EMIS Insights - India Food and Beverage Sector Report 2023-2024

An EMIS Insights Industry Report
India F&B
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Sector Overview
Introduction
India is one of the world’s most significant food and beverage producers as it occupies leading positions in the
global production of rice, wheat, maize, centrifugal sugar, coffee, banana, poultry meat and shrimp. Nevertheless,
India’s food and beverage sector continues to show considerable growth potential, as a sizable proportion of
India’s production capacity is operated by the unorganised sector of the economy, which has limited economies of
scale and technological capability. Additionally, access to a vast domestic market continues to be the main growth
driver for the Indian food and beverage industry as the economic growth in India is contributing to the rising
affluence of the population. Provided the industry improves its economies of scale and technological capability,
the Indian food and beverage sector will not only accelerate the growth rate of domestic sales, but it will also turn
its chronic trade deficit into a trade surplus (the Indian agribusiness industry is the sector that presents chronic
trade surpluses).
Entry Modes
The Indian government operates a liberal regime for foreign investment in the food and beverages sector. The
government permits 100% foreign equity investment under the automatic route for the food processing industry
and some agricultural activities, including horticulture and the cultivation of vegetables and mushrooms under
controlled conditions, and the development and production of seeds. FDI under the government route is required in
some industries, such as in the tea sector, including tea plantations. Foreign investment in micro, small, and
medium enterprises is restricted to 24%; any additional investment exceeding this threshold will result in the
business losing its micro, small, and medium enterprise status. In FY2023, the food and beverage sector registered
39 new deals, 8 of which included the participation of non-Indian companies. Among the top 15 deals in terms of
value, six of them had the participation of foreign companies. In July 2022, Oterra (Denmark) acquired Akay
Natural Ingredients Pvt Ltd for an estimated market value of USD 150mn. In August 2022, Lathe Investments Pte
Ltd and GIC Pte Ltd (Singapore) purchased a minority stake in Hector Beverages Pvt Ltd with an estimated market
value of USD 50mn. In November 2022, Saudi Agricultural and Livestock Investment Company (Saudi Arabia)
bought 7.89% of the shares of LT Foods Ltd.
Segment Opportunities
India’s infrastructure remains severely underdeveloped and is a hindrance to the food and beverage sector’s
development. Notably, India lacks a robust cold chain infrastructure, which results in segmented markets for fresh
foods, and limited export capacity. An improvement in the capacities of the Indian food and beverage industry will
lead to greater results in the domestic and foreign markets. Additionally, Indian consumers’ rising affluence is also
driving a trend towards premiumisation, which should bode well for food and beverage producers with recognised
brands, or for producers of high-quality product categories, such as organic foods. It is worth noting that India
recorded new record highs in the production of meat (including poultry meat, buffalo meat, goat meat and sheep
meat), fisheries (including inland fisheries and marine fisheries), foodgrain (including rice), horticulture (including
vegetables and fruits), milk and eggs in FY2022. Centrifugal sugar production also reached a new record high in
the 2021/2022 crop year. In line with this, the exports of fish, fish preparations, cereals, sugar, vegetable and fruit
preparations, and dairy products reported in 2021 (calendar year) the highest value over the 2017-2021 period.
Government Policy
The relatively low levels of productivity and international competitiveness of the Indian food and beverage industry
are one of the main concerns of the national government. To tackle this challenge, the Indian government
launched three schemes (PMSKY, PLISFPI and PMFME) to create a modern infrastructure for the Indian food and
beverage industry, to grant financial incentives for the modernisation and improvement of the level of
competitiveness of the food processing industry, and to foster the competitiveness of existing individual micro-
enterprises in the unorganized segment of the food processing industry and promotes the formalisation of the
sector.
Sector Snapshot: India Food and Beverage Industry FY2022
In FY2022, the GVA of the food and beverage industry in India reported a value of INR 3.4tn and an annual growth
of 7.1%. The main growth driver for the industry was the growing demand from the domestic market,
complemented by higher exports. In terms of participation, the industry represented 1.4% of the Indian economy in
FY2022, while the agribusiness sector had a share of 16.8% of the country's GDP.
Meat production increased by 5.6% y/y in FY2022. Poultry meat was the main product with a share of 51.4% and
an annual expansion of 6.9% (4.8mn tonnes). The domestic market is the main growth driver for domestic poultry
meat production. Buffalo meat was the second main product with a participation of 17.5%, posting an annual
increase of 2.8% and posting a new record high of 1.6mn tonnes. Goat meat and sheep meat posted annual
growth rates of 4.1% (1.3mn tonnes, a new record high) and 8.7% (1mn tonne, a new record high as well),
respectively, in FY2022. Similarly to poultry meat, the domestic market was the main growth driver for goat meat
and sheep meat. Concerning external trade, the export value of meat products reached a value of USD 3.4bn in
2021 (calendar year), posting an annual growth of 9.1%. Buffalo meat represented 90.1% of meat products in 2021,
with an annual increase of 7.4%. In FY2022, milk and egg production volume also reported new record highs
(221.1mn tonnes and 126.6bn units, respectively) with the former growing by 5.3% y/y and the latter expanding by
6.2% y/y. Once again, the Indian domestic market was the main growth driver. In 2021, dairy product exports grew
by 56.3% y/y, reaching a value of USD 498.9mn (the highest value over the 2017-2021 period).
In FY2022, fisheries production in India expanded by 10.3% y/y, reporting a new record high of 16.2mn tonnes. The
main subsegment was inland fish production with a participation of 74.6% and an annual increase of 7.8%. Marine
fish production represented the remaining 25.4% of fish production in FY2022, posting an annual expansion of
18.7%. The exports of the fisheries segment reached a value of USD 6.7bn in 2021 (calendar year), with an annual
growth rate of 30.8%. Crustaceans represented 78% of fisheries exports in 2021. Additionally, fish preparation
exports augmented by 20.5% y/y, reaching a new record high of USD 718.1mn. Crustacean and mollusc
preparations were the main exported products with a combined participation of 91.2%.
Foodgrain production volume reported an annual expansion of 2.3% in FY2022, reaching a new record high of
315.7mn tonnes (foodgrain planted area declined by 2.3% y/y). The good performance of foodgrains was mainly
explained by higher rice production (+6.6% y/y; 130.3mn tonnes). This growth more than compensated for the
2.4% y/y contraction in wheat production (106.8mn tonnes). Cereal export value rose by 42.4% y/y to USD 12.3bn
(a new record high) in 2021 (calendar year) as the reactivation of the global economy after the negative effects of
the COVID-19 pandemic fostered the demand for food products. Horticulture production increased by 2.3% y/y in
FY2022 (342.3mn tonnes). Vegetable output registered an annual expansion of 2.2% (204.8mn tonnes, a new
record high) in FY2022, while fruit production rose by 4.6% y/y in FY2022 to 107.2mn tonnes, also a new record
high. However, fruits and vegetables reported a trade deficit of USD 2.9bn (+23.9% y/y) in 2021 (calendar year).
Fruit and vegetable exports grew by 15.4% y/y, while imports expanded by 19.4% y/y to USD 5.8bn. Centrifugal
production volume reached 36.9mn tonnes in the 2021/2022 season (the highest volume in the last five seasons).
Higher yields in sugarcane combined with higher sales in the domestic and foreign markets were the main growth
drivers for centrifugal sugar. The sugar segment presented a trade surplus of USD 4bn in 2021 (calendar year) with
exports reaching a value of USD 4.3bn in 2021 (+55.9% y/y).
The sale volume of beer rose by 24% y/y in 2021 (up to 2.2bn litres, still below the volume registered in 2017).
Spirit sales grew by 7% y/y in 2021 (2.6bn tonnes in 2021, still below the volume registered in 2017). Wine sale
volume expanded by 11% y/y in 2021, reaching 35mn tonnes (slightly below the record high registered in 2019). In
2021, sales of soft drinks increased by 25.5% y/y, up to 36bn litres (a volume higher compared to the volume of
2018 but still lower compared to the volume of 2019). The Indian beverage segment is still in recovery from the
negative effects of the COVID-19 pandemic.
Sector Outlook
Main Sector Indicators Forecast
2021/2022 2022/2023 y/y change
(Milled) Rice Production Volume, mn tonnes 130.29 125.00 -4.1%
(Milled) Rice Consumption Volume, mn tonnes 111.27 108.50 -2.5%
(Milled) Rice Export Volume, mn tonnes 22.16 21.50 -3.0%
Wheat Production Volume, mn tonnes 109.59 103.00 -6.0%
Wheat Consumption Volume, mn tonnes 109.88 104.08 -5.3%
Wheat Export Volume, mn tonnes 10.57 2.50 -76.3%
Maize Production Volume, mn tonnes 33.60 32.00 -4.8%
Maize Consumption Volume, mn tonnes 29.90 30.10 0.7%
Maize Export Volume, mn tonnes 3.44 2.80 -18.7%
Centrifugal Sugar Production Volume, mn tonnes 36.88 35.80 -2.9%
Centrifugal Sugar Consumption Volume, mn tonnes 29.00 29.00 0.0%
Centrifugal Sugar Export Volume, mn tonnes 11.73 9.39 -19.9%
Coffee Production Volume, mn 60kg bags 5.92 6.24 5.4%
Coffee Consumption Volume, mn 60kg bags 1.23 1.32 7.3%
Coffee Export Volume, mn 60kg bags 7.24 6.23 -14.0%
Source: USDA
According to estimates from IMF published in January 2023, the Indian economy is expected to experience a solid
economic expansion in FY2023 (+6.8% y/y), FY2024 (+6.1% y/y) and FY2025 (+6.8% y/y). However, the Indian
agribusiness industry is not expected to present a similar growth pace as key products such as rice, wheat, maize
and centrifugal sugar will experience production issues in the 2022/2023 crop year, related to adverse weather
conditions. According to estimates from the USDA published in February 2023, rice production volume is expected
to fall by 4.1% y/y in the 2022/2023 crop year. In line with this, rice consumption and export volumes are forecast
to report annual declines of 2.5% and 3%, respectively. Wheat production is also expected to report an annual
decline of 6%, while domestic consumption is forecast to fall by 5.3%. Wheat exports are expected to drop by
76.3% due to the application of a wheat export ban since May 2022. Maize and centrifugal production are
expected to decline by 4.8% y/y and 2.9% y/y, respectively, with maize and centrifugal sugar exports falling by
18.7% y/y and by 19.9% y/y, respectively, in the 2022/2023 crop year.
Drivers and Constraints
Drivers
The Indian food and beverage sector showed a relatively high level of resilience against the negative effects of the
COVID-19 pandemic in FY2021 as the Indian GPD fell by 5.8% y/y and the sector’s GVA reported an annual
decrease of 0.9%. The Indian economy reported a strong rebound in FY2022 as GDP grew by 9% y/y. The food and
beverage industry also reported a rebound in FY2022 (+7.1% y/y) pushed up by the higher demand from the Indian
market.
According to a report published by IMF in January 2023, the Indian GDP is forecast to increase by 6.8% y/y in
FY2023. The dynamic growth of the Indian economy in FY2023 will boost the purchasing power of Indian
consumers and, by extension, their consumption of food and beverage products. Moreover, there is great potential
for further growth in the Indian food and beverage sector through an improvement of the levels of productivity. To
increase production efficiency in the industry, the government has defined three main schemes: PMSKY, PLISFPI,
and PMFME. PMSKY aims to create a modern infrastructure for the Indian food and beverage industry allowing
efficient supply chain management from farm gate to retail outlet. PLISFPI grants financial incentives to
modernise and improve the level of competitiveness of the food processing industry. PMFME fosters the
competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing
industry and promotes the formalisation of the sector.
India has a longstanding tradition in the production of several agricultural commodities which allowed the country
to become one of the largest global producers of rice, wheat, maize, centrifugal sugar, coffee, banana, poultry
meat and shrimp. According to data from the USDA, India ranked first in centrifugal sugar production, second in
rice production, third in wheat production, and seventh in maize and coffee production during the 2021/2022 crop
year. According to data from Knoema (a data technology company), India was the largest producer of bananas in
2021.
India presents the second largest population in the world, proving the Indian food and beverage industry access to
an enormous domestic market. As the Indian population increases its level of affluence with the economic growth
of the country, the demand for food will also increase.
Constraints
According to estimates from IMF published in January 2023, the global economy is expected to decelerate its
rhythm of growth from 3.4% in 2022 to 2.9% in 2023. Global inflation is forecast to fall from 8.8% in 2022 to 6.6% in
2023, however, it will still be above the pre-pandemic levels of inflation. In such a context, the growth of global
demand, including food products, is expected to decelerate, negatively affecting domestic and foreign sales in the
Indian food and beverage industry.
The main structural challenge for the Indian food and beverage sector is the relatively low levels of productivity of
Indian food and beverage manufacturers. One of the main challenges for the sector is the low income of these
manufacturers, therefore, they typically do not have the required knowledge, technology, machinery, equipment and
inputs not only to increase their productivity levels.
The sector presents chronic trade deficits which reached a value of USD 9.1bn in 2021 (the highest value over the
2017-2021 period). In line with this, imports registered a new record high of USD 20.6bn in 2021 (exports also
posted a new record high of USD 11.5bn). Fats and oils were the main imported products with a share of 84.7% of
the industry's imports in 2021 and an annual increase of 64.7%. This contrasts the performance of the
agribusiness sector which presents chronic trade surpluses which reached a new record high of USD 25.3bn in
2021. In line with this, exports also registered a new record high of USD 33.6bn in 2021. Moreover, the sector also
presents trade surpluses in the main three sub-segments: crop products, livestock products and fisheries
products.
Sources
MOSPI
DAHD
DPIIT
DOF
Department of Agriculture and Farmers Welfare
IMF
USDA
EMIS DealWatch
UN Comtrade
ITC
MOFPI
Main Economic Indicators
FY2018 FY2019 FY2020 FY2021 FY2022
GDP, current prices, INR bn 170,900 188,997 201,036 198,299 234,710
GDP, constant prices, y/y change, % 6.80 6.45 3.87 -5.83 9.05
Consumer Price Index, y/y change, % 4.28 2.86 5.84 5.52 6.95
Monetary Policy Rate, % pa, period-

