INDIAN ECONOMY OVERVIEW
Indian economy demonstrated strong resilience during FY 2025-26, supported by st domestic consumption, increased infrastructure investment, improving rural and and continued growth in the services and manufacturing sectors. According to Ministry of Statistics and Programme Implementation, Indias real GDP is estimated ave grown by 7.7% during FY 2025-26, while nominal GDP recorded growth of d. Private Final Consumption Expenditure, a key indicator of household demand, t by approximately 7.7%, reflecting healthy consumer spending across rural and n markets. (MoSPI )
erating inflation, improved agricultural activity, favourable monsoon conditions, srnment capital expenditure and monetary easing contributed to the overall omic momentum. Rural consumption remained particularly encouraging, >orted by improving farm income and stable demand for essential household ucts. The Reserve Bank of India also highlighted that private consumption inued to be the principal driver of domestic economic activity during the year. (RBI jal Report)
;e economic conditions remained favourable for the FMCG and packaged food stry, particularly businesses operating in essential categories such as wheat flour, es, rice, spices, edible oils and other daily-consumption food products. Rising usable income, urbanisation, greater health awareness, expansion of organised l and increasing digital adoption are gradually shifting consumers from ganised products towards branded, hygienically processed and conveniently aged food products.
IThe Indian food-processing market was valued at approximately ^33.05 trillion in FY 2024-25 and is expected to maintain strong long-term growth, supported by higher value addition, technology adoption, supply-chain modernisation and increasing domestic and export demand. (IBEF Food Processing Industry )
For HOAC Foods India Limited, the expanding consumption of branded staples, growing preference for freshly processed and quality-assured products, development of modern distribution channels and penetration into Tier-II and Tier-III markets offer significant growth opportunities. The Companys presence across retail outlets, franchise operations, B2B distribution, e-commerce and exports positions it well to participate in the continuing formalisation and expansion of Indias food and FMCG market.
At the same time, fluctuations in agricultural commodity prices, packaging and logistics costs, changing weather conditions and intense competition may continue to influence operating margins. Nevertheless, the essential nature of the Companys product portfolio, widening consumer base and diversified sales channels provide a positive foundation for sustainable long-term growth.
The Fast-Moving Consumer Goods (FMCG) sector is one of the Largest and most important segments of the Indian economy. It includes essential and frequently purchased products such as packaged foods, flour, rice, pulses, spices, edible oils, beverages, personal care and household products. The sector continues to benefit from Indias large consumer base, improving purchasing power and the growing transition from unorganised products to branded and hygienicaLLy packaged alternatives.
The key factors supporting the growth of the sector include:
• Rising disposable income: Improving household incomes are supporting higher consumption of branded, premium and value-added food products.
• Large and young population: Indias young and increasingly brandconscious population is more willing to explore new products, healthier alternatives and convenient purchasing channels.
• Growing rural demand: Better infrastructure, rising rural incomes and deeper distribution networks are creating significant opportunities beyond major metropolitan markets.
• Health and quality awareness: Consumers are increasingly seeking products that offer purity, nutrition, freshness, food safety and transparent packaging.
• Expansion of organised retail: Supermarkets, franchise outlets, modern trade and B2B distribution are improving the availability of branded FMCG products across Tier-II and Tier-III cities.
• Growth of e-commerce: Online marketplaces, direct-to-consumer platforms and quick-commerce services are enabling FMCG companies to reach customers faster and across wider geographical areas.
• Government support: Initiatives promoting food processing, domestic manufacturing, agricultural infrastructure, digitalisation and supply- chain development continue to support the sector.Indias food-processing market was valued at approximately ^33.05 trillion in FY 2024-25 and is expected to maintain healthy long-term growth. Demand for essential categories such as flour, spices, pulses, rice, edible oils and other packaged food products remains relatively stable due to their recurring consumption.
Industry Challenges
Despite favourable growth prospects, the FMCG sector remains exposed to fluctuations in the prices of agricultural commodities, packaging materials, fuel and transportation. Increasing competition, changing consumer preferences, regulatory requirements and supply-chain disruptions may also affect business performance.
Rising input costs can place pressure on operating margins and may require companies to undertake price revisions, improve procurement efficiency or optimise product packaging. Significant price increases may also influence purchasing decisions among price-sensitive consumers.
Nevertheless, companies with strong brands, diversified product portfolios, efficient manufacturing, reliable sourcing, digital capabilities and widespread distribution networks are expected to benefit from the continuing formalisation and expansion of Indias FMCG and packaged-food industry.
