KPMG PREDICTS MAJOR GROWTH FOR INDIA’S FOOD PROCESSING SECTOR
India’s food processing industry is poised for major growth as demand in the country’s rural areas increases, according to a new report from KPMG.
Accountants KPMG also predict in their study that India’s “second and third tier” cities will also be buying more processed food in the coming years.
Thanks to the spike in sales, the processed food sector in the country of 1.37 billion people could be worth as much as $470 billion (€391bn) in 2025, an increase of more than $200 billion on the figure for 2019/20.
Titled, “Indian food processing industry – growth opportunities post the Covid-19 pandemic,” the report has attracted widespread coverage in Indian specialist media.
As well as catering to domestic demand, India’s food processing sector should, according to the report, focus on increasing exports, which are said to be lagging currently.
But for overseas sales to increase, India’s government needs to slash red tape, including by negotiating more free trade agreements with other nations.
The document also warns that in the wake of the Covid-19 pandemic, some nations may increase non-tariff barriers to prevent the spread of disease.
As a result, the industry should invest in testing and certification to ensure that it can meet the more stringent hygiene demands of other nations.
KPMG also recommends that India’s food processing sector focuses on value-added areas such as nutrition, health and wellness.
According to the India Brand Equity Foundation, India’s food processing sector accounts for just under one third of the country’s overall food market. Key destinations for food exported from India are South-East Asia and the Middle East.