5.75 6.00 4.00 3.35 3.35
end
Foreign Exchange Rate, USD/INR,

65.04 69.17 75.39 73.50 75.81
period-end
GVA Food and Beverage Industry,

2,781 3,357 2,902 2,988 3,387
current prices, INR bn

1.63 1.78 1.44 1.51 1.44
current prices, % of GDP

5.62 20.67 -15.85 -0.94 7.06
constant prices, y/y change
Food and Beverage Trade Balance,

-6,074 -4,943 -5,926 -9,094 n/a
USD mn (Calendar Year)
Food and Beverage Exports, USD mn

6,798 7,509 7,370 11,527 n/a
(Calendar Year)
Food and Beverage Imports, USD mn

12,872 12,452 13,297 20,621 n/a
(Calendar Year)
FDI Inflow in Food and Beverage

904.89 628.23 904.70 393.42 709.71
Industry
Naukri JobSpeak Index: FMCG /
1,933 2,024 1,446 1,751 1,842
Foods / Beverage
Source: EMIS Insights
Main Sector Indicators
FY2018 FY2019 FY2020 FY2021 FY2022
Meat Production Volume, thou tonnes 7,656 8,114 8,600 8,798 9,292
Poultry Meat Production Volume, thou

3,767 4,062 4,343 4,473 4,780
tonnes
Fish Production Volume, thou tonnes 12,704 13,573 14,164 14,725 16,248
Inland Fish Production Volume, thou

8,948 9,720 10,437 11,249 12,121
tonnes
Foodgrain Production Volume, mn

285.01 285.21 297.5 308.65 315.72
tonnes
Rice Production Volume, mn tonnes 112.76 116.48 118.87 122.27 130.29
Wheat Production Volume, mn tonnes 99.87 103.6 107.86 109.52 106.84
Centrifugal Sugar Production Volume,

34.3 28.9 33.76 33.88 35.8
mn tonnes
Horticulture Production Volume, mn

311.71 311.05 320.47 334.6 342.33
tonnes
Vegetable Production Volume, mn

184.39 183.17 188.28 200.44 204.84
tonnes
Fruit Production Volume, mn tonnes 97.36 97.97 102.08 102.48 107.24
Milk Production Volume, thou tonnes 176,347 187,749 198,440 209,960 221,064
Egg Production Volume, mn units 95,217 103,804 114,383 122,050 129,600

Source: EMIS Insights
Gross Value Added
In FY2022, the Indian food and beverage industry reported a GVA of INR 3.4tn, representing 1.4% of the country's
GDP. On the other hand, the Indian agribusiness industry (crop, livestock, and fishery products) registered a GVA of
39.8tn with a share of 16.8% of the country’s GDP. The GVA of the food and beverage industry reported a volatile
evolution over the FY2018-FY2022 period. In FY2021, the industry endured the negative effects of the COVID-19
pandemic as the GVA dropped by 0.9% y/y, performing better compared to the Indian economy whose GDP
contracted by 5.8%. In FY2022, the food and beverage industry registered a rebound of 7.1% y/y, pushed up by a
higher demand from the domestic market and higher sales to the export market. However, the Indian food and
beverage industry was not among the most dynamic segments of the Indian economy as the country’s GDP grew
at a faster rate compared (+9% y/y in FY2022).
Food, Beverage and Tobacco GVA, INR m… Food, Beverage and Tobacco GVA, share …
4,000,000 2
3,356,787.67 3,386,995.07
1.78
3,000,000 2,987,823.00 1.75
2,780,886.08
1.63
INR MN
1.51
2,000,000 1.5
%
1.44 1.44
1,000,000 1.25
0 1
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Food, Beverage and Tobacco GVA, INR mn Share of Food, Beverage and Tobacco GVA over …
Sources: CEIC, MoSPI Sources: CEIC, MoSPI
Crop, Livestock, Forestry and Fisheries GVA vs GDP, y/y change, constant prices
24
20.67
12
9.05
6.45 7.24
5.62
3.87
% MN
0 -0.94
-5.83
-12
-15.85
-24
2018 2019 2020 2021 2022 2023
Food, Beverage and Tobacco GVA, y/y change, % GDP, y/y change, %
Sources: CEIC, MoSPI
External Trade
According to data from UN Comtrade, the Indian food and beverage industry reported a chronic trade deficit over
the 2017-2021 period (calendar year). The deficit consistently dropped from USD USD 8.3bn in 2017 to USD 4.5.
However, in 2021, the trade deficit increased by 103.6% y/y, reporting the highest deficit (USD 9.1bn) over the 2017-
2021 period. The reduction of the trade deficit over the 2017-2021 period was partially explained by a consistent
expansion of exports from USD 6.5bn in 2017 to USD 8.8bn in 2020. Moreover, in 2021, exports rose by 30.5% y/y
to a new record high of USD 11.5bn. The reactivation of the global economy led to a higher external demand for
products from the Indian food and beverage industry. At the product level, sugar was the main exported product
with a share of 37.4% of the industry's exports in 2021, followed by food residues and animal fodder (16.5%), and
fats and oils (14.3%). Sugar not only was the main exported product of the Indian food and beverage industry in
2021, but it was also the product with the highest annual increase in export value (+55.9% y/y), reaching a new
record high of USD 4.3bn in 2021. Food residues and animal fodder reported the second-largest growth in terms of
export value with an annual expansion of 28.7% in 2021 and a new record high of USD 1.9bn. Fat and oil exports
reported the fifth-highest growth rate (+17.1% y/y in 2021), reporting a new record high of USD 1.65bn. The US was
the main export destination with a share of 12.3% in 2021, followed by Indonesia (8.2%), China (7.2%), the United
Arab Emirates (5.6%), and Bangladesh (5.5%). Sales to the US and China grew by 2.8% y/y and 9.5% y/y,
respectively, in 2021. Sales to Indonesia, the United Arab Emirates, and Bangladesh rose by 261.8% y/y, 90.4% y/y,
and 67.7% y/y, respectively, in 2021. Concerning imports, they fell from USD 14.8bn in 2017 to USD 12.4bn in 2019,
contributing to the reduction of the trade deficit in the Indian food and beverage industry. Imports increased by
6.8% y/y in 2020 and by 55.1% y/y in 2021, reaching a new record high of USD 20.6bn in 2021. The rebound of the
Indian economy in 2021 led to higher imports. At the product level, fats and oils were the main imported products
with a share of 84.7% of the industry's imports in 2021, followed by food residues and animal fodder (5.7%), and
beverages (3.9%). Fats and oils reported the third-highest annual increase in import value (+64.7% y/y), reaching a
new record high of USD 17.5bn in 2021. Food residues and animal fodder reported the second-largest growth in
terms of import value with an annual expansion of 73.1% in 2021 and a new record high of USD 1.2bn. Beverage
imports reported the eighth-highest growth rate (+26% y/y in 2021), reporting a value of USD 808mn. Malaysia was
the main import source with a share of 20.6% in 2021, closely followed by Indonesia (20.5%). Argentina ranked
third with a participation of 15.7% in 2021. Imports from Malaysia expanded by 164.6% y/y to USD 4.2bn in 2021,
while imports from Indonesia and Argentina reported annual growths of 22.4% and 45.5%, respectively. it is worth
noting that the strength of the Indian economy is based on the agribusiness industry as food and beverage exports
in 2021 represented 34.3% of agribusiness exports. On the other hand, the Indian food and beverage industry relied
more on imports compared to the agribusiness sector as the import value of the latter represented 40.1% of the
import value of the former, in 2021.
External Trade of Food and Beverages Share of Food and Beverages in Overall E…
24,000 4
20,620.50
14,812.74 3.61 3.62

