Key Update

India’s organic food market is set to grow at a CAGR of 20.13%, reaching $10.81 billion by 2033, according to experts at the Fi India and ProPak India trade shows. Strong regulations, rising health awareness, and innovation in food processing are fueling this growth.

FSSAI Drives Stricter Standards

Dr. Meenakshi Singh, Chief Scientist at CSIR, said FSSAI’s tighter rules on labelling and organic certification are raising industry standards. CSIR supports this push through its 37 research labs, focusing on food ingredients and packaging. She added that government schemes like the Production Linked Incentive (PLI) have helped accelerate growth. Dr. Nilesh Amritkar, MD of Envirocare Labs, noted that while organic food still holds a small share of India’s $850 billion market, demand is growing. Consumers are willing to pay 7–20% more for healthier, sustainable products. He said better access to certification and more organic farming will help India grow its global presence.

Shift Toward Healthier Foods

Yogesh Mudras, MD of Informa Markets in India, said more people are choosing organic and plant-based foods. He expects the organic market to reach ₹75,000 crore by 2025, led by rising demand for fruits, vegetables, and healthy packaged foods. Dr. Prabodh Halde, Chairman of CASMB, said India’s food processing and ingredients sector is growing steadily, valued at $8–9 billion. Growth is led by herbal, Ayurvedic, and nutraceutical products, with FSSAI’s new Aahara standards playing a key role.

Sector Poised to Reach $535 Billion

Nilesh Lele, President of CASMB, predicted India’s food processing sector will grow to $535 billion by 2025–26. He credited strong domestic demand, export potential, and the ‘Make in India’ initiative for driving growth. He added that, unlike some other industries, food remains resilient and in high demand both locally and globally.

Sagar Kurade, MD of Suman Project Consultants, said India’s ingredient sector has grown from small beginnings in the 1960s to a global player. He noted a current growth rate of 7–8% and pointed to India’s strengths in packaging—thanks to skilled labour and cost advantages. He urged policy support, like capital subsidies for packaging machinery, to boost India’s global competitiveness, especially against countries like China.

Source: The Hindu