India’s Food Ingredients and Packaging Markets Projected for Strong Growth

India’s food manufacturing ecosystem is entering a new phase of growth, underpinned by nutritional shifts, value addition, and technological advancements. Industry stakeholders gathered in Mumbai for the 20th edition of Fi India and the 8th edition of ProPak India to discuss emerging trends, market projections, and export-led growth opportunities across the food value chain.

According to sector projections, India’s food additives and ingredients industry is forecast to reach $15 billion by 2031. Simultaneously, the packaging industry is on track to hit $92 billion by FY2030, registering a compound annual growth rate (CAGR) of 9 percent. These sectors support a broader packaged food and beverages market that is projected to cross $150 billion by 2030.

Dr Prabodh Halde, Head of Technical Regulatory Affairs at Marico and Chairman of the All India Association of Food Processing Industry (AIFPI), noted that the domestic food ingredients and additives market is valued at approximately ₹85,000 crore. Natural ingredients and nutraceuticals represent 30 to 35 percent of this market and are expanding at a double-digit pace.

Highlighting the economic impact of food processing on farm incomes, Dr Halde explained that raw commodities such as turmeric—valued at around ₹250 per kg—can generate up to ₹800 per kg when processed into high-value curcumin for pharmaceutical and nutraceutical applications.

The plant-based food sector is also registering notable expansion. Praveer Srivastava, Executive Director of the Plant Based Foods Industry Association, stated that the sector is growing at an 18 percent CAGR, outpacing the global growth rate of 7 to 8 percent. The plant-protein ingredients market currently stands at approximately ₹4,500 crore and is projected to double over the next five years. However, Srivastava noted a significant reliance on external supply chains, with nearly 90 percent of plant-protein ingredients currently imported.

Yogesh Mudras, Managing Director of Informa Markets in India, observed that growth is increasingly defined by the industry's capacity to innovate, add value, and manufacture at scale. As consumer preferences shift, manufacturers are examining the entire value chain—spanning ingredients, formulation, processing, automation, and packaging—to enhance efficiency and competitiveness.

"The expansion of India's food ingredients and packaging sectors highlights a clear economic shift toward value addition and domestic manufacturing. When raw agricultural commodities are processed into high-value applications like curcumin or plant proteins, it directly improves farm-level economics and creates lucrative opportunities for processing enterprises. However, the heavy reliance on imported plant-protein ingredients indicates a vital gap in the local supply chain that domestic entrepreneurs and manufacturers must address to capture the full value of this market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes