EAI’s BioBiz division offers specialized market understanding and technical feasibility assistance for companies keen on benefitting from the opportunity that bagasse and other bio-based foodware products offer.
About the Bio-based Foodware Business Opportunity
Bio-based foodware products include plates, cups, forks, spoons and other items that are used for food and beverage consumption. These are of the use-and-throw variety, and hence are a suitable substitute to the plastic-based foodware currently in use.
While the most popular bio-feedstock used is bagasse, other feedstock (rice husk, wheat straw, arecanut leaves…) are emerging as well.
Who Will Benefit from the Opportunity?
Entrepreneurs keen on entering an attractive business opportunity that is also environment friendly will find this opportunity productive and valuable.
This opportunity could be of specific interest to the following companies:
- Businesses already operating in the food, travel and hospitality sectors.
- Businesses that already have a considerable retail network (large dealers, distributors of consumer products, for instance)
- Businesses that are in the agriculture and crops processing sectors (sugar, vegetable oil, processed foods, diary, sugar, paper and pulp…)
- Businesses in the plastics and chemicals industries
- Other companies that can invest reasonable amounts in a manufacturing set up and distribution network for moulded products
Why is this Opportunity Attractive?
- Plastics-based foodware abound worldwide. India alone uses and throws away over 120 billion (about 12,000 crore) plastic-based foodware products such as plastic cups, plastic plates, spoons etc. A large portion of these end up in the soil, in lakes, rivers and oceans and result in significant pollution.
- Equivalent foodware products based on biomass such as bagasse and rice husk are suitable substitutes for these products, and these are fully eco-friendly as they are completely degradable within a few months.
- At even 50 paise per piece, plastic foodware market accounts for about Rs 6,000 crore per year and increasing every year. If bio-based foodware could replace a significant percentage of the market in the coming years, that could be a big market indeed for those investing this sector.
- There’s hence a significant interest among businesses, end users and government for the production and use of bio-based foodware products. This hence constitutes an attractive business opportunity.
Interested in taking consulting assistance from EAI’s BioBiz team for the bio-based foodware business opportunity?
Send an email to consult@eai.in Or talk to Muthu +91 9952910083
How Can BioBiz Consulting help you in this Opportunity?
EAI’s BioBiz consulting division has a dedicated focus on biomass based business opportunities. For the biodiesel business opportunity, our team can assist you on the following:
- Market potential analysis
- Current market size, growth and estimates for future growth
- Analysis of Attractive Market Segments
- Detailed analysis of growth potential in the key end use segments such as hotels, restaurants and other food & hospitality segments, as well as emerging nicheswithin and outside these segments
- Supply and demand analysis
- Competitor analysis
- Competition from Indian companies
- Companies from outside India – specifically Chinese companies
Detailed analysis of raw materials / feedstock
- Bagasse
- Wood Pulp
- Rice Husk
- Wheat Straw
- Areca Leaves
- Other sources
- Drivers for bio-based foodwareuse – and what these drivers mean for an investor
- Constraints for growth – and what the key levers are to overcome these constraints
- Current market structure and its dynamics – characteristics of incumbents, supplier and buyer bargaining power, price elasticity for the various buyer segments…
- Government policies and regulations on bioplastics production and sales and how these can influence the growth of bio-based foodware market
- Financial and non-financial incentives/support for bio-based foodwareproduction and supply
- Detailed inputs on taxes – for both raw materials and end products
- Analysis of current logistics and distribution channels
- Analysis of other related marketing strategies being pursued by current supplier
- Detailed inputs on costs
- Project costs - capital and other starting costs
- Operational costs – conversion costs
- Cost of finance
- Inputs and insights on profit margins of the incumbents
- Past and current data for profit margins, for various segments
- Estimates for future profit margins
- Financial viability analysis
- Scenario and sensitivity analysis
- Production processes and technologies used
- Technology for upstream production – bagasse pulp making plant, for instance
- o Technology and machinery for downstream production – moulding equipments and machinery, for instance
- Infrastructure and supporting facilities required for setting up a plant
- Suppliers of technology and machinery for the various stages
Interested in taking consulting assistance from EAI’s BioBiz team for the bio-based foodware business opportunity?
Send an email to consult@eai.in Or talk to Muthu +91 9952910083
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