India’s food technology scene is radically evolving as it adjusts to shifting customer tastes, advancements in processing, and the need for sustainability. The industry, which is currently among the biggest in the nation, is changing to suit the demands of an aging population, urbanization, and a public that is becoming more health-conscious.
Key areas for automation include sorting, packaging, quality control, and supply chain management. Driven by advancements in AI, IoT, and robotics, these areas aim to improve efficiency, food safety, and sustainability across the entire food processing chain. In 2024, the Indian food technology sector presents significant opportunities for equipment and automation across various segments like fruits & vegetables, dairy, meat processing, and packaged foods.
Food processing Industry: The sunrise opportunity
- The Indian food processing technology industry is growing rapidly, supported by a strong food ecosystem and favorable policies. By FY 2025-26, the sector is expected to reach US$ 535 billion. It currently accounts for 10.4% of exports, employs 11.6% of the labor force, and supports 5.1 million people in the unregistered sector. Between April 2000 and December 2023, FDI inflows totaled US$ 12.5 billion (1.87% of all FDI equity flows).
- Processed food consumption is rising in Tier-II and Tier-III cities, with key sectors including dairy, edible oils, cereals, sugar, and beverages. India has one of the world’s largest food processing industries, with a CAGR of 7.2%, growing from US$ 21.5 billion in 2016-17 to US$ 28.5 billion in 2020-21.
- Major export markets include the US, Singapore, Middle East, Nepal, Nigeria, UAE, and Bangladesh. The industry is expanding due to consumer demand for convenient, high-quality, and hygienic food. AI is enhancing production efficiency, reducing waste, and helping predict market trends, positioning the industry as a leader in innovation.
Key Food Technology Sectors in India
- Dairy Industry – One of the biggest industries in India, dairy, is embracing technology at a rapid pace. Efficiency and hygiene are being improved via innovations in milk collection, processing, and packaging. The development of the cold chain, automated pasteurization, and IoT-enabled quality control are the main factors propelling this industry’s expansion.
- Fruit and Vegetable Processing – In India, post-harvest losses have long been a problem for the agricultural industry. Food technology advances are concentrated on the following to address this: – – Increasing the shelf life of fruits and vegetables with contemporary preservation techniques. – The use of high-efficiency methods to produce juice concentrates is becoming more widespread. – A circular economy is aided by technologies that turn peels and pulp into useful byproducts like animal feed and dietary fiber.
- Beverages and Functional Drinks – There is a change in the Indian beverage market towards cold brews, functional drinks, and health drinks. Preservative-free and nutritionally improved drinks are now available from manufacturers owing to advanced processing and packaging technology. Demand is also rising for plant-based beverages including protein shakes, oat milk, and almond milk.
- Grain and Cereal Processing – Grain production in India includes wheat, rice, and legumes. Staple food nutritional profiles are getting better thanks to modern milling technology and food fortification strategies. As people search for quick-to-cook yet wholesome food options, innovations in the manufacturing of healthy snacks and ready-to-cook cereals are becoming more and more popular.
- Meat and Poultry Processing – Food safety and automation are progressing in India’s meat and poultry sector. Robotic meat processing lines and automated slaughtering technologies are increasing productivity while upholding safety and hygienic standards. In addition, maintaining meat quality and increasing product shelf life depend heavily on advancements in cold storage and transportation.
- Processed Food – About 10% of India’s entire manufacturing output is accounted for by the processed food industry, which significantly boosts the nation’s economy. One of the biggest sectors of India’s food business is the processed food sector, which is expected to reach a valuation of over $500 billion by 2025. Along with being one of the biggest employers in the nation, this industry creates jobs at every stage of the supply chain, from sourcing and processing raw materials to packaging and distribution.
Major Trends in Food Technology for 2024
- Automation and Robotics in Food Processing – The food processing sector in India is changing as a result of the use of automation and robots, which improves scalability, accuracy, and efficiency. Automated systems find extensive use in :
– Robotic fruit, vegetable, and grain grading systems minimize human error and guarantee consistency.
