Farm to Table – Agriculture, F&B & Food Processing Sector
India’s “Farm to Table” sector, including agriculture, food & beverage, and food processing, is set for strong growth in 2025. Agriculture contributes about 16% to India’s GDP, with food processing driving rural income and exports. The food processing market is expected to reach $535 billion by 2025, fueled by demand for packaged and health-focused foods and urbanization. Government initiatives like the PMFME scheme and PLI for Food Processing are boosting modernization and private sector involvement.
/ Overview of India's Agriculture, F&B & Food Processing Sector
India’s F&B sector is shifting towards organized retail, branded products, and health-conscious consumption. The industry is expected to exceed USD 500 billion by 2025, growing at a CAGR of around 10%. Demand is rising for organic foods, ready-to-eat meals, and functional beverages. Exports are also growing, with agricultural and processed food exports expected to reach USD 50 billion by 2025, driven by better supply chain infrastructure, digital platforms for farmers, and food quality certifications.
$915.19 bn
Total merchandise imports 2024-25
$737.77 bn
Market Size by 2030
$26.61 bn
FDI (till Jan 2025)
7.5 %
Economic Growth Rate
/ Growth Drivers
Rising Packaged Food Demand
India’s packaged food industry is projected to reach USD 300 billion by 2025, driven by increasing urbanization and changing dietary habits.
Expansion of Food Processing Capacity
Only 10% of India’s agricultural produce is currently processed, compared to over 30–40% in developed economies.
Growth in Cold Chain Infrastructure
India’s cold chain industry is projected to grow at a CAGR of 14–16%, reaching USD 50 billion by 2025, to support fresh produce, dairy, and meat distribution.
Increasing Agri-Tech Adoption
The Indian Agri-Tech market is expected to reach USD 24 billion by 2025, but only 1% of its potential has been tapped so far, leaving massive room for technological integration.
Surge in Organic and Health Food Markets
India’s organic food market is growing at 20–22% CAGR and is projected to cross USD 2 billion by 2025, driven by rising consumer health awareness post-pandemic.
/ Key Investment Opportunities
Agri-Tech Industry
∕ India’s digital agri-input market (seeds, fertilizers, pesticides): It is projected to reach $1.7 billion by 2025, growing at a CAGR of 18–20%, driven by farmer demand for direct-to-farm services.
∕ Agri-analytics solutions: It is forecasted to be a $750 million industry in India by 2026, as 30–35% of large farms and agribusinesses are adopting AI-based decision tools.
∕ The Agri-satellite data services market: It is projected to grow to $500 million by 2026, with government-backed initiatives like “AgriStack” creating large demand for real-time crop monitoring.
∕ Agri-fintech (loans, insurance, payment platforms): It is expected to cross $4 billion by 2026, with crop insurance penetration targeted to increase from 30% to 50% coverage by 2025–27.
Packaging Industry
∕ India’s flexible packaging market is projected to reach USD 16 billion by 2025, growing at a CAGR of 10–11%, driven by demand from FMCG, pharmaceuticals, and food delivery sectors.
∕ The Indian sustainable packaging sector is expected to grow to USD 12 billion by 2027, at a CAGR of over 23%, supported by government bans on single-use plastics and consumer preference shifts.
∕ With India’s e-commerce market set to surpass USD 140 billion by 2025, the demand for specialized, durable, and lightweight packaging solutions is rising by over 20% annually.
∕ The F&B packaging segment is expected to be worth USD 70 billion by 2026, up from USD 57 billion in 2023, largely driven by growth in ready-to-eat meals, beverages, and frozen foods.
∕ The Indian smart packaging market is projected to grow at 18% CAGR to reach USD 1.3 billion by 2026, spurred by the need for supply chain transparency and brand authentication in food, pharma, and luxury goods.
Food processing Industry
∕ The Indian RTE (Ready to eat) market is projected to reach USD 3.5 billion by 2026, growing at a CAGR of 16%, fueled by demand from urban millennials and dual-income households.
∕ India’s plant-based protein market is expected to hit USD 600 million by 2026, supported by growing health consciousness and a projected 25% YoY rise in vegan product launches.
∕ The organic packaged food market in India is anticipated to reach USD 2.1 billion by 2026, growing at a CAGR of 21%, largely driven by rising demand in Tier 2 and Tier 3 cities.
∕ The frozen food segment (vegetables, snacks, meat products) is estimated to grow to USD 2 billion by 2026, expanding at 17–18% CAGR, as working populations seek convenience foods.
∕ The Indian food ingredients market (including flavors, colors, and emulsifiers) is set to reach USD 1.4 billion by 2025, with a 15% CAGR, mainly fueled by the expansion of the domestic processed food sector.
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