India's food processing industry projected to reach Rs. 47,13,350 crore (US$ 535 billion) by FY26-end
- IBEF
- September 8, 2025
India’s food processing sector, which accounts for 7.70% of manufacturing output and supports over seven million jobs, is projected to reach Rs. 47,13,350 crore (US$ 535 billion) by the end of FY26, driven by rising consumption, exports, and government initiatives under Make in India. Experts at the Fi India and ProPak India event noted that artificial intelligence-based automation and smart packaging are transforming the sector, positioning India as a potential global hub for food and packaging materials. The organic food market is also expanding rapidly, projected to grow at a compound annual growth rate (CAGR) of 20.13% to Rs. 95,148 crore (US$ 10.80 billion) by 2033. Food ingredients, supported by innovations in packaging and stricter standards under the Food Safety and Standards Authority of India (FSSAI), are emerging as the backbone of the sector.
Industry leaders highlighted that India’s organic food market has already reached Rs. 16,915 crore (US$ 1.92 billion) in 2024, with consumers increasingly willing to pay a premium of 7-20% for healthier and sustainable products. Over 350 exhibitors from India and abroad participated in the trade event, underscoring growing international interest. Experts emphasised the strategic importance of food processing for India, noting its role in enhancing farmer incomes, supporting nearly two-thirds of the population, and adding value through exports. Ingredients such as turmeric exemplify how Indian produce combines taste with health benefits, contributing to stronger resilience during global health crises. With participation from over 15,000 professionals representing 50 countries, stakeholders agreed that the sector is undergoing a transformative phase, driven by ayurveda, herbal and organic products, and new standards such as FSSAI’s Aahara framework.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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