Sector Snapshot · Food Products

India's Food Processing Industry Scales Toward US$535 Billion

A fast-read primer on India's food products and processing sector — the backdrop against which we benchmark every company's cost structure in this category.

US$354.5 bn

Food processing market size, FY24

32%

Share of India's total food market

World's largest milk producer, 25% of global output

US$246.5 bn

Dairy industry size, 2025

Rs 1.10 lakh cr

FDI inflows since April 2000

The Market and Dairy Industry Are Both Scaling Fast

Food processing is on track to grow by nearly 50% in just two years, with dairy leading the charge.

Food Processing Market Size (US$ billion)

FY24 → FY26 forecast

$354.5bn

FY24

$535bn

FY26F

Dairy Industry Size (US$ billion)

2025 → 2034 forecast

$246.5bn

2025

$659.8bn

2034F

What's Pushing the Sector Forward

Global leadership in raw production, rising investment, and supportive policy all reinforce the category.

Global Leader

World's largest milk and spice producer
2nd-largest egg producer, 5th-largest meat producer

Rising Investment

PLISFPI has approved 168 applications, drawing US$1.04bn in investment
Generated ~35 lakh MT of processing capacity and ~3.3 lakh jobs

Policy Support

100% FDI allowed under the automatic route
PM Formalisation of Micro Food Processing Enterprises: Rs2,000cr

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

→ India's food processing market is projected to reach US$535 billion by FY26, from US$354.5 billion in FY24.
→ The sector contributes ~7.9% to manufacturing GVA and ~8% to agriculture GVA.
→ India's food and grocery retail market exceeded US$1.1 trillion in 2025.
→ Milk production is growing at a 5.41% CAGR, reaching 247.87 million tonnes in 2024-25.
→ The PLISFPI scheme has generated ~35 lakh MT of processing capacity and ~3.3 lakh jobs.
→ Under the Viksit Bharat@2047 vision, food processing is targeted to reach US$2,150 billion by 2047.

Companies We Benchmark in This Sector

Listed Indian Food Products companies in tDoBe's cost-benchmarking coverage.

Nestle India

Britannia Industries

Hatsun Agro

Zydus Wellness

Bikaji Foods

EID Parry

Avanti Feeds

Godrej Agrovet

Manorama Industries

The Bombay Burmah

Orkla India

Kwality Wall's

Mrs Bectors

Dodla Dairy

Vadilal Industries

ADF Foods

Gopal Snacks

Heritage Foods

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Food Products Report

Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes