What are the opportunities in the food industry in India?

Food Processing Industry is not only the need of the hour but also has the potential to bring prosperity in rural economy and contribute to the socio economic development of the country. It is certainly the pathway of a new future for India.

The Government of India through the Ministry of Food Processing Industries (MoFPI) is also taking all necessary steps to boost investments in the food processing industry. The government has sanctioned 40 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 17 Mega Food Parks have become functional.

In the beginning, the food processing industry was limited to procedures of food preservation and packaging that involved drying, salting, and pickling. Several thousand crore worth of farm produce was lost every year due to improper post harvesting, storage facilities, processing losses, mishandling, improper packaging, ill-equipped and weak cold chain infrastructure.

However, in the last few years, with advancement in technology, the scope of the sector has grown tremendously.

This has given rise to several opportunities in the food industry:

Ready-to-eat food items: Indian consumers are rapidly changing their eating habits. Trends indicate a sharp increase in on-the go eating, snacking in between meals, switching to healthier eating alternatives, pre-cooked ready to eat meals and increasing consumption of organic foods.

Consumer foods: which include segments such as packaged foods, health beverages, meat and poultry, packaged drinking water, aerated drinks and alcoholic beverages, have exhibited tremendous growth compared to the other sectors.

Organic farming: Since the time the concept of organic food has emerged, there has been rapid increase in the consumption of the organically grown food. With numerous benefits appended with the process of production and the food produced, the phenomenon of organic food seems to be gearing up for an unprecedented growth.

Healthy choices for everyone: The relatively high cost of healthy food and drinks have traditionally impeded lower-income earners from purchasing goods that are natural, organic, or free from certain ingredients. But with so many consumers living within restricted budgets, there is enormous opportunity for those developing lower-cost healthy food products.

Bakery: Bakery is one of the most profitable food processing business opportunities in India. Bread and biscuits are the most common products but other items like cakes, pastries, cream-rolls, cookies, etc. are also very popular in India. People almost prefer to have fresh products and this nature increased the popularity of bakery products.

The agro and food sector will continue to grow because consumers now have more disposable income, but also the growing concern over health issues demands creation of innovative solutions in the food space, thereby creating a huge opportunity for the existing player in this sector.