Food Processing Market in India is Expected to Expand at 11.5% till 2023
According to a new Research on Global Markets report, the food processing market in India, is expected to expand at a compound annual growth rate (CAGR) of ~11.5% between FY 2018 and FY 2023 to reach a value of INR 15,971.9 Bn by FY 2023. One of the largest industries in India, the food processing industry ranks fifth in terms of production, consumption, and exports.
According to the report, the food processing industry is a crucial contributor to the socio-economic prosperity of the country and influence the farming and distribution activities in the country. The Make in India initiative has put the industry in prime focus. Factors such as large availability of food infrastructure, diverse agro-climatic conditions and investment in the sector by major multinational companies such as , Pepsico India Holdings Private Limited, Nestle India Limited, Hindustan Unilever Limited Cadbury India, Mondelez International Incorporation, Pizza Hut (India) Private Limited, and Perfetti Van Melle India Private Limited has made India one of the largest food processing hubs.
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The Indian food processing industry has been backed by the Ministry of Food Processing Industries (MOFPI), which has introduced various schemes and initiatives for the promotion and growth of this sector, mainly covered under Pradhan Mantri Kisan Sampada Yojana. Plans such as value addition and preservation infrastructure, the scheme of cold chain, mega food park scheme, infrastructure for agro-processing clusters, and creation/expansion of food processing and preservation capacities have been implemented to support the growth of the food processing market in India.
Taking market segmentation into account, the food and beverage industry in India is divided into 10 segments- breakfast cereals, dairy food, bakery, organic food, confectionary, ready meals, naturally healthy beverages, pet food, ingredients, and savory snacks. Breakfast cereals and savory snacks are anticipated to expand at a CAGR of ~19.23% and ~33.59%, respectively from 2018 to 2023. India is lagging behind in the processing infrastructure when compared to other developed countries. In India, only 10% of the total food produced in India is converted into value-added products, as against 65% in the United States and 23% in China.
Despite the increasing disposable income of the Indian population, high prices of processed food act as a hindrance to its wide-scale adoption.
Key highlights of this report:
- Overview of the food processing market in India
- Historical, current and forecasted market size data for the food processing market in India (2018 to 2023)
- Supply chain analysis
- Qualitative analysis of the global drivers and challenges affecting the market and its segments
- Porters’ five forces analysis
- India food processing market segmentation-(Organized vs unorganized sector - percentage split (FY 2017)
- Processing level percentage in different food segments- (Milk, meat, poultry, breakfast cereals, bakery, organic food, confectionary, fruit and vegetables, and others)- Market size and growth forecast - value-wise (2016-2023)
- Detailed analysis of the key developments and major innovations in the market
- Analysis of the competitive landscape and profiles of major players operating in the market