The food and beverages (F&B) sector accounts for about 3% of India’s GDP and 2/3rd of the total retail market in the country. It is the single-largest employer in the country, with a workforce of more than 7.3 million. Revenue in the F&B business segment is estimated to grow at a CAGR of 14.2 % between 2020 and 2024, with the projected market volume placed at USD 1,26 billion by 2024. The sector faced significant losses after the onset of the Covid-19 pandemic but is now on a path of revival.

F&B is considered the fastest growing industry in India with several factors driving the growth such as rapid urbanization, changing lifestyle and food habits of India’s growing population, and increasing household consumption rate. The industry constitutes 30% of household spending in India with the number of users estimated to reach 346.9 million by 2025.

The growth of the industry is in no less measure supported by the ample availability of raw materials in India. India is the largest producer of milk, spices, and pulses, and the second-largest producer of food grains, fruits, and vegetables. Given the vast growth potential of the sector, the government is working on a strategy to diversify India’s export basket to enhance India’s position in international trade as well as to increase the country’s revenue.

The Indian F&B industry can primarily be divided into three categories: the agri-products sector, the food processing industry, and the food retail sector. India’s food processing sector is one of the largest in the world, and its output is expected to reach USD 535 billion by 2025-26.