Food Processing Industry

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Statistics, news & updates: everything you need to know about the Food Processing Industry in India

The Food Processing Industry takes off in India-M+V Altios

Growth Drivers​

  • India has a consumer base of over 130 billion people. By 2030, annual household consumption will treble, making India the 5th largest consumer globally.

  • To enhance India’s Manufacturing and exports $146 million is committed under Production-Linked Incentive (PLI) Scheme in Food Products.

  • 41 Mega Food Parks, 353 Cold Chain projects, 63 Agro-Processing Clusters, 292 Food Processing Units, 63 Creation of Backward & Forward Linkages Projects & 6 Operation Green projects across the country have been approved.​

Sub industries​

  • Animal food & feed​

  • Beverages – Alcoholic & Non-alcoholic​

  • Breakfast cereals​

  • Coffee & Tea​

  • Dairy products​

  • Frozen & Preserved food​

  • Ingredients & Condiments​

  • Sugar, Bakery & Confectionery products​


  • Dairy is the single largest agricultural commodity, accounting for 5% of the national economy and growing at a compound annual growth rate of 6.4 percent over the last five years.​

  • Due to India’s fast urbanization, there is a growing need for chicken products, with urban regions accounting for 80% of poultry and meat demand.​


  • Gaps in supply chain infrastructure: Inadequate primary processing, storage and distribution facilities. Lack of mechanization, high seasonality, perishability and lack of proper supply chain results in lack of availability of raw material.

  • Infrastructure Bottlenecks: More than 30% of the produce from farm gates is lost due to inadequate cold chain infrastructure.

  • Informal Food Processing Industry: Unorganized segments account for almost 75% in all product categories.

  • Low-Value Exports: Most processing in India can be classified as primary processing.

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  • The food & grocery retail market in India constitutes almost 65% of the total retail market in India.​

  • India’s food processing sector is among the World’s largest, and output is expected to reach $535 Billion by 2025-26.

  • The industry employs 1.93 million people.​

  • The sector is growing at an Average Annual Growth Rate (AAGR) of around 10.00% ​

  • FDI Received in FPI Sector for 2020-21 is US$ 393.41 million.

  • Food grain production is 29.77 million tons more than the average food grain production of the last five years. ​

  • The total geographical area of India is 328.7 million ha and the Gross Cropped Area is 198.4 million ha with a cropping intensity of 142%.2.​

  • Non-basmati rice exports increased by 105.20 percent, sugar by 60.75 percent, wheat by 356.86 percent, vegetable oils by 216.11 percent, pulses by 27.33 percent, and other cereals by 154.68 percent between April and November 2020, compared to the same period the previous year.​

  • For Priority Sector Lending, loans to food and agro-based processing plants, as well as cold chains, have been designated as agriculture operations (PSL).​

Food Processing

Key Investment Opportunities​

  • Fruits and vegetables: juices, jams, jellies, purees, soups, powders, dried vegetables, flakes, shreds, and ready-to-eat curries, as well as preserved, candied, glazed, and crystallized fruits and vegetables.

  • Fermentation preservation of food: wine, beer, vinegar, yeast preparation, and alcoholic beverages. Fruit-based and cereal-based beverages are available.

  • The government’s focus is on supply chain-related infrastructures such cold storage, abattoirs, and food parks, and this segment provides investment potential in food processing infrastructure.

  • For 728 districts across the country, the One District One Focus Product (ODOFP) program covers agricultural and associated products.​

COVID Impact​

How has COVID affected the industry?

  • The impact of COVID on food processing sectors was the least because the sector was classified as an essential category.

  • The meat and marine segment witnessed a negative impact due to low demand.​

  • COVID has encouraged the acceptance of processed and frozen foods.​

Outlook for the Food Processing industry post-Covid

  • There is an increase in demand for packaged foods in rural and semi-urban areas. ​

  • Demand for allied industries such as food processing equipment and food logistics is also likely to rise.​

  • The pandemic has given rise to a new normal with sustainable food chains, growing preference for healthy food, localized food supply, and increased trade barriers.​

Key Players in India


  • Coca-Cola

  • Pepsi​

  • Unilever​

  • Mars​

  • Mondelez (KraftFoods)​

  • Kellogg’s​

  • Del Monte​

  • Cargill​

  • Ferrero​

  • Nestle​

  • Danone​

  • McCain​

  • Hershey​



  • Kissan​

  • Amul​

  • Godrej Industries​

  • Parle Agro​

  • ITC Ltd.​

  • AgroTech Foods​

  • Dabur India Ltd.​

  • Britannia​

  • Sunfeast​

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Map- Industry Clusters - Food Processing
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