India Food Ingredients Market

India Food Ingredients Market Overview

Food ingredients are defined as any substance that is added in food items to obtain a particular effect. It includes food additives that are added to food products for specific functional purposes during processing, storage, or packaging. There are basically two types of food additives: direct and indirect. Direct food additives are mainly used to impact particular functional qualities. Indirect additives are not intentionally added to food products but might be present in a small amount due to shipping, storage, processing, or packaging.

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Major India Food Ingredients Market Drivers

India food ingredients market is projected to witness strong demand over the coming years. The accelerating demand for ready-to-eat food and convenience food products is a major factor that is contributing to the growth of the market. Rapid urbanization and soaring population density have surged trade activities across various sectors. With the increasing food-borne diseases, individuals are becoming more health-conscious and actively looking for natural food ingredients. This factor will have a positive impact on the growing demand of the market during the forecast period. India’s food and grocery market is the sixth-largest in the world, with retail contributing to around 65% of the total sales.

The expansion of the online food industry is another major factor that has opened new doors for the growth of the Indian food ingredients market. The online food ordering business is growing at a significant rate as compared to the past few years. With the coming of major online food players such as FoodPanda, Zomato, Swiggy, TinyOwl, this industry is creating huge potential and has a promising future. It has also encouraged Indian consumers to opt for outside food options rather than cooking simple homemade food. As per the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around USD 7.54 billion of FDI between 2000-2017. Moreover, the Confederation of Indian Industry (CII) predicted that the food processing industry has the potential to attract around USD 33 billion of investment over the next six years. All these factors will directly energize the demand for food ingredients in India. One Of the leading e-commerce giants, Amazon, is planning to enter into the Indian food retailing sector by investing US 515 million over the coming five years. This factor will surge the demand for food products, thus boosting the demand for food ingredients.

Restraint in the India Food Ingredients Market

The numerous complexities are likely to hamper the growth of the market. In India, the required ingredients do not reach the food manufacturers in various parts of the country as they get wasted due to a lack of facilities for handling, processing, and packaging.

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Application – Segment Analysis

Based on the application, the soft drinks segment is anticipated to dominate the market during the forecast period. The increasing demand for specialty food ingredients such as hydrocolloids, emulsifiers, flavors, and cultures is one of the biggest factors that is surging the growth of the segment in the market. Moreover, the expansion of the brewery sector has further increased the demand for enzymes and starter cultures.

Product Type – Segment Analysis

Based on the product type, the functional segment is predicted to dominate the market during the forecast period. The strong demand for healthy food products with high nutritional value is a major factor that is surging the growth of the segment in the market. Morever, the growing use of probiotics and botanical-bioactive ingredients has further increased the demand of the segment.

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Segments covered in the Report:

The India Food Ingredients market has been segmented on the basis of Product type, Application. Based on Product type, the market is segmented into Functional and Sensory. Based on Application, the market is segmented into Soft Drinks, Sauces, Dressings, & Condiments, Bakery, Dairy, Confectionary, Chilled Processing Food, Sweet & Savoury Snacks, Frozen Processed Food, Dried Processed Food and Others. 

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Market Segmentation

India Food Ingredients Market by Product type

• • Functional
    • Antioxidants
    • Anti-Microbials
    • Vitamins
    • Probiotics
    • Proteins
  • Sensory
    • Flavours & Fragrances
    • Sweeteners
    • Texturants
    • Food Colours
    • Enzymes
    • Cultures

India Food Ingredients Market by Application

• • Soft Drinks
  • Sauces, Dressings, & Condiments
  • Bakery
  • Dairy
  • Confectionary
  • Chilled Processing Food
  • Sweet & Savoury Snacks
  • Frozen Processed Food
  • Dried Processed Food
  • Others