The Indian Food Processing Industry has huger growth potential and contributes a significant share to the global trade. In India, it happens to a high-profit industry.
The Indian Food Processing Industry accounts for about 32 per cent of the country’s total food market.
The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. 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 in the next financial year.
The online food delivery industry is also growing rapidly, particularly after the Covid lockdown restrictions.Industry Investments
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 of nine million person-days.
By 2025, India’s food processing sector is expected to be worth over half a trillion dollars
By 2030, Indian annual household consumption to treble, making India the 5th largest consumer.
India’s food processing sector is one of the largest in the world and its output is expected to reach $ 535 Bn by 2025-26.
The industry engages approximately 1.93 mn people in around 39,748 registered units with fixed capital of $32.75 bn and aggregate output of around $158.69 bn. Major industries constituting the food processing industry are grains, sugar, edible oils, beverages and dairy products. The key sub-segments of the Food Processing industry in India are Dairy, Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, etc.