|
India's food processing sector is entering a value-led growth phase with the potential to become a USD 600 billion industry by 2030, driven by higher value addition, innovation, technology adoption and export-led growth, according to a FICCI-Deloitte report.
The report said the sector is moving away from a supply-led, volume-driven model towards a consumer-centric and value-focused growth engine. It noted that while India has strong demand fundamentals, the next phase of growth will depend on expanding food processing, strengthening value-added manufacturing, encouraging innovation, widening distribution channels and improving export competitiveness. Highlighting the long-term opportunity, the report said, "India's food sector is entering a decisive phase of transformation, shifting from a supply-led, volume-driven ecosystem to a consumer-centric, value-accretive growth engine." It added that food processing levels remain at around 12 per cent, indicating significant headroom for future expansion. According to the report, India currently processes only around 12-13 per cent of its food output compared with significantly higher levels in developed markets, leaving substantial scope for greater value addition. It said growth will increasingly come from branded, processed and premium food products rather than higher agricultural output alone. The report also highlighted that the processed food market is expected to grow to USD 560-580 billion by 2030, supported by urbanisation, rising incomes and changing consumer preferences. The report further said consumers are increasingly demanding healthier, convenient and premium food products, while online and quick commerce channels are reshaping food consumption. Health and functional food categories are growing at 15-20 per cent annually, nearly twice the pace of the broader food market, it added. Speaking at the launch of the report during FICCI Foodworld India 2026, Andhra Pradesh Industries, Commerce and Food Processing Minister T.G. Bharath said, " We have ambitious food processing targets of attracting Rs 30,000 crore of investment and over 3 lakh jobs to be created by 2029." He further added, "The future of food processing will not be driven by factories, but will be driven by AI, precision agriculture, predictive demands, smart logistics and digital supply chains." Food Processing Industries Secretary Avinash Joshi said the government is working towards creating a "Bharat" brand to promote Indian processed foods and cuisine globally, adding that increasing food processing levels would support value addition and exports. (ANI)
|
