The Indian food services industry is estimated to be nearly worth Rs 75,000 crore (US$ 13.77 billion) and is growing at a healthy compound annual growth rate (CAGR) of 17 per cent, according to a Franchise India report released at the Indian Restaurant Congress. It is expected to reach Rs 1,370 billion (US$ 25.16 billion) by 2015. "In the future, the organised market is expected to grow even faster - at around 20 to 25 per cent per annum," according to Mr Gaurav Marya, President of Franchise India.
The Indian food services industry is anticipated to grow at a CAGR of around 12 per cent during 2012-2015, as per a RNCOS research report titled, 'Indian Food Services Market Forecast to 2015'.
In addition, India has also been recognised as one of the largest potential market for organic food consumption worldwide. The organic food is invariably increasing among the Indian retailers, especially with the niche retailers, as per RNCOS research report titled, 'Indian Organic Food Market Analysis'. The report further highlighted that the sector will grow at a CAGR of 15 per cent during 2011-2013.
India is fast becoming an important investment destination for foreign players with companies like Starbucks and American brand Dunkin' Donuts, who have recently entered the country.
Furthermore, India is the fastest growing market for chocolates with 21 per cent increase in volume between 2008 and 2011, as per a report by Mintel. "Chocolate consumption in India has seen an incredible growth rate in the past few years," said Deepa Dsouza, Trend and Innovation Consultant - India, Mintel.
With a huge agriculture sector, abundant livestock, and cost competitiveness; India is fast emerging as a sourcing hub of processed food. India's food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, beverages, fisheries, plantation, grain processing and other consumer product groups such as confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.
The Indian food processing industry accounts for 32 per cent of India's total food market. Estimated to be worth US$ 121 billion, it is one of the largest industries in India, and is ranked fifth in terms of production, consumption and exports.
The export of fruits and vegetables from India, including processed food items, have registered a growth of 24 per cent in terms of value to record Rs 8,241 crore (US$ 1.51 billion) in 2011-12 as compared to Rs 6,638 crore (US$ 1.22 billion) in the previous fiscal year. The exports of fresh grapes increased to Rs 603 crore (US$ 110.72 million), while walnuts were Rs 231 crore (US$ 42.42 million) and fresh mangoes stood at Rs 210 crore (US$ 38.56 million).
India is the world's largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, 'Indian Dairy Industry Analysis'. The study anticipates that the milk production in India will grow at a CAGR of around 4 per cent during 2011-2015.
The food processing industries attracted foreign direct investments (FDI) worth US$ 1,661.85 million between April 2000 to September 2012, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).