13,296.50
12,000
8,829.53 3.5
6,798.127,508.73 3.34
USD mn
3.21
0
3
%
2.92
-4,942.99
-8,325.95 -9,093.82
-12,000 2.60
2.53
2.5
2.32
-24,000 2.19
2017 2018 2019 2020 2021 2.10
2
Exports, USD mn
2017 2018 2019 2020 2021
Imports, USD mn
Trade Balance, USD mn Export Share Import Share
Sources: CEIC, UN Comtrade Sources: CEIC, UN Comtrade
Food and Beverage Export Value by Country, 2021Food and Beverage Import Value by Country, 2021
Country Share Country Share

United States 12.33% Malaysia 20.59%
Indonesia 8.18% Indonesia 20.53%
China 7.23% Argentina 15.75%
United Arab Emirates 5.63% Ukraine 9.00%
Bangladesh 5.52% Nepal 4.64%
Sudan 4.22% Brazil 4.38%
Netherlands 3.82% Thailand 3.70%
Nepal 3.21% Singapore 2.75%
Sri Lanka 2.63% United States 2.25%
Somalia 2.62% Bangladesh 1.82%
Others 44.59% Others 14.57%
Source: UN Comtrade, ITC Source: UN Comtrade, ITC
Food and Beverage Export Value by Segment, 2021

Food and Beverage Import Value by Segment, 2021
Segment Share Segment Share

Sugar 37.4% Fats and Oils 84.7%
Food Residues and Animal Fodder 16.5% Food Residues and Animal Fodder 5.7%
Fats and Oils 14.3% Beverages 3.9%
Other Preparations 9.3% Cocoa 1.6%
Vegetable and Fruit Preparations 6.5% Sugar 1.5%
Meat and Fish Preparations 6.3% Other Preparations 1.2%
Cereal Preparations 5.5% Cereal Preparations 0.7%
Beverages 2.9% Vegetable and Fruit Preparations 0.6%
Cocoa 1.4% Meat and Fish Preparations 0.1%
Source: UN Comtrade, ITC Source: UN Comtrade, ITC
Agribusiness External Trade
40,000
33,609.40
30,000
28,195.97 27,494.74
26,356.49 26,589.14
25,335.71
USD mn
20,697.98
20,000 19,489.27 19,348.33
17,802.48
10,393.49
10,000
8,273.69
6,796.77 6,867.22 7,240.81
0
2017 2018 2019 2020 2021
Exports, USD mn Imports, USD mn Trade Balance, USD mn

Sources: CEIC, UN Comtrade
Foreign Direct Investment in the Food and Beverage Industry
The FDI flow in the food and beverage sector reported an average value of USD 623.2mn over the FY2018-FY2021
period with a volatile evolution (FDI inflow expanded in FY2018, FY2020, and FY2022, with annual falls in FY2019
and FY2021). In FY2022, sectorial FDI reached a value of USD 682.8mn with an annual expansion of 80.4% (below
the values registered in FY2018 and FY2020). Food products represented 96.2% of the food and beverage FDI
inflow in FY2022. The rising trend continued in the first three quarters of FY2023 as sectorial FDI inflow registered
a value of USD 568.4mn (up from USD 425.4mn compared to the same period in the previous fiscal year). It is
worth noting that the Indian food and beverage industry showed a higher FDI inflow average compared to the
Indian agribusiness sector over the FY2018-2021 period as the latter reported an average value of USD 156.2mn.
In FY2022, the FDI inflow of the Indian agribusiness sector (USD 572.2mn) was still below the FDI inflow of the
Indian food and beverage industry.
FDI Inflow in the Food and Beverage Indu… Share of Food and Beverage Industry in T…
1,000 240 2.5
829.64
781.09
750 160 2 1.95
682.81
1.81
USD MN
% MN
80.40
500 80 1.5
%
1.42
437.47
44.01 384.92
1.21
26.23
250 0 1
-30.57
-56.51 0.66
0 -80 0.5
2018 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
FDI Inflow, USD mn y/y change, % Share of Food and Beverage Industry in Total FD…
Sources: CEIC, DPIIT Sources: CEIC, DPIIT
FDI in the Food and Beverage Industry by Segment
100
0.41 0.00 0.41 0.01 0.00
75
69.64
86.34
91.68 96.21
50 97.84
%
25
30.36
13.26
7.91 2.15 3.79
0
2018 2019 2020 2021 2022
Marine Products Food Products Others
Sources: CEIC, DPIIT
Employment in the Food and Beverage Industry
The Naukri JobSpeak Index for the Indian economy resumes the hiring activity at the industry level. The index for
the Fast-Moving Consumer Goods (FMCG), foods, and beverages reached values of 1,842 in FY2022 and 2,092 in
FY2023. The index in FY2023 reached the highest value over the FY2018-FY2023 period. In FY2022, the sectorial
index rose by 5.2% y/y, while the index for the Indian economy grew at a faster pace (+16.3% y/y). The reactivation
of the Indian economy after the negative effects of the COVID-19 pandemic led to higher rebounds in other sectors
of the economy such as services and other manufacturing activities. In FY2023, the sectorial index accelerated its
growth pace with an annual expansion of 13.6%, outgrowing the expansion pace of the Indian economy (+5.2%
y/y).
Naukri JobSpeak Index: FMCG / Foods / … Naukri JobSpeak Index Evolution
2,400 40
2,092.00
2,024.00
1,842.00 21.09
1,800 20
16.26
13.04 11.70 13.57
Jul2008=1000
1,446.00 4.71 5.20 5.19

2.70
0
%
1,200
-17.83
-20
600
-28.56
-40
0 2018 2019 2020 2021 2022 2023
2018 2019 2020 2021 2022 2023
FMCG / Foods / Beverage, y/y change, %
Naukri JobSpeak Index: FMCG / Foods / Bevera… All Industries, y/y change, %
Sources: CEIC, Info Edge (India) Limited Sources: CEIC, Info Edge (India) Limited
Global Positioning
According to data from the USDA published in November 2022, India was the biggest producer of centrifugal sugar
in the 2021/2022 crop year. Moreover, India reported the third biggest expansion among the top 10 producing
countries (surpassed by Thailand and Pakistan). According to data from the USDA published in February 2023,
India was the second-largest producer of (milled) rice in the 2021/2022 crop year. It is worth noting that India
reported the third largest increase among the top 10 players (overcome only by Pakistan and Thailand) as the
country reached a new record high production in FY2022. India ranked third in wheat production in the 2021/2022
crop year. The country also reported the seventh-largest growth rate among the top 10 producers, overcoming the
US, Russia, and Canada which reported annual declines). Finally, India ranked seventh in terms of maize
production, posting the fifth-largest annual expansion (overcome by Ukraine, Brazil, Russia, and the US).
Top 10 Centrifugal Sugar Producers, 2021/2022 Top 10 Global Rice Producers, 2021/2022
Production, thou y/y Production, thou y/y

Ranking Country Ranking Country
tonnes change tonnes change
1 India 36,880 9.2% 1 China 148,990 0.5%
2 Brazil 35,450 -15.7% 2 India 130,290 4.8%
3 European Union 16,479 8.3% 3 Bangladesh 35,850 3.6%
4 Thailand 10,157 33.9% 4 Indonesia 34,400 -0.3%
5 China 9,600 -9.4% 5 Vietnam 26,769 -2.2%
6 United States 8,287 -1.1% 6 Thailand 19,878 5.4%
7 Pakistan 7,140 9.8% 7 Philippines 12,540 1.0%
8 Mexico 6,556 8.2% 8 Burma 12,352 -2.0%
9 Russia 6,000 6.7% 9 Pakistan 9,323 10.7%
10 Australia 4,120 -5.0% 10 Japan 7,665 1.3%
Source: USDA Source: USDA
Top 10 Global Wheat Producers, 2021/2022 Top 10 Global Maize Producers, 2021/2022
Production, thou y/y Production, thou y/y

Ranking Country Ranking Country
tonnes change tonnes change
1 European Union 138,216 9.1% 1 United States 382,893 6.8%
2 China 136,946 2.0% 2 China 272,552 4.6%
3 India 109,586 1.6% 3 Brazil 116,000 33.3%
4 Russia 75,158 -11.9% European
4 70,979 5.2%
5 United States 44,804 -9.9% Union
6 Australia 36,237 13.5% 5 Argentina 49,500 -4.8%
7 Ukraine 33,007 29.8% 6 Ukraine 42,126 39.0%
8 Pakistan 27,464 8.8% 7 India 33,600 6.2%
9 Canada 22,422 -36.7% 8 Mexico 26,762 -2.1%
10 Argentina 22,150 25.6% 9 South Africa 16,100 -5.0%
Source: USDA 10 Russia 15,225 9.8%
Source: USDA
Sources
EMIS Insights
MOSPI
UN Comtrade
ITC
DPIIT
USDA
Highlights
Overview
India’s food and beverage sector is large and highly diverse. India is one of the world’s most significant producers
of agricultural and food products. However, the country plays a relatively insignificant role in the global food
processing value chains. The food processing industry remains dominated by primary processing, which
encompasses lower value-added activities such as producing polished rice, centrifugal sugar, and edible oils. The
Indian food industry has great potential for further growth through a productivity boost not only in the food and
beverage sector but also in the agribusiness industry as well. Furthermore, the industry is driven by growing
consumer demand for premium quality products, as India’s young population becomes increasingly affluent thanks
to the country’s economic development. Additionally, there is also a great potential to expand the presence of the
industry in foreign markets. However, the rising levels of inflation in both domestic and foreign markets may have a
negative impact on the rhythm of growth of the industry.
Market Structure
Like most other economic sectors in India, organised players in the food and beverage sector are responsible for
producing the most well-known brands of products that are consumed throughout the country by more affluent,
urban consumers. Nevertheless, the food and beverage sector is mostly unorganised and informal. Moreover, the
unorganised and informal segment of the industry represents approximately 65% of the revenue of the Indian food
and beverage industry. In such a context, the Indian government is working to improve the performance of the
Indian food and beverage sector with the implementation of three schemes: PMKSY, PLISFPI, and PMFME. The
main objective of PMSKY is to create a modern infrastructure for the Indian food and beverage industry. PLISFPI
grants financial incentives to modernise and improve the level of competitiveness of the food processing industry.
PMFME seeks to foster the competitiveness of existing individual micro-enterprises in the unorganized segment of
the food processing industry and to promote the formalisation of the sector.
Main Players
The largest player in the Indian food and beverage industry in FY2022 was Adani Wilmar (a joint venture between
Adani Group of India and Wilmar Group of Singapore) with operating revenues of INR 542.1bn, reporting an
increase of 46.2% y/y. The company specialises in three business segments: edible oils, industry essentials, and
food and fast-moving consumer goods. The edible oil segment includes products such as soyabean oil, palm oil,
sunflower oil, rice bran oil, mustard oil, groundnut oil, cottonseed oil, blended oil, vanaspati, and specialty fats. The
industry essential segment offers oleochemicals, including stearic acids, soap noodles, palmitic acid, oleic acid,
and glycerin; castor oil and its derivatives; and de-oiled cakes. The food and fast-moving consumer goods portfolio
includes a wide variety of packaged staple foods, including wheat flour, rice, besan, and pulses. The overall sale
volume of the company increased by 8% y/y in FY2022 (the sale volume of the food and fast-moving consumer
goods segment went up by 34% y/y). The second largest player in FY2022 was Hindustan Unilever (a subsidiary of
the British company Unilever). Hindustan Unilever is the largest fast-moving consumer goods company in India,
offering a wide range of products including fabric solutions, home and hygiene, life essentials, skin cleansing,
skincare, hair care, colour cosmetics, oral care, deodorants, tea, coffee, ice cream & frozen desserts, foods, and
health food drinks. Hindustan Unilever reported operating revenues of INR 524.5bn with an annual expansion of
11.5%. Sales of the food and refreshment segment of the company rose by 6.8% y/y in FY2022. The third largest
player in FY2022 was United Spirits (a subsidiary of the British company Diageo Plc) with operating revenues of
INR 310.6bn (+13.3% y/y). United Spirits is the largest alcoholic beverage company in India. The portfolio of the
subsidiary includes premium brands such as Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature,
Singelton, Royal Challenge, McDowell’s No 1, Smirnoff, Ketel One, Tanqueray, and Captain Morgan. The company
owns 50 manufacturing facilities across states and union territories in India, a distribution network, and a technical
centre. The fourth largest company in FY2022 was Patanjali Foods (formerly known as Ruchi Soya Industries until
May 2022) with operating revenues of INR 310.6bn and an annual expansion of 48.2%. Patanjali Foods is a
subsidiary of the Indian conglomerate Patanjali Ayurved. The subsidiary is an integrated player in the edible oil
segment with a solid presence along the entire value chain. The company consolidated its position as one of the
largest Indian producers and sellers of edible oils and a pioneer of soya food in India. It is also one of the largest
palm oil producers in India. The company owns 22 manufacturing units with a combined refining capacity of over
11,000 tonnes per day, a seed crushing capacity of 11,000 tonnes per day, and a packaging capacity of 10,000
tonnes per day. EID Parry India was the fifth largest company in FY2022 with operating revenues of INR 235.3bn
(+26.6% y/y). EID Parry is part of the Indian Conglomerate Murugappa Group. The company operates in two
segments: sugar and nutraceuticals. EID Parry India is one of the largest sugar producers in India operating 9
sugar plants with a sugarcane-crushing capacity of 400 tonnes of cane per day, a co-generation capacity of 160
MegaWatts and a distillery capacity of 234 kilolitres per day. EID Parry is a pioneer and world leader in organic
spirulina and microalgal products in the nutraceuticals market.
Top 10 Food & Beverage Companies in India by Operating Revenue
Operating Revenue, FY2022, Operating Revenue, FY2021, y/y

