Since India harvests and subsequently processes a wide range of food items for consumption, the food processing sector plays a significant role in the country’s economy. It is possible to examine additional processing inside the food processing industry. A significant portion of this will be fueled by the desire for more convenience and a rise in retail demand. Due to the current need for ready-to-cook, ready-to-eat items and the necessity to consider secure and safe food consumption methods, there is significant market potential in food processing.

Business Opportunities in Food Processing

Nearly 75% of the workforce is employed in agriculture, contributing 22% to GDP. Even after 70 years of independence, only 25% of the total agricultural output is processed and converted into value-added goods. India’s food processing industry, therefore, offers tremendous development potential.

 

The industry also provides a sizable number of work possibilities and opportunities for export. Consumer food companies, both local and foreign, have the chance to establish a presence in the rapidly expanding processed food sector.

 

Market Outlook

The market for food processing in India was valued at INR 25,691.30 billion in FY 2018; by FY 2024, it is expected to have grown to INR 53,435.52 billion, with a CAGR of 12.09 percent. The industry in India showed revenue growth of 13.41% from 2015 to 2019, indicating that the firm has a favorable growth environment in terms of raw material availability.

 

The food processing industry in India is also growing because of increased per capita income and living standards. With plenty of space for growth, India’s food processing industry has emerged as a bright spot. Right now, it can stimulate agricultural value addition and boost the economy.

 

The expansion of rural employment would be beneficial to companies that provide agricultural inputs like agrochemicals. Even while it now only represents 2% of India’s industrial GDP and only represents 10% of GDP (about Rs 4 lakh crore), it is growing at a pace of over 12% per year. India’s food processing industry will be worth $350 billion by 2025, predicts the ASSOCHAM study. The sector offers enormous economic opportunity for entrepreneurs in all regions of India, including the north, south, east, and west, since it operates in every location throughout more than 576 districts.

Government Policy Support

Through the Ministry of Food Processing Industries, the Indian government is making all necessary efforts to expand investments in the country’s food processing business (MoFPI). Of the 41 food parks the Mega Food Parks Scheme sponsored, 38 have received approval from the government. 2014 saw the establishment of just two Mega Food Parks. As of August 1, 2021, the nation had 22 Mega Food Parks.

 

Right now, having more than 40 of them is the aim. India’s agricultural and processed food exports surged by over 15% from April to October. Most food is produced worldwide, followed by milk and pulses. The largest quantities of cashew nuts are processed, manufactured, and eaten globally.

Opportunities in the Food Business

You may establish several food-related businesses in India in 2022.

1.Food business concepts connected to bakeries

The consumption of bakery products, such as biscuits and cookies, cakes, buns, etc., is particularly high in rural India. You may establish a small-scale bakery food company in your town or village to serve the locals if you have the proper equipment, such as a food mixer, flour mixer, rotary oven, rotary molder, oven, and oil spray machines, and packing machines.

 

2.Food business ideas for producing small quantities of beverages

By 2021, the market for non-alcoholic beverages is expected to exceed $1.2 trillion. Beverages are a significant market in India as well. The most popular drinks in India include coconut water, lychee juice, packaged drinking water, tea, coffee, ginger drink, orange juice with pulp, fruit juice in aseptic containers, and soft drinks.

 

3.Ideas for a chicken and beef food business

Cattle food company ideas are becoming more popular as demand and popularity for dairy products rise. It’s one of the most viable food business concepts for Indian communities, especially the rural ones.

 

4.Food business ideas for a small-scale besan production factory

To create besan, the gram dal must be cleaned and dried before crushing, grinding, and pulverizing equipment. You will be an FMCG sector entrepreneur if you pursue your idea for a besan manufacturing food firm.

 

5.Fruit bars ideas for a business

In India in 2022, one of the new generation food business concepts. Since most fruits are seasonal, consumers in India and worldwide are particularly receptive to eating processed fruit products. Jams, jellies, juices, pickles, chips, wafers, toffee, etc., are quite popular in many countries, including Australia, the United States, and India.

Conclusion

The Indian food processing industry offers new local and foreign players an attractive investment opportunity. The sustained economic expansion, growing income levels, and changing lifestyles will cause a sharp rise in the demand for processed foods during the coming ten years. Companies in this industry with access to technology and market knowledge should assess this lucrative possibility today.