India’s Food Processing Industry Set to Hit $535 Billion by FY26

India’s food processing sector, which supports over 7 million jobs and contributes nearly 8% to the country’s manufacturing output, is on track to reach $535 billion by FY26, industry experts said at the Fi India and ProPak India event organized by Informa Markets.

The sector’s growth is being fueled by rising domestic consumption, increasing exports, government initiatives like Make in India, and new technologies such as AI-driven automation and smart packaging. Experts say these trends could make India a global hub for food and packaging materials.

The country’s organic food market, currently valued at $1.9 billion, is expected to grow rapidly, reaching $10.8 billion by 2033. The food ingredients segment is also expanding steadily at around 7–8% annually.

Dr Meenakshi Singh, Chief Scientist at the Council of Scientific and Industrial Research, said food ingredients form the backbone of the industry, with packaging playing a key role in ensuring quality and safety.

The three-day event, which concluded on September 5, saw participation from more than 350 exhibitors and drew over 15,000 professionals from 50 countries.

“India’s food processing sector is transforming, driven by rising health awareness, growing demand for organic and plant-based foods, and changing eating habits,” said Yogesh Mudras, Managing Director of Informa Markets in India. He added that the organic food market is expected to touch Rs 75,000 crore by 2025, as consumers are willing to pay more for healthier options.

Experts also highlighted the role of regulations. Stricter labelling, better organic food standards, and consumer awareness promoted by FSSAI are shaping industry practices.

Dr Nilesh Amritkar, Managing Director of Envirocare Labs, said the organic food industry is poised for major growth, expanding from $2 billion today to over $10 billion by 2033. While organic products still make up a small portion of India’s $850 billion food market, consumers are increasingly willing to pay 7–20% more for healthier and sustainable options.

Dr Prabodh Halde, Chairman of the Chamber for Advancement of Small and Medium Businesses, noted that a stronger food processing sector not only boosts farmer incomes, supporting nearly 68% of India’s population, but also increases exports. Ingredients such as turmeric, he said, highlight India’s dual role in offering both taste and health benefits.

Experts also pointed out that India’s presence in the global food processing market has grown significantly over the years. “Today, India is visible not only domestically but also internationally, in places like Dubai and the UK, reflecting the sector’s transformation,” Halde added.

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