Current status of food processing industry, different sectors of processing, CAGR OF different products.

1. DEPARTMENT OF DAIRY SCIENCE AND
FOOD TECHNOLOGY
INSTITUTE OF AGRICULTURAL SCIENCES
(IAS,BHU VARANASI)
SCOPE OF FOOD PROCESSING INDUSTRY
SUBMITTED TO: SUBMITTED BY:
DR. ANIL KUMAR CHAUHAN (HOD) TANISHA GUPTA
DR. D.S. BUNKAR (ASSISTANT PROFESSOR) MSc FOOD TECHNOLOGY
(FIRST YEAR)
22412FST024
SESSION: 2022-24

2. FOOD
PROCESSING
INDUSTRY
NATIONALLY AND GLOBALLY

3. Food processing
Definition:
● Food processing is the transformation of raw ingredients into food
products that can be eaten by physical or chemical means. Food
preservation slows or stops food spoilage by various methods,
including drying, freezing, pickling, and irradiation.
● Food processing and preservation benefits include increased food safety,
improved nutrition, longer shelf life, and increased economic opportunities.
● Food processing is any method used to process food to reduce the number of
undesired microorganisms and improve its stability and safety margins to
make it more suitable for human consumption.
● It includes any physical process, chemical process, or a combination of the
two that changes the physical characteristics of food to make it safer or more
convenient to use. Processing also improves palatability and appearance.
SOURCE: IBEF REPORT 2020

4. CHICKEN PROCESSING
Source: poultry-farming-meat-production-vector-infographic-chicken-factory-processing-line-distribution-sale-food-industry

5. INDUSTRY VISION
The aims of the food industry today, as in the past, are fourfold:
1. To extend the period during which a food remains wholesome (the shelf life) by
preservation techniques which inhibit microbiological or biochemical changes
and thus allow time for distribution, sales and home storage.
2. To increase variety in the diet by providing a range of attractive flavours,
colours, aromas and textures in food (collectively known as eating quality,
sensory characteristics or organoleptic quality); a related aim is to change the
form of the food to allow further processing (for example the milling of grains to
flour).
3. To provide the nutrients required for health (termed nutritional quality of a
food).
4. To generate income for the manufacturing company.
SOURCE: FOOD PROCESSING BY FELLOWS

6. SEGMENTATION OF FODD PROESSING INDUSTRY IN INDIA
● Cereal/ pulse milling
● Fruit & vegetable processing
● Milk & milk products
● Beverages like coffee, tea & cocoa
● Fish, poultry, eggs & products
● Meat & meat products
● Aerated waters/soft drinks
● Beer/alcoholic beverages
● Bread, biscuits & other bakery products
● Edible oil/fats.
● Confectioneries
● Breakfast cereals, malt protein, weaning, extruded food products

7. CEREAL BASED CANNED ,PICKLED TEA
POULTRY PRODUCTS MILK PRODUCTS COFFEE

8. Indian processing Industry scenario
India’s food processing sector is one of the largest in the world and its output is expected to reach $470
Bn by 2025-26.
● India's food processing sector is a sunrise sector that has gained prominence in recent years.
Major processed food products exported from India include processed fruits and juices, pulses,
guar gum, groundnuts, milled products, cereals preparations, oil meals and alcoholic
beverages.
● India created history in agriculture and processed food exports by exporting products worth
US$ 25.6 billion in FY22 . Export of APEDA products stood at US$ 7.4 billion as of April-June
2022, up 31% compared with US$ 5.7 billion over the same period last fiscal, according to the
Directorate General of Commercial Intelligence and Statistics. Furthermore, exports of
processed fruits and vegetables grew by 59.1%; cereals and miscellaneous processed items
grew by 37.66%; meat, dairy and poultry products grew by 9.5%; basmati rice grew by 25.5%;
non-basmati rice grew by 5%; and miscellaneous products grew by 50%.
● The food sector is currently undergoing a transition in India. The Agricultural and Processed
Food Products Export Development Authority (APEDA) forecasts that the sector will grow at a
compounded annual growth rate (CAGR) of 3% between 2022 and 2030.
SOURCE: IBEF REPORT

9. CONTINUE..
● The Food Processing sector in India has a quintessential role in linking Indian farmers to
consumers in the domestic and international markets.
● The Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage
investments across the value chain. The food processing industry has a share of 12.38% (at 3-digit
of NIC classification) in the employment generated in all Registered Factory sector engaging
approximately 1.93 Mn people.
● Unregistered food processing sector supports employment to 5.1 Mn workers as per the NSSO
73rd Round report. Major sectors constituting the food processing industry in India are grains,
sugar, edible oils, beverages, and dairy products.

