Food Processing Sector

Growth Opportunities for the Food Processing Industry in India

By admin
2 years Ago

Introduction

India’s consumers are diverse, with distinct tastes, preferences, cultures, demographics, and so on. It also varies by country’s wealth levels, population density in a certain location, and development stage. In comparison to other Asian countries, India is a growing country with fast economic growth. The sector is expected to grow at a CAGR of 13% from FY2013 to 2020, reaching USD 157 billion from USD 69 billion in 2013. India is a global centre for Food Processing from wheat to rice, vegetable oil to sugar. According to the Indian Council of Agricultural Research (ICAR), India accounts for about 20% of worldwide mango trade and over 30% of global onion exports in 2011-12. India is also one of these countries. Fruits, vegetables, spices, and dry peas are produced in the biggest quantities in the world. Over 65 million tonnes of fruits are produced annually on about 1 million hectares of fruit-growing land in the country. The country produces roughly 15 million tonnes of garlic each year, as well as 10 million tonnes of onions and potatoes. Every year, the country produces 7 million tonnes of grapes, while its annual pulse production is over 12 million tonnes.

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Business Opportunities in Food Processing Industry

Agriculture currently provides 22% to GDP, with agriculture employing nearly 75% of the workforce. Only 25% of overall agricultural yield is processed and translated into value added products, even after 70 years of independence. As a result, India’s food processing business has enormous growth potential. In addition, the sector offers a considerable number of job prospects as well as export opportunities. It also gives farmers the chance to boost their income by increasing their output and offering them higher prices for their crops. Both domestic and international enterprises have opportunities in the consumer foods market to gain a foothold in this fast-growing processed food market.

While many companies are entering the market, the Indian food processing industry is one of the fastest growing. Asia. By 2020, it is expected to be worth $50 billion. Many multinational giants, such as Unilever, Nestle, Kellogg’s, Danone, and Burt’s Bees, have flocked to the quickly growing sector. In India, some of these global corporations have established their own manufacturing operations. Others have teamed up with local business owners to form joint ventures or franchises. According to a recent USDA report, India is anticipated to be among the top ten largest food processing markets in the world by 2020. According to USDA predictions, India’s food processing sector will grow at a 6 percent annual rate from 2012 through 2020.

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Growth of Food Processing In India

The food processing sector in India is one of the world’s largest, with output anticipated to reach $535 billion by 2025-26. By 2024, this industry is predicted to provide 9 million employment. The Indian food industry is growing at an annual rate of 11%, with the food processing sector accounting for 32% of the total. Between April 2014 and March 2020, India’s food sector attracted $4.18 billion in foreign direct investment. India’s annual household consumption is anticipated to quadruple by 2030, making it the world’s fifth largest consumer.

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With stimulating growth in the food retail sector, favourable economic policies, and attractive fiscal incentives, India’s food ecosystem provides tremendous business prospects. The food processing business in India is regarded as one of the fastest expanding in the world. According to a WTO estimate, India is on track to become the world’s third largest economy by 2030. With a 15% growth rate, the Indian food processing business, which was worth US$ 52 billion in 2012, is expected to reach US$ 105 billion by 2017.

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The Government of India is taking all necessary initiatives to increase investments in the food processing industry in India through the Ministry of Food Processing Industries (MoFPI). The government has approved 38 of the 41 food parks that were funded through the Mega Food Parks Scheme. There were just two Mega Food Parks in the country in 2014. There are 22 Mega Food Parks operating in the country as of August 1, 2021. The goal now is to increase their number to over 40. In the months of April to October, India’s agricultural and processed food exports increased by over 15%. Spices, milk, and pulses are produced in the biggest quantities in the world. Cashew nuts are processed, produced, and consumed in the biggest quantities in the world. The world’s second-largest manufacturer of

Read our Books Here: Food Processing, Food Industry, Agriculture, Agro Processing, Processed Food, Cereal Food, Fruits, Vegetables, Bakery, Confectionery, Milk, Dairy, Meat, Fisheries, Spices Oils, Fats, Coconut, Tea and Tobacco Based Products

Market Size of Food Processing Industry

The Indian food processing market was worth INR 25,691.30 billion in FY 2018 and is predicted to reach INR 53,435.52 billion by FY 2024, growing at a CAGR of 12.09 percent between FY 2020 and FY 2024. The business enjoys a favourable growth environment in terms of raw material availability, as evidenced by the fact that the Indian food and beverage industry saw revenue growth of 13.41 percent from 2015 to 2019. Furthermore, rising per capita income and rising people’s living standards are moving India’s food processing market forward. The food processing sector in India has emerged as a bright spot with a lot of room for expansion. It is currently in a position to drive agricultural value addition and benefit the economy. Agriculture input businesses, such as agrochemicals, will benefit from the increased rural employment. Though it now contributes only 10% of GDP (about Rs 4 lakh crore) and accounts for only 2% of India’s industrial GDP, it is increasing at a rate of over 12% per year. According to a research published by ASSOCHAM, India’s food Processing sector will be valued $350 billion by 2025. Because it works in every area throughout more than 576 districts, the industry provides tremendous business potential for entrepreneurs in all parts of India – north, south, east, and west.

