Food sales in India is US$250 billions
India will be the third largest economy by 2040 and fifth largest consumer market by 2025.Food is the largest segment in retail. Total food sales in India are expected to be US$250 billions. With 77% food and grocery is the largest segment in retail sales. India is the world’s second largest producer of fruits and vegetables; however only two per cent of the total fruits and vegetables produced in India are processed. With increasing household incomes, the demand for fruits and vegetables for consumption both in fresh and the processed form is rising rapidly.  The gaps in the cold chain and wastage due to poor post-harvest infrastructure in the country as areas where greater investment is needed.

 

Source:Ernst&Young
The domestic food retailing market is estimated to be worth US$ 6 billion with large sections of the retail industry getting organized. Changing lifestyles, increased spending powers, disposable incomes and changing consumer tastes are soon expected to change the face of the food retail market in India. India currently has more than 900 fast food restaurants and coffee joints, and is likely to see the addition of at least 400 restaurants, fast food outlets and coffee joints.

Major Food retailers in India:
Food World, Trinethra, Apna Bazaar, Big Bazaar, Margin Free,  Subhiksha , Nilgiris, MTR, Janatha Bazars & HOPCOMS

International F&B retailers with presence in India:
Mc Donald’s, Pizzahut, Domino’s Pizza, Subway, TGIF,Ruby Tuesday, Movenpick, Cookieman,Baskin Robins, KFC, Metro AG,Nescafe

Opportunities for food processing in India
According to the 'India Food Report 2008', investments to the tune of US$ 23.5 billion are in the pipeline to be made in the food processing industry over the next three years. The opportunity for growth is huge when seen against the fact that while a mere 1.3 per cent of food is processed in India, nearly 80 per cent of food is processed in the developed world.
Joint ventures and acquisition  in Indian Food and Beverages Sector
Hershey acquiring 51 per cent stake in Godrej Beverages & Foods for US$ 54 million
Field Fresh-Bharti Group's 50:50 joint venture with Rothschild.
Indian Hotels of the Tata group acquired Amalgam Foods and the Sumeru fast food brand
Dabur, Blue Star and Voltas among others also have tie-ups.

Major developments in Indian Food Sector
Local giant Reliance is setting up rural business hubs across the country to source and process farm produce. ITC has developed its 'e-Choupal' and 'Choupal Sagar' model for agri-sourcing. Diversified conglomerate ITC Ltd has earmarked in excess of US$ 3.54 billion investment over the next few years. World's third largest pizza chain, Papa John's will open 100 outlets in different parts of the country with an investment of US$ 58.92 million. The government plans to establish 30 mega food-parks in different parts of the country through the public-private partnership (PPP) with a grant of US$ 11.78 million per park. ITC Limited plans an investment of around Rs 300 crore to develop a new, integrated food processing plant during in West Bengal .US-based private equity fund, New Vernon Private Equity Ltd (NVPEL), investing US$ 11.2 million in Kochi-based masala major, Eastern Condiments.

Indian beverages market is the third largest in the world:
India accounts for approximately 10 per cent of global beverage consumption. That makes beverage consumption in India the third-largest in the world, after the US and China. On the beverage alcohol side, beer and wine are gaining greater acceptance among young adults. Several Multinationals have entered the Indian market and realized significant growth. Being the world’s largest market for whisky, India will remain major global spirits market in the coming 3-4 years.  Milk and tea lead the non alcoholic beverage market in India. Bottled water remains at third in the Indian beverage market. The penetration levels of aerated drinks in India are quite low compared with other developing and developed markets. The market size of Indian Carbonated drinks category is Rs72billion. These categories are juice and juice-based drinks, energy and sports drinks, malted beverages, probiotic drinks and bottled water. The fastest-growing category in the beverages market which contributes to 50 per cent of the volume is juice and juice-based drinks with market size of Rs 12 billion. 
Alcoholic Beverages   Wine and Beer
The Indian wine market is expected to attain its first major milestone of crossing the one million cases mark in 2008. In the next 50 years, India's growing wine industry is likely to challenge the supremacy of traditional wine-making countries, according to a report on the state of the industry titled "The Future of Wine". The market for wine in India is growing at over 25 per cent per year. Most global wine majors have already set up shops in India.

Foreign majors in Indian Wine and Beer Market
E&J Gallo, the US wine major, has a joint venture with India's second largest spirit major Radico Khaitan to distribute the Gallo brand of wines in India. Moet Hennessy and Vuove Cliquot, French champagne and wine majors, have been doing brisk business in India for about a decade. Diageo, one of the leading wine & spirit company, has brought in its brand of wines namely Nilaya.Seagram, now renamed Pernod Ricard India, has set up a winery at Nashik to produce Nine Hills. However, domestic companies control 80 per cent of the market and are way ahead of the MNCs, producing nearly eight lac cases of wine in a year
The beer market in India is pegged around 12 million hectoliters and is expected to double in the next five years or so. While foreign beers like Carlsberg, Barons and Budweiser are already being sold in Indian outlets, Heineken, Tiger and Budweiser will soon reach the Indian market.

Beverages companies in India:
The leading players in the in the non alcoholic beverage market in India are Pepsi PepsiCo India,Coco cola, GlaxoSmithKline India,Dabur India, Yakult Danone India,Amul and mother diary.