World food retail sales generate over $4 trillion per year. The food industry encompasses several categories of food including: dairy, seafood, eggs, fruit and vegetables, luxury foods, organic food, meat, packaged food, condiments, and cereal-based products. The industry has evolved greatly over the past twenty years thanks to technological advances, keeping pace with growing demand for convenience foods.
At the end of 2012, the global food market was valued at $4.2 trillion (USD). Fresh food and agricultural produce accounted for 52.6% of this figure, while packaged foods contributed to the rest. During the five-year period leading up to 2012, the food sector expanded at a compound annual growth rate of 3.7% (by value), from $3.7 trillion (USD).
The Indian food market is estimated at over US$ 182 billion, while accounting for about two third of the total Indian retail market. Further, according to consultancy firm McKinsey & Co. The retail food sector in India is likely to grow from around US$ 70 billion in 2008 to US$ 150 billion by 2025, accounting for a large chunk of the world food industry, which grow from US$ 175 billion to US$ 318 billion by 2020, and to US$ 400 billion by 2025.
The growth of the food industry in India stems from the consistently increasing agricultural output. With the second largest arable area in the world, India is on f the key food producing countries in the world, second only to China.
The food processing industry in India is presently growing at 14 per cent against 6-7 per cent growth in 2003-04. Foreign direct investments (FDI) totalling US$ 143.80 million was put into the food processing industry in 2007-08 against US$ 5.70 million in the previous fiscal.
'Vision 2015' undertaken by the Ministry of Food Processing Industries entails:
• Three-fold growth in the size of the processed food sector.
• Increasing level of processing of perishables from 6 per cent to 20 per cent.
• Value addition to be raised from 20 per cent to 35 per cent.
• Share in global food trade to go up from 1.5 per cent to 3 per cent.