As India increases its contribution to global food trade each year, the Indian Food Industry is poised for tremendous growth. The food sector in India has emerged as a high-profit and high-growth sector because of its immense potential at a singular factor called value addition, especially within the food processing industry. As per statistics and discussions, the food industry is currently valued at US$ 39.71 billion which is further expected to grow with a Compounded Annual Growth Rate of 11% by 2018. And with food and grocery accounting for about 31 per cent of the country’s overall consumption basket, there is room for scalable opportunities in the coming year.
The Government of India has evidently been instrumental in the development and growth of the food processing industry of the nation. As it is seems, it is forwarding all its efforts toward encouraging investments in the sector through Ministry of Food Processing Industries [MoFPI]. The approval of proposals of Joint Ventures, Industrial licenses, foreign collaborations, and 100 per cent export orientated units are bound to drive in more investments in the business.
The India food and grocery market is globally the sixth largest and comprises of retail contributing 70% of the sales. Considering the retail sector, food has always been one of the largest segments valued at US$ 490 billion [in 2013]. As per projections, this valuation of food retail is expected to reach about US$ 895 billion, which is Rs. 61 Lakh Crore, by the end of 2020. With such a room for growth there is a huge potential and a promising future for the food-related ventures in the upcoming years.
At present, the Indian Food Processing Industry holds over 32% of the overall food market of the country. It contributes about 14% of manufacturing GDP, 13% of India’s export and 6% of total industrial investment.
The food service industry is thriving and is expected to reach reach about US$ 78 billion by the end of 2018.
Growing at a Compund Annual Growth Rate of 20%, the Indian gourmet food industry is presently valued at US$ 1.3 billion.
The organic food market of India is expected to grow by three times by 2020.
Although the online food business is in its nascent stage, it is witnessing exponential growth. It stands at a valuation of about US$ 48 billion, of which online food delivery players hold US$15 billion.
Observing the actualizing possibilities within the food market, it is safe to infer how the current and the future prospective market size of the food sector shall drive in a lot of opportunities within the next few years. Synonymously, at the ground level managing demand and supply will be of crucial importance increasing the flux of business outsourcing models. With various integral changes in 2017, such as the implementation of the GST, regulations on e-commerce, and so on, penetration of new businesses is natural, however, it’ll make innovation and expansion thrive within the existing businesses. This scenario will lead Indian industries to develop and grow, particularly the food sector.
Overall there are a lot of opportunities looking into the market’s capacity. According to the projections, the valuations are to rise meteorically in the food sector, making it quite the plausible sector to venture into.
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