Although the Indian market is not currently a priority for Greek food and beverage exporters, this could easily change in the future. Mr. Yerassimos Lazaris, Minister – Counsellor for Economic and Commercial Affairs, of the Embassy of Greece in India, unfolds to Ambrosia Magazine the potential of the Indian market for the Greek F&B sector. With its impressive growth rates, India remains an unexplored territory with promising opportunities for Greek companies.
Interview: Kyriaki Moustakidou
Please tell us what is the general profile of food and beverage imports in India.
To begin with, India imports approximately $34 billion worth of food and beverage on an annual base. Out of this amount, $21 billion is allocated to fats and oils (including small quantities of olive oil), $4.3 billion to fruit, $45 million to dairy and cheese, and around $7 million to olives. It’s also worth noting that India’s aforementioned market valued at $420-$440 billion, is rapidly growing at an impressive rate of 11% per year, with projections to reach $510 billion by 2027.
Although much of India’s demand is met through domestic production, certain factors increase the potential for imports, like the following:
- Rising purchasing power among consumers
- Τwo thirds of the population are under 40 years old
- Young people adopt western habits
- Only 10% of the market operates within organized retail (supermarkets)
What Greek F&B products currently have a presence in India? Which of them show the greatest potential?
In 2023-2024, kiwis ($6.7 million), apples ($2 million), and Corinthian currants ($2 million) were the leading Greek products in the Indian market. Currently, regarding kiwis and apples, we are working on certifying our capacity to apply in-transit cold treatment, the cooling process that extends the shelf life of fruit. This certification will create opportunities for further quantitative expansion in the Indian market. Additionally, there is potential for Greek oranges entering India, however final stages are required for the agreement to be implemented.
Other products with growth possibilities include Greek phyllo dough ($250,000 in 2023-2024) and confections ($120,000 in 2023-2024). Pies are a significant part of the Indian diet, and sweets hold a special place in locals’ heart. Corinthian currants are popular in desserts, while halva, shows promise as well, as the name is familiar to all Indians.
Greek olives ($180,000 in 2023-2024) currently have a modest share of India’s market, facing competition from Egypt, Spain, and Turkey. However, with no dominant brand established, Greek olives could emerge as a strong power in the future.
Feta cheese ($130,000 in 2023-2024) deals with specific challenges in India. Though it holds a PDO status, India lacks European Geographical Indications’ standards, which has allowed domestically produced “feta” to be labeled as “traditional Greek cheese.” We eagerly await the completion of the negotiations for the signing of the EU – India agreement on Geographical Indication products (GIs), with our side supporting TRIPS-plus protection for feta.
Extra virgin olive oil ($40,000 in 2023-2024) is a category dominated by Spanish imports due to effective promotion. However, it is generally not used for cooking in India due to its high price. Instead, some European companies market it as a gift pack since Indians tend to use it for skincare and haircare. Greek companies could adopt a similar approach to gain ground in the Indian market.
Last but not least, only few quantities of Greek wines have entered the Indian market, but the silver lining is that the wine sector in India has been expanding at a rapid 25% annually during the last years. Greek wines need effective promotion in order to penetrate the market. Native Greek grape varieties or along combined with international ones can offer Indian consumers a distinctive and unique flavor profile.
What would you say are the biggest challenges for companies that want to do business in India?
The main obstacle for Greece, as well as for all European countries, is that Indians are highly protective of their domestically produced goods. This is reflected in high import tariffs, such as 150% on wines and 45% on extra virgin oil. Additionally, their system is extremely bureaucratic, making it essential for companies to partner with a reliable local importer.
To improve our access to the market, the EU has initiated negotiations for a Free Trade Agreement with India, focusing on market access and more. We are watching closely to see the outcomes of these negotiations.
Furthermore, especially for fruit and vegetable exports, phytosanitary measures present an additional challenge. For anyone planning to start exporting to India, it is essential to initiate specific agreements with Indian authorities, a process that generally requires a long – term commitment.
Can you share with us some targeted actions that Greek companies could take in order to enter Indian market?
First of all, I would like to point out that our Office, as the Economic and Commercial Affairs Office of Embassy of Greece in India, is ready to offer any assistance needed to Greek companies willing to do business here. Some targeted actions for entering and establishing a strong market presence include:
Participation in International Food and Beverage trade shows as exhibitors and visitors, is a must for the Greek exporters in order to gain access in the Indian market. Renowned trade fairs not only provide an ideal platform for gaining significant exposure but offer unique networking opportunities as well. Our Office can guide you to the appropriate fair for you, whether it is in the food sector or the wine sector.
Organizing Delegations and Events: Small Greek delegations (up to 9-10 companies) can arrange B2B meetings through the Embassy or the Food Importers Association’s offices. A group seminar and five guaranteed business meetings with potential Indian partners cost approximately €6,000 per delegation (not taking into consideration the cost of premises, if other than the premises of the Embassy or the Food Importers). Additionally, a Greek cuisine event hosted by the Embassy featuring dishes made from Greek ingredients and attended by local media and chefs would also cost about €6 to 7,000.
Collaborations with Chefs and Authors: Encouraging local chefs and food writers to feature Greek cuisine and to match Greek products in the Indian cuisine can help build demand for Greek products among Indian consumers.
Are you optimistic concerning F&B products in India?
While there are some objective challenges, the potential in a market like India, are highly promising, with an overall country growth rate of 8% annually. Also, as I have mentioned earlier, India’s food and beverage market alone is growing at an impressive rate of 11% per year, a rate that is expected to continue long-term.
Greek companies should keep in mind that the socioeconomic class capable of purchasing imported products ranges from 20 to 100 million Indians for the time being, but that number is increasing fast. These consumers with diverse income levels are open to acquiring products from abroad. According to recent research, the most affluent are particularly interested in iconic, healthy, and trend-setting branded products. This combination creates both opportunities and challenges for Greek products in the Indian market.
Embassy of Greece in New Delhi
Office for Economic and Commercial Affairs
EP-32, Dr S. Radhakrishnan Marg, Chanakyapuri,
New Delhi 110021, India
Tel.: +91 11 26880705
E-mail: ecocom-newdelhi@mfa.gr