Food production & processing is here to stay

The Indian Food and Retail market was projected to touch $828.92 bn by end of this year. In fact 100% FDI is allowed under the automatic route within this sector.

The food retail and processing sector is booming and it is a good time for you to choose your niche in this sector. The Government of India through the Ministry of Food Processing Industries (MoFPI) is also taking necessary steps to boost investments in the food processing industry. The government has sanctioned 39 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 18 Mega Food Parks have become functional.

India is world’s largest producer of food grains, fruits and vegetables and this is certainly one of the most promising areas for you to start your business. Major industries constituting the Food processing industry are grains, sugar, edible oils, beverages and dairy products. This is where you can find your foothold in order to make a profitable stand.

Find your niche

Did you know that India is the second largest producer of fruits and vegetables in the world, with a production of 307 Mn MT recorded in 2017. India is the world’s largest producer of bananas, papaya, mangoes and guavas, and the second largest producer of potatoes, green peas, cabbages and cauliflowers. So, agricultural produce and the processed food industry linked to this sector is booming and can easily translate as your growth story if you wish to enter this domain.

The opportunities that await you in this sector are ample and includes:

New technology to reduce wastage levels

Adequate infrastructure (cold chain, processing infrastructure, R&D for processed food, packaging and innovative farm preservation systems)

Packaging technology for convenience foods

Processed fruit-based ingredients for ice cream, yoghurt, beverages

In fact, as per reports released by the Indian Government the altering economic demographics and economic growth, is likely to drive India and push it to become a global food service industry in no time. Some key aspects that drive the demand in this segment are:

Key formats behind the FS market’s growth are Quick Service Restaurants (QSRs)

Casual Dining Restaurants (CDR), Cafes, Frozen Dessert Parlours, Lounges, Fine-Dining Restaurants, etc.

Improving demand metrics of ready-to-eat products

Impact of technology on the entire food service industry, from sourcing of raw materials to reservations and on-demand delivery

Online aggregators and third party logistics service providers

Time is ripe

With the lock-down getting uplifted slowly in phases and COVID being an eye opener, people have started to realize the importance of food and food products. Now more than ever the demand for food is on a rise and the facilitators both online and offline are manning the operations in order to connect each food brand with the consumers. So, without much hesitation work out a business plan and enter this domain to become more significant with the growing needs and future requirements. With food processing and retail domain on your mind, you will need to seek a little more guidance in terms of the policies and the norms that supervise the set-up of your production units.