AAK has recently introduced AkoPlanet, a platform for development of Plant Based Food in various sub segments as meat, dairy, frozen desserts, beverages etc. Its local arm, AAK Kamani, (formed by the coming together of AAK and Kamani Oil Industries) is a leader in manufacturing of vegetable oils and fats. In an exclusive interview with The Organic Magazine, Dheeraj Talreja, President, AAK Kamani speaks about the plant-based food market in India
The plant-based foods market in India vis a vis its global counterpart?
The global market share of plant-based foods is projected to reach US$ 10,892 million by 2022 with a CAGR of 6.7 per cent. Out of this, the Asia-Pacific region is expected to register the highest CAGR within this segment at 6.3 per cent by 2025. Consumer interest in plant-based foods has been on steady rise over the past few years. The growth is driven by focus on health, sustainability and no cruelty to animals.
We hear the terms veganism, vegetarianism and flexitarian much more today than we did about ten years ago. Consumers today have greater access to product and company information and this enables them to make ethical and environmentally conscious decisions. There is an increased awareness of the impact of our food on the ecosystem and consumers want to be able to make the right choices for themselves and their families. Another upcoming trend is that of the ‘Clean Label’. Clean label foods have easy to recognise ingredients that are natural, non-GMO, unprocessed and contain no synthetic chemicals. Health food brands and companies are incorporating this concept through their offerings, products, and ethos. The Asia Pacific clean label market has registered an increase of 7.4 per cent, making it the fastest-growing clean label market in the world. This indicates that plant-based foods market is growing rapidly among the Indian diaspora.
Your collaboration with Good Food Institute?
AAK Kamani recently partnered with the Good Food Institute (GFI) India to collaborate on development of Plant Based Food eco system. It is aimed at advancing projects in Plant Based Food space. According to Innova Market Insights, the Plant-Based Revolution ranks second out of the top ten food trends for 2020. With the support from Good Food Institute India, AAK Kamani will provide “co-development expertise” to guide companies on how to accelerate the formulation of new products, with a particular focus on achieving optimal texture and appealing to local tastes.
AAK Kamani has also introduced AkoPlanet, a platform for development of Plant Based Food in various sub segments as meat, dairy, beverages, etc. AkoPlanet focuses on the co-development facilities for customer innovation and collaboration, keeping sustainability at its core. The project’s mission is to develop great-tasting plant-based food made with love for People, Plant and the Planet.
Any investment in enhancement of production capacities to meet new product extensions?
Our production plant is capable to product specialty oil and fats required for Plant Based food segment. We are considering building additional capabilities in our Customer Innovation centre to support growth of Plant Based food segment.
As immunity boosters are the trend now, how is AAK Kamani promoting the health benefits of vegetable oils?
Vegetable oils such as mustard seed oil, peanut oil, sunflower oil, and coconut oil have traditionally been part of our everyday diet across cultures. Be it sautéing, frying or coating, vegetable oils are one of the most common cooking oils used in our kitchens. We often underestimate the benefits associated with locally produced oils. A Harvard University-backed EAT Lancet report released earlier this year, highlights plant-based vegetable oils provide the right amount of nutrients needed to maintain the body’s optimum functioning at a cellular level. Replacing saturated fats with an unsaturated option has extraordinary health benefits. Moreover, majority of the vegetable oils in India are fortified with vitamins, including vitamin A & D, which are essential for enhancing overall health and well-being. Our applications such as Foodlite, Frywell and Komal used for daily cooking providing essential fatty acid (EFA) thereby increasing immunity and providing the required health benefits to individuals.
Is India self-sufficient or Atmanirbhar in vegetable oils?
At US$ 10 bn, edible oil imports account for the largest portion of India’s Agri-Import bill. If India wants to be self-sufficient in agriculture, oil palm or oil seeds have to be given an additional boost. We need to focus on the need to create self-sufficiency by creating competitive advantage through augmenting productivity and increasing recovery ratio of oil from oilseeds, and in case of palm oil, from fresh fruit bunches.
At present, local palm oil production is only 0.25 mt. India can potentially cultivate oil palm in 1.9-2 million hectares giving 7.5-8 mt oil, however since the trees take four years to grow and yield fresh fruit bunches, we need to plan now. Oil palm should be declared as a plantation crop and exempted from land ceiling laws to attract investments from corporates. While mustard, sunflower, groundnuts, cottonseed have the potential to increase oil production to some extent, the real potential lies in tapping oil palm. This is the only plant that can give about four tonnes of oil on a per hectare basis.
Edible oils market is forecast to grow at a CAGR of 4.7 per cent from 2019 to 2025. Will Covid-19 change this forecast?
In a little under three decades, India has become the largest buyer of vegetable oils in the world. The rising urban population, changes in consumption patterns and domestic production that has failed to keep up with the demand have been major contributors to the country’s increasing import of edible oils. Consumption of edible oil in India is dominated by palm oil.
Going into the new normal post Covid era, we will need to evolve into more efficient operations. The companies who are investing and making best use of existing time is going to survive in the long term.
