"Fueled by urbanization, busy lifestyles, and a growing middle class, Bangladesh's ready-to-eat processed food industry is experiencing a culinary revolution. From frozen curries to instant noodles, convenient and flavorful options are taking center stage, transforming mealtimes and creating exciting opportunities for entrepreneurs and established players alike."
Most often when we talk about processed foods, packages sausages, instant noodles, deli meats come to mind. Whereas in general, a processed food is any food that has been altered from its natural state. This can involve a wide range of techniques, from simple ones like washing and cutting to more complex methods like canning, freezing, cooking, drying, fermenting, adding preservatives, or combining ingredients.
The packaged food market in the country was estimated to be worth Tk 5.2 billion in 2018 and is expected to increase at a rate of 6% to reach Tk 7.3 billion in 2023, according to BIDA. The food processing industry in Bangladesh employs over 20% of the working force, accounts for over 22% of production, and contributes 2% of GDP, according to the business review published by IDLC Finance. The sector produces a broad variety of goods that are exported to 70 nations, mostly in Asia and Africa. Of the 1,000 food processors in the nation, 10% are large or medium-sized enterprises. It is anticipated that the markets for snacks, dairy products, and edible oils will expand by roughly 6% a year, while those for processed fruits and vegetables, seafood, and meats will likely increase by 8%, 13%, and 13% respectively.
Bangladesh's export potential is increased by its abundance of agro-resources and cheap production costs. The dairy sector has developed, now ranking 25th in the world for milk production with a 91% self-sufficiency rate. In the last ten years, milk output has climbed by 18%, but demand has increased by 13%. The packaged brands in the edible oil industry are expected to reach a volume of 900,000 MT, with 69% of the market being fortified above minimal norms.
Because of the enormous population and growing demand for processed goods, the market for frozen and ready-to-cook foods is growing. The industry faces difficulties with outmoded technology, ineffective marketing, variable raw material quality, and limited infrastructure. Future expansion in the business will be fueled by the growing middle class and rising processed food consumption.
The growing consumer interest in product sources and production processes is driving up demand for organic items in the shrimp business. The market for organic shrimp is predicted to rise at a compound annual growth rate (CAGR) of more than 7% as a result. Manufacturers who concentrate on enhancing packaging to extend shelf life are probably going to gain. The advantages of eating organic shrimp are becoming more widely recognized, making the Asia-Pacific area the most alluring market.
As the numbers above show, the growing dependence on processed food is a complex issue driven by multiple factors, both personal and societal:
Convenience and Time:
i. Busy lifestyles: In today's fast-paced world, many people lack the time or energy to cook elaborate meals from scratch. Processed foods offer convenience and ease of preparation, saving time and effort.
ii. Long shelf life: Processed foods have much longer shelf lives than fresh ingredients, minimizing waste and reducing the need for frequent grocery shopping.
iii. Accessibility and Affordability: Processed foods are often readily available and affordable compared to fresh ingredients, especially in areas with limited access to local markets or fresh produce.
Marketing and Consumer Preferences:
i. Heavy marketing: Food companies spend billions on marketing processed foods, targeting specific demographics and using attractive packaging and messaging to influence consumer choices.
ii. Sensory appeal: Processed foods are often engineered to be highly palatable, with high levels of sugar, fat, and salt, triggering the brain's reward system and creating cravings.
iii. Variety and novelty: The food industry constantly innovates and introduces new, exciting flavors and combinations in processed foods, appealing to consumers seeking diversity in their diets.
Societal Changes and Trends:
i. Urbanization: As more people move to cities, access to fresh food sources gets limited, and reliance on processed options increases.
ii. Dual-income families: With both parents working in many households, time for cooking often gets reduced, leading to dependence on convenience options.
iii. Changing cultural norms: Traditional food preparation skills and knowledge may be declining, especially among younger generations, making processing a seemingly easier alternative.
Global Economic Factors:
i. Industrial agriculture: Large-scale, industrialized agriculture favors crops suitable for processing, like corn and soybeans, impacting the availability and affordability of fresh produce.
ii. International trade: Global trade agreements and food processing technology allow processed foods to travel further and remain affordable, increasing their reach and dependence.
Focusing on local pride, here are some leading Bangladeshi brands conquering the processed food scene based on some Sub categories of Processed food that are gaining heightened demand in bangladesh:
Ready-to-Eat Meals:
PRAN Foods: Their ready-to-cook dals, curries, and biryani mixes offer convenience and familiar flavors like "Doi Maach" and "Chicken Korma," popular among busy households.
Kazi Food Industries: Kazi foods has garnered a name for itself in Bangladeshi Households for their ready to eat snacks and meals like Spring rolls, Parathas (Flatbreads), French Fries, Samosas and Puris.
Bashundhara: Bashundhara offers a wide array of processed food items, ranging from staples like atta and noodles to snacks like Toggi chips and Toggi chanachur, to condiments like oil, spices, noodles and pasta. Their ready to eat rotis are gaining popularity in Bangladesh amongst the busy households.
Processed Meats:
Bengal Meat: They offer frozen processed meats like sausages and nuggets, introducing cold cuts, Cordon bleu, Drumsticks, Patties and other western meat products into the country. Bengal Meat Processing Industries Ltd. is the leading export-oriented meat processing company in Bangladesh. They are known for their high-quality beef, mutton, chicken, and other meat products produced under international standards. They also sell canned tuna.
Aftab Chicken Limited: Major processor and exporter of frozen chicken products, operating across multiple districts in Bangladesh. Other than the mainstream Products like nuggets and Patties, they sell Chicken Lollipop, Chicken Singara & Samosa, Chicken Roll, Popcorn Chicken, Kabab (Various kabab options like Seekh Kabab and Chicken Tikka Kabab).Focusing on antibiotic-free and nitrate-free options.
Spring Harvest Agro Processing Ltd.: Processes and exports frozen chicken and shrimp, with emphasis on halal certifications and international standards.
Square Food & Beverage Ltd.: Compared to other major players in the market, Square's processed meat offerings are relatively limited. They focus more on spices, edible oil, and other food items. They sell mainstream meat items like sausages, nuggets, Salami etc.
Dairy and Spreads:
Pran Dairy: With their Milkmaid brand, Pran offers milk, butter, cheese, and yogurt. Their affordable options and familiar flavors like "Sondesh Mishti Doi" make them a popular choice. They also produce a range of Sauces.
Akij Group: Offers pasteurized milk, yogurt, and paneer under the "Farm Fresh" brand. With a Strong presence in northern and western regions.
Rangpur Dairy And Food Products: While offering similar products, RD dairy Focuses on using milk from local farmers in Rangpur. Primarily serving the northern region.
Aarong Dairy: Owned by BRAC, a leading development organization in Bangladesh. Emphasizes sourcing milk from smallholder farmers and fair trade practices. Offers pasteurized Flavored milk, yogurts, cheese, and butter under the "Aarong" brand.
Snacks:
PRAN Foods: This undisputed giant offers biscuits, cookies, chips, noodles, juices, and various ready-to-eat meals. Their wide variety, affordability, and familiar flavors like Nimki and Chana Chur make them a national treasure.
Akij Food & Beverage: Akij produces chips Like Cheesepuffs, Jhal Muri, Peanuts etc. They cater to younger demographics with contemporary branding and flavors like "Spicy Mango Tango."
ACI Foods: Their popular ACI Fruit Drinks and Sip juices like Sunquick offer refreshing options. They also produce cookies and biscuits under the "Fresh" brand.
Meghna Food Industries Ltd.: Their "Meghna" brand dominates the biscuit market with offerings like Butter Cookies and Glucose Biscuits. They also produce popular potato chips under the "Snack Time" brand.