– Automated packaging machines can meet the growing need for both traditional and intelligent packaging solutions since they are fast and precise.
– Automation lowers labor costs and boosts throughput in a variety of processes, from pulping and juicing in the beverage industry to mixing dough in bakeries. - Cold Chain Logistics and Preservation Technologies – The lack of proper infrastructure in India causes a large amount of agricultural produce to be wasted, hence cold chain logistics and preservation technologies are essential to cutting down on food waste and prolonging the shelf life of perishables. This holds particularly true for meat, dairy, fruits, and vegetables.
- Plant-Based and Alternative Proteins – The need for alternative proteins is growing as people become more environmentally conscious and health conscious and move toward plant-based diets. Food tech businesses are developing novel solutions for plant-based meat alternatives, dairy substitutes, and protein-rich snacks produced from lentils, soy, peas, and other sustainable sources.
- Advanced Food Packaging Technologies – Packaging is important for food safety, sustainability, and preservation; it’s not just about looks. Smart packaging solutions are gaining popularity because they use sensors to keep an eye on the quality and freshness of products. Eco-friendly packaging materials manufactured from biodegradable and recyclable materials are gaining favor in response to the global effort toward minimizing plastic waste.
- IoT and Blockchain for Traceability – Transparency and traceability are being improved in the food supply chain through the use of blockchain technology and Internet of Things (IoT) devices. Blockchain enables manufacturing monitoring from farm to fork, guaranteeing product safety and enhancing consumer confidence. Maintaining the authenticity of high-end products and tracking organic produce are two areas where this technology really shines.
Opportunities for Growth in Food Technology
- Sustainability and Eco-Friendly Innovations – Food tech companies might focus on eco-friendly technologies as sustainability becomes a primary issue for authorities and customers alike. Businesses that address sustainability first will have a competitive advantage, from using renewable energy in food processing to cutting water use and creating compostable packaging.
- Food Fortification and Functional Foods – The battle against lifestyle disorders like diabetes and hypertension, together with malnutrition, is driving up demand for functional and fortified meals in India. Strong increase is anticipated in the fortification of grains with vital nutrients, the creation of probiotic-rich products, and functional beverages that target certain health issues.
- Emerging Markets for Plant-Based and Alternative Proteins – India is one of the markets for plant-based proteins that is expanding the fastest because of the country’s sizable vegetarian population and growing public awareness of the advantages of eating a plant-based diet. Plant-based proteins like lentils, chickpeas, and peas are already a part of traditional Indian cuisine, which facilitates the switch to contemporary plant-based products.
- Tech-Driven Food Safety and Quality Assurance – India is a country that places a high priority on food safety. Companies who invest in technology-driven quality assurance systems will have an advantage in meeting regulatory requirements. In order to make sure that food is safe for consumption, blockchain technology, IoT, and AI-based systems for tracking food production will be essential.
Opportunities for Equipment and Automation in food process in India
The food processing sector in India is expanding and changing quickly, which makes it an ideal environment for implementing automation and cutting-edge machinery. Businesses in the food industry are using technology to stay competitive as consumer demand for quality, safety, efficiency, and sustainability grows.
The following are some significant equipment and automation potential in India’s major food processing sectors:
- Dairy Processing
– Autonomous Pasteurization Systems: Boost productivity, cut down on energy use, and guarantee accurate temperature regulation for longer shelf life and security. Robotic milking systems: Increase milk collecting and processing efficiency and hygienic standards.
– Packaging Automation: Packaging solutions that are automated to guarantee product safety and traceability, such as filling, sealing, and intelligent packaging.
-Based Quality Control: Using Internet of Things (IoT) sensors, milk quality is continuously monitored to better manage contamination and spoiling. - Fruit and Vegetable Processing
-Automated Sorting, Grading, and Packaging Machines: Reduce labor costs and improve precision in sorting and packaging of fruits and vegetables.
