Are you searching for profitable food processing business ideas suitable to start in India? Food processing industry covers a wide range of products fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc.
India is the second largest producer of food in the world. Food Processing business has unique opportunities in production for the domestic market as well as for export. The demand for various products of food processing industry is on the rise. With the increasing in per capita income of the Indians which results in higher spending on value added quality food products.
Currently, the Indian food industry is valued at US$ 39.71 billion. Taking into consideration the tremendous growth and investment opportunities, industry experts are expecting a tremendous growth in the domestic processed food market. It is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11% to US$65.4 billion by 2018.
In addition, the Indian food processing industry accounts for 32% of the country’s total food market. And it is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. According to an estimate of the Confederation of Indian Industry (CII), the sector may generate employment of 9 million people-days and may attract US $ 33 billion investment in next ten years.
Here we compiled 50 most profitable and trending food processing business opportunities for your ready reference. Some of them can be initiated as small scale or medium scale and even large scale basis.
List Of 50 Profitable Food Processing Business Ideas
Bakery is one of the most profitable food processing business opportunity ones can initiate by having owned or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in the bakery business. According to the demand and financial aspect you will need to choose the specific products for your bakery business. Read More…
2. Baking Powder Making
Basically, baking powders are chemical mixtures of different ingredients and compositions. These ingredients react in presence of moisture and heat to release a gas. It comes with several formulations. However, it contains an alkali, typically sodium bicarbonate (baking soda), and an acid in the form of salt crystals, together with starch to keep it dry. Read More…
3. Banana Wafer Making
Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried under the sun or in the oven, fried and eaten as snack food or dessert. These can be sold both in the local and export markets. You can initiate this business as small scale basis. Read More…
4. Biscuit Making
Biscuit making business is very lucrative and can be initiated as small scale basis. It is a conventional activity and an entrepreneur can initiate this business with low startup capital also. Despite the advent of modern, large capacity and automatic biscuit making plants, a large section of people still prefers fresh biscuits from a local bakery as they are cheap and offer many varieties. Read More…
5. Bread Production
Quality bread provides fiber and carbohydrates in a convenient, low-fat form that is portable and delicious. Good bread never goes out of style. Bread production industry has several diversified opportunities. Fresh quality bread is always in demand for both urban and suburban areas. Bread production process is also not complex.
6. Canned Rasgulla
Any individual can start a canned rasgulla making business with moderate capital investment. Additionally, revenue wise the business is lucrative and highly profitable. However, you must ensure a regular supply of fresh milk to your factory. Read More…
7. Cashew Processing
The manufacturing activities that are involved in cashew processing are cell cooking, cutting, cashew kernel drying, peeling, grading and packing. Cashew nut processing can be initiated as small scale and also as an export-oriented plant. Simple machinery is required. Read More…
8. Cheesecake Making
Ingredients required for cheesecakes production are cheese, sugar, strawberries, wheat flour, egg, maize, vegetable oil, starch, salt, preservative, colour, and essence. Cheesecake is also very versatile. It works well with a wide variety of flavors ranging from lemon and chocolate to pumpkin. Cheesecake making business can be started as small scale basis.
9. Chocolate Making
The production process of chocolate may vary according to the different quality of chocolate. Also according to the availability of raw material you can decide the taste and ingredients for chocolate production. Chocolate making is one of the most profitable food processing business.
10. Coconut Milk Powder Production
Coconut milk powder has a good market potential not only in India but also in various other countries. This milk powder has an advantage of long shelf life, fewer storage places required and lower cost of bulk packing. Coconut milk powder is one of the most trending food processing business opportunity for new entrepreneurs.
11. Coconut Oil Manufacturing
Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industry applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc. The location is one of the most important factors in starting coconut oil manufacturing. It should be nearby the area where from raw materials can be procured easily. Read More…
12. Condensed Milk Production
Sweeten condensed milk has a good market opportunity both in domestic and export sector. The only main raw material is good quality milk. condensed milk production is one of the most profitable food processing business any individual can initiate with substantial capital investment.