Saus Taus: Saus Taus is a relatively new Bangladeshi company founded in 2020 that focuses on cloud-kitchen based sauces, mayonnaise & condiments. Their aim is to transform the variety in taste experience of Bangladeshi households by offering fusion flavors and reducing the country's dependency on imported sauces and condiments. They currently offer over 16 unique flavors of sauces and mayonnaise, ranging from Achari Chilli and Tetulli (popular local flavors) to Sriracha Mayo and Creamy Pesto (fusion options).
Foreign processed food brands have made significant inroads into the Bangladeshi market in recent years, offering a wider variety of options and catering to evolving consumer preferences. Here are some notable examples:
Nestlé: This Swiss multinational giant enjoys immense popularity in Bangladesh with its diverse product range, including chocolates like KitKat, Munch, and Milkybar; coffee like Nescafé; and Maggi noodles.
PepsiCo: Another major player, PepsiCo, offers potato chips under the Lays brand, Kurkure, Quaker Oats are some of the products widely recognised in Bangladesh.
Kellogg's: This American brand is famous for its breakfast cereals like Corn Flakes and Frosted Flakes, enjoyed by many Bangladeshis.
Britannia: This British company is known for its biscuits like Good Day, Marie, and Bourbon, popular for their affordability and taste.
Kraft Heinz: The American food company offers its iconic Heinz ketchup and Philadelphia cream cheese in Bangladesh, catering to Western-inspired culinary preferences.
McCain: This Canadian company provides frozen potato products like fries and wedges, a convenient option for busy households.
Marico: This Indian company's Saffola brand offers ready-to-cook Indian meals like biryani and dal makhani, appealing to Bangladeshis with a taste for South Asian flavors.
Not all processed foods are bad. Minimally and moderately processed foods can be part of a healthy diet, especially if you choose options with good nutritional profiles. However, it's essential to be mindful of ultra-processed foods, as their excessive consumption is linked to health issues like obesity, heart disease, diabetes, and certain cancers.
Nutritionally Deficient:
Loss of nutrients: Processing, especially high-heat treatments, can degrade essential vitamins, minerals, and antioxidants naturally present in whole foods. This can lead to deficiencies over time, impacting overall health and well-being.
Low in fiber: Many processed foods are stripped of their natural fiber content, crucial for gut health, digestion, and preventing chronic diseases.
Added sugars and unhealthy fats: Ultra-processed foods are often loaded with added sugars, saturated fats, and trans fats, contributing to weight gain, obesity, and increasing the risk of chronic diseases like diabetes and heart disease.
Increased Health Risks:
Obesity and metabolic syndrome: High consumption of processed foods is linked to an increased risk of obesity and metabolic syndrome, a cluster of risk factors like high blood pressure, insulin resistance, and unhealthy abdominal fat, raising the risk of chronic diseases.
Cardiovascular disease: Unhealthy fats, sodium, and added sugars in processed foods can contribute to high blood pressure, cholesterol levels, and inflammation, increasing the risk of heart disease and stroke.
Type 2 diabetes: The high sugar and refined carbohydrate content in processed foods can disrupt blood sugar regulation and increase the risk of developing type 2 diabetes.
Digestive issues: Processed foods often contain artificial ingredients and additives that can disrupt gut bacteria balance, leading to digestive problems like constipation, bloating, and irritable bowel syndrome.
Certain cancers: Studies suggest a potential link between high consumption of ultra-processed foods and an increased risk of certain cancers, although more research is needed.
Other Concerns:
Food addiction: The combination of sugar, unhealthy fats, and artificial flavors in processed foods can trigger the brain's reward system, leading to cravings and potential food addiction, making it difficult to control intake.
Social and environmental impact: The reliance on processed foods can contribute to environmental issues like deforestation, water pollution, and greenhouse gas emissions associated with industrial agriculture and food processing.
Contact us today to schedule a free demo of FLOW - your all-in-one business management tool.
