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Growth Drivers for Food Processing Industry

Growth Drivers for Food Processing Industry

Food Processing Industry ranks as the 5th largest industry in India in terms of production, consumption and exports.

It employs over 16 percent of total workforce in organised manufacturing sector and 32 percent in unorganised manufacturing sector.

  • Food and grocery dominates total retail spend of India’s population:  53 percent of their total consumption expenditure on food and grocery in rural areas and 40 percent in urban India.
  • Higher disposable Income :High economic growth has led to increased disposable income for the Indian middle class which is switching over to healthy and processed products.
  • Disposable income is set to rise at an average rate of 8.5 percent by 2015.
  • Shift in demographic profile: The median age of Indian population is 24 years and nearly 65 percent of Indian population is below 35 years of age, which forms a wider consumer base for processed products.
  • Increasing number of working women : The number of working women, as a percentage of total female population, has grown from 12 percent in 1961 to over 25 percent resulting in rising demand for convenience food.
  • Emergence of organised food retail: The share of organised food retail likely to increase at a fast pace in years to come due to changing life styles and higher incomes which will translate into more business opportunity for processed products as well as provide forward linkage to the industry.

Also, India has a huge and growing consumer market and large and diversified production base.

India is strategically located at the centre of Middle-east and South-east Asia with a long coastline and proper sea route connectivity.                                    Growth Drivers for Food Processing Industry

With enough raw material availability for long periods India provides an attractive destination for multi-national food companies to set up processing facilities in India both for Indian market as well as for export.

 

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Indian Economy

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