As Demand Doubles, Will India’s Processing Industry Hold? Our CEO’s Outlook

As India’s FMCG sector gears up to meet unprecedented growth, the food processing industry faces both opportunity and pressure. At Jaivik, we specialize in engineering solutions that enable FMCG brands to deliver safe, high-quality, and sustainable food products at scale. From grinding and blending to advanced sterilization and drying systems, we work behind the scenes to ensure that essential ingredients are processed with precision and efficiency. With India’s FMCG market expected to double by 2025, a key question arises: Can the processing industry expand fast enough to meet this demand while adapting to evolving consumer expectations and rigorous safety standards?

Market Dynamics and Demand Drivers

India’s FMCG Market Boom

India’s FMCG sector was valued at $110 billion in 2021 and is on track to exceed $220 billion by 2025. This staggering growth reflects the expanding middle class and increased urbanization, leading to greater consumption and demand for efficient food production. Every facet of food processing must adapt to meet these new realities. Processing plants, equipment, and standards are all under scrutiny as India looks to meet this demand sustainably and efficiently.

Consumption Milestone

With projections for India’s per capita income to reach $4,000 by 2030, the FMCG sector anticipates a surge in demand. Yet recent insights from Nestlé India reveal a shift: as inflation impacts purchasing power, the middle class is focusing spending on fewer, higher-quality products rather than bulk purchases. Consumers are seeking minimally processed, safer foods, aligning with trends toward health and quality. This evolution demands scaled-up, efficient production that adheres to strict safety standards and meets growing consumer expectations.

The Shift to Premiumization

A key trend in this growth story is the demand for premium, health-oriented, and processed food products. As disposable incomes rise, so does the willingness to pay for quality, safety, and nutritional value. FMCG brands must upgrade their production lines to meet this demand, creating substantial opportunities for EPC firms that can deliver turnkey, high-tech processing solutions for a range of products, from spices to processed health foods.

Industry Trends Impacting EPC in Food Processing

Automation in Processing Automation has become essential as India’s food processing industry pushes for higher efficiency and output. The market for automation in food processing is projected to grow at a 7% CAGR by 2027. This trend presents an enormous opportunity for EPC companies specializing in automated machinery and smart plant setups. Automation enables real-time monitoring and predictive maintenance, helping food producers streamline operations and reduce downtime.

Changing Consumption and Market Pressures

Recent reports indicate that middle-class consumers in India are feeling the strain of rising prices and are reducing FMCG purchases as a result. Additionally, consumers are shifting toward healthier, eco-friendly products, further emphasizing the need for specialized processing solutions. For EPC firms, this shift means adapting to consumer preferences by supporting processing facilities that offer greater flexibility and can handle premium, minimally processed, and sustainable products, meeting the needs of an increasingly selective market.

Sustainability as a Business Imperative

Today’s consumers demand not just quality but ethical production. FMCG brands invest heavily in energy-efficient machinery, waste reduction systems, and renewable energy sources. India’s renewable energy sector, expected to grow at an 8% CAGR by 2030, aligns with these demands. Green EPC solutions that emphasize sustainable practices are essential, creating a market for EPC firms to deliver equipment that reduces environmental impact, optimizes energy usage, and meets stringent environmental standards.

Key Solution Offerings and Competitive Edge

Turnkey Processing Solutions

For large FMCG brands, a single-source solution for the design, procurement, construction, and commissioning of plants is invaluable. Turnkey solutions provided by experienced EPC firms streamline the entire process, enabling faster scalability and adaptability to market needs. As demand grows, the ability to set up production lines quickly and efficiently will be critical to meet market timelines and maintain a competitive edge.

Advanced Sterilization and Pasteurization Systems

Advanced sterilisation solutions are crucial with consumer preferences shifting toward minimally processed yet safe foods. Continuous steam sterilization and pasteurization systems, ensure safety while preserving the product’s quality and nutritional value. EPC companies offering these high-demand technologies meet global standards like FSSAI and HACCP, setting themselves apart as essential partners for FMCG brands committed to delivering safe, premium products.

Modular and Scalable Facilities

Market demands fluctuate, and FMCG brands need facilities that can scale accordingly. Modular plant designs enable companies to adjust production capacity based on seasonality or consumer trends. EPC firms specializing in modular setups offer FMCG clients a distinct advantage—processing plants that are flexible, easily expandable, and equipped to accommodate new products or handle increased volumes as demand rises.

Data-Driven Benefits of Partnering with EPC Firms

Time Efficiency in Project Setup

With an experienced EPC partner like Jaivik Food & Research, industries can shorten plant setup times by as much as 20%. Turnkey solutions that integrate project management, from planning to production, typically reduce timelines from an average of 18 months to around 12-14 months. In the FMCG sector, where speed-to-market is crucial, this efficiency translates to a competitive advantage, allowing companies to meet demand without delays.

Cost Reductions through Automation

Automation reduces operational costs by up to 30%, addressing labor shortages, minimizing human error, and enhancing quality consistency. According to McKinsey studies, food processors who adopt automated systems experience long-term cost savings and improved operational efficiency. For FMCG brands, these savings are vital in an environment where margin preservation is key to sustained profitability.

Sustainability and Compliance Savings

Green-certified equipment, waste management systems, and energy-efficient machinery can lower operational costs by up to 15%. Additionally, FMCG brands adopting sustainable practices benefit from tax incentives and favorable financing. EPC firms with a focus on sustainability are well-positioned to meet these needs, providing clients with a pathway to responsible growth that aligns with both regulatory and consumer expectations.

Our CEO’s Outlook: A Vision to Engineer the Future of Processing

"At Jaivik, our vision has always been about more than just processing—it’s about transforming how we meet the evolving demands of the processing industry. The doubling of India’s FMCG market and rising aspirations signal a critical moment for our industry. With these shifts come both new challenges and unprecedented opportunities.

To keep pace with these demands, we are gearing up to offer a unique, comprehensive approach to processing solutions. Imagine a single, integrated ‘nest’ of solutions where every need—whether grinding, blending, sterilisation, or material handling—can be met seamlessly and sustainably. This next chapter, which we’re excited to unveil soon, will redefine how we support our clients and empower them to scale with quality and precision.

As we move forward, our focus remains clear: to engineer solutions that set new standards in efficiency, sustainability, and reliability, helping our clients meet consumer expectations while minimising environmental impact. This journey is one we undertake together, with a commitment to innovation and a shared vision of success. The best is yet to come."

— Jitendra Kumar Sharma, Founder & CEO, Jaivik Food & Research Pvt. Ltd.

Conclusion

India’s FMCG sector is poised for significant growth, yet the shift in consumer demand toward premium, sustainable products presents both opportunities and challenges for the food processing industry. Jaivik’s solutions are designed to empower FMCG brands with turnkey, sustainable, and scalable systems that meet today’s rigorous quality standards. As we prepare for an exciting new chapter, we look forward to supporting our clients in this dynamic market with innovative processing solutions that prioritise precision, efficiency, and environmental responsibility.