India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

Food Preferences
<strong>India</strong> is a country <strong>of</strong> diverse food preferences that vary by region, religion, <strong>and</strong> income
group. 36 One <strong>India</strong>n industry <strong>of</strong>ficial stated that “there are different consumer preferences
every 50 kilometers.” 37 <strong>India</strong>ns typically consume unprocessed fresh foods with
traditional ingredients, such as food grains, pulses, potatoes, edible oils, <strong>and</strong> <strong>India</strong>n
spices. 38 Many fresh foods are seasonal, <strong>and</strong> consumers adjust their diets to what is
available. 39 A preference for fresh foods also applies to items such as meat, which is
usually bought freshly slaughtered. Anecdotal evidence suggests that <strong>India</strong>ns, even those
with financial means, regularly tend to eat a relatively narrow variety <strong>of</strong> foods. 40
<strong>India</strong>n food consumption patterns generally change for holidays, which include festivals
such as Diwali, 41 <strong>and</strong> special occasions, such as weddings. During the fall festive season,
dem<strong>and</strong> peaks for specialty <strong>and</strong> high-value foods. 42 These special foods include <strong>India</strong>n
sweetmeats as well as a variety <strong>of</strong> imported foods, such as chocolates, nuts, baked goods,
<strong>and</strong> exotic fruits <strong>and</strong> juices. Outside <strong>of</strong> special occasions, as noted earlier, rising incomes
have driven a generally steady rise in the consumption <strong>of</strong> nonstaple items, such as fruit,
vegetables, <strong>and</strong> meat. 43
Although <strong>India</strong>ns may be slow to change their traditional diets, some multinational food
companies are finding gradual success in the <strong>India</strong>n market. 44 Generally, Western-style
foods have been slow to penetrate the <strong>India</strong>n market because <strong>of</strong> consumer preferences for
fresh products <strong>and</strong> traditional ingredients. 45 Some multinational franchises (e.g.,
McDonald’s, Pizza Hut, <strong>and</strong> Subway) have exp<strong>and</strong>ed their presence in <strong>India</strong>, with menus
<strong>of</strong>ten altered for <strong>India</strong>n tastes. For example, these restaurants serve no beef <strong>and</strong> little, if
any, pork in their <strong>India</strong>n outlets. 46 Other adjustments include giving higher prominence to
dairy products <strong>and</strong> spicy foods, as well as developing unique products specifically for the
<strong>India</strong>n market. 47 The trend toward higher incomes <strong>and</strong> the large number <strong>of</strong> young adults
36 Industry representative, interview by Commission staff, Washington DC, April 30, 2009.
37 Industry representative, interview by Commission staff, Mumbai, <strong>India</strong>, June 1, 2009.
38 EIU, <strong>India</strong> Food, November 11, 2008; Singh, <strong>India</strong>: Retail Food Sector, December 21, 2006, 5; <strong>and</strong>
Govindan <strong>and</strong> Dhankar, <strong>India</strong>: Exporter Guide, October 1, 2008, 5.
39 Singh, <strong>India</strong>: Retail Food Sector, December 21, 2006, 5; Govindan <strong>and</strong> Dhankar, <strong>India</strong>: Exporter
Guide, October 1, 2008, 5.
40 Industry <strong>of</strong>ficial, interview by Commission staff, New Delhi, <strong>India</strong>, May 9, 2009; government <strong>of</strong>ficial,
interview by Commission staff, New Delhi, <strong>India</strong>, May 26, 2009.
41 Diwali (the festival <strong>of</strong> lights) is one <strong>of</strong> the most important Hindu holidays <strong>and</strong> occurs in October or
November.
42 Singh, <strong>India</strong>: Retail Food Sector, December 21, 2006, 5; Govindan, <strong>India</strong>: Exporter Guide, October 1,
2007, 5; <strong>and</strong> Govindan <strong>and</strong> Dhankar, <strong>India</strong>: Exporter Guide, October 1, 2008, 5.
43 USDA, ERS, Prospects for <strong>India</strong>’s Emerging Apple Market, January 2006, 5.
44 Reportedly, <strong>India</strong>n consumer preferences are slow to change, <strong>and</strong> it can take five to seven years for
them to do so. Industry <strong>of</strong>ficial, interview by Commission staff, Mumbai, <strong>India</strong>, May 12, 2009.
45 Singh, <strong>India</strong>: Retail Food Sector, December 21, 2006, 5; Govindan <strong>and</strong> Dhankar, <strong>India</strong>: Exporter
Guide, October 1, 2008, 5.
46 Industry representatives, interview by Commission staff, Mumbai, <strong>India</strong>, May 12, 2009, <strong>and</strong>
June 2, 2009; industry representative, interview by Commission staff, New Delhi, <strong>India</strong>, May 8, 2009.
47 Industry representative, interview by Commission staff, Mumbai, <strong>India</strong>, May 12, 2009; industry
representative, interview by Commission staff, New Delhi, <strong>India</strong>, May 8, 2009.
3-13