As life gets harder, processed food makes it a little easier

As the shadow of artificial intelligence looms over your shoulder, there is little room for slacking off. Productivity and creativity are indispensable to staying relevant in a world threatened by machine learning. 

Balancing a 24-hour day with a demand that feels like 30 hours leaves little time for cooking and eating. Driven by this need for efficiency amidst our hectic lifestyles, the introduction of processed foods in our diets has surged.

Bangladesh's processed food industry, notably in the dairy and meat sectors, has witnessed remarkable growth, significantly augmenting per capita milk and meat consumption.

In 1971, our per capita daily milk consumption was only 17 millilitres, whereas demand was 250 millilitres; similarly, per capita daily meat intake was only 4 grams against a demand of 120 grams. 

But in recent years, both have seen significant rises.

From 125 millilitres of milk per capita in 2016 to 211 millilitres in 2023, and from 106 grams of meat per capita in 2016 to 137 grams in 2023, this rise does not only indicate the direct intake of proteins; a portion of it goes to the growing processed food market.

Walk into any supermarket in the country, glance through the glass cover of the refrigerator, and you will be allured with an array of processed, ready-to-eat foods from industry stalwarts such as Kazi Farms, Bengal Meat, Abdul Monem Limited, and Pran. These offerings span dairy products like cheese, yoghurt, and ice cream, as well as meat products ranging from processed chicken, beef, and mutton to ready-to-eat meals and frozen snacks like nuggets and chicken samosas.

The surge in demand for processed foods is propelled by shifting lifestyles, urbanisation, rising disposable incomes, and purchasing power, as consumers seek convenience, shelf stability, and nutritional value. This trend is expected to persist, driving further growth in the market.

Production figures reflect this momentum, with the dairy and meat sectors experiencing substantial expansion. Milk production surged to 140 lakh tonnes in FY23, while meat production reached 87 lakh tonnes — marking a significant rise from 60 lakh tonnes and 45 tonnes, respectively, in 2014. This upswing indicates a robust increase in domestic availability and export potential.

Commercial cattle farming has seen a significant increase. Production soared from 230 lakh tonnes in 2010 to 248 lakh in 2022, largely due to the expansion of large-scale beef cattle farming, which has bolstered the supply of high-quality meat and dairy products.

Therefore, many companies are racing to bag a piece of the 'processed food' pie.

Originally a hatchery for imported eggs, Kazi Farms has expanded into various sectors. Kazi Food Industries Limited, a part of the group, produces premium dairy ice cream under the brand name Bellissimo, along with a range of frozen food products.

Also, providing a diverse range of meat-based products catering to both domestic and international markets, Bengal Meat offers an array of beef products and ready-to-eat foods. Their ready-to-eat food lineup covers pretty much everything: Chicken Nuggets, Kebab, Chicken Spring Roll, Beef Halim, Chicken Drumstick, Beef Kala Bhuna, Mutton Rezala, Chicken and Beef Burger patties; you name it, they have it all processed.

Abdul Monem Limited is a significant conglomerate with diverse business interests. The company is mostly known for being the bottler of Coca-Cola and the producer of Igloo ice cream, one of Bangladesh's most popular ice cream brands. Additionally, the company has expanded its presence in the food sector with Igloo Foods, offering a range of dairy products and other food items.

Another key player in Bangladesh's dairy industry, RDFOOD, produces a variety of dairy products, including UHT processed full cream milk and flavoured milk.

As one of Bangladesh's largest food and beverage brands, Pran has a significant presence in the processed food market, offering a range of dairy products, snacks, and sweetmeats under its various brands, including Mithai, alongside frozen foods. 

All of these businesses are cashing in on the robust growth of our meat and dairy production. Annual milk output experienced exponential growth, escalating from 4.27 lakh tonnes in the mid-70s to 140.68 lakh tonnes by 2023. However, our dairy has yet to meet the per capita demand.

Simultaneously, chicken production witnessed a remarkable surge in the last two decades, making substantial contributions to the processed food market.

This surge in the processed food industry has become a boon for Bangladesh's economy, fostering job creation and bolstering GDP growth. In 2023, the contribution of animal farming to GDP reached Tk7366 crore, a significant increase, accounting for nearly 1.7% of the total GDP.

Government policies offering incentives to food processors and facilitating technology transfer and innovation further bolster the industry's expansion.

The ascent of the processed food industry not only ensures food security and diversifies dietary options but also enhances nutritional intake while bolstering economic development through job creation and revenue generation.

According to an IDLC business review, with over 20% of the workforce employed in food processing, this sector is a major economic engine. The ability to preserve and package local produce not only reduces food waste but also opens doors to international markets.

On top of everything, processed food comes as a breath of fresh air for working couples (especially for mothers in our social context); one can put some chicken spring rolls in the tiffin box: kids happy and parents are off to their race.

However, challenges such as ensuring quality and safety standards, addressing concerns about additives and preservatives, and optimising distribution networks need to be addressed to sustain this growth trajectory.

Looking ahead, the future of Bangladesh's processed food industry sizzles with potential. Experts predict significant growth in specific sectors like frozen foods and processed fruits and vegetables. By embracing innovation and overcoming existing hurdles, Bangladesh can truly transform itself into a powerhouse of delicious, high-quality processed food.