The Innovation Imperative: a Growth Blueprint for India’s Food and Beverage Industry

India’s Food and Beverage (F&B) industry has transformed from a fragmented, need-driven sector into one of the world’s fastest-growing consumer markets. This growth has been propelled by rising incomes, urbanization, foreign direct investment reforms, and government-backed initiatives such as the PM-FME scheme, Mega Food Parks, and Production-linked Incentives. India’s agricultural abundance provides a strong raw material base, supporting both domestic demand and export potential, while also contributing to national priorities such as food safety and rural development.

Evolving consumer preferences for health, wellness, and convenience, alongside global trends in sustainability, digital transformation, and clean-label products are reshaping the sector. However, India lags behind global benchmarks in areas such as large-scale automation, sustainable packaging, and advanced nutrition, creating clear gaps and opportunities for innovation.

Key innovation areas include ingredient innovation (sugar, salt, and fat reduction, plant-based, or upcycled ingredients), non-thermal or fermentation-based processing innovations, sustainable and intelligent packaging, and digital adoption in the supply chain.

Despite its momentum, the industry faces challenges such as high price sensitivity, fragmented supply chains, and taste loyalty. Everest Group proposes a roadmap emphasizing scalable, health-driven innovation balanced with affordability, strategic collaborations between corporates and startups, government-backed incubation, and digital-first supply chains. The future of India’s F&B industry is envisioned as smart, safe, personalized, and globally competitive, positioning India as a major force in the global food economy.