Food processing is simply a method by which agricultural products are transformed into food products that are fit for consumption. It involves different ways of processing such as, grinding grain to make raw flour, home cooking, and industrial methods to produce convenience foods including noodles, pasta, Biscuit, Namkeen, Ketchup, Sauce and chips etc. The food processing industry forms a major part of India’s economy owing to the variety of food products that the country harvests and further processes for consumption. India is the largest producer of milk, bananas, mangoes, guavas, papaya, ginger, okra; second-largest producer of wheat, rice, fruits, vegetables, tea, sugarcane and cashew nuts and the third-largest producer of cereals, coconut, lettuce, chicory, nutmeg, mace, cardamom and pepper worldwide. Rising incomes and a growing demand for healthy, packaged food ensure that this industry is likely to sustain all seasons and never fear a recession. The industry also receives growing support from the government.
India’s food processing sector is one of the largest in the world and its output is expected to reach US$ 535 billion by 2025-26. This sector is expected to generate 9 million jobs by 2024.The Indian food industry is expanding at a CAGR of 11% and the food processing sector accounts for 32% of the total food industry. There is growth in the organized food retail sector and increase in urbanization. MSME’s are playing a vital role in India’s food processing chain through various advancements in skills and technology. The online food ordering business in India is witnessing an exponential growth. There is high demand for packaged, healthy and immunity booster snacks such as roasted nuts, popcorns, and roasted pulses. There is a shift in focus from loose to branded packaging.
The Indian Government, in the ‘Make in India’ campaign, has prioritized the food processing sector and promotes investments in the sector. In addition, the government has established 18 mega food parks and 134 cold chain projects to develop the food processing supply chain. These initiatives are likely to boost food processing companies. Also, the recent government initiatives—such as Rs. 10,000 crore (US$ 1.35 billion) scheme rolled out by the Finance Minister, Mrs. Nirmala Sitharaman, to support this industry—have placed the food processing sector on a high growth trajectory.
Road Ahead
Various factors, such as rise in health issues, busy lifestyles and increase in food adulteration, have witnessed demand for ready-to-cook, ready-to-eat meals and healthy, immunity boosting snacks. Safe and processed food categories such as biscuits and snacks have seen a growth amid the COVID-19 crisis.
The growth for this industry is seen growing in double digit going forward. Innovation of new product and easy to use application would be preferable for next generation.
BENEFICIARIES : GODREJ INDUSTRIES, PARLE AGRO, ITC LTD., AGRO TECH FOODS, DABUR INDIA LTD., BRITANNIA INDISTRIES LTD, HERITAGE FOODS, NESTLE, HATSUN AGRO, VARUN BEVERAGES, TASTY BITE, PRATAAP SNACKS.
