India Food Market is Expected to Witness Significant Growth By 2025 | Hexa Research

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Research Report on India Food Market Size, Share, Demand, Growth Factor, Challenges, Key Players, Overview and Forecasts – 2025

21 February 2019
The India food market is expected to witness substantial growth in coming years owing to increasing demand for packaged food. Rapid urbanization, production of a wide range of products, and increasing global connectivity have resulted in a shift in consumption pattern of consumers. In addition, increasing young population, high disposable income, and emergence of nuclear families are likely to have a positive impact on the market growth. Low inclination among consumers towards saving and changing eating habits has increased sale of premium value-added products. In addition, rise in middle class population has resulted in growing preference for groceries and other premium products, such as chocolates. Growing awareness among consumers regarding health and development in biological farming techniques are expected to present growth opportunities in the market. Companies need to focus on product conformity with international standards and quality along with aspects, such as safety, packaging, delivery, and logistics traceability. Advancements in packaging has helped in increasing the shelf life of products.

Packaging machineries, such as testing instruments, automatic form-filling and sealing apparatuses, and tetra pack aseptic packaging machines for sterilized filling and packing of liquids are expected to generate lucrative opportunities in the market. Robust growth of the food and beverages sector has increased demand for advanced packaging solutions. High demand for nutritional food with better packaging is also a key driving factor in the market. Packaging helps consumers to differentiate among products and compare while purchasing. Products, such as oils and fats, dairy, and bakery hold a prominent share in the market. Other products, such as sweet, savory snacks, ice cream, and confectionery are likely to gain traction among young and elder population in the country. For instance, SPM, a beverage dispenser company from Italy, recently introduced K Soft, a countertop soft-serve machine intended for low to medium business. The machine has features, such as prominent display, menu variety, low maintenance, and noiseless operation.

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Advanced technologies used in production include high-pressure processing, pasteurization, UV treatment, and nanotechnology. Launch of novel food processing technologies and development of skills and equipment required for overall production are anticipated to boost the market growth. Growth in the food processing sector and value chain development are crucial for the agriculture sector, both at domestic and international level. Majority of the population lives in rural areas. Owing to low infrastructure and labor costs, rural region is anticipated to generate growth opportunities in the market. Leading applications in the market include dairy, grains and cereals, meat and poultry, fish, consumer foods, and fruits and vegetables. Fruits and vegetables and meat and poultry account for a prominent share of the total household consumption. Companies are focusing on strengthening their presence and introducing small pack size at affordable costs to expand their customer base. Government of India is taking efforts to encourage investment in the food industry by offering subsidies and grants. It is also emphasizing on facilities, such as bulk storage facilities, development of integrated cold chains and modern terminal markets (MTMs), and provision of quality control laboratories.

India is one of the leading sales markets for German machinery industry in Asia Pacific. In terms of volume, a large number of food processing and packaging machinery has been exported from Europe to India. Some of the key companies operating in the India food market are Kissan, LT Foods Ltd., REI Agro Ltd, Britannia, and HatsunAgro Product Ltd. Growing habits of eating a nutritious breakfast among consumers has compelled manufactures to introduce healthy breakfast options. For instance, Nestle India launched Breakfast Cereals together with Cereal Partners Worldwide (CPW). CPW is a 50/50 joint venture that combines expertise of Nestlé S.A, Switzerland and General Mills Inc., United States, to produce and sell breakfast cereals.

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