Food processing industry has got an extensive importance for the development of India. It is the only sector which has a direct correlation and very crucial linkage between the industry and the agriculture. Over a period of time, this sector has unfolded itself as one of the fast developing sectors and one of the biggest industries in the country. India is the world’s second-largest producer of food after China and has the potential to outpace China in the coming future.

India – Food Processing Industry (INR Trillion), 2014-15 to 2019-20

The Indian food processing industry can be broadly segmented into distinct categories: grain mill & starch products, vegetable & animal oil and fats, dairy products, beverages, prepared animal feed and other food products. Tremendous growth opportunities exist in every segment of Indian food processing industry backed by the increasing demand, government support and favorable economic conditions.

India – Food Processing Industry by Segment (%), 2012-13 (P)

India - Food Processing Industry by Segment (%), 2012-13 (P)

Value-added processing has witnessed fast-paced growth, thanks to the constantly changing lifestyle and the consumption pattern of the Indian consumers. Consumers’ behavior in regards to the food consumption has experienced noteworthy changes fundamentally as a result of increasing awareness about the different value-added brands, food products, and cuisines, along with their greater inclination to do an experiment & the ability to make payment. Accordingly, food businesses are experiencing a perceptible shift. Besides resetting the demand equation, production capabilities and the government rules are also playing a vital role in changing food businesses.

India as a country with around 2.4% of the world’s terrestrial area and around 4% of its water possessions supports approximately 17% of the world’s human populace and 15% of the total livestock.

Noteworthy Trends in Indian Food Sector

Emphasis on the Healthier IngredientsFood processing enterprises is serving health & wellness as the new element in the processed food, keeping in mind that health-conscious buyers prefer those food products which have got lower carbohydrate content and less fat edible oils.

To Read More → Check out our study Indian Health Beverage Industry and Indian Probiotic Product Industry

Higher Consumption of the Horticulture CropsThere is a continuous surge in the demand for fruits and the vegetables as an outcome of the shift in consumption pattern. Consequently, the Indian farmers are also shifting the production towards the horticulture crops to encash this growing demand.

To Read More → Check out our study Opportunity Assessment for Processed Pomegranate Products in India and Opportunities in Indian Banana Processing Outlook 2022

Sensible SnackingDomestic buyers are currently tuned in to the greater variety of foods obtainable, because of both wider variations in product offerings along with their own international exposure. A shift has been observed in preference for the fully baked snacks over the fried snacks.

To Read More → Check out our study Indian Snacks Market Forecast to 2023 and India RTC – Curry Mix Market Forecast 2022

Premium & Wellness Dairy Products – The Indian dairy industry is seeing a steady growth in business despite volatility in milk procurement prices over the past couple of years backed by premium & wellness dairy products. More product developments and product innovations are likely to accelerate India’s dairy market which is anticipated to improve industry margins by attaining greater scale, higher capacity use and an increasing contribution from new milk variants.

To Read More → Check out our study India Flavoured Milk Market Outlook 2022 and Indian Dairy Industry Outlook 2022


Vartika is Research Specialist at RNCOS with rich industry experience of more than 15 years. She has strong research & analytical skills. During her un-ending journey with RNCOS, she has worked on various food & agribusiness projects involving logistics solutions, supply-chain management, preparing a business plan, vendor management, FSSAI and regulatory approvals. She is a blogger and has the keen interest in writing blogs and articles related to food and FMCG sector. She is postgraduate in agribusiness from the Amity University, Jaipur (Rajasthan), and a graduate in Economics from Delhi University.