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.