India's Food Processing Sector To Touch $535 Billion By FY26, Growing Over 7 Pc

2025-09-06 05:45:20

(MENAFN- IANS) New Delhi, Sep 6 (IANS) India's food processing sector is expected to reach $535 billion by FY26, buoyed primarily by rising consumption and increased exports.

The government support through initiatives like 'Make in India', and technological advancements in AI-driven automation and smart packaging were other factors driving the industry forward, industry experts said at an event organised by Informa Markets.

India's organic food market - currently valued at $1.9 billion - is projected to expand at a compound annual growth rate (CAGR) of 20.13 per cent to $10.8 billion by 2033. Meanwhile, the food ingredients segment is growing at 7–8 per cent annually.

Experts indicate that these trends position India to become a global hub for food and packaging materials.

Dr Meenakshi Singh, Chief Scientist at the Council of Scientific and Industrial Research (CSIR), said that“food ingredients form the backbone of the food sector, with packaging playing an equally critical role in ensuring safety and quality.”

The three-day event featured over 350 exhibitors from India and abroad and attracted more than 15,000 professionals from 50 countries.

“India's food processing sector is undergoing a transformative phase, driven by rising health consciousness, growing preference for organic and plant-based foods, and a notable shift in dietary patterns,” said Yogesh Mudras, Managing Director of Informa Markets in India.

He added that the organic food market is projected to touch Rs 75,000 crore by 2025, as consumers show a growing willingness to pay a premium for healthier options.

India's food processing sector contributes 7.7 per cent to the manufacturing output and supporting over 7 million jobs.

Experts at the event said that FSSAI will emphasise stricter labelling, organic food standards, and consumer awareness in 2025, shaping industry practices.

The government has announced a new initiative called 'BHARATI' to empower 100 agri-food startups, drive innovation and boost exports towards $50 billion target by 2030.

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