Ranking Company
INR mn INR mn change
1 Adani Wilmar Ltd. 542,136 370,904 46.2%
2 Hindustan Unilever Ltd. 524,460 470,280 11.5%
3 United Spirits Ltd. 310,618 274,185 13.3%
4 Patanjali Foods Ltd. 242,110 163,351 48.2%
5 EID Parry India Ltd. 235,279 185,875 26.6%
6 Parle Biscuits Pvt. Ltd. 148,473 141,382 5.0%
Bombay Burmah Trading
7 145,443 133,962 8.6%
Corporation Ltd.
8 Britannia Industries Ltd. 141,363 131,361 7.6%
9 United Breweries Ltd. 131,239 101,858 28.8%
10 Radico Khaitan Ltd. 124,705 103,674 20.3%
Source: EMIS Company Database
Top 15 M&A Deals in India’s Food and Beverage Sector, FY2023 (April 2022 - March 2023)
Country of Deal Value

Date Target Company Deal Type Buyer Stake (%)
Buyer (USD mn)
150.00
Jul Akay Natural
Acquisition Oterra Denmark (Market 100.00
2022 Ingredients Pvt Ltd
Est.)
Retail investor(s);
Anchor Investors;
Dec Initial Public 116.24
Sula Vineyards Ltd Qualified Institutional India 32
2022 Offering (Official)
Buyers (QIBs); Non-
Institutional Investors
Retail investor(s);
Anchor Investors;
Nov Bikaji Foods Initial Public Eligible Employees; 106.96
India 11.77
2022 International Ltd Offering Qualified Institutional (Official)
Buyers (QIBs); Non-
Institutional Investors
Oct Badshah Masala 71.48

Acquisition Dabur India Ltd India 51.00
2022 Pvt Ltd (Official)
50.00
Aug Hector Beverages Minority Lathe Investments Pte
Singapore (Market Undisclosed
2022 Pvt Ltd Stake Ltd; GIC Pte Ltd
Est.)
Saudi Agricultural and

Nov Minority 48.13
LT Foods Ltd Livestock Investment Saudi Arabia 7.89
2022 Stake (Official)
Company
Grand Anicut Fund

(GAF) ; Anicut Capital; 30.00
Jan Muhavra Minority India; United
White Whale Ventures; (Market Undisclosed
2023 Enterprises Pvt Ltd Stake States
A91 Partners; 8i Est.)
Ventures Fund
Open
Jul 15.63
Zydus Wellness Ltd Market Buyer(s) unknown Undisclosed 1.27
2022 (Official)
Purchase
Rainmatter Capital Pvt

Akshayakalpa Ltd; British India; United 15.00
Sep Minority
Farms And Foods International Kingdom; (Market Undisclosed
2022 Stake
Pvt Ltd Investment; Venture United States Est.)
Dairy
Sequoia Capital India 11.00

Dec Fitshit Health Minority
Pvt Ltd; Matrix India (Market Undisclosed
2022 Solutions Pvt Ltd Stake
Partners India Est.)
10.00
Mar B9 Beverages Pvt Minority
MUFG Bank Ltd Japan (Market Undisclosed
2022 Ltd Stake
Est.)
Ananta Capital; Sixth

Sense Ventures; Matrix 10.00
Jun ImmaculateBites Minority
Partners India; Gautam India (Market Undisclosed
2022 Pvt Ltd Stake
Kumra - private Est.)
investor
Dec Lotus Chocolate Reliance Consumer 8.93