13. Custard Powder Production
In starting custard powder production, required raw materials are cornflour, arrowroot starch, food colours and essence. Easy availability of raw materials made this business lucrative and profitable. A small scale unit can also be established with some simple machinery. Custard powder is one of the popular food considered as a dessert.
14. Dalia Production
The increasing demand for nutritional and ready to eat food has increased the market potential of dalia. Dalia manufacturing business can be initiated as small scale basis with simple machinery. The production process is simple. Dalia production does not imply major licensing issues.
15. Dal Milling
Dal milling is actually processing of different pulses. According to the availability of raw material, you can select different various products. Commonly two types of conventional processing methods are used. Such as wet milling and dry milling. Dal milling is capital intensive and energy sapping in nature.
16. Energy Drink Production
Energy drink is a very popular option, for nowadays to relief from stress. The energy drink production is one of the most profitable and trending food processing business. Initiating an energy drink manufacturing business is cost intensive and requires a strong product promotion strategy.
17. Flour Production
Flour is produced by milling food grains. different varieties types of flour are used to prepare different foods. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour etc. The production process is simple. This business can be initiated as small scale basis with simple machinery. Read More…
18. French Fry Making
Good quality potatoes are generally used to make french fry. French fries are becoming very popular in Indian market. Apart from a domestic demand, the product has an export opportunity also. French fry making business can be initiated as small scale basis. Need to pay attention to packaging.
19. Fruit Bar Making
Mango, pineapple fruit bars are very popular. The unit should be initiated according to the availability of raw materials. Fruit bar making process is simple. By installing simple machinery small scale unit can be initiated as a home based also. Read More…
20. Fruit Juice production
Fruit juice is one of the ready to serve item. Another popular product is squash. These are very popular throughout the year, especially in summer. Fruit juice production business can be initiated as small scale basis. The product should be selected according to the availability of raw materials. Read More…
21. Ginger Garlic Paste Processing
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicine preparations. As instant mixes and spices are becoming more popular the demand for ginger garlic paste is also increasing. The production process is simple and the product has an immense market opportunity for export also. Read More…
22. Ginger Oil Production
The main application of ginger oil is confectionery beverages and baked products. India is the largest producer of ginger. Ginger oil production is one of the most profitable food processing business that can be started as small scale basis also.
23. Grape Wine Making
Grape wine making is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy. Read More…
24. Groundnut Oil Processing
Groundnut oil processing is one of the most profitable food processing business considering the required capital investment.The oil that is obtained from groundnuts / peanuts is very healthy and suitable for best human consumption. The manufacturing unit can be established as small scale basis. Read More…
25. Hing Making | Compound Asafoetida
Hing is used in India in culinary preparations for flavouring purpose. Pure asafoetida is generally not preferred for use in view of the high concentration. It is, therefore, sold in compounded form. Hing has a good market potential not only in domestic market but also in the export market. The main raw material is generally imported from Afghanistan or Iran. Read More…
26. Honey Processing
Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit by two ways. Either by the manual system or by electrically driven. The production process is simple and can be initiated as small scale and home based basis.
27. Ice Block Manufacturing
Ice block making business can be established as small scale basis. The ice blocks are essential for transportation and preservation of fishes. According to the local demand for ice blocks, the unit should be established as far as production output is concerned.
