India food sector: Experts see food processing industry touching $535 bn by FY26; organic market set for sharp growth

India’s food processing sector, which contributes 7.7% to the nation’s manufacturing output and helps greater than 7 million jobs, is projected to develop to $535 billion by FY26, industry specialists mentioned on the Fi India and ProPak India occasion organised by Informa Markets.The industry is being propelled by rising consumption, greater exports, authorities help beneath initiatives similar to ‘Make in India’, and technological advances together with AI-driven automation and sensible packaging. Experts mentioned these developments place India to emerge as a world hub for food and packaging supplies, PTI reported.According to them, India’s organic food market—at present valued at $1.9 billion—is projected to broaden at a compound annual growth fee (CAGR) of 20.13% to $10.8 billion by 2033. Meanwhile, the food elements section is rising at 7–8% yearly.Dr Meenakshi Singh, Chief Scientist on the Council of Scientific and Industrial Research (CSIR), mentioned food elements “form the backbone of the food sector, with packaging playing an equally critical role in ensuring safety and quality.”The three-day occasion, which concluded on September 5, noticed participation from over 350 exhibitors from India and overseas and drew greater than 15,000 professionals from 50 international locations.“India’s 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,” mentioned Yogesh Mudras, Managing Director of Informa Markets in India, PTI quoted him as saying. He added that the organic food market is projected to the touch Rs 75,000 crore by 2025, with customers more and more prepared to pay a premium for more healthy options.Industry leaders mentioned regulatory help has been instrumental. “In 2025, FSSAI’s focus on stricter labelling, organic food standards, and consumer awareness is shaping industry practices,” mentioned specialists on the occasion.Dr Nilesh Amritkar, Managing Director of Envirocare Labs, famous, “The organic food industry in India is set for a quantum leap, growing from $2 billion today to over $10 billion by 2033 at a CAGR of 22%. Although organic still represents a small share of India’s $850 billion food market, consumers are increasingly ready to pay a premium of 7–20% for healthier and sustainable products.”Highlighting the worldwide relevance of India’s produce, Dr Prabodh Halde, Chairman of the Chamber for Advancement of Small and Medium Businesses (CASMB), mentioned the food elements industry already holds strategic significance within the present geopolitical context. “Strengthening food processing is critical, as it directly enhances farmer incomes—supporting nearly 68% of India’s population—and adds value through exports,” he mentioned, including that elements similar to turmeric exemplify the twin function of Indian spices in each style and well being.Experts additionally famous that India’s presence within the world food processing area has strengthened significantly. “Unlike in 2006, when international participants dominated, today India’s presence is visible not only domestically but also across platforms in Dubai, the UK, and beyond, reflecting the industry’s transformation,” Halde mentioned.