10. GROWTH IN PROCESSING
● India’s consumer spending to grow to $6 Tn by 2030.
● The export of products under the Ready to Eat (RTE), Ready to Cook (RTC), and
Ready to Serve (RTS) segments have registered a CAGR of 10.4% from 2011-12 to
2020-21. India exported more than $ 2.14 Bn worth of final food products in 2020-21.
The major destination of RTE export in 2020-21 data is the U.S.A, U.A.E, and Nepal.
The major exporting destination for RTC export in 2020-21 are U.S.A, Malaysia, and
U.A.E
● The total FDI received in the food processing sector since April 2014 till December
2021 is $5.15 Bn.

12. Fruits and vegetables
01
Processing industry

13. PRODUCTION DATA
● According to APEDA data, India is the largest producer of vegetables such as
ginger and okra and second largest producer of vegetables such as potatoes,
onions, cauliflowers, brinjal, and cabbages. While it is the largest producers of
fruits such as Bananas, Papayas, and Mangoes.
● There is a huge opportunity in harnessing the potential of fruits and vegetables
processing in India in the form of frozen (IQF), canned, pulp, puree, paste, sauces,
snacks, dressings, flakes, dices, dehydration, pickles, juices, slices, chips, jams and
jelly.
● Andhra Pradesh, Maharashtra, Uttar Pradesh, Madhya Pradesh, Gujarat, Karnataka and
Tamil Nadu are the major Fruits producing States, whereas Uttar Pradesh, West
Bengal, Madhya Pradesh, Bihar, Gujarat, Maharashtra and Odisha are the major
Vegetables producing States of the country (As per 3rd advance estimates of 2020-
21).
SOURCE:APEDA

14. CONTINUE…
● The Government of India through the Ministry of Food Processing Industries
(MoFPI) is also taking all necessary steps to boost investments in the food
processing industry. The government has sanctioned 41 Mega Food Parks
(MFPs) to be set up in the country under the Mega Food Park Scheme.
Currently, 22 Mega Food Parks are operational.
● Fruits and vegetables exports were up by 12 % to touch $1,676 Mn in 2021-22
against $1,492 Mn in 2020-21, while processed fruits and vegetables exports
were up by 7 percent to reach $1,202 Mn in 2021-22 against $1,120 Mn in the
previous year.
● Exports of Fruits & Vegetables values at $ 205.79 Mn in May 2022 and
records positive growth vis-à-vis May 2021 of 15.20%.
SOURCE: APEDA OFFICIAL

15. GLOBAL STATUS
.

16. ANIMAL HUSBANDARY IN
INDIA
02
.MEAT AND MEAT PRODUCTS

17. EGG PROCESSING
SOURCE: RESEARCH GATE

18. SOURCE:COHERENT MARKET INSIGHTS

19. PRODUCTION DATA
● Largest producer of Buffalo Meat and 2nd largest producer of Goat Meat in
the World.
● In the current scenario, India is the largest producer of milk and buffalo meat,
2nd largest producer of Goat meat and Egg.
● India ranks 1st in cattle & buffalo population, 3rd in sheep population, 6th in
duck population, and 8th in chicken population.
● Livestock Sector grew at a CAGR of 11.2% during 2015-16 to 2020-21 (at
constant prices). It contributed 6.17% of total GVA in 2020-21.
● The overall Animal Feed market of India was valued at $ 35.8 Bn in 2021 and
has a share 17.6% in Asia-Pacific region.
● Export of poultry products increased by 91.70% in nine months of FY 2022-23
as its export increased from $ 50 Mn to $95 Mn.