-Cold Chain Logistics and Refrigeration Automation: Efficient cold storage and transportation systems to reduce food wastage and maintain freshness across longer distances.
-Juice Extraction and Processing Equipment: Advanced extraction technologies for juice and pulp with minimal wastage and improved yield.
-Dehydration and Freeze Drying Machines: Extending the shelf life of perishable produce using automated drying technologies. - Meat and Poultry Processing
-Automated Slaughtering Systems: Reduce human intervention while increasing speed, accuracy, and hygiene in operations that prepare meat and poultry.
-Robotic Deboning and Cutting Equipment: During the preparation and processing of meat, increase efficiency and decrease waste.
-Vacuum packaging machines: Prevent contamination and spoiling while extending the shelf life of processed meat products.
-Cold Chain Automation: Simplify the distribution and storage of meat and poultry while guaranteeing product freshness all the way through the supply chain. - Grains and Cereal Processing
-Milling Automation: High-tech systems for precise processing of grains, such as rice and wheat, to increase yield and quality.
-Equipment for fortification: Devices that, in order to satisfy the increasing demand for products that are healthier and more nutrient-dense, add vital nutrients to grains while they are processing.
-Extrusion Technologies for Snack Manufacturing: Automatic extrusion equipment for millet, rice, and wheat is used to produce nutritious snacks.
-Automated Packaging and Sealing Solutions: Rapid packaging technologies that extend the shelf life of grains and cereals while lowering handling errors. - Bakery and Confectionery
-Automated Forming and Dough Mixing Equipment: Produce baked items more quickly without sacrificing quality.
-Ovens with Accurate Temperature Control: Automatic ovens that maintain a consistent baking temperature while using less energy.
-Robotic Decorating Systems: Precision cake, pastry, and chocolate decorating made possible by robotics, which also reduces manual work and increases personalization.
-Confectionery Wrapping and Packaging Automation: To increase efficiency and hygiene, automated wrapping machines for baked products, candies, and chocolates are used. - Beverage Processing
-Fully automated manufacturing lines for juices, soft drinks, and alcoholic beverages guarantee a high throughput while maintaining a constant quality.
-Cold Brew and Ready-to-Drink Coffee Systems: These are increasingly common automated systems for brewing and bottling tea and coffee that are ready to drink.
-Automation for Canning and Bottling: Fast, accurate machinery for canning and bottling beverages, especially juices, carbonated drinks, and water.
-Systems for testing and monitoring beverage quality: Automation and sensor technologies that keep an eye on the consistency, flavor, and safety of beverages in real time. - Frozen Foods and Ready-to-Eat (RTE) Meals
-Improve the freezing process for ready-to-eat meals with blast freezers and automated refrigeration systems to ensure improved texture and freshness when thawed.
-Robotic Cooking and Packing Lines: Automated frozen meal preparation, portioning, and packaging with low human involvement.
-Advanced sealing and packing equipment that preserves food quality and makes it simple for customers to reheat food are examples of packaging solutions for ready-to-eat foods. - Plant-Based and Alternative Proteins
-Extrusion Equipment for Plant-Based Proteins: High-performance devices that transform plant proteins into meat substitutes, assisting producers in expanding their output.
-Fermentation and Bioprocessing processes: Automating these processes can save costs and boost productivity for food items based on fermentation and lab-grown proteins.
-Automation in Protein Purification and Isolation: Highly accurate machinery for separating and cleaning plant-based proteins for use in a range of culinary applications. - Packaging Innovations and Smart Packaging
-Automated Packaging Lines: Robotics-integrated, high-speed packaging machinery for primary and secondary packaging that boosts output.
-Packaging that is both environmentally friendly and sustainable: Equipment that produces recyclable and biodegradable packaging materials in response to consumer demand for sustainability.
-Smart packaging with embedded sensors is packaging that has sensors built in to keep an eye on the quality, safety, and freshness of products all the way through the supply chain. - Sustainability and Waste Management Technologies
-Food Processing Equipment with Low Energy Consumption: Automating energy use in plants to cut down on power.
