India’s food processing sector, which contributes 7.7% to the country’s manufacturing output and supports more than 7 million jobs, is projected to grow to $535 billion by FY26, industry experts said at the Fi India and ProPak India event organised by Informa Markets.The industry is being propelled by rising consumption, higher exports, government support under initiatives such as ‘Make in India’, and technological advances including AI-driven automation and smart packaging. Experts said these trends position India to emerge as a global hub for food and packaging materials, PTI reported.According to them, India’s organic food market—currently valued at $1.9 billion—is projected to expand at a compound annual growth rate (CAGR) of 20.13% to $10.8 billion by 2033. Meanwhile, the food ingredients segment is growing at 7–8% annually.Dr Meenakshi Singh, Chief Scientist at the Council of Scientific and Industrial Research (CSIR), said food ingredients “form the backbone of the food sector, with packaging playing an equally critical role in ensuring safety and quality.”The three-day event, which concluded on September 5, saw participation from over 350 exhibitors from India and abroad and drew more than 15,000 professionals from 50 countries.“India’s 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,” said Yogesh Mudras, Managing Director of Informa Markets in India, PTI quoted him as saying. He added that the organic food market is projected to touch Rs 75,000 crore by 2025, with consumers increasingly willing to pay a premium for healthier alternatives.Industry leaders said regulatory support has been instrumental. “In 2025, FSSAI’s focus on stricter labelling, organic food standards, and consumer awareness is shaping industry practices,” said experts at the event.Dr Nilesh Amritkar, Managing Director of Envirocare Labs, noted, “The organic food industry in India is set for a quantum leap, growing from $2 billion today to over $10 billion by 2033 at a CAGR of 22%. Although organic still represents a small share of India’s $850 billion food market, consumers are increasingly ready to pay a premium of 7–20% for healthier and sustainable products.”Highlighting the global relevance of India’s produce, Dr Prabodh Halde, Chairman of the Chamber for Advancement of Small and Medium Businesses (CASMB), said the food ingredients industry already holds strategic importance in the current geopolitical context. “Strengthening food processing is critical, as it directly enhances farmer incomes—supporting nearly 68% of India’s population—and adds value through exports,” he said, adding that ingredients such as turmeric exemplify the dual role of Indian spices in both taste and health.Experts also noted that India’s presence in the global food processing arena has strengthened considerably. “Unlike in 2006, when international participants dominated, today India’s presence is visible not only domestically but also across platforms in Dubai, the UK, and beyond, reflecting the industry’s transformation,” Halde said.
