Food Processing Industry

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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 Impact
The impact of COVID on food processing sectors was the least because the sector was classified as an essential category. The food processing sector in India is a consumption-dependent sector. The meat and marine segment witnessed a negative impact due to low demand. However, the scale of impact will require at least 2-3 quarters for the sector to return to normalcy.

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

Map- Industry Clusters - Food Processing

Growth Drivers

Key Players in India



Growth Drivers

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