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Forecast Period
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2027-2031
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Market Size (2025)
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USD 116.85 Billion
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CAGR (2026-2031)
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7.03%
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Fastest Growing Segment
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Online
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Largest Market
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North
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Market Size (2031)
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USD 175.61 Billion
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Market Overview
India Packaged Food Market was valued at USD 116.85 Billion in 2025 and is expected to
reach USD 175.61 Billion by 2031 with a CAGR of 7.03%. The India packaged food market has experienced significant growth
due to factors like changing lifestyles, increasing disposable income, and
urbanization. Rising health consciousness, convenience, and ready-to-eat
options also contribute to the market's expansion. The demand for organic and
natural food products is on the rise. Additionally, e-commerce platforms and
modern retail formats are boosting accessibility, further driving market growth
in India.
Key Market Drivers
Changing
Consumer Lifestyles
The evolution of consumer lifestyles in India has been
a pivotal driver of the packaged food market. In 2024, India's urban population stands at 461 million,
growing at 2.3% annually, with cities expected to contribute 75% of the
nation's income by 2031. Urbanization and busy work
schedules have shifted consumer preferences towards convenience and time-saving
solutions. Consumers increasingly seek easy-to-cook, ready-to-eat, and portable
food options, especially among young professionals, working women, and college
students. This growing demand for convenience has propelled the packaged food
sector, with products such as instant noodles, frozen meals, and snack bars
gaining popularity. Additionally, the changing eating habits, such as increased
snacking, also contribute to the market’s growth, with consumers opting for
packaged snacks as a quick and convenient alternative to homemade meals.
Rising
Disposable Incomes
India’s expanding middle class and rising disposable
incomes have played a significant role in boosting the demand for packaged
food. In India per
capita disposable income increased by 8% in FY24, following a 13.3% growth in
the preceding year.
As
consumers in both urban and rural areas experience an increase in their
purchasing power, they are willing to spend more on quality food products,
especially premium packaged foods. Incomes are being supplemented by a growing
number of dual-income households, increasing the affordability of convenience
foods. Furthermore, packaged food offers better shelf life, variety, and
perceived safety compared to fresh alternatives, making it an attractive option
for consumers across income groups. This growing purchasing power is supporting
both the penetration of global brands and the innovation of local packaged food
products.
Expansion
of Online Retail and E-Commerce
The rapid growth of e-commerce in India has become a
major driver for the packaged food market. India's e-commerce sector experienced a
12% year-on-year growth in 2024, fueled by the rise in internet penetration,
mobile usage, and the adoption of digital payment methods. With the
convenience of online shopping, consumers can now easily access a wide range of
packaged food products from both local and international brands. E-commerce
platforms like Amazon, BigBasket, and Flipkart, along with dedicated food delivery
apps, have made it easier for consumers to purchase packaged foods from the
comfort of their homes. The shift to online shopping has been particularly
prominent during the COVID-19 pandemic, as consumers increasingly sought safer
shopping alternatives. Furthermore, e-commerce platforms offer personalized
recommendations and targeted promotions, which have contributed to the growth
of the packaged food sector.
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Key Market Challenges
Rising
Competition from Local and International Brands
The Indian packaged food market is highly competitive,
with a mix of local and international brands vying for consumer attention.
Local brands often have a better understanding of regional tastes and
preferences, while international brands bring innovation and advanced
technology to the market. This intense competition leads to pricing pressures
and makes it challenging for companies to differentiate their products.
Additionally, the entry of new players and private-label products from
retailers further intensifies competition, forcing established brands to
continually innovate and improve their offerings to maintain market share.
Fluctuating
Raw Material Costs
Fluctuating prices of raw materials such as wheat,
sugar, and edible oils pose a significant challenge for the packaged food
industry in India. The volatility in global agricultural markets, influenced by
factors such as climate change, government policies, and supply chain
disruptions, directly affects the cost of production. These price fluctuations
not only impact the profit margins of packaged food manufacturers but also
force them to adjust prices frequently. This can lead to reduced consumer demand,
particularly among price-sensitive segments, and create instability for
businesses within the market.
Key Market Trends
Shift
Towards Sustainable Packaging
Sustainability is becoming a significant trend in the
Indian packaged food market, driven by growing consumer awareness about
environmental issues. The paper and packaging industry ranks as the fifth largest sector in the Indian economy and holds the potential to offer pricing that is approximately 40% lower than that of European markets. With increasing concerns over plastic pollution and the
impact of packaging waste on the environment, there is a rising demand for
eco-friendly and biodegradable packaging materials. Companies are adopting
sustainable packaging solutions such as recyclable, compostable, and reusable
materials to appeal to environmentally-conscious consumers.
