The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment. The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020.
Food Industry Exports
During 2017, India's exports of processed food and related products grew at a CAGR of 11.74 per cent, reaching US$ 16.2 billion. Main export destinations for food products have been the Middle East and Southeast Asia. In FY17 India’s exports stood at US$ 1.3 billion. The industry is presently valued at $39.71 billion (Rs 2,476.8 billion). Food and grocery constitute a substantial part of India's consumption accounting for around 31 per cent of the consumption basket.
Online Food industry
The online food ordering business in India is in its nascent stage, but is witnessing exponential growth. Many online food delivery businesses are getting started, though they are like babies taking adult-steps. The online food delivery industry grew at 150 per cent year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300 million in 2017.
Food Processing Industry
The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US$ 7.54 billion worth of Foreign Direct Investment (FDI) during the period April 2000-March 2017. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment for the Indian populace. This industry is growing at around 10% and contributes to 9-10% of manufacturing GDP in FY 2017 .
Forecast for the Industry
The country's food industry is expected to grow 11 per cent annually to reach $65.4 billion (about Rs 4 lakh crore) by end of 2018, according to a research report.