Should I start a food business in India? Is it profitable?

The Indian government emphasises startups and has various facilities and incentives to encourage youth to have startups. The government has decided to celebrate 16th January as National Startup Day to urge its youth to follow its idea and work towards it.

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People who have a passion for food are establishing their food businesses to pursue their careers in this sector because they know that India has massive potential. The one thing that makes the food business startups the best is that it is not recession prone. It maintains its consistency throughout.

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There are many opportunities for the food business in India. One of the reasons for this is that India is one of the world's leading exporters of spices and horticulture products. Another reason is that India is the world's second-most populous country. Therefore, Indian food businesses have a great potential to grow and prosper.

India is an agricultural economy and ranks high in food grains production. Because of the high output of food grains, there is easy access to raw materials at the low cost required for the food businesses. Due to easy access to raw materials at a low cost, you can start with a low investment. Everybody knows that food is an essential thing and everybody needs it.

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Since 2018 food business in India has been growing at a CAGR of 9%. Nowadays, cafes and restaurants can be found at every corner of the urban cities, and this trend is now reaching the suburban towns of India.

The food business market is the only market where consumer demand never goes down. Some surveys have shown that the Indian food business market reached 645.8 billion USD in value in 2021. The food business industry of India is considered the sixth-largest in the world.

The food business industry of India presents vast business and investment opportunities. There is exponential growth in the food business industry in India because of various factors like rapid urbanisation, rising middle class, increasing nuclear family structure, increasing working population, rise in disposable income, western influence, improved lifestyle etc.

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Food businesses in India that are most profitable include;

1) Restaurant

The restaurant is one of the most famous food businesses in India. You can find restaurants throughout urban areas in India.

2) Catering Services

This food business is always in demand, and its market is never going down shortly.

3) Tiffin Service Business

This is an excellent low investment and good profit food business in India. It provides simple, warm, home-like food to working people and students.

4) Organic Food Shop

This business is increasingly becoming popular and is demanded mainly by celebrities and health enthusiasts.

5) Pizza shop

There is no doubt that pizza is one of the most popular foods on earth. Although Domino's and Pizza Hut are International brands, India accepts them as home brands.

6) Bakery

Cakes, pastries, cookies, biscuits, and various baked items are sold in this business. Expectations are that the bakery business in India will grow from 7.12 billion USD in 2018 to 12 billion USD in 2024.

7) Banana Wafer

Banana wafers are made from underripe banana slices that have been dipped in a syrup solution, dried in the sun or the oven, fried, and served as a snack or dessert. These can be sold both locally and internationally.

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8) Processing of Spices

Because India is the largest producer of several spices such as ginger, chilli, turmeric, and cumin, any food processing consultant will tell you that this is the most profitable food processing idea. This sector qualifies as micro and medium-scale manufacturing business idea. There are many opportunities in this sector. Many food consultants in all parts of India are now assisting entrepreneurs in setting up spice processing units.

Despite these, many other food businesses are also good in profit earning.

For more business opportunities & startup ideas, one can follow the link provided below.

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I hope that helped.

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