India’s Food and Beverage Industry: Growth, Opportunities, and Key Insights

India’s food and beverage (F&B) sector is a cornerstone of the economy, contributing significantly to GDP, employment, and exports. Leveraging its vast agricultural base, the country is a leading global producer of various agricultural products such as milk, pulses, spices, and rice.

Key Statistics (2023-2024)

Industry Size: The F&B industry in India is valued at approximately ₹27.50 lakh crore (₹27,50,000 crore) and is projected to grow at a CAGR of 11.05%, reaching about ₹57.27 lakh crore (₹57,27,000 crore) by 2030 (6Wresearch, Maximize Market Research).

Exports: In FY 2023, India exported 111 lakh metric tons (LMT) of non-basmati rice and 52 LMT of basmati rice, contributing to the export earnings of ₹2.53 lakh crore (UJA).

Horticulture and Animal Production: India ranks first globally in milk production, contributing around 25% of global output. Horticulture production stood at 3,555 LMT in 2023, with egg production reaching 138.4 billion units, and meat production at 97.7 LMT (India Brand Equity Foundation, UJA).

Non-Alcoholic Beverages: The non-alcoholic beverage segment grew by 30% post-2021. However, the per capita consumption remains relatively low at 21.4 liters per person, and the government’s revenue from this sector was only ₹960 per capita in 2022-2023 (UJA).

Processed Foods: Processed foods contribute less than 10% to India’s total food output. However, this sector is seeing robust demand due to convenience and lifestyle changes, valued at around ₹1.28 lakh crore (India Brand Equity Foundation).

Factors Driving Growth

Urbanization and Changing Lifestyles: The expanding middle class, increasing urbanization, and rising demand for processed, ready-to-eat (RTE), and convenience foods are major drivers of growth in the F&B sector (6Wresearch, UJA).

Technological Advancements: Advancements in food processing, packaging, and supply chain technologies are improving product quality and expanding export capabilities (India Brand Equity Foundation).

Government Initiatives: The Indian government is actively supporting the sector with programs such as Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Production-Linked Incentive Scheme for Food Processing Industry (PLISFPI), which provide incentives for infrastructure development and technological upgrades (India Brand Equity Foundation).

E-commerce and Food Delivery: Platforms like Swiggy, Zomato, and BigBasket have revolutionized food retail and delivery, particularly in urban areas, further boosting demand for packaged and ready-to-eat foods (India Brand Equity Foundation).

Major Segments

Dairy: India remains the world leader in milk production, and the domestic market for dairy products such as cheese, butter, and yogurt continues to grow (Maximize Market Research, UJA).

Processed Foods: A burgeoning sector, especially for snacks, RTE meals, and bakery products, with strong demand domestically and internationally (6Wresearch).

Beverages (Alcoholic and Non-Alcoholic): India is among the top consumers of alcoholic beverages globally, especially whiskey. In the non-alcoholic segment, carbonated drinks and fruit juices are leading the market (Maximize Market Research).

Spices: India is the largest producer of spices, with 11.26 million tonnes produced in 2022-23 (UJA).

Challenges

Supply Chain: Inadequate cold storage and logistics infrastructure result in significant food wastage, affecting profitability (UJA).

Sustainability: The industry faces growing pressure to adopt sustainable practices, particularly in production and packaging (UJA).

Future Outlook

The food and grocery market in India is projected to reach ₹98.52 lakh crore (₹98,52,000 crore) by 2025, driven by urbanization, changing food habits, and rising disposable incomes (India Brand Equity Foundation, UJA). The sector’s future lies in healthier, plant-based, and organic offerings, and there is immense potential for both domestic and international investments (Maximize Market Research).