Acquisition India 51.00
2022 Company Ltd Products Ltd (Official)
5.00
Jul Minority
The Baker’s Dozen Fireside Ventures India (Market Undisclosed
2022 Stake
Est.)
4.82
Feb Assets of Chateau
Acquisition Integra Essentia Ltd India (Market 100.00
2023 Indage Winery
Est.)
Source: EMIS DealWatch
NAICS Codes: 311, 312
Sources
MOFPI
EMIS Company Database
EMIS DealWatch
Adani Wilmar Ltd
Hindustan Unilever Ltd
United Spirits Ltd
Patanjali Foods Ltd
EID Parry India Ltd
Regulatory Bodies
The strategic importance of food security to India’s vast population means that there are a plethora of government
agencies that exercise oversight over the food and beverage sector. The Food Safety and Standards Authority of
India (FSSAI), an agency under the ambit of the Ministry of Health and Family Welfare, is the apex food regulator
that sets the relevant hygiene and manufacturing standards for food and beverage companies. The Ministry of
Consumer Affairs, Food, and Public Distribution ensures that farmers are compensated sufficiently for their
efforts. This Ministry also operates the Indian Public Distribution System, which is a national food security system
that provides subsidized food to the poor. The Bureau of Indian Standards (BIS), an agency under the Ministry of
Consumer Affairs, Food, and Public Distribution, is India’s national standards body. The BIS develops Indian
standards and also provides quality certification of all goods produced or distributed in India. Some foods, such as
infant and follow-up formula, or infant milk, amongst others, require mandatory certification from the BIS before
they can be produced in India. A separate ministry, the Ministry of Food Processing Industries (MOFPI), is
responsible for formulating and administering all regulations and laws related to food processing in India.
Statutory Instruments
The Food Safety and Standards Act 2006 is the apex law that regulates the food and beverages sector in India. The
Act amalgamates, updates, and repeals eight laws that were operating before the passage of the Act, including the
Prevention of Food Adulteration Act 1954, the Milk and Milk Products Order 1992, the Fruit Products Order 1955, and
the Essential Commodities Act 1955 (pertaining to food), amongst others. The FSSAI has also passed several
important standards to regulate various segments of the food and beverages sector, including the Food Safety and
Standards (Import) Regulation, the Food Safety and Standards (Food Product Standards and Food Additives)
Regulation, the Food Safety and Standards (Packaging and Labeling) Regulation, and the Food Safety and Standards
(Alcoholic Beverages Standards) Regulations 2018. The Standards of Weights and Measures Act 1976 and the
Standards of Weights and Measures (Packaged Commodities) Rules 1977 are legislative instruments that have
been designed to ensure that producers and distributors of packaged commodities adhere to fair trade practices.
Under the Rules, consumers must be provided with vital information about the nature of the commodity, such as
the name and address of the manufacturer, the net quantity, the manufacturing date, and the selling price of the
good.
Pradhan Mantri Kisan Sampada Yojana (PMKSY)
In May 2017, the Indian government approved the creation of the Scheme for Agro-marine processing and
Development of Agro-processing Clusters (SAMPADA) with a total budget of INR 60bn to be executed over the
FY2016-FY2020 period (the scheme was renamed as Pradhan Mantri Kisan Sampada Yojana - PMKSY). The main
objective of PMSKY is to create a modern infrastructure for the Indian food and beverage industry allowing
efficient supply chain management from farm gate to retail outlet. A second objective of the scheme is to boost
farmers' income.
PMKSY comprises seven component schemes: (i) Mega Food Parks, (ii) Integrated Cold Chain and Value Addition
Infrastructure, (iii) Infrastructure for Agro-Processing Clusters, (iv) Creation of Backward and Forward Linkages, (v)
Creation/Expansion of Food Processing & Preservation Capacities, (vi) Food Safety and Quality Assurance
Infrastructure and (vii) Human Resources and Institutions.
PYMSKY was extended for one additional year (FY2021). A second extension was granted for the FY2022-FY2026
period with a budget of INR 46bn. MOFPI will be in charge of the implementation of PMSKY. A total of six
component schemes will be developed: (i) Integrated Cold Chain and Value Addition Infrastructure, (ii) Creation/
Expansion of Food Processing and Preservation Capacities (Unit Scheme), (iii) Infrastructure for Agro-processing
Clusters, (iv) Food Safety and Quality Assurance Infrastructure, (v) Human Resources and Institutions – Research
& Development, (vi) Operation Greens.
By FY2026, PMKSY is expected to leverage investments with a total value of INR 110.9bn, benefiting 28,49,945
farmers and generating 544,432 direct/indirect employment in the country.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is a scheme that grants financial
incentives to modernise and improve the level of competitiveness of the food processing industry. To achieve this
goal, the scheme will target the manufacturing of specific food product categories that present a high potential for
growth in output and value addition. The objective of the scheme is to support the creation of world-class food
manufacturing products; improve the performance of Indian brands of food products; increase employment
opportunities for off-farm jobs, and ensure remunerative prices of farm products and higher income to farmers.
The scheme targets four food product segments: 1) ready-to-cook and 2) ready-to-eat foods including millet
products, processed fruits and vegetables, marine products, and mozzarella cheese; 3) innovative products and 4)
organic products of small and medium companies (these include products such as eggs, poultry meat, and egg
products, are also covered. The scheme will be in force for six years from FY2022 to FY2027 with a budget of INR
109bn.
Pradhan Mantri Formalisation Of Micro Food Processing Enterprises Scheme (PMFME)
The Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) scheme was launched by
MOFPI on June 2020. The scheme has two main objectives: to foster the competitiveness of existing individual
micro-enterprises in the unorganized segment of the food processing industry and to promote the formalisation of
the sector. The scheme will be executed over the FY2021-FY2025 period with a budget of INR 100bn. The scheme
targets groups engaged in agri-food processing such as farmer producer organisations, self-help groups, and
producer cooperatives along their entire value chain. The goal of the scheme is to support 200,000 micro food
processing units with credit linked subsidies.
PMFME operates through six lines of action: (i) credit-linked capital subsidy to food processing entrepreneurs,
funding up to 35% of the eligible project cost with a maximum ceiling of INR 100,000 per project; (ii) seed capital
with a funding of up to INR 40,000 per self-help group member for working capital and purchase of small tools; (iii)
credit linked grant of 35% for capital investment to farmer producer organisations, self-help groups and producer
cooperatives; (iv) support for marketing & branding to micro-units; (v) support for common infrastructure and
handholding support to self-help groups, farmer producer organisations and producer cooperatives; (vi) providing
capacity building and training support to increase the capabilities of the enterprises and upgradation of skills of
workers.
Highlights
Overview
India is one of the biggest producers of crop, livestock and fisheries products in the world. Moreover, India
occupies a leading position in the world as a producer of rice, wheat, maize, centrifugal sugar, coffee, banana,
poultry meat and shrimp. It is worth noting that the country performs well in the agribusiness sector taking
advantage of the cheap and numerous working force in India. However, the Indian food manufacturing industry
does not perform as well as the agribusiness sector as the former requires not only raw numbers in the level of
employment but also higher levels of productivity. The export performance also reflects the differences between
the agribusiness and the food manufacturing industries: the agribusiness industry shows chronic trade surpluses
while the food processing industry showed chronic trade deficits.
Drivers
Meat production volume reached a new record high in FY2022. The vast domestic market and the higher
level of affluence of Indian consumers contributed to the good performance of the meat industry. This was
the case with poultry meat, goat meat and sheep meat whose production is primarily allocated in the
domestic market.
Fisheries production volume also reported a new record high in FY2022. In line with this, fisheries also
reported a new record high export value in 2021 (calendar year). The Indian fisheries industry is not only one
of the pillars of agribusiness exports, but it is also one of the pillars of Indian food processing exports.
Moreover, fish preparations reported chronic trade surpluses, reaching a new record high in 2021 (calendar
year). Inland fisheries grew due to higher sales in the domestic market. Marine fisheries grew due to higher
sales in the export market.
Foodgrain production volume registered a new record high in FY2022 with rice as the main growth driver
(rice production volume also reported a new record high in FY2022). The good performance of rice was
mainly explained by higher sales in the domestic and foreign markets. Additionally, wheat reported an
outstanding export value growth in 2021 (calendar year).
In the 2021/2022 season, centrifugal sugar reported the highest production volume in the last five seasons.
The growing domestic demand and higher export sales were the main growth drivers for the good
performance of centrifugal sugar production.
Horticulture production volume reported a new record high in FY2022 as the production of vegetables and
fruits also posted new record highs. One of the pillars of the production growth in fruit and vegetables was
the rising domestic demand. Additionally, the export of fruit and vegetable preparations also showed a
chronic and increasing trade surplus over the 2017-2021 period (calendar year).
Milk and egg production volume recorded new record highs in FY2022, pushed up by the higher levels of
domestic consumption. Dairy products registered chronic trade surpluses over the 2017-2021 period
(calendar year), reaching a new record high in 2021 with honey, concentrated milk and cream, and butter as
the main exported products.
Constraints
The Indian agribusiness industry and the Indian food manufacturing sector present low levels of
productivity. Both industries have great potential for further growth provided a modernisation process is
complete. Moreover, one of the objectives is to turn the chronic trade deficit of the food manufacturing
sector into a trade surplus.
Meat export value grew in 2021 (calendar year) after reaching its lowest value in 2020 over the 2017-2021
period. However, the export value in 2021 is still way below the value reached in 2017. The fruit and
vegetable segment reported chronic trade deficits. In 2021 (calendar year), the import and trade deficit of
fruits and vegetables augmented, nonetheless, these values are still below the ones reported in 2017.
Outlook
USDA projected a bad performance for key crops in the 2022/2023 crop year due to adverse climate conditions. In
February 2023, USDA projected that milled rice production, domestic consumption and exports are expected to
drop by 4.1% y/y, 2.5% and 3%, respectively. Wheat production, domestic consumption and exports are forecast to
fall by 6% y/y, 5.3% y/y and 76.3% y/y (the fall in exports is mainly explained by the ban on wheat exports). Maize
production and exports are expected to decline by 4.8% y/y and 18.7% y/y, respectively, while domestic
consumption is forecast to barely increase by 0.7% y/y. In December 2022, USDA projected that coffee production
and domestic consumption will increase by 5.4% y/y and 7.3% y/y, respectively, in the 2022/2023 crop year
(exports are forecast to drop by 14% y/y). In November 2022, USDA estimated that the output and export of
centrifugal sugar in the 2022/2023 crop year will drop by 2.9% y/y and 19.9% y/y, respectively, while domestic
sales will remained constant.
According to data from Statista, the Indian meat market value is forecast to grow at a CAGR of 10.87% over the
FY2023-FY2027 period, reaching an estimated value of USD 48.27bn in FY2027. The main growth driver for the
meat market will continue to be the solid demand of the vast Indian market. Poultry meat will remain as the main
produced and locally consumed meat product in India due to the sensitivity of beef production and consumption in
India. Buffalo meat will continue to be produced in India with the export market as the main target. Sheep meat
and goat meat are also forecast to keep the growing trend over the FY2023-FY2027 period. Similarly to poultry
meat, the growing demand for the domestic market will be the main growth driver. Productive investments both
from the private sector and the government will play a critical role in ensuring that the growing trend in the Indian
meat industry is sustained in the future. Similarly to the meat industry, the Indian fishing industry (especially inland
fishing production) will benefit from the dynamic growth of the domestic market, leading to new record highs in the
short term. Concerning marine fishing, its growth is closely tied to the demand from foreign markets as India is
one of the world’s largest producers and exporters of shrimp. However, shrimp production in India over FY2023 is
forecast to decline due to a global shrimp oversupply.
Meat Production
In FY2022, meat production in India expanded for the 15th consecutive year, up by 5.6% y/y to a new record high of
9.3mn tones. Poultry meat is the main product of the meat industry with a participation of 51.4% in FY2022,
followed by buffalo meat (17.5%), goat meat (13.6%), and sheep meat (10.3%). Poultry meat production volume
increased for the eighth consecutive year in FY2022, rising by 6.9% y/y in FY2022 and posting a new record high of
4.8mn tonnes. Buffalo meat output volume grew by 2.8% y/y in FY2022, reaching a new record high of 1.6mn
tonnes. Goat meat and sheep meat also reported a solid expansion over the FY2018-FY2022 period. Goat meat
grew for the sixth consecutive year in FY2022, recording an annual increase of 4.1% and a new record high of
1.3mn tonnes. Sheep meat output volume rose for the eighth consecutive year in FY2022, expanding by 8.7% to a
new record high of 1mn tonne. Access to the vast domestic market has been one of the pillars of the solid
expansion of India’s meat production. Moreover, the higher level of affluence of Indian consumers also contributed
to the good performance of the meat industry. Poultry meat, goat meat, and sheep meat production is primarily
allocated in the domestic market. On the other hand, buffalo meat reported an unstable evolution over the FY2018-
FY2022 period, targeting both the domestic and foreign markets.
Meat Production Volume Meat Production Volume by Product
10,000 10 100
5.17 4.98 4.82 4.06 3.93
9,292.13
8,797.91
8,114.45
7,500 7.5 75
49.20 50.06 50.50 50.84 51.44
thou tonnes
5.99 5.98
5.62 % TH
5,000 5 50
%
3.66 13.62 13.53 13.72 13.78 13.63
2,500 2.30 2.5 25 7.87 8.36 8.94 10.04 10.33
18.68 19.05 18.43 17.97 17.49

4.57 4.02 3.59 3.31 3.18
0 0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Production Volume, thou tonnes Pork Poultry Goat

y/y change, % Sheep Buffalo Beef
Sources: CEIC, DAHD Sources: CEIC, DAHD
Poultry Meat Production Volume Buffalo Meat Production Volume
6,000 16 2,000 20
4,779.60 1,625.15
1,545.83 1,584.65 1,581.21
4,500 4,472.69 12 1,500 10
8.07
4,061.79
3,766.94
thou tonnes
thou tonnes
8.76 2.51 2.78

% TH
% TH
3,000 7.83 8 1,000 -0.22 0

6.93 6.86
1,500 4 500 -10

2.98
0 0 0 -20
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Production Volume, thou tonnes Production Volume, thou tonnes

y/y change, % y/y change, %
Meat External Trade
According to data from UN Comtrade, meat products reported a chronic trade surplus over the 2017-2021 period
(calendar year). However, meat exports dropped from USD 4.3bn in 2017 to USD 3.1bn in 2020. Meat exports
rebounded by 9.1% (up to USD 3.4bn) in 2021 as the global economic recovery stimulated the export performance
of the Indian meat industry. Buffalo meat was the main product as it represented 90.1% of meat exports over the
2017-2021 period. Buffalo meat exports decreased from USD 3.9bn in 2017 to USD 2.8bn in 2020. In 2021, buffalo
meat export increased by 7.4% y/y to USD 3bn. Egypt was the main export destination for meat products with a
share of 22.7% in 2021, followed by Malaysia and Vietnam with participations of 13.8% and 12.8%, respectively. On
the one hand, sales to Egypt increased by 131.6% y/y in 2021, complemented by higher sales to Malaysia (+9.6%
y/y). On the other hand, sales to Hong Kong (the largest meat export destination in 2021 with USD 630.6mn)
decreased by 66.2% y/y in 2022, while sales to Vietnam and Indonesia fell by 4.1% y/y and 5.9% y/y, respectively. It
is worth noting that the external trade of meat preparations is negligible as meat preparation exports stood at USD
2.4mn in 2021, while meat preparation imports reported a value of USD 2.5mn.
External Trade in Meat Products
4,800
4,335.42 4,322.97
3,739.98 3,725.19
3,600 3,467.49 3,453.92 3,394.83 3,380.51
3,111.41 3,095.71
USD mn
2,400
1,200
12.46 14.79 13.57 15.69 14.33

