The Food Processing Industry is one of the largest industries in the world. It is one of the most complex and diversified businesses that is responsible for supplying the most essential need – food to the world population.
The food industry includes anything and everything related to food. Industries like agriculture, manufacturing, food processing, marketing, logistics, hospitality, etc. all come under the food industry and each one plays a vital role in bringing good quality food to the world and in fulfilling the increasing food demands of the world population.
The food industry accounts for 32% of the Indian food market. Due to this, the Government has introduced a lot of schemes and initiatives to encourage investments in the food processing industry. It has approved proposals for Joint Ventures, foreign collaborations and 100% export oriented units.
India’s food and grocery market is the 6th largest market in the world and the retail sector of it creates 70% of the sales.
Important Updates on Food Processing Industry:
According to the Central Government, the Indian food and retail market is set to touch $828.92 billion by 2020. And in the same year the Indian dairy industry is expected to double to $140 billion.
Also, the food processing industry will attract around $33 billion investments and will also employ 9 million people by 2024.
Another important highlight is that India will become the 5th largest consumer in the food industry by the year 2030.
While all the updates look very alluring, we cannot ignore the impact of COVID-19 pandemic on the food industry. The industry’s demand has suddenly increased thanks to customers buying essential foods in large quantities to avoid food shortages.
However, the animal husbandry sector of the food industry has been hit hard as false rumours of meat products being hosts of COVID virus started scaring people. This has resulted in huge decrease in the sale of these products. The businesses dealing with meat products have had to suffer severe losses.
Also, since the pandemic is putting millions of people out of jobs, it will have an obvious impact on consumption as people will not have enough money to buy food products. Also, the social distancing and safety guidelines will heavily impact food production and the supply-demand link will suffer.
According to the Government’s official website dedicated to Food Industry, that is, Ministry of Food Processing Industries (MoFPI), the Government has allowed 39 Mega Food Parks (MFPs) to be set up across the country under the Mega Food Park Scheme. As of now, out of 39, 18 parks are fully functional.
Also, 100% FDI has been approved so that foreign players can invest in the Indian food processing industry. Another 100% FDI has been approved to allow trading of processed food products produced in India.
Hence, the food industry overall looks quite progressing given its demand during such trying times. However, the sector is still trying to recover from the losses suffered due to the pandemic.