India’s Food Processing Sector Set To Reach $535 Billion By FY26, Experts Say

Industry experts at the Fi India and ProPak India event organised by Informa Markets projected that India’s food processing sector, contributing 7.7% to the country’s manufacturing output and supporting over 7 million jobs, will reach $535 billion by FY26.

Rising domestic consumption, expanding exports, government support under initiatives such as ‘Make in India’, and technological advances, including AI-driven automation and smart packaging, are fuelling the sector’s growth.

Experts projected that India’s organic food market, currently valued at $1.9 billion, will expand rapidly and grow at a CAGR of 20.13% to reach $10.8 billion by 2033.

Meanwhile, the food ingredients segment continues to expand at 7–8% annually, forming a crucial backbone of the food sector.

Dr Meenakshi Singh, Chief Scientist at the Council of Scientific and Industrial Research (CSIR), emphasised the importance of packaging in ensuring safety and quality alongside ingredients.

Industry leaders also noted that regulatory support, including stricter labelling and organic food standards by FSSAI, is shaping sector practices and consumer confidence.

Health-Conscious Consumers Drive Demand

Yogesh Mudras, Managing Director of Informa Markets India, stated that rising health consciousness and a growing preference for organic and plant-based foods are driving the market.

The organic sector is expected to reach ₹75,000 crore by 2025, with consumers willing to pay a premium for healthier alternatives.

Dr Nilesh Amritkar, Managing Director of Envirocare Labs, noted that although organic products currently represent a small share of India’s $850 billion food market, premium pricing of 7–20% reflects growing consumer demand for sustainable, health-oriented products.

Experts highlighted India’s increasing influence in the global food processing arena.

Dr Prabodh Halde, Chairman of the Chamber for Advancement of Small and Medium Businesses (CASMB), stressed that strengthening the sector directly boosts farmer incomes and enhances export potential, with Indian spices such as turmeric serving both culinary and health purposes.

The three-day event, which concluded on September 5, saw participation from over 350 exhibitors and more than 15,000 professionals from 50 countries, underscoring India’s transformation into a global hub for food and packaging materials.

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