0
2017 2018 2019 2020 2021

Fish Production
The fisheries production volume reported a CAGR of 5% over the FY2018-FY2022 period. In FY2022, output volume
recorded a double-digit annual expansion of 10.3%, reaching a new record high of 16.2mn tonnes. Inland fish
production was the main sub-segment with a share of 74.6% of total output in 2022. Moreover, inland fish
production grew at a CAGR of 7.9% over the FY2018-FY2021 period, followed by a 7.8% y/y increase in FY2022 (a
new record high of 12.1mn tonnes). Marine fish production reported an annual average fall of 2.5% over the
FY2018-FY2021 period, however, production strongly rebounded by 18.7% y/y in FY2022, registering a new record
high of 4.1mn tonnes. In line with this, the share of marine fish production in fisheries production expanded from
23.6% in FY2021 to 25.4% in FY2022. The Indian fishery industry relied on the domestic and export markets to
achieve this dynamic growth. Moreover, the reactivation of the domestic and global economy in 2021 led to a
strong rebound in the production of marine fisheries.
Fish Production Volume Fish Production Volume by Product
20,000 32 100
16,248.00
15,000 14,725.00 24 75
13,573.00
thou tonnes
70.43 71.61 73.69 76.39 74.60
% TH
10,000 16
50
%
11.14
10.34
5,000 6.84 8
25
4.35 3.96
29.57 28.39 26.31 25.40
23.61
0 0
2018 2019 2020 2021 2022 0
2018 2019 2020 2021 2022
Production Volume, thou tonnes
y/y change, % Inland Marine
Sources: CEIC, DOF Sources: CEIC, DOF
Inland Fish Production Volume Marine Fish Production Volume
16,000 25 4,800 30
4,127.00
3,853.00
12,121.00
12,000 20 3,600 3,476.00 18.73 20
11,249.00
10,437.00
thou tonnes
thou tonnes
8,948.00
% TH
% TH
8,000 14.63 15 2,400 10
3.61
2.58
4,000 10 1,200 0
8.63 -3.27
7.38 7.78 7.75
-6.73
0 5 0 -10
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Production Volume, thou tonnes Production Volume, thou tonnes

Sources: CEIC, DOF Sources: CEIC, DOF
Fish External Trade
According to data from UN Comtrade, fisheries reported a chronic trade surplus over the 2017-2021 period
(calendar year). However, the export value of fisheries dropped from USD 6.6bn in 2017 to USD 5.1bn in 2020.
Fisheries exports registered a strong rebound in 2021, rising by 30.8% y/y to USD 6.7bn (the largest value over the
2017-2021 period), as the external demand for fisheries recovered in 2021 in line with the global economic
recovery after the negative effects of COVID-19 pandemic. Crustaceans were the main product as they
represented 78% of fish exports in 2021, followed by molluscs with a participation of 10.3%. Crustacean exports
increased by 35.3% y/y in 2021, up to USD 3.9bn; while molluscs exports grew by 31% y/y in 2021, up to USD
529.7mn. The US was the main export destination for fish products with a share of 39.7% in 2021, followed by
China with a participation of 15.3%. Sales to the US increased by 43.5% y/y in 2021, complemented by higher sales
to China (+15.1% y/y). Additionally, fish preparations reported a chronic and increasing trade surplus over the
2017-2021 period, up from USD 393.9mn in 2017 to USD 718.1mn in 2021, posting a new record high. In 2021, fish
preparation exports grew by 20.5% y/y with the US as the main export destination with a share of 82.9% and
crustacean and mollusc preparations as the main exported product with a participation of 91.2%.
External Trade in Fisheries External Trade in Fish Preparations
8,000 800
718.11
6,646.89 6,734.83
6,374.18 6,188.56
6,000 600 595.70
5,150.00
465.66
USD mn
USD mn
4,000 400 393.90 389.24
2,000 200
76.39 9.87 111.84 131.27 143.96 1.81 1.59 5.25 3.83 10.64
0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Exports, USD mn Exports, USD mn
Imports, USD mn Imports, USD mn
Trade Balance, USD mn Trade Balance, USD mn
Foodgrain Production
Foodgrain production grew at a CAGR of 2.7% over the FY2018-FY2021 period. In FY2022, foodgrain production
volume expanded for the sixth consecutive year (+2.3% y/y), reaching a new record high of 315.7mn tonnes. The
expansion in production was mainly explained by higher yields as the planted area for foodgrains increased at a
CAGR of 0.5% over the FY2018-FY2021 period. In line with this, foodgrain planted area dropped by 2.3% y/y
(126.4mn ha) in FY2022, confirming the trend that foodgrain farmers are targeting higher productivity levels
instead of expanding the planted area. Foodgrain production in the Kharif season increased from 140.5mn tonnes
in FY2018 to 156mn tonnes in FY2022, representing 49.4% of total output. In the Rabi season, foodgrain output
expanded from 144.6mn tonnes in FY2018 to 159.7mn tonnes in FY2022, with a share of 50.6% in total production.
At the product level, rice and wheat represented 41.3% and 33.8% of foodgrain production, respectively, in FY2022.
Rice production rose by 6.6% y/y in FY2022 to a new record high of 130.3mn tonnes. This was mainly due to a
9.1% increase in yield which more than compensate for the 2.4% y/y fall in rice planted area (44mn ha or 34.8% of
foodgrain planted area). Wheat output decreased by 2.4% y/y in FY2022, down to 106.8mn tonnes. This was
mainly explained by a 4.1% annual drop in wheat planted area (30.3mn ha or 24% of foodgrain planted area), which
was partially compensated by a 1.8% annual increase in wheat yield.
Foodgrain Production Volume Foodgrain Production Volume by Product
400 8 100
308.65 315.72 39.56 40.84 39.95 39.61 41.27

300 297.50 6 75
285.01 285.21
mn tonnes
4.31
200 4 50
%
3.60 3.75
35.04 36.32 36.25 35.48 33.84
2.29
100 2 25
16.48 15.10 16.05 16.57 16.12
0.07 8.92 7.74 7.74 8.33 8.77

0 0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Production Volume, mn tonnes Rice Wheat

y/y change, % Coarse Cereals Pulses
Sources: CEIC, Department of Agriculture and Farmers Welfare Sources: CEIC, Department of Agriculture and Farmers Welfare
Rice Production Volume Wheat Production Volume
160 7.5 120 5

107.86 109.52 106.84
103.60
130.29 99.87
122.27
120 116.48 118.87 6 90 2.5
112.76
1.38 1.54
mn tonnes
mn tonnes
80 4.5 60 0
%
%
3.30
-2.45
40 2.79 2.86 3 30 -2.5
2.05
0 1.5 0 -5
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Production Volume, mn tonnes Production Volume, mn tonnes

Cereal External Trade
According to data from UN Comtrade, cereal reported a chronic trade surplus over the 2017-2021 period (calendar
year). Moreover, the export value of cereals rose from USD 7.3bn in 2017 to USD 8.7bn in 2020. Cereal exports
accelerated their growth rate in 2021, rising by 42.4% y/y to USD 12.3bn, reaching a new record high. The
reactivation of the global economy in 2021 led to higher sales of cereal in export markets. Rice was the main
product as it represented 77.9% of cereal exports in 2021, followed by wheat with a participation of 14%. Rice
exports increased by 20.6% y/y in 2021, up to USD 9.6bn; while wheat exports reported an outstanding expansion,
up from USD 243.1mn in 2020 to USD 1.7bn in 2021. Cereal exports present a high level of diversification in terms
of export destinations as Bangladesh emerged as the largest export destination with a share of 18.8% in 2021,
followed by Saudi Arabia (6.4%), Iran (5.4%), Nepal (5.1%) and Vietnam (4.7%). Sales to Bangladesh increased by
560.6% y/y in 2021 (up from USD 351.7mn in 2020 to USD 2.3bn in 2021), while sales to Vietnam rose by 2284.2%
y/y in 2021 (up from USD 24.4mn in 2020 to USD 581.4mn in 2021). Sales to Nepal also grew by 19.8% y/y in 2021
(USD 630.3mn). Sales to Saudi Arabia and Iran dropped by 27.9% y/y (USD 794.9mn) and by 24.3% y/y (USD
663.9mn), respectively, in 2021. Additionally, cereal preparations reported a chronic trade surplus over the 2017-
2021 period. In 2021, the trade surplus of cereal preparations stood at USD 490mn in 2021 (up by 6.8% y/y). Cereal
preparation exports reported the highest value over the 2017-2021 period with USD 631.3mn in 2021 (up by 11.3%
y/y), while cereal preparation imports also registered the highest value over the same period with USD 141.1mn
(up by 30.3% y/y) in 2021.
External Trade in Cereals
16,000
12,350.07
12,000
USD mn
8,671.98 8,573.46
8,000 7,720.14 7,654.89
7,334.88 7,066.84 6,904.81
6,024.51
4,000
1,310.36
65.25 162.03 98.52 41.26
0
2017 2018 2019 2020 2021
Centrifugal Sugar Production and Consumption
According to data from the USDA, centrifugal sugar production volume in India reported an annual average fall of
0.5% between the 2017/2018 season and the 2020/2021 season (the season goes from October to September). In
the 2021/2022 season, centrifugal sugar production increased by 9.2% y/y, reaching 36.9mn tonnes (the highest
production volume in the last five seasons). In line with this, sugarcane production increased by 8.2% y/y in the
2021/2022 season, reporting an output volume of 431.8mn tonnes (also the highest volume over the last five
seasons). The increase in sugarcane production was mainly explained by higher yields (+10.9% y/y) in 2021, while
the sugarcane planted area decreased by 2.5% y/y. One of the main sources of growth for the Indian sugar industry
is the domestic market which expanded at a CAGR of 1.9% between the 2017/2018 season and the 2020/2021
season. In the 2021/2022 season, centrifugal sugar domestic consumption expanded by 3.6% y/y, posting the
highest volume over the last five seasons with 29mn tonnes.
Centrifugal Sugar Production Volume Centrifugal Sugar Domestic Consumption
40 32 15
36.88 29.00
34.31 34.30 80 27.50 28.00
33.76 26.50 27.00
30 54.55 24 10
28.90
40
mn tonnes
mn tonnes
16.82
20 9.24 16 5
%
-0.03 3.92 3.77 3.70 3.57
0
-15.74
10 8 0
-40
-1.82
0 -80 0 -5
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
mn tonnes y/y change, % mn tonnes y/y change, %
Sources: CEIC, USDA Sources: CEIC, USDA
Sugar External Trade
According to data from the USDA, centrifugal sugar export volume in India reported an outstanding CAGR of 55.5%
over the 2017/2018 season and the 2020/2021 season (the season goes from October to September). Moreover,
in the 2021/2022 season, centrifugal sugar export volume expanded by 39.5% y/y, reaching a new record high of
11.73mn tonnes. In line with this, sugar exports also registered a good performance in terms of value. According
to data from UN Comtrade, sugar reported an increasing chronic trade surplus over the 2017-2021 period
(calendar year). The trade surplus increased from USD 5.3mn in 2017 to USD 2bn in 2020. The rising trend
continued in 2021 as the trade surplus registered a value of USD 4bn. On the one hand, sugar export value rose
from USD 1.2bn in 2017 to USD 2.8bn in 2020, further increasing by 55.9% y/y in 2021, up to USD 4.3bn. On the
other hand, sugar import value dropped from USD 1.2bn in 2017 to USD 758.8mn in 2020. The declining trend
continued in 2021 as the import value contracted by 58.1% y/y (down to USD 317.7mn). Indonesia and Sudan were
the main sugar export destinations with shares of 18.6% and 11.1%, respectively, in 2021. Among the top ten
largest export destinations, nine presented higher sales in 2021: Indonesia (+267.5% y/y), Sudan (+31.8% y/y),
United Arab Emirates (+343.8% y/y), Bangladesh (+219.8% y/y), Somalia (+52.1% y/y), Djibouti (+135.6% y/y), Sri
Lanka (+19.1% y/y), Saudi Arabia (370.1% y/y) and Malaysia (+12.3% y/y). The only exception was Afghanistan
which reported an annual drop of 7.6%.
Sugar External Trade Volume Sugar External Trade Value
16 4,800
4,310.23
3,992.52
12 11.73 3,600
mn tonnes
2,763.94
USD mn
8.41
8 2,400
7.16
1,973.22 2,005.17
5.80
4.90 1,563.26
4.70
4 1,200 1,174.56
3.40
2.24 684.39 758.77
1.30 1.25 409.96 317.72
0.90
0.17 0.08 5.35
0 0
2018 2019 2020 2021 2022 2017 2018 2019 2020 2021
Export Volume, mn tonnes Exports, USD mn
Import Volume, mn tonnes Imports, USD mn
Trade Balance, mn tonnes Trade Balance, USD mn
Sources: CEIC, USDA Sources: CEIC, UN Comtrade
Horticulture Production
Horticulture production grew at a CAGR of 2.4% over the FY2018-FY2021 period. In FY2022, horticulture
production volume expanded for the third consecutive year (+2.3% y/y), reaching a new record high of 342.3mn
tonnes. The expansion in production was mainly explained by higher planted area which increased at a CAGR of
2.6% over the FY2018-FY2021 period. In line with this, the horticulture planted area expanded by 2.2% y/y (28.1mn
ha) in FY2022. At the product level, vegetables and fruits represented 59.8% and 31.3% of horticulture production,
respectively, in FY2022. Vegetable production rose by 2.2% y/y in FY2022 to a new record high of 204.8mn tonnes.
This was mainly due to a 4.5% increase in vegetable planted area (11.3mn ha or 40.4% of horticulture planted
area) which more than compensated for the 2.2% y/y fall in vegetable yields. Fruit output grew by 4.6% y/y in
FY2022, up to 107.2mn tonnes (a new record high). This was mainly explained by the combined effects of higher
fruit yields (+2.9% y/y in FY2022) and higher fruit planted area (+1.7% y/y in FY 2022, with 7mn hectares or 25.1%
of horticulture planted area).
Horticulture Production Volume Horticulture Production Volume by Product
400 9 100
2.61 3.05 3.16 3.32 3.16
334.60 342.33
320.47 31.23 31.50 31.85 30.63 31.33
311.71 311.05
300 6 75
4.41 5.80 5.33 5.03 4.97 4.52

