India’s Food Processing Industry Set to Hit $535 Billion by FY26
India’s food processing sector is booming and is expected to reach a massive $535 billion by the financial year 2026. This growth is being fueled by increasing consumer demand, higher exports, and supportive government initiatives.
The Indian government is playing a big role through programs like ‘Make in India,’ which encourages local manufacturing and innovation. Advances in technology, such as automation powered by artificial intelligence (AI) and smart packaging, are also helping the industry grow fast.
India’s organic food market, valued at $1.9 billion right now, is expected to grow rapidly at a yearly rate of over 20%. Experts predict it will reach $10.8 billion by 2033. Similarly, the food ingredients segment is expanding at around 7-8% annually, signaling a strong shift towards healthier and natural foods.
Industry leaders believe these trends will make India a global hub for food products and packaging materials. Dr. Meenakshi Singh from the Council of Scientific and Industrial Research (CSIR) highlighted that food ingredients are the backbone of the industry, and innovative packaging plays a crucial role in ensuring food safety and quality.
A major three-day event organized by Informa Markets showcased India’s growing food processing ecosystem. Over 350 exhibitors from India and around the world participated, drawing more than 15,000 professionals from 50 countries.
Yogesh Mudras, Managing Director of Informa Markets India, noted that rising health awareness, a growing preference for organic and plant-based foods, and changing dietary habits are transforming the sector. He also mentioned that the organic food market could reach Rs 75,000 crore (around $10 billion) by 2025, with consumers willing to pay extra for healthier options.
India’s food processing industry already contributes 7.7% to the country’s manufacturing output and provides over 7 million jobs. Looking ahead, the Food Safety and Standards Authority of India (FSSAI) plans to introduce stricter food labeling, promote organic standards, and raise consumer awareness in 2025 to ensure better transparency and safety.
To boost innovation and exports, the government launched ‘BHARATI,’ a new initiative supporting 100 agri-food startups. The aim is to push exports towards a target of $50 billion by 2030, creating more opportunities for farmers and entrepreneurs alike.
India’s food processing sector is on a vibrant growth path, paving the way for a healthier, more export-oriented future!
