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The focus of the Food Safety and Standards Authority of India’s (FSSAI) on stricter labelling, organic food standards, and consumer awareness is shaping industry practices at a time when India’s organic food market is projected to grow at a CAGR of 20.13% to $10,807 million ($10.81 billion) by 2033, said Dr. Meenakshi Singh, Chief Scientist, Technology Management Directorate, Council of Scientific & Industrial Research (CSIR) at Fi India and ProPak India trade shows organised by Informa Markets in India.
Dr. Singh said CSIR, through its nationwide 37 R&D labs, including scientific testing labs and those focused on food ingredients, continues to drive innovation in food ingredients and packaging, while FSSAI has mandated safety checks, placing responsibility on all stakeholders to ensure compliance.
Stating that food ingredients form the backbone of the food sector, with packaging playing an equally critical role in ensuring safety and quality, Dr. Singh said schemes like the Production Linked Incentive (PLI), have supported the industry in witnessing strong growth.
Dr. Nilesh Amritkar, Managing Director, Envirocare Labs, said, “Although the overall food market is valued at around $850 billion, organic remains a small share, yet consumers are increasingly ready to pay a premium of 7 to 20 per cent or more for healthier and sustainable products.”
“Whilst high transition costs, lower initial yields, and complex certification processes pose challenges, as more land shifts to organic farming and certification becomes more accessible, India will strengthen its position as a global player in the organic food sector,” Mr. Amritkar added.
According to Yogesh Mudras, Managing Director, Informa Markets in India, the Indian food processing sector is undergoing a transformative phase, driven by rising health consciousness, growing preference for organic and plant-based foods, and a notable shift in dietary patterns.
“With the organic food market projected to touch ₹75,000 crore by 2025, and a majority of consumers willing to pay a premium for healthier alternatives, the industry is seeing rapid expansion across fruits, vegetables, and plant-based offerings,” Mr. Mudras said.
Talking about food processing and ingredients segments, Dr. Prabodh Halde, Chairman, Chamber for Advancement of Small and Medium Businesses (CASMB), said, “India’s food processing and ingredient industry holds immense strategic importance in the current global geopolitical scenario, with the market already valued at $8–9 billion and steadily expanding.”
Growth is being driven by Ayurveda, herbal, and organic products, and initiatives such as FSSAI’s Aahara food standards, which emphasise actives and nutraceuticals, Dr. Halde said.
Nilesh Lele, President, Chamber for Advancement of Small and Medium Businesses, said, “India’s food processing sector is on a strong growth trajectory, projected to reach $535 billion by 2025–26, driven by rising consumption, exports, and government focus on ‘Make in India’.”
“Whilst some industries like textiles or gems and jewellery may face larger external pressures, the food sector remains resilient, with strong demand for traditional staples and processed innovations both in India and abroad,” Mr. Lele added.
Speaking about ingredients, Sagar Kurade, Managing Director, Suman Project Consultants Pvt Ltd, said, “The Indian ingredient industry, which began with small enterprises in the 1960s, has now matured into a global force, with early ventures transforming into world-leading companies.”
Emphasising that the food ingredients market is already growing at 7–8% CAGR, Mr. Kurade said packaging offers India a competitive edge with cost advantages, skilled labour, and advanced technology.
“To strengthen global positioning, policy support such as extending capital subsidies to packaging machinery manufacturers is crucial. Though China remains a strong competitor, India holds the potential to emerge as a global hub for food, packaging materials, and machinery,” he added.
Published – September 05, 2025 09:46 am IST
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