New Delhi: India’s food processing sector today stands as a vital pillar of the economy, contributing 7.7% to the country’s manufacturing output and providing livelihoods to more than seven million people. Valued at USD 535 billion by 2025–26, the industry is being propelled by rising domestic consumption, growing exports, and government initiatives under the ‘Make in India’ programme. Within this ecosystem, the food ingredients market alone is expanding at a healthy CAGR of 7–8%.

With artificial intelligence, automation, and smart packaging reshaping the way food is processed and delivered, India is positioning itself as a potential global hub for food products, packaging materials, and machinery. Experts highlighted that consumers today are ready to pay a premium for quality organic foods as health awareness is taking centrestage in people’s lives.

Speaking at the 19th edition of Fi India co-located with 7th edition of ProPak India, Yogesh Mudras, Managing Director, Informa Markets in India, said “The Indian food processing sector is undergoing a transformative phase, driven by rising health consciousness, growing preference for organic and plant-based foods, and a notable shift in dietary patterns. With the organic food market projected to touch Rs 75,000 crore by 2025, and a majority of consumers willing to pay a premium for healthier alternatives, the industry is seeing rapid expansion across fruits, vegetables, and plant-based offerings.”

Experts said that food ingredients form the backbone of the food sector, with packaging playing an equally critical role in ensuring safety and quality. Dr. Meenakshi Singh, Chief Scientist, Technology Management Directorate, Council of Scientific & Industrial Research (CSIR), said “Supported by schemes like the Production Linked Incentive (PLI), the industry is witnessing strong growth. CSIR, through its 37 R&D labs nationwide including scientific testing labs and those focused on food ingredients, continues to drive innovation in food ingredients and packaging, while FSSAI has mandated safety checks, placing responsibility on all stakeholders to ensure compliance. In 2025, FSSAI’s focus on stricter labeling, organic food standards, and consumer awareness is shaping industry practices at a time when India’s organic food market has already reached USD 1,917 million in 2024 and is projected to grow at a CAGR of 20.13% to USD 10,807 million by 2033.”

Strengthening food processing is critical, as it directly enhances farmer incomes-supporting nearly 68% of India’s population-and adds value through exports, said the experts. Ingredients such as turmeric, exemplify the dual role of Indian spices in promoting both taste and health, contributing to lower rates of mortality during Covid and neurological disorders compared to global averages.

Dr. Prabodh Halde, Chairman, Chamber for Advancement of Small and Medium Businesses (CASMB), said, “India’s food processing and ingredient industry holds immense strategic importance in the current global geopolitical scenario, with the market already valued at $8-9 billion and steadily expanding. Growth is being driven by Ayurveda, herbal, organic products.”

India’s food processing industry today stands as one of the largest globally, accounting for 32% of the nation’s total food market. It contributes nearly 14% of manufacturing GDP, 13% of exports, and 6% of total industrial investments, highlighting its pivotal role in the economy. According to a Deloitte-FICCI report, the sector contributes 7.7% to India’s overall manufacturing output while supporting more than 7 million jobs directly and indirectly. Beyond its economic weight, the industry is instrumental in driving rural industrialisation, reducing post-harvest losses, and positioning India as a key hub for processed and value-added food products on the global stage.