Premiumization
and Customization
Consumers in India are shifting towards premium
packaged food options as they become more willing to pay for higher quality and
unique products. This trend of premiumization is characterized by a growing
demand for organic, natural, and artisanal food items, as well as gourmet and
health-oriented offerings. In particular, niche categories like organic snacks,
gluten-free foods, and fortified products are gaining popularity.
Influence
of Social Media and Digital Marketing
Social media and digital platforms are playing an
increasingly important role in shaping consumer behavior in the packaged food
market. Brands are leveraging platforms like Instagram, Facebook, and YouTube
to engage with their target audience, promote new product launches, and create
brand loyalty. Influencers and food bloggers are driving trends by showcasing
packaged food products in a relatable, engaging manner, often encouraging their
followers to try new items. Digital marketing strategies, including online
reviews, targeted ads, and e-commerce partnerships, are boosting the visibility
of packaged food brands, influencing purchase decisions, and enhancing consumer
engagement in the market.
Segmental Insights
Product
Type Insights
The snacks segment was a dominant force
in the India packaged food market, driven by the increasing demand for
convenient, ready-to-eat products. As urbanization and busy lifestyles rise,
consumers prefer quick and portable options, making packaged snacks like chips,
namkeens, and biscuits a go-to choice. The popularity of healthy snack
alternatives, including low-fat, baked, and protein-rich products, further
accelerates this trend. Additionally, the growth of modern retail formats and
e-commerce platforms has made snacks easily accessible to a wide consumer base,
solidifying its position as the largest and fastest-growing segment in the
market.
Sales
Channel Insights
The online segment is emerging as the
fastest-growing channel in India’s packaged food market, driven by rising
internet penetration, increased smartphone usage, and the expansion of
e-commerce platforms such as Amazon, BigBasket, and Blinkit. Urban consumers,
especially millennials and Gen Z, are increasingly preferring online grocery
shopping for its convenience, wider product variety, and doorstep delivery. The
COVID-19 pandemic accelerated this shift, reinforcing habits around digital
purchases of packaged staples, snacks, dairy, and ready-to-eat meals. Moreover,
companies are optimizing digital marketing, offering subscription models, and
collaborating with quick-commerce platforms to reach tech-savvy customers in
metros and Tier I and II cities. This digital evolution is reshaping the retail
landscape, making online channels a key growth driver for packaged food in
India.
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Regional Insights
The North region of India plays a dominant role in the
packaged food market, contributing significantly to its overall growth. This
dominance can be attributed to the region's higher urbanization rate, increased
disposable income, and a large, diverse consumer base. States like Delhi,
Punjab, Haryana, and Uttar Pradesh drive demand for packaged foods,
particularly snacks, dairy products, and ready-to-eat meals. The presence of
major retail chains and e-commerce platforms further boosts accessibility,
while changing lifestyles and growing health awareness in the region contribute
to the preference for packaged, convenient food options. As a result, the North
region remains a key market leader.
Recent Developments
- In 2024, ITC Sunfeast launched its
"Super Egg and Milk Biscuit," designed to incorporate essential
nutrients like protein into children's diets. The launch highlights ITC’s
commitment to providing nutritious, convenient food options for children.
- In 2024, Integrated Industries launched
a new biscuit called Richlite Bourbon, produced by its subsidiary Nurture Well
Foods. The product will be available in India and the Middle East. This launch
expands the company’s biscuit range, adding to its existing offerings in these
markets.
- In 2024, Hershey India expanded its
chocolate portfolio with the launch of Hershey’s Choco Delights. This new
offering aims to cater to the growing demand for chocolate products in India by
offering a unique combination of ingredients.
- In 2024, Mondelez India expanded its
premium chocolate offerings by launching a new sub-brand under Cadbury. This
strategic move aims to further strengthen the company's premium chocolate
segment.
Key Market Players
- ADF Foods Ltd
- Nestlé India Limited
- Hatsun Agro Product Limited
- Britannia Industries Limited
- DFM Foods Ltd.
- Hindustan Foods Limited
- MTR Foods Pvt Ltd.
- Hindustan Unilever Limited
- ITC Limited
- Parle Products
Pvt. Ltd.
|
By Product Type
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By Sales Channel
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By Region
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- Non-alcoholic Beverages
- Dairy Products
- Confectionery
- Ready Meals
- Snacks
- Breakfast Cereals
- Others
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- Hypermarkets/Supermarkets
- Convenience Stores
- Online
- Others
|
|
Report Scope:
In this report, the India Packaged Food Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Packaged Food Market, By
Product Type:
o Non-alcoholic Beverages
o Dairy Products
o Confectionery
o Ready Meals
o Snacks
o Breakfast Cereals
o Others
- India Packaged Food Market, By
Sales Channel:
o Hypermarkets/Supermarkets
o Convenience Stores
o Online
o Others
- India Packaged Food Market,
By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Packaged Food Market.
Available Customizations:
India Packaged Food Market report with the given
market data, TechSci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Packaged Food Market is an upcoming report to
be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]