The market for plant-based foods in India is expected to reach US $10,598 billion by 2033 from US$1,017 billion in 2023.
There has been an increasing demand for plant-based alternatives among Indians, leading to a significant growth of plant-based food industry. The 2nd Plant-based Food Summit held recently in New Delhi reflects India’s booming plant-based food industry. The summit, organized by Plant Based Foods Industry Association (PBFIA), witnessed the participation of a large number of plant-based food companies and start-ups showcasing their innovative products. Additionally, the participation of industry experts, policymakers, academia, entrepreneurs and investors, testifies to the importance being placed on plant-based foods and plant-based nutrition in India. The speakers shed light on the latest trends, innovations, and the future prospects of the plant-based foods industry.
Speaking at the event, Sanjay Sethi, Executive Director, PBFIA, stated that the plant-based foods industry has tremendous opportunity and potential to create new jobs and increase revenue streams for small and medium-sized enterprises.
To better understand the state of the plant-based food industry in India, we connected with Sethi. Following are excerpts from the exclusive conversation with the industry leader:
Q. What are the benefits of shifting towards plant-based foods?
The benefits of shifting towards plant-based foods are numerous. Firstly, plant-based foods are generally healthier as they are typically low in saturated fats and cholesterol and high in fiber, vitamins, and minerals. They can help reduce the risk of various chronic diseases such as heart disease, diabetes, and obesity. Secondly, plant-based foods have a lower environmental impact compared to animal-based foods.
Producing plant-based foods requires fewer natural resources, reduces greenhouse gas emissions, and helps conserve water. Lastly, shifting towards plant-based foods promotes animal welfare by reducing the demand for animal products.
Q. What is the state of the plant-based food industry in India?
The plant-based food industry in India is experiencing significant growth and development. The market for plant-based alternatives, such as dairy-free milk, meat substitutes, and vegan snacks, is expanding rapidly.
Several domestic and international companies have entered the Indian market to meet the growing demand for plant-based options. The government and various organizations are also promoting plant-based diets as a sustainable and healthy choice. The industry has witnessed increased investment, product innovation, and consumer awareness, indicating a positive outlook for the plant-based food sector in India.
Q. Are you witnessing any changes in the food consumption pattern amongst Indians? If so, what is driving the changes?
Yes, we are witnessing changes in food consumption patterns among Indians. There is a noticeable shift towards healthier and more sustainable food choices. Increasingly, people are opting for plant-based alternatives to traditional animal-based products as the taste, texture and flavour is similar.
These changes are driven by factors such as health consciousness, environmental concerns, ethical considerations, and the availability of a wide range of plant-based options in the market. More individuals are embracing vegetarianism, veganism, or flexitarian diets, incorporating plant-based foods into their daily meals.
While a lot of start-up activities are happening in the tech space we see similar interest in plant-based start-ups in India.
While there is certainly significant startup activity in the tech space, we are also witnessing a surge of interest in plant-based start-ups in India. Entrepreneurs and investors recognize the potential of the plant-based food industry and are actively participating in its growth.
This interest is fueled by the increasing demand for plant-based products, coupled with the opportunities to create innovative and sustainable solutions. Start-ups are introducing a wide range of plant-based alternatives, from dairy substitutes to meat alternatives, catering to the evolving preferences of Indian consumers.
Social media influencers and Bollywood celebrities have played a vital role in increasing awareness of plant-based foods and driving higher consumption.
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Q. Any innovation which you see happening in plant-based food sector that is going to change the food pattern in India?
There are several exciting innovations happening in the plant-based food sector that are poised to change the food patterns in India.
The advancements in plant-based alternatives closely mimic the taste, texture, and nutritional profile of animal-based products. These innovations are expanding the options available to consumers and making the transition to plant-based diets more accessible and enjoyable.
Additionally, advancements in food technology, such as 3D printing, membrane technology, electrospinning etc. hold immense potential for the plant-based industry, allowing for the creation of novel, clean and sustainable food products.
Q. Where do you see the plant-based industry in India in the next decade?
In the next decade, I foresee the plant-based industry in India experiencing substantial growth and becoming a mainstream choice for a significant portion of the population. As more consumers become aware of the benefits of plant-based foods and the industry continues to innovate, plant-based foods will gain widespread acceptance.
As per the recent PBFIA Renub Research report the market for plant-based foods in India is expected to reach US $10,598 billion by 2033 from US$1,017 billion in 2023. The market will witness a broader range of plant-based products hitting the shelves, catering to diverse tastes and preferences. Increased investment, supportive government policies, and collaborations across various sectors will further propel the growth of the plant-based industry, making it a prominent contributor to India’s food landscape.
A CMI research also projected that by 2030, Indian plant-based dairy will reach Rs. 106 billion and plant-based eggs will reach Rs. 14 billion.
Major challenges facing theplant-based industry in India
The PBFIA is aiming to solve some of the major challenges that India’s plant-based industry is facing currently to fast pace the growth. Thes include:
Higher GST rate: Plant-based food products are subjected to a higher GST rate (on an average of 15 per cent) in comparison to animal-based counterparts (subjected to an average of 6 per cent).
Lack of processing facilities: Dependence on imported ingredients for the value-addition to locally available raw materials by startups makes the final products expensive. PBFIA stresses the need for establishing Plant-Based Common Services Centers with cutting-edge infrastructure to solve the ingredients shortage and increase farmers’ income, which could also help promote India as the world’s “Ingredient Hub”.
Regulations and labelling restrictions: Doping away with the restrictions on the usage of certain dairy-related nomenclature words.
Lack of established cold chain logistics: This is another big challenge being faced by the plant-based food companies, which require temperature-controlled transportation for their products. Lack of established cold chain logistics is making it difficult for businesses to expand.
Lack of a specific start-up ecosystem: The plant-based foods sector is an upcoming industry, and it is more crucial to have a specific start-up ecosystem that helps them during their earlier stages.
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