mn tonnes
3.68
3.03 50
%
200 3
%
2.31
59.15 58.89 58.75 59.91 59.84

25
100 -0.21 0
1.20 1.23 1.20 1.17 1.15

0
0 -3 2018 2019 2020 2021 2022
2018 2019 2020 2021 2022
Spices Fruits
Production Volume, mn tonnes Plantations Vegetables
y/y change, % Others
Vegetable Production Volume Fruit Production Volume
240 12 120 8
107.24
200.44 204.84 102.08 102.48
97.36 97.97
184.39 183.17 188.28
180 8 90 6
6.46
4.78
mn tonnes
mn tonnes
4.65
4.20
120 4 60 4
%
%
3.49
2.79
2.19
60 -0.66 0 30 2
0.63
0.39
0 -4 0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Production Volume, mn tonnes Production Volume, mn tonnes
Fruit and Vegetable External Trade
According to data from UN Comtrade, fruits and vegetables reported a chronic trade deficit over the 2017-2021
period (calendar year) with an average value of USD 2.8bn. In 2021, the trade deficit increased by 23.9% y/y, up to
USD 2.9bn. The export value of fruits and vegetables reported an average value of USD 2.8bn over the 2017-2021
period. In 2021, fruit and vegetable exports reached a value of USD 2.9bn (slightly below the value registered in
2017 with USD 3bn), posting an annual expansion of 15.4%. Fruit and vegetable imports reported an average value
of USD 5.5bn over the 2017-2021 period. In 2021, fruit and vegetable imports grew by 19.4% y/y, up to USD 5.8bn
(below the value registered in 2017 with USD 7.4bn). Fruit exports reached a value of USD 1.5bn in 2021 with an
annual growth of 16.2%, while vegetable exports registered a value of USD 1.4bn with an annual expansion of
14.4% in 2021. Vegetable imports posted a value of USD 2.1bn, expanding by 29% y/y in 2021; while fruit imports
reported an annual rise of 14.5% in 2021, reaching a value of USD 3.6bn. The United Arab Emirates was the main
export destination for Indian fruit and vegetable exports with a share of 15.8% in 2021, followed by Bangladesh
with a participation of 10.6%. Moreover, sales to the United Arab Emirates and Bangladesh grew by 32.8% y/y and
27.6% y/y, respectively, in 2021. The United States and Myanmar were the main import sources of fruits and
vegetables for India with shares of 15.1% and 10.9%, respectively, in 2021. Sales to the US fell by 4% y/y in 2021,
while sales to Myanmar rose by 59% y/y. Contrasting the performance of fruit and vegetables in the external trade,
vegetable and fruit preparations reported chronic and increasing trade surpluses over the 2017-2021 period. The
export value of vegetable and fruit preparations increased from USD 552.8mn in 2017 to USD 677.1mn in 2020,
followed by an 11.3% annual growth in 2021, reaching a value of USD 753.6 (a new record high).
External Trade in Vegetables and Fruits External Trade in Vegetable and Fruit Pre…
10,000 1,000
7,388.28
5,786.06
4,856.254,680.934,845.29 753.60
5,000 750
677.10
2,761.142,581.002,535.112,924.55 629.17
594.19 613.60 594.14
USD mn
USD mn
552.81
0 500 456.37 477.43 494.62
-2,099.92
-2,861.51
-5,000 -4,399.16 250
116.76 118.98 124.44

96.44 82.95
-10,000 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Exports, USD mn Exports, USD mn
Imports, USD mn Imports, USD mn
Trade Balance, USD mn Trade Balance, USD mn
Dairy Products Output
Over the FY2018-FY2021 period, milk production volume grew at a CAGR of 6%. The growing trend continued in
FY2022 as production volume rose by 5.3% y/y, reaching a new record high of 221.1mn tonnes. According to data
from FAOSTAT, India was the largest milk producer in the world, representing approximately of global milk
production in the 2021-2022 season. The support of the Indian government has boosted the productivity of milk
producers in India through national programmes (e.g.: the National Programme for Dairy Development). At the
segment level, milk from indigenous buffalos had a share of 31.58%, followed by milk from crossbred cattle
(29.91%), non-descript buffaloes (13.49%), and indigenous cattle (10.35%). Additionally, access to a vast domestic
market also contributed to the solid expansion of milk production. Eggs showed a similar evolution compared to
milk as the output volume of the former expanded at a CAGR of 8.6%, with an additional annual expansion of 6.2%
in FY2022, posting a new record high of 129.6bn units. Five states concentrated 57.86% of egg production:
Maharashtra (12.25%), Uttar Pradesh (12.14%), West Bengal (11.63%), Andhra Pradesh (11.04%), and Telangana
(10.82%).
Milk Production Volume Egg Production Volume
240,000 160,000 15
209,959.88
198,439.76 9
129,600.13
122,049.64
180,000 176,347.35 120,000 12.5
103,803.89
7.5
thou tonnes
95,217.00
mn units
% MN
6.62 10.19
% TH
120,000 6.47 80,000 10
5.69 5.81 6 9.02
5.29 8.03
60,000 40,000 7.5
4.5
6.70
6.19
0 3 0 5
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Productionn Volume, thou tonnes Production Volume, mn units
Dairy Product External Trade
According to data from UN Comtrade, dairy products reported a chronic trade surplus over the 2017-2021 period
(calendar year). However, dairy product exports showed an irregular evolution over the 2017-2020 period, reaching
the lowest export value in 2020 (USD 319.2mn) due to the adverse effects of the COVID-19 pandemic. In 2021,
diary product export value reported the highest value (USD 498.9mn) over the 2017-2021 period with an annual
expansion of 56.3% in a context characterised by the recovery of the global and domestic economies. The main
export destinations were the US, Bangladesh, and the United Arab Emirates with shares of 24.4%, 14.7%, and
12.6%, respectively, in 2021. Sales to the US increased by 54.6% y/y in 2021, while sales to the United Arab
Emirates expanded by 46.3% y/y. Sales to Bangladesh showed the most dynamic evolution with an increase of
438.6% y/y. At the product level, natural honey represented 27.4% of dairy product exports, followed by
concentrated milk and cream (26.2%) and butter (24.8%). Natural honey exports grew by 63.8% y/y in 2021,
complemented by an 18.6% annual expansion of butter exports in 2021. Concentrated milk and cream showed the
largest annual rise in 2021 (+417.4% y/y).
External Trade in Dairy Products
600
498.94
481.59 468.46
450 446.98 445.74
410.14
339.26
319.23
USD
300 294.88 281.93
150
44.39 34.61 35.60 37.30 30.48

