India’s food processing sector is entering a value-led growth phase and has the potential to become a USD 600 billion industry by 2030, driven by higher value addition, innovation, technology adoption and export-led growth, according to a joint report by FICCI and Deloitte.
Launched during FICCI Foodworld India 2026, the report states that the sector is undergoing a structural transformation from a supply-led, volume-driven ecosystem to a consumer-centric, value-focused growth engine.
“India’s food sector is entering a decisive phase of transformation, shifting from a supply-led, volume-driven ecosystem to a consumer-centric, value-accretive growth engine,” the report said.
It noted that while India has strong demand fundamentals, the next phase of growth will depend on expanding food processing, strengthening value-added manufacturing, fostering innovation, widening distribution networks and enhancing export competitiveness.
According to the report, India currently processes only 12-13 per cent of its total food output, significantly lower than developed economies, indicating substantial scope for value addition. The report estimates that the country’s processed food market could grow to USD 560-580 billion by 2030, with the broader food processing sector expected to emerge as a USD 600 billion opportunity.
The report observed that future growth will increasingly be driven by branded, processed and premium food products rather than by higher agricultural output alone.
It also highlighted changing consumer preferences, noting that demand for healthier, convenient and premium food products is rising steadily. The rapid expansion of e-commerce and quick commerce platforms is reshaping consumption patterns, while the health and functional foods segment is growing at an annual rate of 15-20 per cent, nearly twice the pace of the broader food market.
Speaking at the launch of the report, Andhra Pradesh Industries, Commerce and Food Processing Minister T.G. Bharath outlined the state’s ambitious plans for the sector.
“We have ambitious food processing targets of attracting Rs 30,000 crore of investment and over 3 lakh jobs to be created by 2029,” he said.
Highlighting the role of technology in transforming the industry, Bharath added, “The future of food processing will not be driven by factories, but will be driven by AI, precision agriculture, predictive demands, smart logistics and digital supply chains.”
Food Processing Industries Secretary Avinash Joshi said the government is working towards creating a “Bharat” brand to promote Indian processed food products and cuisine in global markets. He added that increasing the level of food processing would significantly boost value addition, strengthen exports and enhance the competitiveness of India’s food industry.
(With ANI inputs)
