APEDA to support exports of vegan food ingredients

The Agricultural and Processed Foods Export Development Authority (APEDA), which is eyeing $30 billion in exports this fiscal, has recently launched a National Programme on Vegan Products to cater to overseas demand for plant-based products. APEDA Chairman M Angamuthu shares details with businessline on the new initiatives which will help diversify the agency’s export product basket. Excerpts:

India produces plenty of protein-rich foods such as pulses, soyabean, legumes, seeds, nuts, and wheat which are excellent alternatives to meat proteins. As we race into the new decade, it is no secret that plant-based diets are on the rise and as the trend continues to grow, so are the companies growing with vegetarian and vegan options within the food and beverage industry. Consumers are becoming receptive to plant-based meat substitutes. Amid the Covid-19 pandemic, the popularity of these products has surged as they are being perceived as immunity-boosters. Now, vegetarians can relish the taste of animal meat without consuming animal products.

Being a food surplus production country, India has a number of good quality protein raw materials such as chickpea, soyabean, wheat, millets , allowing not only product diversification but also towards a sustainable environment.

Given the unique mix of natural, social, and economic advantages, India has the potential to play a prominent role on a global stage by growing and processing plant-based ingredients and building a thriving export market. India is one of the top five producers of core plant proteins — chickpeas, lentils, millet, peas, rice, soyabeans, and wheat. In addition, early signs point to a significant growth opportunity for the plant-based foods industry in the country. The plant-based foods industry in the US has achieved unparalleled growth in recent years and generated over $7.4 billion in retail sales in 2021. There is a tremendous market opportunity for India and it can become a global leader in the plant-based food sector.

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Comprehensive global data on the plant-based sector is still limited, but data from specific markets provide insight into the sector’s overall trajectory. Retail plant-based milk sales grew 14 per cent to $17.8 billion and plant-based meat sales grew 17 per cent to $5.6 billion in 2021. Over a five-year timeframe, retail plant-based milk sales grew 18 per cent, affected by relatively flat sales from 2018 to 2020. Asia Pacific led the plant-based milk sector in retail sales in 2021 with $9.4 billion and also saw the largest growth at 16 per cent.

Financial institutions are projecting strong continued growth for plant-based foods. Analysing the potential growth for alternative milk and meat (potentially inclusive of plant-based, cultivated, and/or fermentation-derived products), Credit Suisse projects global sales of alternative dairy and meat to reach between $146 billion and $380 billion by 2030. By 2050, the bank projects sales between $748 billion and $1.4 trillion.

Consumer interest is high, private sector companies are coming to market at a rapid pace, and the strength of the agricultural sector provides a strong foundation for growth. APEDA will focus on creating an international market for its indigenous crops that will benefit farmers and other key stakeholders.

The plant-based food sector poses an incredible opportunity to provide for Indian farmers in the long term by effectively and efficiently utilising natural resources and adding value through processing. It can cater towards the populations living and working in cities as well as those in rural settings, who increasingly have access to cold chains and supermarkets. It can leverage the unique strengths and qualities of its indigenous crops. It can attract foreign investment, research and technology advancements, and a significant export market.

The Government of India has been an important and effective supporter of the food processing sector, including as one of the pillars of its “Make in India” initiative. Infrastructure investments, advantageous financial and credit schemes, foreign direct investment policy, and centralised procurement schemes have propelled the sector’s growth. Federal examples of such support are reflected in Pradhan Mantri Kisan Sampada Yojana (PMKSY), the National Bank for Agriculture and Rural Development (NABARD), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and specific support for smaller enterprises.

Through July 2021, 792 of a total of 818 proposed projects have been approved, with approved grants-in-aid totalling $753 million. As of July 2021, the government had approved 41 mega food parks, 353 cold chain projects, 63 agro-processing clusters, and 292 food processing units.

With an outlay of $1.5 billion (₹10,900 crore), PLISFPI supports the creation of global food manufacturing champions commensurate with India’s natural resource endowment and will help Indian brands increase success in international markets. Objectives of the scheme include creating jobs, attracting investment, expanding industrial capacity to increase the production of processed foods, increasing farmer incomes, and boosting exports. The scheme will run 2021-22 through 2026-27.

The Ministry of Food Processing Industry is providing strategic support to the industry. Pradhan Mantri Kisan Sampada Yojana (PMKSY) serving as a strong template for future work. All of these efforts are important to the near- and long-term success of the plant-based foods sector.

While much of the global attention on the plant-based foods sector is on whole products like milks and mock meats, the ingredient market is a significant opportunity as well. Protein-rich concentrates, isolates, and flours can provide nutrition across a wide range of applications – from protein shakes to mixing protein atta into chapati.

National production of plant-based foods can take advantage of and further stimulate a healthy international market for plant protein crops, processed protein ingredients, and manufactured products. Soaring consumer interest and investment for plant-based foods in North America, Europe, and Asia will provide near-term opportunities to fill supply shortages and take advantage of rapidly-modernising technology.

The plant-based foods sector in India is projected to increase significantly over the next decade, driven by increased consumer interest and access, product innovation, and hundreds of millions in domestic and foreign private sector investment.

The export market for India’s plant-based sector is also projected to be significant by 2030, though the plant-based meat market is expected to be larger than that of milk. The plant-based meat market is projected to range from $283 million to $880 million, whereas the plant-based milk market is projected to range from $59 million to $244 million and the plant-based egg market will range from $34 million to $81 million.

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