FOOD PROCESSING SECTOR OVERVIEW-2020
Statistics, news & updates: everything you need to know about the Food Processing Industry in India
- COVID-19 Impact
- Industry Clusters
- Growth Drivers
- Key Players
- Market Stats
- Animal food & feed
- Beverages – Alcoholic & Non-alcoholic
- Breakfast cereals
- Coffee & Tea
- Dairy products
- Frozen & Preserved food
- Ingredients & Condiments
- Sugar, Bakery & Confectionary products
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.
The Food Processing Industry is an important part of India’s economy. 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.
The ongoing coronavirus pandemic is a global health crisis. It is disrupting the entire economy and soon it can lead to a food security crisis if adequate measures are not implemented. Although currently there is an adequate supply of staples, fruits and vegetables, there is a threat of food security in the long term. Besides, restrictions on transportation are posing a challenge to food logistic. Owing to this, food processing industries have to suspend production. Additionally, the shortage of manpower and falling demand for agricultural products are further affecting the production.
Besides, consumer products i.e. food and beverage companies are seeing significantly reduced consumption. Supply chain disruption is another worry among these companies. Therefore, the overall margins of these companies have reduced.
Furthermore, in the near future, there might be a shift in customer behaviour and demand. The demand for food is directly linked to income. Hence, loss of income-earning opportunities is likely to impact the food demand and consumption.
The statistics below are taken from Industry data available pre-Corona virus impact.
- 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.
- User penetration is expected to hit 34.1% by 2024.
- The online food ordering business in India is witnessing exponential growth.
Key Players in India
- Coca-Cola, Pepsi, Unilever, Mars, Mondelez (KraftFoods), Kellogg’s, Del Monte, Cargill, Ferrero, Nestle, Danone, McCain, Hershey, Perfetti
- Kissan, Amul, Godrej Industries, Parle Agro, ITC Ltd., AgroTech Foods, Dabur India Ltd., Britannia, Sunfeast
- 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.
- Food processing is one of the largest industries in India. Furthermore, India ranks fifth in terms of production, consumption and exports.
- By 2030, Indian annual household consumption is expected to triple, making India 5th largest consumer.
- The sector has 11.60% share in total employment.
- The food processing industry will potentially attract $ 33 billion in investments. Besides, it is expected to generate employment for 9 million people by 2024.