TOP FOOD PROCESSING COMPANIES IN INDIA

Amul

Bisleri

Banas Dairy

Bihar State Milk Co-operative Federation

Britannia Industries

Dabur

Dudhsagar Dairy

Everest Spices

Haldiram’s

ITC Limited

Karnataka Milk Federation

Kerala Co-operative Milk Marketing Federation

Kerala Solvent Extractions

Marico

Meat Products of India

Mother Dairy

Orissa State Cooperative Milk Producers’ Federation

Parle Agro

Parle Products

Patanjali Ayurved

Tata Consumer Products

INDUSTRY TRENDS

Ultra-High Temperature (UHT) processing and aseptic packaging

Producing dairy products with a longer shelf life is involved.

Scraped surface heat exchangers and higher pasteurization

Pasteurization levels have been increased, and mechanical systems have been upgraded.

Higher consumption of horticulture crop

Demand for fruits and vegetables is surging.

Frozen and processed foods

Frozen and processed foods are convenient as well as nutritious.

Strengthening procurement

Contract farming; direct farmer-firm connections

The next generation consumer

With half a billion internet users, India’s digital adoption has profoundly altered family access to information and choices. Consumers interact with brands and can choose from a variety of channels and possibilities.

Industry Scenario

India’s food processing industry is one of the world’s largest, with output anticipated to reach $535 billion by 2025-26.

In India, the food processing industry plays a crucial role in connecting Indian farmers with consumers in both home and foreign markets. The Ministry of Food Processing Industries (MoFPI) is working hard to attract investment throughout the food processing value chain. The food processing industry employs roughly 1.93 million people and accounts for 12.38 percent of the total employment created in the Registered Factory sector (at 3-digit NIC classification). The unregistered food processing industry employs 5.1 million people.

Per the NSSO 73rd Round report. Major sectors constituting the food processing industry in India are grains, sugar, edible oils, beverages, and dairy products.

The Food Processing Industries industry has grown at an average annual rate of roughly 11.18 percent over the last five years, ending in 2019-20. Food processing was ranked first in total individuals employed in the manufacturing sector in the Annual Survey of Industries (ASI) 2018-19.

41 Mega Food Parks, 353 Cold Chain Projects, 63 Agro-Processing Clusters, 292 Food Processing Units, 63 Backward and Forward Linkages Projects, and 6 Operation Green Projects have all been approved under PMKSY.

Fruits and vegetables, poultry and meat processing, fisheries, food retail, and the dairy industry are some of the important sub-segments of India’s food processing business.
Total Horticulture production in 2020-21 is expected to reach a new high of 334.60 MT, up 14.13 MT (4.4%) from 2019-20.
India produces 23% of global milk, with a CAGR of 6.2 percent expected to reach 209.96 million tonnes in 2020-21.
India ranks 3rd in global egg production and produced at least 122.11 billion nos. in 2020-21 with per capita availability of egg at 91 eggs per annum in 2020-21.
India produces 23% of global milk, with a CAGR of 6.2 percent expected to reach 209.96 million tonnes in 2020-21.
During the sugar season 2020-21, 70 LMT of sugar was exported. Furthermore, for the sugar season 2021-22, contracts for around 30 LMT of sugar export have already been inked.
By 2025, online grocery retail in India is expected to increase at a CAGR of more than 50%, with revenues ranging from $ 10 billion to $12 billion.
Marine Products exports totaled $ 5.96 billion in the previous fiscal year (March 2020-April 2021). The United States, China, Japan, Vietnam, and Thailand are the top five export destinations. Frozen shrimps account for the majority of India’s Marine Products exports, accounting for 74% of the total value.
Other cereal exports climbed from 102 metric tonnes in 2019-20 to 521 metric tonnes in 2020-21.
India is the world’s eighth-largest producer of meat. The country’s meat production has risen from 6.69 million tonnes in 2014-15 to 8.80 million tonnes in 2020-21 (provisional).
Between 2015-16 and 2020-21, the production of rice, wheat, and nutri-cereals increased at compound annual growth rates (CAGR) of 2.7, 2.9, and 3.5 percent, respectively.
During the same time period, the CAGRs for pulses, oilseeds, and cotton were 7.9%, 6.1, and 2.8%, respectively.

Agri-commodity hub

The world’s largest producer of a variety of agricultural products.

Huge consumer base

1.3 billion people with a growing appetite for branded foods

Strong economy

India’s economy is the fastest expanding in the world.

Conducive policies

Government initiatives that are proactive and offer appealing fiscal incentives

Atmanirbhar Bharat

Under Atmanirbhar Bharat 3.0, PLI initiatives of INR 10,900 crores have been introduced.

One District, One Product (ODOP)

135 district-specific unique goods for 728 districts have been identified under the ODOP programme. Across the United States

Government Ministry/ Department

Industry Association

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