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Food Processing Industry
FOOD PROCESSING SECTOR OVERVIEW-2020
Statistics, news & updates: everything you need to know about the Entertainment Industry in India
Summary
The Food Processing Industry is continuously growing in India. In general, the food sector is a high-growth and high-profit sector. Therefore, the raw material demand for food is steadily growing. Because of the rising incomes and growing demand for packaged food and drinks within the youth, the Food Processing Industry doesn’t have to fear a recession. Additionally, India offers a wide variety of food that can be processed from homegrown raw materials. This means less reliance on imports.
Even more, the Food Processing Industry is an important part of India’s economy. Hence, it serves as a linkage between the producer, seller and end-user of a product.
Besides, the Government has set up 18 Mega Food Parks until now. Additionally, 134 cold chain projects are being set up to develop supply chain infrastructure. This initiative of the government is likely to boost the Food Processing Companies. Furthermore, the Indian Government declared an expansion of the Food Processing Sector as a priority in its ‘Make in India’ campaign. Therefore, the Government is promoting investments in the sector to help the industry grow.
COVID has encouraged the acceptance of processed and frozen foods. With the consumers spending more and more time at home, segments such as snacks, ready-to-eat, or ready-to-fry have managed to gain significant traction. 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.
The statistics below are taken from Industry data available pre-Corona virus impact.
Map – Industry Clusters
Growth Drivers
- Growth of organized retail and increasing urbanization.
- India is the 6thlargest food and grocery market in the world.
- Indian Food packaging industry is expected to become the 3rd biggest market by 2020.
- Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 16.7%.
- India’s organic food market is expected to increase by three times i.e. at a CAGR of over 25% during 2015-20.
- However, User penetration is expected to hit 34.1% by 2024.
- Nonetheless, the online food ordering business in India is witnessing exponential growth.
Key Players in India
National
- Coca-Cola, Pepsi, Unilever, Mars, Mondelez (KraftFoods), Kellogg’s, Del Monte, Cargill, Ferrero, Nestle, Danone, McCain, Hershey, Perfetti
International
- Kissan, Amul, Godrej Industries, Parle Agro, ITC Ltd., AgroTech Foods, Dabur India Ltd., Britannia, Sunfeast
Growth Drivers
- The food processing sector accounts for 32% of the total food market.
- The Indian food industry is growing at 11%. It contributes 14% to the Manufacturing GDP, 13% of exports, and 6% to total industrial investment.
- Nevertheless, Food processing is one of the largest industries in India. Furthermore, India ranks fifth in terms of production, consumption, and exports.
- Whereas By 2030, Indian annual household consumption is expected to triple, making India the 5th largest consumer.
- Accordingly, the sector has an 11.60% share in total employment.
- Moreover, the food processing industry will potentially attract $ 33 billion in investments. Besides, it is expected to generate employment for 9 million people by 2024.
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