The branded packaged food industry is expected to grow at the rate of 9-12% per annum depending on the segments, including snacks food, ready-to-eat food, healthy and functional food. The total domestic food business is estimated at about Rs 5 lakh crore annually. Of which, the branded packaged food industry is estimated to be about 7.5% or Rs 37,500 crore.
"The growing awareness among consumers is propelling a consistent increase in the size of the branded food segment. I think the branded packaged food business is expected to grow at the rate of 9% to12% annually," Bipin Sinha, project director, CMP UBM India Pvt Ltd told FE.
The growth in the economy, coupled with a strong desire among consumers to maintain a healthy lifestyle and the growing awareness of functional ingredients such as herbs, minerals, vitamins, omega fatty acids and probiotics is driving the functional foods and beverages market, he said. The food ingredients market is also increasing with a rapid growth rate, as consumers increasingly demand bigger, bolder tastes, foods that are healthy, and ingredients that are natural or sustainable.
"Consumers are becoming more sophisticated and want more upscale flavors and ingredients. The food ingredient business can grow at 40% in the next year," he said. The food processing sector in India has a market size of $70 billion, employs 13 million persons directly and two-and-a half times that number indirectly. The Indian food processing market is one of the largest in terms of production, consumption, and export and import prospects.
7 months ago