The processed foods industry in India is one of the world’s leaders in trade with food trade. This is due to having strong domestic production, government policies, and increased global demand. For the year 2025, it is expected that the sector will continue to nourish India and also the world. For the year 2023-2024, it is projected that the exports will be around USD 10.88 billion. Hence, there appears to be vast and lucrative opportunities for entrepreneurs and exporters in 2025.
India is capable of fully taking advantage of its agricultural surplus and rich culinary diversity in the areas of ready-to-eat meals, dehydrated vegetables, as well as dairy products. The goal of this article is to aid in understanding India’s export market in 2025 and the most lucrative processed food products to help the Startups and MSMEs looking to enter the sector.
International Perspective and India’s Export Ranking
India has a considerable share in the trade of food products and the position of India is quite favorable in the international food market. As per the data given in the MoFPI Annual Report 2023-24, India has a market share of 23.4% in processed foods with respect to agro-based products exports. The sector is also supported by the government initiatives such as PMKSY, PMFME, and PLI schemes which work towards betterments in infrastructure, formalization of micro units, and incentivizing large scale processing.
Related: Why Now Is the Best Time to Launch a Food Startup in India
Primary Export Markets for Indian Processed Foods
- United States
- UAE
- Netherlands
- Bangladesh
- Saudi Arabia
These countries prefer Indian processed foods due to its price, unique flavors, and compliance with international food safety norms.
Market Size and Growth Potential
India’s food processing industry is forecast to grow from $407 billion in 2023 to $535 billion by 2027, equating to a 6.5% CAGR. Moreover, exports from the processing sector are expected to rise even more rapidly because of a worldwide increase in health awareness and the rising need for plant-based organic foods.
Exhibit II: Processed Food Imports and Exports from India
| Year | Export Value for Processed Food (USD Billion) | Proportion to Agricultural Exports |
| 2022-23 | 13.08 | 25.6% |
| 2023-24 | 10.88 | 23.4% |
Processed Foods Predicted to be Most Profitable Exports for 2025
1. Ready to Eat (RTE) & Ready to Cook (RTC) Meals
- RTE: Biryani packs
- RTC: Dosa batter, paratha, and upma mixes
Main Motivations: Upwardly mobile urban dwellers, No-cook trend convenience cuisine
Biggest Consumers: USA, Canada, Gulf countries
Note: Other segments for Ready to Eat and Ready to Cook Products may include a wider offering.
2. Dehydrated Onion, Garlic, and Ginger Veggies
- India ranks first in exporting dehydrated onions
Uses: Packaged foods, instant noodles, catering reference menus
Major Importers: Japan, USA, Vietnam
3. Processed Fruits: Mango Pulp, Guava, Papaya
- India is a top exporter of mango pulp
Used in: Beverages, desserts, and infant meals
Targets: UAE, Netherlands, Egypt
4. Spices and Spice Blends
- Added value exports include curry pastes, masala blends and seasonings
Note: For 2023 brands like MDH, Everest, and Badshah are gaining global traction with over 4 billion USD of value in exports.
5. Dairy Products
- Milk Powder, Ghee, Paneer
- Government support via NDDB and export subsidies
- Strong demand from South Asian and African markets
6. Bakery Products
- Biscuits, Cookies (including sugar-free and millet based), Wafers and Confectionery
- Startups are entering the market with functional snacks and vegan options.
7. Plant-Based And Items With Millets
- International Year of Millets 2023 has paved the way for many initiatives.
Products include: millet pasta, cookies, nutrition bars.
Gluten-free and vegan consumers showcase tremendous demand worldwide.
8. Pickles, Chutneys, and Sauces
These are traditional Indian products and are loved around the globe.
There’s potential for greater market penetration in foreign ethnic stores and restaurants than is currently being utilized.
Government Support & Incentives
- PMKSY: Supports Mega Food Parks, Cold Chains, Agro-partitioned Processing Clusters.
- PMFME: Offers Micro units a 35% capital grant under ODOP (One District One Product) initiative.
- PLI Scheme: Supporting the upscaling of processing units with 10,900 Cr.
- APEDA: Aiding exports and promoting Geographical Indication (GI) tags and traceability for protected products.
Related: Top 10 Government Schemes for Food Processing Startups in India
Export-Prepared Infrastructure
India has a full-fledged food processing infrastructure, composed of the following:
- 41 Mega Food Parks
- 399 Cold Chain Projects
- 76 Agro-Processing Clusters
These facilities are essential for:
- Enhancing food shelf life
- Reducing wastage
- Providing distant transport, export, and packaging services.
NPCS – Your Partner in Export-Oriented Food Projects
Niir Project Consultancy Services (NPCS) provides strategic help to entrepreneurs intending to export processed foods by conducting:
- Market surveys for targeted techno economic feasibility reports.
- Thorough evaluation of the manufacturing program, primary materials, plant layout, finances, and more.
- Assisting in evaluating the technical and economic viability of new industries or businesses.
NPCS has enabled food entrepreneurs in India to establish internationally competitive ventures.
Conclusion
As of 2025, the food processing industry’s outlook in India remains optimistic. There is still good profitability in selling traditional products like pickles and mango pulp. The market potential for instant ready-to-eat meals and millet-based snacks is also significant.
With policies and infrastructure set in place, the available resources greatly aid new entrepreneurs to emerge as globally appealing brands.
Focus on nutrition, product usability, and overall product sustainability are driving new venture success.
NPCS has proven to be the most valuable business consulting partner. They help ensure venture owners explore all avenues within the ever-changing low competition-high profit industry.