20. GLOBAL MEAT MARKET
● The global processed meat market size was valued at $319.6 billion in 2020, and is estimated to
reach $497.1 billion by 2030, registering a CAGR of 4.8% from 2021 to 2030.
● Meat is considered to be processed when it is preserved by curing it by smoking, salting,
fermenting, and adding any chemical to extend its shelf-life and improve its taste. Meat such as
beef, pork, turkey, chicken, and lamb are commonly used to produce processed meat. Various
processed meat products include pepperoni, jerky, hot dogs, and sausages.
● Certain preservatives are added to the meat to protect it from spoiling due to bacteria and other
such organisms.
The global processed meat market is segmented -
1) By Product: Chilled, Frozen, Canned Or Preserved
2) By Processing: Fresh Processed Meat, Raw Cooked Meat, Precooked Meat, Raw Fermented
Sausages, Cured Meat, Dried Meat, Other Processings
3) By Meat Type: Poultry, Beef, Mutton, Pork, Other Meat Types
4) By Nature: Organic, Conventional
5) By Distribution Channel: Supermarket Or Hypermarket, Grocery Stores, Specialty Retailers,
Online Stores, Other Distribution Channels

21. EXPORT OF FOOD PROCESSED PRODUCT
India's exports of Processed Food was Rs. 41,460.06 Crores/ 5,559.84 USD Millions in 2021-22
 Mango Pulp - (Rs. 924.54 Crores/ 124.11 USD Millions),
 Processed Vegetables (Rs. 3986.45 Crores/ 534.98 USD Millions),
 Cucumber and Gherkins( Prepd. & Presvd) (Rs. 1487.30 Crores/ 199.46 USD Millions),
 Processed Fruits, Juices & Nuts (Rs. 3626.08 Crores/ 486.58 USD Millions)
 Pulses (Rs. 2834.29 Crores/ 379.75 USD Millions),
 Groundnuts (Rs. 4697.10 Crores/ 629.26 USD Millions)
 Guargum (Rs. 3334.77 Crores/ 446.77 USD Millions)
 Jaggery & Confectionary (Rs. 2797.85 Crores/ 375.18 USD Millions)
 Cocoa Products (Rs. 1145.48 Crores/ 153.71 USD Millions)
 Cereal Preparations (Rs. 4862.19 Crores/ 652.26 USD Millions)
 Alcoholic Beverages (Rs. 2070.92 Crores/ 277.85 USD Millions)
 Milled Products (Rs. 2286.11 Crores/ 306.08 USD Millions).

22. RECENT GOVERNMENT SCHEMES
● Launch of GIS One District One Product (ODOP) Digital Map of India: On November 18,
2020, the Ministry of Food Processing launched the capacity building component of the Pradhan
Mantri Formalisation of Micro Food Processing Enterprises Scheme (PM-FME Scheme) and GIS
One District One Product (ODOP) Digital Map of India, which provides detailed information on
ODOP products to all stakeholders. The ODOP programme was aimed to upgrade SME’s on select
products (within a district) through credit linked subsidy of 35% of the eligible project cost limited
to a maximum value of Rs. 10 lakh (US$ 13.52 thousand).
● The Minister for Food Processing Industries, Mr. Narendra Singh Tomar, emphasised on
forming/creating a local value chain and providing training to food processing entrepreneurs
through the PM-FME Scheme. These training sessions aimed to benefit ~8 lakh SME
beneficiaries; will be conducted through online lectures and demonstrations. Further, on November
21, 2020, the government approved a grant of Rs. 107.42 crore (US$ 14.52 million) to implement
28 food processing projects.
SOURCE:CONSUMER MARKET IBEF
REPORT 2020

23. CONTINUE…
● New Cold Chain Projects to Reduce Food Waste and Boost Exports:
In september 2020, the Ministry of Food Processing Industries (MOFPI) approved 28 new local cold
chain infrastructure projects to boost the export potential of the local agri-food sector and reduce food
waste. These 28 projects fall under the ‘Pradhan Mantri Kisan SAMPADA Yojana’ (PMKSY) scheme,
with Rs. 2.08 billion (US$ 28 million) aid from the central government.
MOFPI also highlighted benefits that will arise from these cold chain projects that will help India
become self-reliant. These integrated cold chain projects will be undertaken in 11 states and run by
either central or state-owned enterprises, or other bodies subject to the government’s approval.
While announcing these projects, Food Processing Minister, Mr. Harsimrat Kaur Badal, said that these
projects will not only boost the food processing sector but also streamline the agricultural supply chain,
generate employment, provide better prices to farmers, end-users and benefit the allied sectors. The
Federation of All India Vyapar Mandal (FAIVM), the local FMCG trade and retail industry body,
rejoiced over this programme and stated that this move will avoid agri-food wastage caused due to
insufficient, temperature sensitive warehouses. SOURCE:CONSUMER MARKET
IBEF REPORT 2020

24. CONTINUE…
● Under PMKSY, 41 Mega Food Parks, 356 Cold Chain projects, 60 Agro-Processing Clusters, 489
food processing units under Creation/Expansion of Food Processing & Preservation Capacities
(CEFPPC), 61 Creation of Backward and Forward Linkages Projects & 06 Operation Green
projects across the country have been approved.
● The key sub-segments of the Food Processing industry in India are Fruits & Vegetables, Poultry &
Meat processing, Fisheries, Food retail, dairy industry, etc. with the export of $4,663 Mn in nine
months of 2022-23.

