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Food Industry

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Food Industry

April, 2010

According to the latest report published by market research firm RNCOS called ‘Indian Food and Drinks Market: Emerging Opportunities’ the Indian food and beverages market is expanding rapidly and is projected to grow at a CAGR of 9 per cent during 2009-13 and reach US$ 580 billion by 2013.


Exports of agricultural products from India are expected to cross around US$ 22 billion mark in the next five years and account for five per cent of the world’s agriculture exports, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).

Exports of fresh and processed vegetables, fruits, livestock and cereals rose 12 per cent to US$ 8.1 billion in 2008-09 from US$ 7.1 billion in 2007-08.


Despite a global slowdown, Indian spice exports are growing. India exported 470,520 tonnes of spices valued at US$ 1.2 billion—an all-time high—in 2008-09. Between April to February 2009-10, India exported 437,241 tonnes of spices valued at US$ 1.02 billion, according to the Spices Board of India.

Moreover, India enjoys a 48 per cent in volume and 44 per cent in value share in the global spice trade.

Food Processing

In order to further grow the food processing industry, the government has formulated a Vision-2015 action plan under which specific targets have been set. This includes trebling the size of the food processing industry from around US$ 70 billion to about US$ 210 billion, raising the level of processing of perishables from 6 per cent to 20 per cent, increasing value addition from 20 per cent to 35 per cent, and enhancing India’s share in global food trade from 1.5 per cent to 3 per cent.

According to the Union Minister for Food Processing Industries, Mr Subodh Kant Sahai the Central Government is envisaging an investment of US$ 21.9 billion in the food processing industry over the next five years, a major chunk of which it plans to attract from the private sector and financial institutions.

The total FDI investment in the food processing sector in 2008-09 was US$ 103 million.

During April to December 2009, FDI inflow in food processing sector was US$ 206.1 million as compared to US$ 100 million during the financial year 2008-09.

The cumulative FDI received by the industry from April 2000-January 2010 stood at US$ 1.02 billion.


According to a report published by market research firm RNCOS in August 2009, titled “Indian Non-Alcoholic Drinks Forecast to 2012”, the Indian non-alcoholic drinks market was estimated at around US$ 4.8 billion in 2008 and is expected to grow at a CAGR of around 15 per cent during 2009-2012.

As per the report, the fruit/vegetable juice market will grow at a CAGR of around 30 per cent in value terms during 2009-2012, followed by the energy drinks segment which will grow at a CAGR of around 29 per cent during the same period.

According to another RNCOS report called ‘Indian Food and Drinks Market: Emerging Opportunities’ alcoholic drinks have emerged as the largest and fastest growing product category. As per the report, the Indian alcoholic market is expected to grow at a CAGR of around 12 per cent during 2010-2013.