by
New Delhi: Access to Nutrition Initiative (ATNI), an independent global non-profit organization dedicated to catalyzing market transformation for improved access to nutrition, hosted a multi-stakeholder event to launch its third edition of the India Index, in partnership with Consumer Voice and Confederation of Indian Industry.
The India Index 2023 edition assesses 20 of India’s largest food and beverage manufacturers. 14 of the companies are listed on Indian or international stock exchanges.
Full list of companies assessed:
Adani Wilmar; Agrotech foods; British Industries; Coca-Cola India; Dabur India; Gujarat Cooperative Milk Marketing Federation (GCMMF) AMUL; Haldiram’s Snacks Private Limited; Hatsun Agro Products; Heritage Foods; Unilever Hindustan; ICT; KMF Nandini (Karnataka Milk Producers Cooperative Federation); Lactalis India; Marico; Mondelez Foods India; Mother Dairy Fruits & Vegetables; Nestlé India; Parle Products; Patanjali Foods; PepsiCo India.
Context
Business is booming in India, especially in the food sector.
- The Government of India aims to double the contribution of the food processing sector to GDP by 2030.
- Indian household consumption is set to quadruple by 2030.
- Packaged F&B sales in India have grown by 15% annually since 2011, outpacing total food sales.
In addition to India’s rapid economic growth, the country is also witnessing a shift in dietary patterns and increased consumption of processed foods. India’s food processing industry is now the sixth largest in the world, expected to reach INR 40.1 trillion (USD 480 billion) by 2026.
The Health Landscape: Micronutrient deficiencies are very common, with over 23% of overweight adults and 35.5% of children under the age of five experiencing stunted growth, and 3.4% of children under the age of 5 years d ‘age dealing with severe problems that start early. The numbers are too high compared to developed nations.The macroeconomic cost of malnutrition on India is enormous.
- The indirect cost to businesses in India due to reduced labor productivity associated with obesity is estimated to be USD 75.65 billion by 2030 (World Obesity Federation).
- Reduced workforce productivity due to anemia – just one form of malnutrition – is costing Indian businesses $20.5 billion per year (Chatham House).
The global cost of malnutrition: while the cost of global food consumption is c$9 trillion, the estimated cost of human life due to poor diets is $11 trillion.
Key Findings
The Food and Food industry is playing an increasingly important role in determining what consumers in India eat, the quality of their diets, and the resulting health impact.
Companies and products are changing: Seven out of 20 indexed companies are on a journey of transformation, setting formulation (re)targets according to the dietary guidelines for sodium, saturated fat and sugar. Half of them will adopt nutrition strategies, which shows a commitment to a healthier tomorrow.
Our dive into 1,901 products from the top 20 companies shows that only 24% of sales are derived from “healthier” products.
Other Key Points
Ø There is no agreed definition of what healthy food is and therefore companies use their own definitions which do not necessarily align with each other or with national (inter)recognised standards.
Ø Seven out of 20 indexed companies report that they have at least one (re)formulated (re)target in place to reduce nutrients of concern (eg, sodium, saturated fat, sugar) in their portfolio and half have a nutritional strategy in place the companies.
Ø Seven companies have a publicly available policy on responsible marketing to children.
Ø Five companies show evidence of clearly defined workforce development programs in place, and two companies clearly include measurable goals.
Ø Seven out of 20 companies were found to have a responsible advocacy policy in place.
Ø The India Index 2023 results show that the F&B industry has significant opportunity to improve their product offerings making them healthier and more affordable for all Indian consumers.
Ø Five institutional investors and shareholders of food companies in India have now signed up to nutrition frameworks such as Investor Outlook on Nutrition, Diets and Health as part of their responsible investment strategies.
In line with the Sustainable Development Goals (SDGs) aimed at addressing undernutrition and hunger, the India Index serves as a critical instrument for improving product portfolios, requiring at least half of those portfolios to meet healthy standards. reach by 2030.
Greg S Garrett, Executive Director, ATNI, said, “ATNI works on three levels to transform markets and achieve improved access to healthier products and diets: tools including benchmarks and indices that assess the private sector on their promises and nutritional products; policy support and alliances including through ATNI Investors in Nutrition and Health; and action research that underpins change in the nutrition market. This India index will act as a powerful catalyst to drive positive change within the food and beverage industry in India. By focusing on private sector contributions to diet, nutrition and health, the Index provides insight into what is and isn’t working in the food industry. It’s exciting to see efforts aimed at driving real impact and fostering a more conscious and health-focused approach within the industry.”
