India's Processed Food Market To Reach USD 600 Billion By 2030: Deloitte-FICCI Report

New Delhi, Jul 17 (KNN) India's food processing industry is expected to unlock a nearly USD 600 billion processed food market by 2030, driven by rising incomes, premiumisation, digital adoption and technology-led innovation, according to a joint report by Deloitte India and FICCI.

Processed Food Market Seen Reaching USD 600 Billion By 2030
Released at the 17th edition of FICCI FoodWorld India 2026, the report titled STEP UP: Scalable Transformation for Efficiency and Profitability to Unleash Progress said the country's food ecosystem is undergoing a structural shift as consumers increasingly seek quality, health, convenience and value-added products.

The report noted that nutrition and functional food segments are expanding at nearly twice the pace of the overall food market, reflecting changing consumer preferences. 

It also highlighted the growing trend of ‘split-basket’ purchasing, with consumers balancing affordable products alongside premium offerings, reported Fortune India.

AI, Digital Platforms To Drive Industry Growth
Technology is expected to play a central role in the sector's growth, with artificial intelligence (AI) and advanced analytics increasingly being used for demand forecasting, manufacturing, product development and marketing. 

The report said nearly 84 percent of Indian CEOs are increasing or reallocating investments towards generative AI, which has helped reduce product innovation cycles by 30-60 percent.

Digital retail is also expected to drive growth, with online platforms projected to account for 25-30 percent of food retail sales across India's major metropolitan cities by 2030. 

The report said nearly 70 percent of new food products are now launched first through e-commerce and quick commerce platforms before expanding into traditional retail channels.

Value-Added Exports Offer Major Opportunity
While India's food exports have crossed USD 50 billion, processed products account for only about 20 percent of total outbound shipments, indicating significant scope for value-added exports. 

Processed food exports are currently growing at around 10 percent annually, supported by rising demand for processed fruits and vegetables, cereal preparations, dairy and poultry products.

Infrastructure, Technology Key To Sustained Growth
The report emphasised that greater investment in food processing infrastructure, wider adoption of AI, automation and the Internet of Things (IoT), stronger supply chains and continued regulatory reforms will be critical to enhancing competitiveness, expanding exports and sustaining long-term growth in the sector.

(KNN Bureau)