Market Overview – India

Production

Sugar cane is India's primary domestic crop, with production representing 306.1 million tonnes in 2017. However, the production volume of sugar cane has decreased by a CAGR of −3% between 2013 to 2017. Maize and onions have had the highest growth rates during the same period, with the same CAGR's of 4% for both commodities.

Chicken production increased by a CAGR of 6% from 2013 to 2017, while cattle production decreased by −2.0% and both buffalo and goat production remained unchanged in growth rates.

Both live goats and sheep remained stable at a CAGR of 0% respectively during the 2013 - 2017 period, while live cattle decreased by −1% and live buffaloes increased by 1%.

Trade

India is a net exporter of agri-food and seafood products. In 2018, India's agri-food and seafood trade surplus was US$17.3 billion with imports valued at US$21.4 billion, and exports of US$38.7 billion. Canada was India's eighth largest supplier of agri-food and seafood products in 2017 and twenty eighth largest supplier in 2018 as exports declined significantly from Canada to India in 2018, due to restrictions on pulse imports to the country. India's agri-food and seafood exports declined at a CAGR of −2% between 2014 and 2018.

India's top agri-food and seafood imports from world in 2018 were crude palm oil, crude soya-bean oil, crude sunflower-seed or safflower oil, cashews and palm oil. Key supplying countries were Ukraine, United States, Indonesia, Argentina and Malaysia.

India's processed food and beverage imports were valued at US$13.7 billion in 2018. Canada is largely absent from this market as Indonesia, Ukraine, Argentina, Malaysia and Brazil were the largest suppliers of processed food and beverages to India, providing 71% of the market share in 2018. India's processed food and beverage imports remained stable at a CAGR of 0% between 2014 and 2018.

Canada's agri-food and seafood exports to India were valued at US$130.8 million in 2018, with pulse exports accounting for over 90% of total trade. Top exports were shelled lentils, shelled peas, food preparations, rape/colza seeds and shelled chickpeas. In 2018, Canada registered an agri-food and seafood trade deficit of US$408.9 million with India (importing US$539.7 million from India) in 2018.

Retail sales

India is the third largest packaged food market within Asia, after China and Japan and the tenth largest packaged food market in the world after Russia and Italy. The packaged food sector in India is seeing formidable growth, a trend that is expected to continue over the coming years. Retail sales were valued at US$76.3 billion in 2018 and a CAGR of 18% from 2014 to 2018. By the year 2023, retail sales are expected to reach US$164.2 billion, registering a comparable growth rate of 16%. Edible oils and dairy had the largest retail sales value of US$24.5 billion and US$20.8 billion with a CAGR of 21% and 19% respectively from 2014-2018. Company acquisitions, multi-million investments and the premiumisation of products have contributed to the growth of these categories within packaged foods. Savoury snacks, edible oils and sauces, dressings and condiments are expected to see the most significant sales growth in the packaged food sector over 2019-2023 with a CAGR of 23%, 19% and 19% respectively. Brand consciousness is expected to diminish in the forecasted period due partly to increased product availability in conjunction with consumer's increased health awareness and social media usage that encourage consumption directed at one's needs versus the labelling of a product.

Consumers are increasingly seeking easy-to-prepare products that are healthy, tasty, well-priced and help save time. As consumers look for products that are convenient and offer a longer shelf life, packaged food sales will continue to see growth.

Health and wellness food products

India's health and wellness sector was valued at US$8.4 billion in 2018 and grew by a CAGR of 15% from 2014 to 2018 and is expected to continue this growth by 14% over the 2019 to 2023 period. Consumers within this sector are interested in products that can provide health benefits at a good value.

Better for you (BFY) and naturally healthy (NH) foods showed the largest growth in the 2014-2018 period and are expected to lead the way over the next five years with a CAGR of 22% and 17%, respectively.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Overview of the Trade Commissioner Service in India
• Find a Trade Commissioner

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

Market Overview – India
Global Analysis Report

Prepared by: Laurie Bernardi, International Market Research Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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