28. Ice Cream Cone Making
Ice cream cone making business can be initiated as a home based and small scale basis. The ice cream cones of many varieties flavours and in different forms are served round the year and demand is going up year after year. The most popular mode of serving is in cones as it is neat & clean, easy to store and there is no disposal need. With the continuous increase in the sale of ice-creams, demand for cones is increasing. Read More…
29. Ice Cream Making
Ice cream making business can be initiated as small scale basis with low startup capital investment. This is a wonderful small business idea that any individual can explore to make handsome money out of it. Ice cream is a frozen blend of a sweetened cream mixture and air, with added flavorings. A wide variety of ingredients are allowed in ice cream, but the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air should be maintained in ice cream making. Read More…
30. Iodized Salt Production
Iodized salt is a white crystalline powder salt fortified by Iodine. Iodine deficiency disorder can be easily avoided by consuming sufficient amount of salt fortified with Iodine. Iodized Salt consumption is directly related to population growth. Iodized salt production can be started as small scale basis also. Read More…
31. Jam Jelly Making
Jam jelly-making business is profitable. Additionally, you can initiate the business as a small scale with low capital investment. With proper planning and strategy, you can start the jam jelly-making business as home based also. Different allowances and grants from Government sector are also available.
Most kinds of fruit and some vegetables are used to make a wide variety of jam and jelly. Fruit jam contains rich fruit pulp and available in mango, apple, mixed fruit, pineapple and orange flavors. Jelly is a clear and bright mixture. You can produce jelly from fruit juice, sugar and sometimes pectin. People prefers jelly and jam as a bread spread and as a filling for some cakes and cookies. Read More…
32. Lemonade Making
Lemonade is actually a lemon flavored very popular soft drink. The principal raw materials required are sugar, citric acid, flavor & essence, food color, and sodium benzoate. Lemonade making is capital and management intensive business. Read More…
33. Meat Processing
Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or another physically and/or chemically treated. Meat processing is capital intensive. You must have proper distribution and marketing strategy before initiating this business.
Microbreweries produce a small amount of craft beer than large-scale corporate breweries. Additionally, they are independently owned. The market of microbreweries is immensely developing. Additionally, you will need to apply for different licenses and permission in initiating microbrewery business. Read More…
35. Milk Processing
Apart from milk, value-added milk products fetch more profits to the manufacturers. In addition, value-added dairy products have larger shelf life than raw milk. Read More…
36. Noodles Making
Generally, two types of noodles are popular. One is normal and other is instant. The process is quite simple. And you will not require hiring much skilled labor. The boom in the food service sector including fast food chain has widened the demand potential for Noodles. Read More…
37. Packaged Drinking Water Production
Increasing awareness of health and scarcity of getting pure drinking water have made an immense market demand for packaged drinking water. Nowadays people prefer to have packaged drinking water not only at outside but also in the house. In initiating packaged drinking water business, it is important to check the PH balance of water where you want to establish the unit. Read More…
38. Palm Oil Processing
The main raw material is palm fruits. Palm oil is a popular edible oil. Apart from that, there is a demand for commercial industry use. Palm oil processing is profitable and capital intensive. All type palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.
39. Papad Making
Any individual can initiate papad making business as small scale and home based basis also. This is one of the most profitable food processing business considering the low startup capital investment. Papad is a thin wafer-like product and served as fried or roasted. Read More…
40. Pasta Making
Due to the artificial drying process, you can produce pasta at the industrial level. Therefore you can establish a distribution channel also. The drying process is the final main step of industrial pasta production, and it is fundamental to greatly prolong the shelf life of the product. Manufacturing process is not complex and the demand is increasing.
41. Pickles Making
Pickles are the most popular item. Besides domestic market pickles have an export potential also. You can produce various different quality pickles according to the demand of the local market. Additionally, you must select the specific pickle according to the availability of the raw materials. The production process is simple. And it requires simple machinery and equipment. Read More…
42. Pineapple Processing
Pineapple is a very important fruit crop in India. Fresh and processed both have huge potential in the domestic and international market. Major pineapple producing countries are Philipines, Thailand, Indonesia, Chile, Brazil, India and Nigeria. Read More…
43. Popcorn Manufacturing
Popcorn is a popular snack item among the every age group of the population. Also, this is a healthy snacks item. Any individual can start popcorn manufacturing business with small capital investment. Read More…
44. Potato Chips Making
Sliced, thin and fried potato chips are very popular ready-to-eat snacks item. Potato is one of the easily available vegetables also. And potato chips making process is simple. And it involves simple machinery. Additionally, you can start potato chips making business as small scale basis also. With the ongoing growth of the population and rising urbanization, particularly among young people, packaged food such as packaged potato chips have very bright growth prospects.
