The COVID-19 pandemic accelerated a significant shift in food habits, including consumer buying preferences, consumption patterns, and overall behaviour. Greater awareness of the possible health problems related to foods has led to the growth of demand for health and wellness products and ingredients.
According to many industry executives, the demand for food ingredients and high-quality packaging has gone up in the post-pandemic period in India.
The Indian food ingredients market, currently estimated at $1584.08 million, is projected to grow at a CAGR of 6.7% till 2029, and increasing use of food ingredients coupled with growing demand for ready-to-eat and convenience foods has led to the surge in demand.
The Indian food industry is poised for exponential growth, currently growing at a CAGR of 11% with a projected output of $535 billion by 2025. This high-growth and high-profit sector has emerged due to its immense potential for value addition, particularly within the food processing industry.
Consumers’ awareness of ingredients, changing food habits, consumption patterns, low production costs, and ever-changing diet fads, food preferences, and hygiene aspects of food packaging have significantly contributed to the boom in food and health ingredients, processing, and packaging industries.
Through the Ministry of Food Processing Industries (MoFPI), the government of India is taking steps to boost investments in the food processing industry. The government has continued the umbrella PMKSY scheme with an allocation of Rs. 4,600 crores till March 2026 for the sector.
The Indian food processing industry accounts for 32% of the country’s total food market and is ranked fifth in terms of production, consumption, exports, and expected growth, industry officials said.
With all these changes, the time has come for all stakeholders to make India a global hub for food ingredients, considering the changing geopolitical scenario in the background of the pandemic.
The agriculture and food industries in India are valued at around $450 billion and growing at 12–14%, much faster than the economy.
The Indian packaging market was valued at $81.07 billion in 2021, and is expected to reach $204.81 billion by 2025, registering a CAGR of 26.7%, industry officials said. Packaging is one of India’s fastest-growing industries, growing at a rate of 22-25% per year, and the country is quickly becoming a preferred global hub for the packaging industry, they added.
Analysts said India was experiencing the emergence of health-conscious consumers, leading to a structural shift in food preferences and purchase decisions. And, this would cause significant growth across categories, with healthy snacking propelling market expansion.