Rising demand for protein-rich and targeted nutrition is expected to drive the market, while high import dependence creates room for domestic manufacturers
India’s plant-protein ingredients market may double to Rs 9,000 crore in five years, driven by rising demand for protein-rich and targeted nutrition, industry body Plant Based Foods Industry Association (PBFIA) said.
The market, currently estimated at around Rs 4,500 crore, is growing at about 18 per cent annually, significantly faster than the global plant-based food market, which is expanding at 7-8 per cent, PBFIA executive director Praveer Srivastava said.
Srivastava said consumer preferences were moving beyond calorie-conscious diets towards foods that address specific nutritional needs, with protein becoming an increasingly important consideration in food choices.
However, India remains heavily dependent on imports for plant-protein ingredients, with nearly 90 per cent of current requirements sourced from overseas. This dependence presents an opportunity for domestic manufacturers to build production capacity and capture a larger share of the growing market, he said.
The development of a domestic plant-protein industry could also support India’s broader sustainability goals. Srivastava said plant-based foods had a role to play in building more sustainable food systems as India works towards its target of net-zero carbon emissions by 2070.
He said greater policy support could help develop domestic capabilities, particularly given the capital-intensive nature of ingredient manufacturing. Establishing an ingredient-extraction facility with a capacity of 10-15 tonnes a day can require a minimum investment of Rs 200-250 crore, he added.
India’s strong agricultural raw-material base provides a foundation for developing a domestic supply chain, Srivastava said. Building local processing and extraction capabilities could reduce import dependence, attract investment and eventually help India emerge as a global supplier of plant-based ingredients.
The opportunity extends beyond plant proteins. Prabodh Halde, head of technical regulatory affairs at Marico and West Zone chairman of the All India Food Processors’ Association (AIFPA), said India’s food ingredients and additives market was currently valued at around Rs 85,000 crore.
Natural ingredients, including nutraceuticals, account for an estimated 30-35 per cent of the market and are growing at a double-digit rate, Halde said. The next phase of growth would require greater value addition, stronger export capabilities and closer integration between farmers, processors, research institutions and industry, he added.
Kaushik Desai, secretary general of the Health Foods and Dietary Supplements Association (HADSA), said India’s agricultural resources and expanding demand for healthier and natural products created scope for greater investment in processing and innovation.
He said India could position itself as a global hub for health ingredients by combining Ayurveda with modern science. This would require closer collaboration between industry, regulators and research institutions, supported by scientific rigour, regulatory compliance, quality, sustainability and consumer trust.
(With input from agency)
