What type of Processed Food Manufacturing Business Startup Ideas are good for New Entrepreneurs with Small Investment?

Tuesday, May 1, 2018

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What type of Processed Food Manufacturing Business Startup Ideas are good for New Entrepreneurs with Small Investment? Start a Food Processing Unit in India


The food processing industry is a mature sector which is experiencing a turbulent period due to the growing global demands for food safety, increasing food insecurity and consumer demand for higher quality and sustainability.

The link between the consumers and manufacturers of processed foods is fed by the individualistic nature and the high incomes of the urban society. Information, communications, technology, and research and development have played a huge role in fueling the processed foods industry across the globe. Realizing the potential of processed foods in the expanding food and beverages industry, agri-food businesses have been evolving to cater to changing consumer preferences, regulatory environments, and market pressures. This innovative segment of the food industry has been bringing about a balance between providing consumers good quality and tasty food products, fruits, and vegetables and protecting their health.

With a massive food market that is fast expanding, exciting growth in the retail sector and attractive economic policies and fiscal incentives, India's food ecosystem is the place to be in. Food sector has emerged as high growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The Industry is rapidly expanding with 42 mega food parks being set up with an allocated investment of USD 2.3 bn.

·         By 2020, Indian dairy industry is expected to double to USD 140 bn

·         By 2020, Indian food and retail market is projected to touch USD 482 bn

·         By 2020, food processing sector has the potential of attracting USD 33 bn of investment in coming years 

·         By 2030, Indian annual household consumption to treble, making India 5th largest consumer

·         100% FDI is permitted under the automatic route in food processing industries

·         100% FDI is allowed through government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

Food-processing industry is significant for India’s development because it has important link and synergy with industry and agriculture, the two main support of the economy. Total size of food-processing industry is around US $40 billion growing at 10% and the size of processing sector is estimated to be US $2.53 billion. The industry is mainly unorganized with 75% of the processing units belonging to the unorganised category, the organized category though small, is growing fast. The food production is expected to double in the next 10 years and the consumption of value added food products is expected to grow at a much faster pace. This growth will benefit the economy, increase agricultural yields, create employment and raise the standard of living of various associated people. Rising consumer affluence and economic liberalization is opening up new opportunities in the sector.

The global processed food industry is estimated to be valued around USD 3.4 trillion and accounts for three-fourth of the global food sales. The global food industry is ever changing and evolving. However, health, convenience and value continue to be the key value propositions in this industry.

However, only 6 percent of processed foods are traded across borders compared to 16 percent of major bulk agricultural commodities. The United States and European Union together account for over 60 percent of total retail processed food sales in the world.

Trade liberalization policies through multi-lateral and regional trade agreements have led to a rapid growth in food processing. In the Asian region, Japan is the largest food processing market, but India and China are likely to grow at a faster rate in the next decade.


55 Most Profitable Micro, Small, Medium Scale Food Processing (Processed Food) Projects and Agriculture Based Business Ideas for Startup

Author:                NPCS Board of Food Technologists

ISBN:                   9789381039908

Book Code:          NI316

Pages:                  392

Indian Price:        1, 275/-  

US$:                     125-

Publisher:            Niir Project Consultancy Services

Food processing is a way or technique that is used to convert raw foods into well-cooked and well preserved eatables for both humans and animals. Food processing uses raw, clean, harvested crops or slaughtered and butchered animals and turns these into food products for daily consumption. A number of products are nutritious, easy to cook and have a long shelf life. They are packed in an attractive manner and are highly marketable.

The food processing industry plays a vital role in the economy of any country because it links agriculture to industry. The food processing industry is responsible for diversification of agriculture, improvement of value-added opportunities, and creation of excess that can be exported. The food processing industry of India is one of the largest in the world in terms of manufacture, use, export, and development. The sector has immense potential to contribute to growth and employment opportunities of the country.

Rapid globalization and development of economy has taken a toll on the lives of consumers, particularly those residing in urban areas. Employment growth and increased work pressure in organizations leaves consumers with little time for personal care. Additionally, more product offerings by food companies and marketing on a large scale has altered people’s appetite- they demand more and more processed food items every day. These are some of the reasons for the steady growth of food processing industry in India in the past few years. Some of the biggest companies making their presence felt in the Indian market are Unilever, Dabur, Nestle, Nissin, Cadbury’s, Kelloggs’, Godrej, ITC, Britannia, Kohinoor Foods Ltd., Mother Dairy, Pepsico India, Marico Ltd, Patanjali, MTR Foods etc.

Food processing industry is of enormous significance for any country's development because with the changing lifestyle, there has been a consistent increase in preference and demand for packaged foods amongst the population. These can be seen as a great opportunity by the packaging companies. The agricultural strength amalgamated with a various other factors like competent market price and favorable government policies have further aggrandized the food packaging sector.

The Major Contents of the Book are Soy Flour & Milk, Starch Derivatives, Saccharin, Tomato Paste, Edible Corn Oil, Malt, Instant Noodles, Garlic Oil and Powder, Cattle Feed, Banana Wafers, Biscuits, Bread, Candy, Chocolates, Potato Chips, Rice Flakes (Poha), Corn Flakes, Baby Cereal Food, Fruit Juice, Milk Powder, Paneer, Papad, Ghee, Extruded Food (Kurkure Type), Instant Tea, Jam & Jelly, Khakhra, Soft Drinks, Spices, Sweet Scented Supari, Cake & Pastry, Banana Chips, Papad, Besan, Pickles, Ice-Cream Cones, Honey, Flour Mill, Tutti-Fruitti, Confectionery, Noodles, Ice Candy, Namkeen, Vermicelli, Mango Pappad (Aam Papad), Chilli Powder, Popcorn, Supari Chips, Revadi and Gazak, Mava, Tomato Sauce and Ketchup, Ice Cream, Baking Powder, Moong Dal Bari, Packaged Drinking Water With Pet Bottles, Food Packaging & Labelling, Good Manufacturing Practices in Food Industry, Manufacturing Process, Process Flow Diagrams, Addresses of Plant & Machinery Suppliers and Photographs of Machineries.

It will be a standard reference book for professionals, entrepreneurs, agriculturists, agriculture universities, food technologists, those studying and researching in this important area and others interested in the field of Food products manufacturing.


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Food Processing Industry (FPI) in India is a sunrise sector that has gained prominence in the recent years. FPI serves as a vital link between the agriculture and manufacturing sectors of the economy. Strengthening this link is critical to reduce wastage of agricultural raw materials, improve the value of agricultural produce by increasing shelf-life as well as by fortifying the nutritive value of the food products and ensure remunerative prices to farmers as well as affordable prices to consumers.

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The food industry, which is currently valued at US$ 39.71 billion is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018. Food and grocery account for around 31 per cent of India’s consumption basket. The Food Processing Industry accounts for almost 32 per cent of the total food market in India.

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