India’s food processing sector is on course to touch USD 535 billion by FY2025-26, powered by surging consumption, robust export demand, and government-backed initiatives like the Production-Linked Incentive (PLI) scheme. The industry, which already contributes 7.7% to the country’s manufacturing output and supports over 7 million jobs, is entering a transformative phase marked by innovation in automation, packaging, and consumer preferences.
The projections and insights were shared at the recently concluded Fi India and ProPak India 2025 event, organized by Informa Markets, which saw participation from over 350 exhibitors and 15,000 professionals from 50 countries.
Experts at the event underlined the pivotal role of food ingredients, packaging, and global-standard certifications in driving India’s recognition as a trusted food hub.
“Food ingredients form the backbone of the sector, while packaging ensures safety, quality, and global competitiveness,” said Dr. Meenakshi Singh, Chief Scientist, CSIR’s Technology Management Directorate.
A significant growth engine is India’s organic food market, currently valued at USD 1.9 billion (2024), and projected to surge at a CAGR of 20.13% to USD 10.8 billion by 2033. “Consumers are willing to pay a premium of 7–20% for healthier and sustainable products,” noted Dr. Nilesh Amritkar, MD, Envirocare Labs, highlighting a clear shift towards organic, plant-based, and nutraceutical categories.
Industry leaders also emphasized the growing importance of testing, inspection, and certification (TIC) in aligning Indian products with international benchmarks. “Compliance ensures our food ingredients not only meet global standards but also positively contribute to health and nutrition,” said Nilesh Lele, President of the Chamber for Advancement of Small and Medium Businesses.
Cultural consumption drivers remain strong, with traditional staples such as Basmati rice, spices, and regional pickles shaping dietary preferences both in India and abroad. Experts credited Indian ingredients like turmeric with playing dual roles in enhancing taste and promoting wellness—factors that boosted resilience during the Covid-19 pandemic.
“India’s food processing and ingredient industry holds immense strategic importance in today’s geopolitical scenario,” said Dr. Prabodh Halde, Chairman, CASMB, adding that Ayurveda, herbal, and nutraceutical-led innovations are steering the next phase of growth.
The government’s stricter stance on labelling, organic standards, and consumer awareness, led by FSSAI, is further accelerating industry discipline.
“With rising health consciousness, demand for organic and plant-based foods, and the adoption of smart packaging, India is not just catering to domestic needs but also positioning itself as a global hub for food and packaging materials,” said Yogesh Mudras, MD, Informa Markets India.
As the sector expands, industry leaders stress that strengthening food processing directly boosts farmer incomes—impacting nearly 68% of India’s population—while adding value through exports.