by domestic enterprises are sold on the domestic market - ...% in 2019.
3.3. Segmentation of cauliflower and broccoli production by regions
3.3.1. Production by Union Territories
The leaders in the production of cauliflower and broccoli are the Central Union Territories ...
Table 5. Dynamics of cauliflower and broccoli production in India by union territories, 2015-2019, thousand tons
3.3.2. Production by states of India
The distribution of shares between regions is due to the location of enterprises growing cauliflower and broccoli in them.
The leading regions for the production of cauliflower and broccoli in 2019 were:
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Part 4. Analysis of foreign trade deliveries of cauliflower and broccoli
4.1. The volume and dynamics of imports of cauliflower and broccoli
The volume of imports of cauliflower and broccoli in 2016-2017 shows growth. The growth leader is...
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In ruble terms, imports of cauliflower and broccoli to India ...
4.2. Import structure
In the structure of imports of cauliflower and broccoli by importing countries in 2019, the key supplier is ...
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4.3. The volume and dynamics of exports of cauliflower and broccoli
In the period under review, the export of cauliflower and broccoli in physical terms shows a positive trend.
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Diagram 16. Dynamics of exports of cauliflower and broccoli in physical terms, tons, 2015-Sep.2020
Foreign trade balance in the cauliflower and broccoli market in 2015-2019 is in the zone of negative values: import deliveries exceed export in value terms.
Diagram 18. Balance of exports and imports, million Rs., 2015-2019
4.4. Export structure
India sends broccoli and cauliflower to Ukraine ...
Part 5. Analysis of consumption of cauliflower and broccoli
5.1. Dynamics of consumption of cauliflower and broccoli
The general dynamics of the cauliflower and broccoli consumption market has a positive trend.
The Indian consumption rate is extremely small.
5.2. Analysis of the results of tenders for the purchase
In addition to cauliflower and broccoli, the list of products purchased in tenders often includes other types of vegetables. Tenders, as a rule, are announced by state institutions (hospitals, boarding schools, kindergartens, educational institutions, etc.).
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The purchase of cauliflower and broccoli for the study period was announced in six regions. Became the leader...
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Part 6. Price Analysis
6.1. Average producer prices by union territories
Producer prices for cauliflower and broccoli in India are on average .../10 kg respectively. Imported products in the Indian market are sold by wholesalers at a higher price. It is also worth noting the price flexibility. For bulk orders, prices may be lower.
Table 8. Average producer prices in the cauliflower and broccoli market by Union Territories, Dec. 2020, Rs./10 kg
6.2. Average consumer prices by states in India
Average consumer prices for cauliflower in retail chains differ slightly by region and are in the range of 140-200 Rs./kg.
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Part 7. Assessment of factors of investment attractiveness of the market
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The most significant negative factors.
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The most significant positive factors.
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Part 8. Market forecast for cauliflower and broccoli 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. A crisis
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.
In the first half of 2020, many markets felt the impact of the pandemic and the onset of the economic crisis.
Analysis of the impact on the state aid industry as of 14.12.20/ /
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 vegetable growing industry 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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Part 9. Recommendations and conclusions
Manufacturers from India mostly package imported products, only a small proportion of companies are engaged in cultivation. The climate makes it possible to harvest cauliflower and broccoli twice a year, but this is not possible in all regions.
Taking into account the beneficial properties of vegetables traditionally popular among Indian consumers (potatoes, zucchini, white cabbage, carrots), as well as the price factor in their favor, we can conclude that substitute products have a significant impact on the cauliflower and broccoli market.
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In conditions of economic instability, players who are customer-oriented and have developed competencies in a competitive environment will gain an advantage. Companies must clearly understand the needs of their current and potential customers, monitor trends, and analyze their behavior. This is what will allow us to formulate personalized, most relevant offers for both current and potential customers.
For both new and existing cauliflower and broccoli market operators, the following can be recommended:
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Diagrams
Diagram 1. The ratio of imported and domestic products in the cauliflower and broccoli market,%
Diagram 2. Dynamics of the market volume of cauliflower and broccoli, 2015 - 2019, thousand tons
Diagram 3. Revenue (net) from the sale of cauliflower and broccoli by union territories for 2015 - 2019, %
Diagram 4. Dynamics of India's GDP, 2012-Q3 2020, % to the previous year
Chart 5. Expert forecasts for a decline in real GDP in India in 2020 (baseline/neutral scenario), %
Diagram 6. Monthly dynamics of the US dollar against the rupee, Rs. for 1 US dollar, 2015-Dec. 2020
Diagram 7. Dynamics of retail trade turnover, 2015-Oct. 2020, % to the previous period
Diagram 8. Dynamics of the population of India, million people, as of 01 Jan. 2012-2020
Diagram 9. Dynamics of real incomes of the population of India, % to the previous year, 2012-Q3 2020
Diagram 10. Industry life cycle stage
Diagram 11. Shares of the largest competitors in the cauliflower and broccoli market in 2019%
Diagram 12. Dynamics of production volumes of cauliflower and broccoli in India for 2015 - 2019, thousand tons
Diagram 13. Dynamics of the total revenue of the largest producers (TOP-5) of cauliflower and broccoli in India, 2015-2019, million Rs.
Diagram 14. Volume and dynamics of imports of cauliflower and broccoli in natural terms, tons, 2015-Sep.2020
Diagram 15. Volume and dynamics of imports of cauliflower and broccoli in monetary terms, thousand US dollars, 2015-Sep.2020
Diagram 16. Dynamics of exports of cauliflower and broccoli in physical terms, tons, 2015-Sep.2020
Chart 17. Dynamics of exports of cauliflower and broccoli in monetary terms, thousand US dollars, 2015-Sep.2020
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 cauliflower and broccoli in monetary terms, 2015 - 2019, kg / person
Diagram 21. Shares of cauliflower and broccoli customers in terms of the amount of purchases of more than 150 thousand Rs., concluded in January-December. 2020, %
Diagram 22. Shares of regions for the supply of cauliflower and broccoli in terms of purchases of more than 150 thousand Rs., concluded in January-December. 2020, %
Diagram 23. Cauliflower and broccoli market size forecast in 2020-2024 – under the scenario of one quarantine, thousand tons
Diagram 24. Cauliflower and broccoli market volume forecast in 2020-2024 – under the scenario of two quarantines, thousand tons
Tables
Table 1. STEP analysis of factors affecting the cauliflower and broccoli market
Table 2. Useful properties of vegetables
Table 3. Main companies participating in the cauliflower and broccoli market in 2019
Table 4. Profiles of companies participating in the cauliflower and broccoli market in 2019
Table 5. Dynamics of cauliflower and broccoli production in India by union territories, 2015-2019, thousand tons
Table 6. Structure of imports of cauliflower and broccoli by importing countries in 2019
Table 7. Tenders for the purchase of cauliflower and broccoli, announced Jan.-Dec. 2020 with a contract amount of more than 10 million Rs.
Table 8. Average producer prices in the cauliflower and broccoli market by Union Territories, Dec. 2020, Rs./10 kg
Table 9. Average consumer prices in the cauliflower and broccoli market by Indian states, Rs./kg, Dec. 2020
Table 10. Assessment of factors of investment attractiveness of the cauliflower and broccoli market
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 14.12.20,
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