Thesis Report on Market Overview of Food and Beverage Industry in Bangladesh .

Abstract

Food and beverage industry is one of the fastest growing industries around the world as food is humans‘ most basic necessity. Though this industry is growing on a moderate level in US, it is the largest industry in Europe. There is high competition in this industry. Though most companies in this sector are SMEs, a few large companies are contributing by doing merger and acquisition, vertical integration and expending into overseas market to increase their sustainability and efficiency. The large companies in this sector are- Nestlé, Kraft Foods, Unilever and Cargill. Alongside US and EU, emerging economy for food and beverage industry is China and India. They mainly provide the raw materials for this industry. Any Economic downfall may highly affect all other industry but food and beverage as it provides necessity product which people need to use even in heavy economic downfall. Being one of the fastest growing industries, this sector faces some issues such as technological development. Due to increasing completion the R&D of this industry should be well maintained which can be challenging to bring out new technologies to make the products sustainable and efficient. Manufacturers are expanding their market to developing countries such as China and Indian because of relaxed rules, large population, higher living standard and higher growth potentials. Food and beverage industry in Bangladesh is a potential sector and growing rapidly since 2000. This industry alone makes up 22% of the total manufacturing production in the country and around 2.45% of the country‘s total labor force. Bangladesh being an agricultural country with large population can contribute largely in the food and beverage industry. Bangladesh is also impacting global market by exporting food and beverage to 90 different countries in the world. But many issues in Bangladesh are holding back this industry, such as unstable political situation, high barrier to entry, corruption in the controlling quality and lack of technological development. In the context of Bangladesh, food and beverage industry is one booming industry to invest in. With the emergence of super shops concept and new technologies now many large companies are investing in this sector and exploring its potential. Thus this economic crisis immune industry has become one of the stable and sustainable industries in Bangladesh