Several reports released at the two-day India Food Forum indicate food consumption is on track
New Delhi: In sync with India’s consumption story, the country’s food including grocery and food services market is set to hit $774.14 billion and $7.2 billion in 2023 respectively, according to reports released at the two-day India Food Forum concluded this week.
The food and grocery market is on track to hit a whopping $1.6 trillion by 2030, with a steady growth rate of 10.9% from 2020 to 2023, according to a report by Images Group while another consultancy firm Wazir Advisors predicted the food services market to rise to $78.8 billion by 2026.
The two-day conclave attended by industry stakeholders and addressed by a cross-section of experts concluded that food as a commodity, be it farm fresh, poultry or dairy was produced in surplus and exceeded the population growth in the country by multiple times.
“While the population has grown by 2.5 times, cereal production has grown by 2.8 times, fruits and vegetables by six times, dairy by 10 times, and poultry by 2.5 times,” said R S Sodhi, President of the Indian Dairy Association.
This increase in primary output has led to an increase in regional and local brands and they are seen challenging national brands, according to experts at the forum. “Local regional brands are emerging. National brands are trying to be positioned now as regional brands,” said Sodhi, the former managing director of the dairy brand Amul speaking at the two-day India Food Forum conclave in its 16th edition.
The rapid evolution of digitization in India, with around 25 crore UPI users and approximately 6 crore QR codes replacing POS machines, signifies a fundamental shift in income and consumption structure in the Indian food retail context, said Kanaka Bhagwat, Retail Vertical Lead (FMCG), NielsonIQ, a consulting firm.
In India’s food services segment, the market is growing at 12.8 % CAGR and reaching $ 94.8 billion by the financial year 2028, with the organised sector set to increase its market share, according to a report by Technopak, a top consulting firm.
Cloud kitchens were seen redefining the food service business across most Indian cities accounting for one out of every five orders, according to expert panelists at the conclave.
“India’s food service industry of $57.2 billion size with 47% organized market in 2023 is seen rising to $78.8 billion with 53% in 2026,” said Pakhi Saxena, Business Director Head – Retail & Consumer Products, Wazir Advisors.
India Food Forum by IMAGES Group is the country’s largest food B2B intelligence and exhibition platform with a unique combination of wide-ranging product displays, two-day conference and masterclasses, networking and business development opportunities, food D2C, tech & solutions showcases and India’s most prestigious awards for food & grocery retail and food service sectors.
