India’s Food Processing Sector Set to Hit USD 535 Bn by 2026
Growth driven by consumption, exports, government push, and rising demand for organic foods
India’s food processing industry is poised for robust growth, projected to reach USD 535 billion by 2025–26, driven by rising domestic consumption, export demand, and government’s push for “Make in India for the World.”
“While industries like textiles or gems and jewellery may face external pressures, the food sector remains resilient, supported by strong demand for staples and innovative processed foods both in India and overseas,” said Nilesh Lele, president of the Chamber for Advancement of Small and Medium Businesses, at the Fi India and ProPak India trade shows organised by Informa Markets in New Delhi.
Food innovation and packaging
Lele highlighted the sector’s expansion prospects, while Dr Meenakshi Singh, chief scientist at CSIR’s Technology Management Directorate, emphasised that food ingredients and packaging are critical to ensuring safety and quality.
Backed by initiatives such as the Production Linked Incentive (PLI) scheme, the sector has been drawing greater participation—evident in the 350 exhibitors from India and abroad at this year’s trade fair.
Singh said CSIR’s network of 37 R&D labs continues to drive innovation in food ingredients and packaging, while FSSAI mandates strict safety checks to ensure compliance. “In 2025, FSSAI’s emphasis on labelling, organic food standards, and consumer awareness will further shape industry practices,” she added.
Rising demand for organic foods
India’s organic food market, already valued at USD 1.9 billion in 2024, is projected to grow at a 20.13% CAGR to USD 10.8 billion by 2033, Singh noted.
According to Yogesh Mudras, MD, Informa Markets in India, the food processing sector is undergoing a transformation powered by rising health awareness, preference for plant-based diets, and a shift in eating habits. “With the organic food market projected to touch ₹75,000 crore by 2025, and consumers ready to pay a premium for healthier options, we’re seeing rapid expansion across fruits, vegetables, and plant-based offerings,” he said.
