Indian Food & Beverage Industry- Historical Trends and Present Outlook

Published Date : Nov 2022
Author : Pratibha Bhattacharjee
Biography : Sr. content writer at Brand Essence Market Research. Passionate about content curation in the market research vertical. Always striving to create reliable and engaging industry-based content.

Indian Food & Beverage Industry- Historical Trends and Present Outlook 

The Indian Food & Beverage Industry is reckoned to garner substantial gains over the stipulated timeline due to the presence of various growth inducing factors. 

Food & beverage industry encompasses the companies that facilitate the production and manufacturing of various consumable items.  It also includes the facilities which transport, serve, or sell edible products. This market predominantly consists of catering businesses, food joints, food transportation facilities, along with beverages & food manufacturing operations, among others. 

Being a developing nation with a rapidly expanding population base, India is witnessing an escalating demand for food & beverages. As per reliable sources, nearly 3% of India’s GDP is captured by the food & beverages industry. The nation houses many food & beverage companies who have amplified their reach on a global level.  

The primary growth catalysts of this industry sphere are rapid economic developments, changing dietary trends of the masses, and rise in the household consumption rates. 

Moreover, the increasing consumption of ready-to-eat consumables, rising popularity of health drinks, along with surging income levels of people are creating lucrative opportunities for this marketplace to prosper. 

Which are some of the key trends that are influencing the Indian food & beverages market growth? 

The expansion of the food & beverage industry in India is being predominantly powered by the following factors- 

Amplification of the dairy industry- 

The dairy sector is an integral part of the food & beverages industry in this nation, and it has been gaining massive traction over the stipulated timeline. In fact, the Indian government has been implementing favourable policies catering to the welfare of dairy farmers. Dairy products manufacturing in the country are exported to various other regions. Also, the surging per capita consumption of milk products in India is further adding to the soaring sales of dairy based beverages.  

Changing lifestyle trends- 

With rapid industrialization and urbanization, the Indian populace is witnessing a drastic transformation in its lifestyle trends. There has been a shifting inclination of the masses towards the consumption of ready-to-eat food or beverage products. This is predominantly credited to their growing income levels and hectic work schedules, among others. Moreover, the nation is also witnessing a shift toward the outdoor dining culture. This in turn has increased the popularity of food joints such as cafes, restaurants, delis, pubs, and street food corners. These factors are stimulating the dynamics of this market. 

Rising consumption of energy drinks- 

The Indian beverage industry is amassing notable gains due to the elevating demand for energy drinks, especially among the youth. This is attributable to the increasing number of fitness enthusiasts, rising sport-based activities, along with growing health cognizance of the masses. These are some of the major expansion propellants for the beverage market in the nation. 

Apart from the aforementioned drivers, rising consumption of bakery items like cakes on private and public events, the booming nutraceutical sector, and widespread technological advancements across this marketplace are creating new growth avenues for this business vertical. 

Impact of the COVID-19 pandemic 

The Coronavirus pandemic dealt a huge blow to the development of the Indian food & beverage industry. Due to the rising infection rates, the government started imposing restrictive containment measures including lockdowns, travel bans, and closure of commercial complexes. This further led to the shortage of raw materials due to supply chain disruptions across the globe. Thus, a large section of the Indian society started facing food crisis during that period. 

But, with sharp decline in the COVID-19 cases, the government decided to ease the restrictions over time. This helped the marketplace to pick up pace and is anticipated to generate significant returns in the ensuring years.  

Future opportunities for the market 

To sum up with, the food & beverage industry in India is presently registering stellar growth and is poised to showcase lucrative progression trends in the ensuing years. The growing government efforts to decrease hunger rates in India by catering to the elevating food demand in the nation is augmenting the outlook of this market. Besides, the announcement of favourable government subsidies for farmers, food & beverage manufacturing units, and other related bodies is projected to aid the expansion of this market.  



We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination interested? please email us



BrandEssence® Market Research and Consulting Pvt ltd.

124, City Road, London EC1V 2NX




1-888-853-7040 - U.S. (TOLL FREE)+44-1173181773 - U.K. OFFICE+91-7447409162 - INDIA OFFICE

© Copyright 2024-25 BrandEssence® Market Research and Consulting Pvt ltd. All Rights Reserved | Designed by BrandEssence®