45. Potato Powder Making
Potato powder is increasingly being used in a variety of food preparations like snack foods, soups, curries and other dishes as a thickening agent. However, potato powder manufacturing is capital intensive. You will need to obtain FPO and Pollution Control Board permission before commencing the business.
46. Rice Bran Oil Production
The Commerce Ministry recently allowed bulk exports of rice bran oil and removed quantitative restrictions on outbound shipments of organic edible oils. Rice bran oil is popular as a premium edible oil with limited consumption in India. Rice bran oil production is capital intensive. And you must initiate an export-oriented unit to get much better profitability.
47. Rice Mill
India is the second largest producer of paddy in the world. Rice being the staple food of majority population. The mini rice mill consists of a paddy cleaner, sheller, separator and a polisher. Mini rice mill is one of the most profitable food processing business. Read More…
48. Soya chunks Processing
Any individual can initiate soya chunks processing unit as small scale basis. The major raw materials are soybean meal and peanut meal. The soya chunks production process involves milling, mixing, extruding and cutting. This is one of the most profitable food processing business one can start with moderate capital investment.
49. Soy Sauce Production
The major raw materials, that needed for soy sauce production are soybeans, wheat, and salt. However, there are different types of manufacturing processes are available to produce different types of soy sauce. In addition, you can start soy sauce production as small scale basis also.
50. Spice Powder Making
Spice grinding and packaging is one of the most profitable food processing businesses in India. Additionally, you can initiate this business as small and medium scale basis. In addition, spice is an essential item and is considered as a tastemaker. Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala etc. Read More…
51. Sugar Candy Manufacturing
Generally, sugar candies are hard boiled sugar confectionery. There are so many popular flavours for sugar candy like orange, pineapple, mango, mint, strawberry etc. Sugar candy manufacturing is one of the most popular food processing business ideas.
52. Sunflower Oil Processing
For sunflower oil processing the main raw material is sunflower seed. Refined sunflower oil goes through the long way of purification which consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization and nitriding. Sunflower oil processing capital intensive and profitable food processing business.
53. Tomato Processing
Tomato is a widely available item. And processed tomato products are also very popular. Most popular products are tomato sauce, puree, juice, ketchup etc. In initiating tomato processing, you can also produce tomato pulp for other small scale industries. The production process is not complex. In addition, you can start tomato processing with simple machinery and equipment. Read More…
54. Tutti Frutti Making
Tutti frutti is a concentrated processed food product. You can produce this item from raw papaya with attractive colour, sugar, and preservative. Food processing industries like cake, bakery, confectioneries are the major consumers of tutti frutti. The product has also a very good retail opportunity.
55. Vinegar Manufacturing
Vinegar is a very popular and good preservative item. In addition, it contains 5% acetic acid. Compliances under the FPO and PFA Act are mandatory for vinegar manufacturing. Commercial scale vinegar manufacturing requires sound technical knowledge.
Government Bodies Related To Food Processing Business Opportunities
- Ministry of Food Processing Industries (MOFPI)
- Coffee Board of India
- Directorate of Cashew & Cocoa Development (DCCD)
- National Research Development Centre (NRDC)
- National Bank for Agriculture and Rural Development (NABARD)
- Coconut Development Board (CDB)
- Spices Board
- National Centre for Trade Information (NCTI)
- Department of Agriculture & Cooperation
- National Oilseeds and Vegetable Oils Development (NOVOD) Board
- Department of Animal Husbandry, Dairying & Fisheries (DAHD)
- National Fisheries Development Board (NFDB)
- The Orissa State Cooperative Milk Producers’ Federation Limited (OMFED)
- National Dairy Development Board (NDDB)
- National Agriculture Cooperative Marketing Federation of India (NAFED)
- Commission of Agricultural Costs and Prices
- National Horticulture Board (NHB)