‘India’s packaged food sector to grow to $6.4 billion by 2029’

India has now become the third-largest packaging market globally, surpassing Japan, with the industry exceeding $86 billion in value, Prasad Balan Iyer, Director, SIES (South Indian Education Society) School of Packaging, said on the sidelines of industry exhibition Fi India & ProPak India 2024. 

“The global packaging market, valued at over $1 trillion, is driven by sectors like e-commerce, food delivery, pharma, and the food industry, particularly in cities like Bengaluru and Mumbai,” he said.

Stating that packaging plays a crucial role in food safety, extending shelf life, and boosting India’s export competitiveness, he said in 2023, India’s packaged food sector reached a market size of $2.8 billion, with projections suggesting it would grow to $6.4 billion by 2029. “This expansion highlights shifting consumer preferences and the growing demand for convenient, ready-to-eat options in one of the world’s most populous countries,” he added.

Emphasising that the Agri and Food industry contributes nearly 16% to India’s GDP, valued at approximately $450 billion annually, Nilesh Lele, President, Chamber for Advancement of Small and Medium Businesses (CASMB), said dairy alone accounts for about 20% of this sector, with a market size of ₹6 lakh crore. 

He said while India’s packaged food consumption is currently around 7%, there is potential to increase this to 20% by reducing post-harvest losses and extending shelf life, as seen in developed markets where packaged food consumption has reached up to 80%. “As the global population grows, efficient food processing and packaging solutions will be crucial to meeting the increasing demand for food with longer shelf life and better transportability, emphasising the importance of innovation in this sector,” Mr. Lele said.

Yogesh Mudras, Managing Director, Informa Markets in India, the organisers of the event, said India’s food processing sector is undergoing a transformation, supported by initiatives like the Pradhan Mantri Kisan Sampada Yojana (PMKSY), ensuring efficient farm-to-retail infrastructure. “As a global leader in food production, India stands out in spices, producing over 11 million tonnes in 2022-23. Our diverse agro-climatic conditions allow for the cultivation of cereals, pulses, and vegetables,” he added.