India Packaged Food Market By Product Type (Non-alcoholic Beverages, Dairy Products, Confectionery, Ready Meals, Snacks, Breakfast Cereals, Others), By Sales Channel (Hypermarkets/Supermarkets, Convenience Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India Packaged Food Market was valued at USD 80.22 Billion in 2024 and is expected to reach USD 115.87 Billion by 2030 with a CAGR of 6.32% during the forecast period. 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. 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. 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 is 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.

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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.

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]