India’s Food Sector: Experts Predict $535 Billion Growth for Food Processing Industry by FY26

India’s food processing sector is on the verge of significant growth, with projections estimating its value will reach $535 billion by the fiscal year 2026. This sector, which currently accounts for 7.7% of the country’s manufacturing output and provides over 7 million jobs, is being driven by increasing consumption, rising exports, and government initiatives like ‘Make in India.’ Industry experts highlighted these trends during the recent Fi India and ProPak India event, emphasizing India’s potential to become a global hub for food and packaging materials.

Growth Drivers in the Food Processing Sector

The food processing industry in India is experiencing a transformative phase, fueled by several key factors. Rising health consciousness among consumers is leading to a growing preference for organic and plant-based foods. This shift in dietary patterns is reflected in the organic food market, which is currently valued at $1.9 billion and is expected to grow at a compound annual growth rate (CAGR) of 20.13%, reaching $10.8 billion by 2033. Additionally, the food ingredients segment is witnessing steady growth of 7-8% annually. Dr. Meenakshi Singh, Chief Scientist at the Council of Scientific and Industrial Research (CSIR), emphasized the importance of food ingredients and packaging in ensuring safety and quality in the sector.

Regulatory Support and Industry Standards

Regulatory support has played a crucial role in shaping the food processing landscape in India. Experts at the Fi India and ProPak India event noted that the Food Safety and Standards Authority of India (FSSAI) is focusing on stricter labeling and organic food standards, which is influencing industry practices. Yogesh Mudras, Managing Director of Informa Markets in India, stated that the organic food market is projected to reach Rs 75,000 crore by 2025, with consumers increasingly willing to pay a premium for healthier options. This regulatory framework is essential for fostering growth and ensuring that the industry meets evolving consumer demands.

Global Positioning and Export Potential

India’s food processing sector is gaining prominence on the global stage, with experts noting a significant shift in its international presence. Dr. Prabodh Halde, Chairman of the Chamber for Advancement of Small and Medium Businesses (CASMB), highlighted the strategic importance of the food ingredients industry in the current geopolitical context. Strengthening food processing not only enhances farmer incomes—supporting nearly 68% of India’s population—but also adds value through exports. Ingredients like turmeric exemplify the dual role of Indian spices in enhancing both flavor and health benefits, further solidifying India’s position in the global market.

Industry Participation and Future Outlook

The recent Fi India and ProPak India event, which concluded on September 5, attracted over 350 exhibitors and more than 15,000 professionals from 50 countries. This participation underscores the growing interest in India’s food processing sector. Industry leaders believe that the organic food industry is poised for a significant leap, with projections indicating growth from $2 billion today to over $10 billion by 2033 at a CAGR of 22%. As the sector continues to evolve, it is clear that India is on a path to becoming a major player in the global food processing arena.

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