Food processing industry in India
The food processing industry is constantly growing in India. With rising incomes and growing demand for pre-packaged food and beverages, especially among younger Indians, this industry need not fear recession. The sector is not dependent on imports, due to the wide variety of products that can be grown in India.
The food processing industry is an important part of the Indian economy, so the Indian government set up 18 Mega Food Parks and is working on 134 cold chain projects to improve the supply chain infrastructure. This initiative by the government will give a boost to the food processing industries.
Furthermore, the Indian government, in its 'Make in India' campaign, has identified expansion of the food processing sector as a priority and is therefore promoting investment in the sector to promote growth.
Market statistics on food processing sector in India
The food processing sector accounts for 32% of the total food market.
The Indian food industry is growing by 11%. It contributes 14% to manufacturing GDP and 13% to exports.
The food processing industry is one of the largest industries in India. Moreover, India ranks 5th in terms of production, consumption and exports worldwide.
The sector has an 11.6% share of total employment.
By 2030, the annual consumption of Indian households is expected to triple, making India the fifth largest consumer.
The food processing industry will potentially attract $33 billion in investments. Moreover, the sector is expected to generate employment for 9 million people by 2024.
Covid-19 Impact
The impact of the pandemic on the food processing sectors remained low, as the sector was classified as a key industry and could therefore continue to operate.
The Covid lockdowns have introduced the use of frozen products and meals and have increased the demand for ready-to-eat products, specifically in urban areas. The pandemic has given rise to a new normal with more sustainable food chains, a growing preference for healthy food and a localised food supply.
In addition, growth is expected in the coming years in related industries such as food processing equipment and food logistics.
Growth drivers of the Indian food processing sector
Organised retail is growing and there is increasing urbanisation.
India is the 6th 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.
Turnover is expected to show an annual growth rate of 16.7%.
Indian organic food market expected to triple
The consumer market is expected to grow by 34.1% by 2024.
Online ordering of food in India is growing exponentially.
The major players in the food processing industry in India
National food processing companies in India
Kissan
Amul
Godrej Industries
Parle Agro
ITC Ltd.
AgroTech Foods
Dabur India Ltd.
Britannia
Sunfeast
International food processing companies in India
Coca-Cola
Pepsi
Unilever
Mondelez (KraftFoods)
Kellogg's
Del Monte
Cargill
Ferrero
Nestle
Danone
Interesting investment opportunities
Processed forms of fruit and vegetables such as juices, jams, jellies, purees, soups, powders, dried, cut or chopped vegetables and ready-made curries.
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.
Do you have a specific question about opportunities for your company or product in the food processing industry in India?
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