-Waste Recycling and Byproduct Utilization: Devices that help create a circular economy by turning food processing waste into byproducts like fertilizer, biofuels, or animal feed.
-Water Reuse and Wastewater Treatment Automation: Automated systems that ensure environmental requirements are followed, minimize water waste, and treat and reuse water in food processing facilities. - Processed Food
-Automation in Production Processes: Robotic operations like packing, palletizing, and sorting are becoming more and more common. Consistency and quality in manufacturing are ensured by incorporating automation into the cooking, mixing, and processing steps.
-Smart Packaging Solutions: Sensor-based smart packaging solutions that increase shelf life and track freshness are gaining popularity. The industry’s transition to more environmentally friendly methods presents a chance to create machinery that generates recyclable or biodegradable packaging materials.
-Cold Chain and Refrigeration Technologies: IoT-enabled monitoring systems integrated into automated cold storage facilities can maximize storage conditions and minimize spoiling. Additionally, in demand are sophisticated refrigeration equipment with real-time tracking.
Government Initiatives
- Production Linked Incentive (PLI) – Under the PLI scheme, the government offers financial incentives based on sales growth. Companies that meet certain revenue thresholds can avail of these incentives to encourage high-quality production and innovation. This scheme also promotes the development of innovative food products, supporting manufacturers who invest in modern technologies and sustainable practices.
- Mega Food Parks Scheme – This initiative seeks to reduce wastage and ensure better value addition in the agricultural sector by promoting food technology and processing. The scheme also encourages small and medium enterprises (SMEs) to set up units in these parks, enhancing access to modern food technology and innovation in processing.
- Pradhan Mantri Kisan Sampada Yojana – The scheme also encourages small and medium enterprises (SMEs) to set up units in these parks, enhancing access to modern food technology and innovation in processing – The scheme provides subsidies and financial assistance to food processing units, helping them adopt modern technology, increase production, and reduce post-harvest losses.
- Operation Greens – Financial support is provided for setting up cold storage, processing plants, and transportation infrastructure, including technology-driven solutions for processing and preserving these perishables. Operation Greens encourages the adoption of technology in preserving and processing fruits and vegetables to reduce wastage and ensure year-round availability at stable prices.
- Cold Chain, Value Addition, and Preservation Infrastructure Scheme – The government offers financial support for establishing cold storage facilities, reefer vehicles, and processing units. Subsidies of up to 50% are available for investments in cold chain infrastructure and technology. The scheme helps food processing companies invest in advanced technologies such as Individual Quick Freezing (IQF), cryogenic freezing, and refrigerated transport to maintain product quality and safety.
- Agro-Processing Cluster Scheme – his scheme supports the development of clusters for agro-processing, which encourage value addition and create direct market linkages between farmers and processors. The scheme promotes investment in modern processing technologies, enabling efficient processing and distribution of agro-products within a cluster-based model.
- Tax Benefits and Exemptions – The Indian government allows 100% Foreign Direct Investment (FDI) under the automatic route in the food processing sector. This has facilitated the entry of global food technology companies, which brings advanced technology and innovation into the sector.
- Research & Development and Technology Upgradation Fund – Financial assistance is offered for R&D activities focused on food technology innovations, including the development of new processing techniques, packaging, and sustainability efforts. Companies investing in cutting-edge technologies such as High-Pressure Processing (HPP), Cold Plasma Technology, or AI-based automation can benefit from these incentives.
- Food Processing Incubation Centers – The government provides financial support for setting up these incubation centers, where startups can experiment with new processing technologies and develop innovative products. These centers help scale innovative ideas into commercial products, encouraging the development of new technologies in food processing, especially in health foods and sustainable packaging.
- Export Promotion and Incentives – The government offers several export incentives for food processing companies, including Export Promotion Capital Goods (EPCG) scheme and Merchandise Exports from India Scheme (MEIS). These schemes provide duty exemptions and financial benefits to boost exports of processed foods.