25. MILK AND MILK PRODUCTS

26. Milk and milk product
● Codex Alimentarius defines a milk product as a “product obtained by any processing of milk,
which may contain food additives, and other ingredients functionally necessary for the
processing”.
● The range of milk products varies significantly from region to region and among countries in the
same region, depending on dietary habits, the milk processing technologies available, market
demand, and social and cultural circumstances.
● The per capita consumption of milk and milk products is higher in developed countries, but the
gap with many developing countries is narrowing. Demand for milk and milk products in
developing countries is growing with rising incomes, population growth, urbanization and changes
in diets. This trend is pronounced in East and Southeast Asia, particularly in highly populated
countries such as China, Indonesia and Viet Nam. The growing demand for milk and milk
products offers a good opportunity for producers (and other actors in the dairy chain) in high-
potential, peri-urban areas to enhance their livelihoods through increased production.
SOURCE: FAO

27. MILK
PRODUCTS
DESCRIPTION PRODUCTION
(2020-2021)
Growth and opportunities
LIQUID MILK Liquid milk is the most consumed, processed and
marketed dairy product. Liquid milk includes products
such as pasteurized milk, skimmed milk, standardized
milk, reconstituted milk, ultra-high-temperature (UHT)
milk and fortified milk. Worldwide, less and less liquid
milk is consumed in its raw form.
210 Million tonnes IMARC Group expects the India liquid
milk market is expected to reach
INR 16,470.3 Billion by 2027,
exhibiting a growth rate
(CAGR) of 16.7% during 2022-2027.
CAGR – 6.3% (2021)
FERMENTED
PRODUCTS
Fermented milks are commonly used to make other
milk products. They are obtained from the fermentation
of milk using suitable microorganisms to reach a
desired level of acidity. Fermented products include
yoghurt, koumiss, dahi, labneh, ergo, tarag, kurut and
kefir.
----------------------------- Lassi market :INR 101 Billion by 2027,
exhibiting a CAGR of 20.68% during
2021-2027.
Indian Curd Market was estimated to
be valued at INR 1184.3 Billion in
2021.
CHEESES Cheeses are produced through the coagulation of milk
protein (casein), which is separated from the milk’s
whey. Cheese can be soft, hard, semi-hard, hard
ripened or unripened. Cheese’s diverse characteristics
derive from differences in the compositions and types
of milk, processes applied and microorganisms used.
Traditional cheeses produced in developing countries
include ayib, gibna bayda, chanco, queso fresco,
akawieh and chhurpi.
In the Cheese
segment, volume is
expected to amount to
2.06bn kg by 2027.
(statista report)
The cheese market in India size
reached INR 71.3 Billion in 2022.
Expects the market to reach INR 262.6
Billion by 2028, exhibiting a CAGR of
24.27% during 2022-2028.

