Food Procecessing Sector In India: Opportunities and challenges
The Indian food processing sector is expected to grow to over half a trillion dollars by 2025 (from ~USD 260 billion in 2020, expected to achieve a CAGR of over 15%). This growth is expected to be driven by a fast-changing market, much-needed government impetus, capacity and capability building, foreign investment, and more.
India ranks 1st in milk production and 2nd in F&V with the top position in select items. It also has the largest livestock population (cattle and buffalo), is the leading exporter of buffalo meat, ranks 2nd in egg production, and is among the top 3 countries in terms of fisheries and aquaculture. However, processing levels average out to only about 10% overall.
With changing consumer needs, the government’s focus on growth of this sector, developing infrastructure, and improvements in agriculture, India’s food processing ecosystem is at an inflection point, poised for exponential growth. Domestic players as well as international players have identified this potential and are gearing up for this paradigm shift which will see India move up the global rankings as one of the top food processing countries.