0
2017 2018 2019 2020 2021
Sources
DAHD
DOF
Department of Agriculture and Farmers Welfare
USDA
UN Comtrade
ITC
Highlights
Overview
India’s alcoholic beverages market is segmented into several regulatory categories, including Indian-made Indian
liquor, popularly referred to as desi daru, Indian-made foreign liquor, beer, wine, and imported alcoholic beverages.
The market is dominated by whisky consumption, the bulk of which is in the Indian-made Indian liquor category,
i.e., the drink is made by blending locally-produced rectified spirits from molasses (a by-product of sugar
manufacturing), with demineralised water, caramel colouring, and imported bulk whisky. The availability of
alcoholic beverages is highly heterogeneous among Indian states, with states like Uttar Pradesh, Goa, Tripura,
Chhattisgarh, and Arunachal Pradesh ranking highly on alcohol consumption, whilst other states like Bihar, Gujarat,
Mizoram, and Nagaland, have prohibited the sale of alcohol.
Drivers
Domestic sale volume of beer, spirits, wine and soft drinks showed the first signs of recovery in 2021
(calendar year) after the negative effects of COVID-19 pandemic. As the Indian economy is recovering, the
consumption of alcoholic and non-alcoholic beverages started to rise once again. The objective is to recover
the rising trend that the segment showed over the 2017-2019 period.
The Indian beverage segment has access to an immense domestic market which is ready to absorb a higher
production.
Constraints
Although the domestic sale volume of alcoholic and non-alcoholic beverages effectively recovered in 2021,
volumes are still below the record highs registered in 2019. The weak recovery was notorious in two
products (beer and spirits) as the sale volume registered in 2021 was still below the sale volume reached in
2017.
The Indian beverage segment presents chronic trade deficits. Similar to food processing, the Indian
beverage manufacturing segment requires a modernisation of the installation and the techniques used in
order to increase productivity in the segment. This will allow the segment not only to increase its production
and domestic sales, but also to turn the recurrent trade deficit into a trade surplus.
Outlook
According to data from Euromonitor published in November 2022, beer, spirits and wine sale volumes are
expected to register solid increases over the 2021-2026 period, pushed up by a robust domestic demand,
complemented by higher exports. Beer sale volume is forecast to increase at a CAGR of 7% over the 2021-2026
period, up to 3bn litres in 2026 (an increase of 11.6% compared to the peak reached in 2019). Spirit sale volume is
expected to rise at a CAGR of 5% over the 2021-2026 period, up to 3.3bn litres in 2026 (a rise of 9.6% compared to
the peak posted in 2019). Wine sale volume is forecast to expand at a CAGR of 12% over the 2022-2026 period, up
to 61mn litres in 2026 (an expansion of 71.3% compared to the peak registered in 2019). According to data from
MarketLine published in January 2023, soft drink sale volume is expected to grow at a CAGR of 11.8%, up to
62.8bn litres in 2026 (a growth of 69.7% compared to the peak reported in 2019).
Beverage Sales
According to data from Euromonitor, beer sale volume increased from 2.4bn litres in 2017 (calendar year) to a new
record high of 2.7bn litres in 2019. In 2020, the negative effects of the COVID-19 pandemic had a deep impact on
the performance of beer sales which dropped by 34.9% y/y to 1.7bn litres. In 2021, beer domestic sales recorded a
rebound of 24% y/y, up to 2.2bn litres (it is still below the volume registered in 2017). Spirit sales showed a similar
performance compared to beer. Euromonitor data revealed that spirit sale volume expanded from 2.7bn litres in
2017 to 3bn litres in 2019. Once again, the negative effects of the COVID-19 pandemic led to a 17.8% annual fall in
spirit sale volume (2.5bn tonnes) in 2020, followed by a 7% y/y recovery in 2021 (2.6bn tonnes in 2021, still below
the volume registered in 2017). According to data from Euromonitor, wine sale volume expanded from 27.6 mn
litres in 2017 to 35.6mn litres in 2019. Wine sales fell by 11.4% y/y in 2020 (31.5mn litres, still above the volume of
2018), recovering by 11% y/y in 2021, reaching 35mn tonnes (slightly below the record high registered in 2019).
MarketLine figures revealed that soft drink sale volume also expanded from 30.4bn litres in 2017 to 37bn litres in
2019. In 2020, soft drink sale volume dropped by 22.5% to 28.7bn litres (the lowest volume over the 2017-2021
period). In 2021, sales of soft drinks increased by 25.5% y/y, up to 36bn litres (a volume higher compared to the
volume of 2018 but still lower compared to the volume of 2019).
Beer Sales Volume Spirit Sale Volume
3,200 80 3,200 20
2,891.73
2,689.40 2,720.17 2,648.93
2,495.70 2,475.64
2,400 40 2,400 10
2,172.00 6.31 7.00
4.22
mn litres
mn litres
5.47 7.76 1,751.61
0.74 0.08
1,600 0 1,600 0
%
-34.87
800 -40 800 -10
-17.85
0 -80 0 -20
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Sale Volume, mn litres y/y change, % Sale Volume, mn litres y/y change, %
Sources: CEIC, Euromonitor Sources: CEIC, Euromonitor
Wine Sale Volume Soft Drink Sale Volume
40 60 40 60
37.00
35.60 36.00
35.00
33.50
31.40 31.53
30.40
30 40 30 28.70 25.50 30
27.60
10.20 10.60
mn litres
6.20
bn litres
20 20 20 0
%
%
12.20 13.77 13.38
11.00
-22.50
10 0 10 -30
-11.43
0 -20 0 -60
2017 2018 2019 2020 2021 2018 2019 2020 2021 2022
Sale Volume, mn litres y/y change, % Sale Volume, bn litres y/y change, %
Sources: CEIC, Euromonitor Sources: CEIC, MarketLine
External Trade of Beverages
According to data from UN Comtrade, beverages reported a chronic trade deficit over the 2017-2021 period
(calendar year) with an average value of USD 424.9bn. In 2021, the trade deficit of beverages augmented by 53.7%
y/y, up to USD 475.9mn (the second highest value over the 2017-2021 period). Beverage exports reported an
average value of USD 320.9mn over the 2017-2021 period. In 2021, beverage exports barely increased by 0.2% y/y,
up to USD 332.1mn. The main export destination for Indian beverage exports was the United Arab Emirates with a
share of 27.4% in 2021. Sales to the United Arab Emirates increased by 15.8% y/y in 2021, complemented by
higher sales to the US (+211.6% y/y). Beverage imports registered an average value of USD 745.8mn over the
2017-2021 period. In 2021, beverage imports rose by 26% y/y, up to USD 808mn. The US and the United Kingdom
were the main import sources in 2021 with shares of 35.4% and 22.8%, respectively, over total Indian beverage
imports. Sales to the US dropped by 7.2% y/y in 2021, while sales to the United Kingdom increased by 55.9% y/y.
External Trade of Beverages
1,000
837.67 808.05
703.45 738.99
641.06
500
334.58 330.31 331.47 332.11
276.00
USD
-309.59
-368.87 -408.67
-500 -475.94
-561.67
-1,000
2017 2018 2019 2020 2021
Sources
Euromonitor
MarketLine
UN Comtrade
ITC
Glossary
BIS Bureau of Indian Standards
COVID-19 Coronavirus Disease 2019
DAHD Department of Animal Husbandry and Dairying
DPIIT Department for Promotion of Industry and Internal Trade
DOF Department of Fisheries
FDI Foreign Direct Investment
FSSAI Food Safety and Standards Authority of India
GVA Gross Value Added
IMF International Monetary Fund
INR Indian Rupee
ITC International Trade Centre
MOFPI Ministry of Food Processing Industries
MOSPI Ministry of Statistics and Programme Implementation
PMKSY Pradhan Mantri Kisan Sampada Yojana
Pradhan Mantri Formalisation Of Micro Food Processing

PMFME
Enterprises Scheme
PMKSY Pradhan Mantri Kisan Sampada Yojana
USDA United States Department of Agriculture
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EMIS Insights - India Food and Beverage Sector Report 2023-2024

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EMIS Insights - India Food and Beverage Sector Report 2023-2024

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An EMIS Insights Industry Report

Sector Snapshot: India Food and Beverage Industry FY2022

Main Sector Indicators Forecast

2021/2022 2022/2023 y/y change

(Milled) Rice Production Volume, mn tonnes 130.29 125.00 -4.1%

(Milled) Rice Consumption Volume, mn tonnes 111.27 108.50 -2.5%

(Milled) Rice Export Volume, mn tonnes 22.16 21.50 -3.0%

Wheat Production Volume, mn tonnes 109.59 103.00 -6.0%

Wheat Consumption Volume, mn tonnes 109.88 104.08 -5.3%

Wheat Export Volume, mn tonnes 10.57 2.50 -76.3%

Maize Production Volume, mn tonnes 33.60 32.00 -4.8%

Maize Consumption Volume, mn tonnes 29.90 30.10 0.7%

Maize Export Volume, mn tonnes 3.44 2.80 -18.7%

Centrifugal Sugar Production Volume, mn tonnes 36.88 35.80 -2.9%

Centrifugal Sugar Consumption Volume, mn tonnes 29.00 29.00 0.0%

Centrifugal Sugar Export Volume, mn tonnes 11.73 9.39 -19.9%

Coffee Production Volume, mn 60kg bags 5.92 6.24 5.4%

Coffee Consumption Volume, mn 60kg bags 1.23 1.32 7.3%

Coffee Export Volume, mn 60kg bags 7.24 6.23 -14.0%

Drivers and Constraints

Main Economic Indicators

FY2018 FY2019 FY2020 FY2021 FY2022

GDP, current prices, INR bn 170,900 188,997 201,036 198,299 234,710

Monetary Policy Rate, % pa, period-

Foreign Exchange Rate, USD/INR,

GVA Food and Beverage Industry,

GVA Food and Beverage Industry,

GVA Food and Beverage Industry,

Food and Beverage Trade Balance,

Food and Beverage Exports, USD mn

Food and Beverage Imports, USD mn

FDI Inflow in Food and Beverage

Main Sector Indicators

FY2018 FY2019 FY2020 FY2021 FY2022

Poultry Meat Production Volume, thou

Inland Fish Production Volume, thou

Foodgrain Production Volume, mn

Rice Production Volume, mn tonnes 112.76 116.48 118.87 122.27 130.29

Wheat Production Volume, mn tonnes 99.87 103.6 107.86 109.52 106.84

Centrifugal Sugar Production Volume,

Horticulture Production Volume, mn

Vegetable Production Volume, mn

Fruit Production Volume, mn tonnes 97.36 97.97 102.08 102.48 107.24

Egg Production Volume, mn units 95,217 103,804 114,383 122,050 129,600

Gross Value Added

Sources: CEIC, MoSPI Sources: CEIC, MoSPI

Sources: CEIC, MoSPI

14,812.74 3.61 3.62

Sources: CEIC, UN Comtrade Sources: CEIC, UN Comtrade

Country Share Country Share

Food and Beverage Export Value by Segment, 2021

Segment Share Segment Share

Agribusiness External Trade

Exports, USD mn Imports, USD mn Trade Balance, USD mn

Foreign Direct Investment in the Food and Beverage Industry

1,000 240 2.5

Sources: CEIC, DPIIT Sources: CEIC, DPIIT

FDI in the Food and Beverage Industry by Segment

Employment in the Food and Beverage Industry

Naukri JobSpeak Index: FMCG / Foods / … Naukri JobSpeak Index Evolution

1,446.00 4.71 5.20 5.19

Production, thou y/y Production, thou y/y

Production, thou y/y Production, thou y/y

Top 10 Food & Beverage Companies in India by Operating Revenue