The Indian food market has experienced a good growth over the years. The economic liberation and high growth rate of economy has put a positive impact on the food and agriculture market in the country. This has led to lesser imports and high rate of exports in terms of quality and quantity.
With the advancements in the field of technology, more and more innovative techniques are being implemented in the field of agriculture. This has led to high yield of food and crops which has really increased the output and led to the growth of the food industry in India. The growth of the food industry has also led to the introduction of other allied industries such as food processing, food packaging and so on.
Development of the Indian food market
After independence, the government put emphasis on making the country self sufficient through increased food and farm production. Emphasis was given on the development of agriculture through better farming techniques, increased irrigation facilities, more use of fertilizers and so on. This really put a positive impact on the food processing industry which resulted in better yields.
In the 1960s, the government initiated the Green Revolution' movement to increase the food grain production. Emphasis was given on aforestation, irrigational projects, use of better quality seeds, improvised farming techniques and so on. This increased the food exports of India in terms of both quantity and quality.
The market liberalization policies in the 1990s led to the favorable growth of the economy of India which also improved the food industry in the country. Since then, the food industry has really developed to a great extent. More segments are coming up and also plenty of foreign companies are entering the Indian food market.
Main segments of the Indian food market
The food industry in India mainly consists of a number of sectors. Some of the well known ones are:
Dairy and food processing
Frozen food refrigeration
Some of the other sectors which are expected to grow more and be a very lucrative option of business in the coming years are:
Fruits and vegetables
Aqua culture and fishing
Meat and poultry
Fast food and snacks
Ready to eat food
Health food and grains
Health food supplements
Recent trends in the India food market
According to the recent survey, the Indian food market is all set to be double by the year 2025. The rapid economic development, innovative technology and food production, growing consumerism and improved lifestyle are the main reasons behind this growth. Today, Indian consumers are paying for branded and value added food products which have led to the introduction of new segments in the manufacturing and retail market. Over the last few years, the annual output of the food market in India has been around $155 billion which is expected to reach around $344 billion by the year 2025. The annual rate of growth is expected to be around 4.1 %.
The market share of the Indian snacks is around US$ 3 billion with a growth rate of around 15-20 %. The unorganized snacks market is worth around US$ 1.56 billion with a 7-8 % growth rate. Today, there are around 1,000 types of snacks that are available in the market. The most popular snacks are potato based items and chips. Some of the main companies in the organized snacks market in India are Pepsi and Haldiram's.