28. BUTTER AND
GHEE
Butter and ghee are fatty milk products. Butter is produced by churning milk or
cream; in many developing countries, traditional butter is obtained by churning sour
whole milk. Ghee is obtained by removing the water from butter and is especially
popular in South Asia. Ghee has a very long shelf-life of up to two years.
The ghee market in India size reached INR
2,907 Billion in 2022. IMARC Group expects
the market to reach INR 5,137 Billion by
2028, exhibiting a growth rate (CAGR) of
9.84% during 2023-2028.
CONDENSED
MILK
Condensed milk is obtained from the partial removal of water from whole or
skimmed milk. Processing includes heat-treating and concentration. Condensed
milk can be sweetened or unsweetened, but most is sweetened. In Latin America,
for example, condensed milk is often used in cooking and baking instead of jam.
The global condensed milk market size was
valued at $9.9 billion in 2021, and is projected
to reach $15.2 billion by 2031, growing at a
CAGR of 4.4% from 2022 to 2031.
EVAPORATED
MILK
Evaporated milks result from the partial removal of water from whole or skimmed
milk. Processing includes heat-treating to make the milk bacteriologically safe and
stable. Evaporated milks are generally mixed with other foods, such as in milky tea.
The global evaporated milk market size to be
valued at USD 5.8 billion by 2025 and is
expected to grow at a compound annual
growth rate (CAGR) of 2.3%
MISCELLANEOUS Dry milk or milk powder is obtained from the dehydration of milk and is usually in
the form of powder or granules.
Cream is the part of milk that is comparatively rich in milk fat; it is extracted by
skimming or centrifuging the milk. Cream products include recombined cream,
reconstituted cream, prepared creams, pre-packaged liquid cream, whipping cream,
cream packed under pressure, whipped cream, fermented cream and acidified
cream.
Whey products: whey is “the liquid part of the milk that remains after the
separation of curd in cheese making. Its main food use is in the preparation of whey
cheese, whey drinks and fermented whey drinks. The main industrial uses are in
the manufacture of lactose, whey paste and dried whey.” Whey can be sweet (from
the production of rennet-coagulated cheeses) or acid (from the production of acid-
coagulated cheeses).
Casein is the principal protein in milk and is used as an ingredient in several
products, including cheese, bakery products, paints and glues. It is extracted from
skimmed milk by precipitation with rennet or by harmless lactic acid-producing
bacteria
Indian skimmed milk powder (SMP) market
size reached INR 133.2 Billion in 2022.
IMARC Group expects the market to reach
INR 262.9 Billion by 2028, exhibiting a growth
rate (CAGR) of 10.9% during 2023-2028.

29. PLANT BASED MEAT
AN EMERGING INDUSTRY

30. 1. According to the United States Department of
Agriculture (USDA) industry report, India seems to
be a nascent market for plant-based meat substitutes.
2. Indians have traditionally consumed soybeans, jack
fruit, dairy, and pulses for protein.
3. According to the UN Livestock Long Shadow
Report, around eight out of 21 alternate meat start-
ups were launched during 2019–20 and five
international and domestic players forayed into this
segment during 2020–21. India has emerged as the
largest consumer base in the world, with a massive
scale of urbanisation and transition in income group.
4. As per a survey conducted by the University of Bath
and the Good Food Institute in 2019, 63% of Indians
were either very or extremely likely to buy plant-
based meat daily.
PLANT BASED MEAT

33. CONCLUSION
The Food Processing Industry sector in India is one of the largest in terms of production,
consumption, export and growth prospects. The government has accorded it a high
priority, with a number of fiscal reliefs and incentives, to encourage commercialisation
and value addition to agricultural produce. This sector is having ample sector to prosper
in future years ahead. These sector could be a good potential for the Company Secretary
professionals who wants to start their own enterprises.
There has been a great revolution in the food ordering business in India with online food
delivery players like Zomato, Swiggy, etc. Investors are more attracted to the Food
processing industry, foreseeing its high potential and wider customer base. Food is a basic
necessity; therefore the demands are always going to be high. There are many big
companies already actively involved in the Food Processing Industry and the government
is playing a vital role in promoting it.

34. REFERENCE
● Rathakrishnan, L. and Sriraman, V.P. (2014), Indian Food Processing Industry – A Snapshot, Research
Gate, October. Business Sweden, Opportunities in Indian Food Processing Industry, 2015.
● Food and Agricultural Sector of Excellence, Indian Food and Beverage Sector: The New Wave, Food and
Beverage Tech, 2014.
● The Journal of Industrial Statistics, Facts and Figures, Vol. 6, No-6, March, 2017. Singh, Surendra P.,
Tegegne, Fisseha and Ekenem, Enefiok (2012),
● The Food Processing Industry in India: Challenges and Opportunities, Journal of Food Distribution
Research, Volume 43, Issue 1
● . IMRC reports
● Marketing journals
● Bhaskaran, E & D.Sc,. (2010). THE TECHNICAL EFFICIENCY OF FOOD PROCESSING INDUSTRY CLUSTER IN
INDIA. International Conference on Food Processing Industries, Indian Institute of Crop Processing
Technology, Government of India. ISBN:9784-93-80235-66-0. 10. 10.13140/RG.2.2.25037.54244.
● https://www.researchandmarkets.com/reports/5017312/food-processing-market-in-india-2020
● PICTURES: GOOGLE SEARCH
● Food processing book by fellows