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.
Titled, “Indian food processing industry – growth opportunities post the Covid-19 pandemic”, the report predicts 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, the report states.
But for overseas sales to increase, India’s government needs to slash red tape, including by negotiating more free trade agreements with other nations, it adds.
The report 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.