Food processing industry in India
The Indian market for ready-to-eat products is growing at a CAGR of 7.2%.
Contact our teamWith rising incomes and increasing demand for pre-packaged foods and drinks, especially among younger Indians, India’s food processing industry is growing steadily at a CAGR of 8%.
India is one of the world’s leading food producers, with a large and rapidly growing, local market. The retail market for food products is currently worth nearly 620 billion dollars, making it one of the largest markets in the world.
The Indian food processing industry is also evolving rapidly due to changing consumption patterns, increasing urbanization and an increase in food consumption. In addition to traditional Indian products, Indians are eager to explore other cuisines and are increasingly looking for convenience and ready-to-eat products.
As a result, the food industry in India is expected to reach 1.2 trillion dollars in sales by 2026.
Snapshot of India’s food processing industry
- India is one of the largest food and spice market in the world.
- India’s food processing sector is among the largest in the world, and production is expected to reach $535 billion by 2025-26.
- India’s food industry is growing at an average annual rate of about 8%. The sector contributes 14% to the GDP of the entire manufacturing sector and 13% to the country’s exports.
- India ranks 5th in terms of production, consumption and export of food products worldwide.
- The sector accounts for 11.6% of total employment.
- By 2030, the annual consumption of Indian households is expected to triple.
Growth drivers of India's food processing sector
- India’s consumer market is expected to consist of 773 million people by 2030, up 46 percent from 529 million in 2023.
- The Indian government has allocated 146 million dollars under the Production-Linked Incentive (PLI) program for food products.
- 41 Mega Food Processing Parks, 353 Cold Chain projects, 63 Agro-Processing Clusters, 292 Food Processing Units, 63 Creation of Backward & Forward Linkages projects and 6 Operation Green projects across the country have been approved.
- India’s organic food market is expected to triple, from 1.6 million dollars in 2023 to 8.9 million by 2032.
- Online ordering of food and groceries in India is growing exponentially at a CAGR of about 50%. In 2020, the market was still worth 2 billion dollars, but by 2025 it will be about 12 billion dollars.
Interesting investment opportunities
- Processed forms of fruits and vegetables such as juices, jams, jellies, purees, soups, powders, dried, cut or chopped vegetables and ready-to-eat curries.
- Ready-to-eat products, both fresh and frozen, that are easy to consume.
- Fermented products such as wine, beer, vinegar, yeast, and alcoholic beverages.
- Infrastructure linked to the supply chain, such as cold stores, slaughterhouses, and food parks.
- Modern systems for pasteurization and sterile packaging of dairy products, among others.
Do you have a specific question about opportunities for your company or product in the food processing industry in India?