Sources: India Brand Equity Foundation - FMCG Industry, India Brand Equity Foundation - Food Processing Industry
Urban and semi-urban markets play a significant role in the growth of Indias FMCG and packaged-food industry. Rising disposable incomes, busy lifestyles, increasing health awareness and demand for convenience are encouraging consumers to shift from loose and unorganised food products towards branded, hygienically processed and properly packaged alternatives.
This shift is particularly favourable for essential categories such as wheat flour, multigrain flour, rice, pulses, spices, edible oils, besan, dry fruits and other everyday food products. Consumers increasingly consider freshness, purity, nutritional value, packaging, product availability and delivery convenience while making purchase decisions.
Organised retail stores, franchise outlets, supermarkets, B2B distribution, e-commerce and quick-delivery platforms have made FMCG products more accessible across metropolitan and Tier-II cities. Digital payments, online ordering and doorstep delivery are also changing the way consumers purchase daily household essentials.
For HOAC Foods India Limited, this evolving market presents significant opportunities. The Companys diversified product portfolio, retail and franchise network, B2B distribution, direct-to-consumer platform and expanding export presence position it to serve the growing demand for branded and quality-focused food products.
However, the industry remains competitive and is exposed to fluctuations in agricultural commodity prices, packaging and logistics costs, changing consumer preferences and pricing pressure. Companies that maintain product quality, efficient sourcing, strong distribution and consumer trust are expected to remain well-positioned for sustainable growth. i
Indias flour and spices market forms an important part of the countrys FMCG and food-processing industry. Products such as wheat flour, multigrain flour, millet flour, besan and spices are essential household commodities with regular and recurring demand. The market is supported by Indias large population, diverse food habits and increasing preference for branded, hygienically processed and conveniently packaged food products.
Indias food-processing market was valued at approximately ^33.05 trillion in FY 2024-25 and is expected to reach approximately ^65.84 trillion by FY 2033-34. Growth is being supported by rising household incomes, urbanisation, organised retail, improved supply chains, digital commerce and increasing consumer awareness regarding food quality and safety.
Indian Flour Market
India is one of the worlds largest producers and consumers of wheat. Wheat production was estimated at approximately 117.94 million tonnes during 2024-25, providing a substantial domestic raw-material base for the flour-milling industry.
The Indian flour market includes whole-wheat atta, MP Sharbati atta, multigrain atta, millet-based flour, besan and other speciality flours. The market has traditionally been fragmented, with a significant presence of local flour mills and unorganised suppliers. However, consumers are increasingly shifting towards branded flour products that offer consistent quality, better cleaning, hygienic processing, nutritional value and convenient packaging.
The major growth drivers of the flour market include:
• Increasing preference for branded and packaged flour
• Rising awareness regarding freshness, fibre and nutrition
• Growing demand for multigrain and millet-based products
• Expansion of supermarkets, franchise outlets and modern retail
• Growth of e-commerce and direct-to-consumer platforms
• Demand for regional wheat varieties and speciality flours
• Increasing availability of Indian flour products in overseas markets
Indian Spices Market
India is one of the worlds leading producers, consumers and exporters of spices. The domestic market includes whole spices, powdered spices and blended seasonings used regularly across Indian households, restaurants and institutional kitchens.
During FY 2025-26, India exported approximately 17.34 lakh tonnes of spices and spice products, valued at around ^39,140 crore. The size of these exports demonstrates the global acceptance and commercial importance of Indian spices.
Within the domestic market, consumers are gradually moving from loose spices towards branded and packaged alternatives. Concerns regarding purity, adulteration, hygiene and consistency are encouraging demand for carefully sourced and properly processed spice products.
The principal growth drivers of the spices market include:
• Increasing demand for pure and hygienically processed spices
• Wider availability through e-commerce and modern distribution networks Opportunities for HOAC Foods India Limited
The continuing transition from loose and unorganised products to branded packaged foods provides significant opportunities for HOAC Foods India^^BI Limited. The Companys portfolio of wheat flour, multigrain and speciality flours, besan, whole spices and powdered spices addresses products consumed regularly by Indian households.
Its presence across retail outlets, franchise stores, B2B distribution, e-commerce, direct-to-consumer channels and exports provides multiple avenues for market expansion. The Companys emphasis on careful sourcing, grain cleaning, hygienic processing, freshness and product quality supports its positioning within the organised flour and spices market.
Expansion into additional metropolitan and Tier-II cities, strengthening distributor and super-stockist networks, increasing manufacturing capacity and introducing value-added products can further improve the Companys market reach.
Challenges and Outlook
The flour and spices industry remains exposed to fluctuations in the prices and availability of wheat, gram, millets and spices. Weather conditions, crop production, procurement costs, packaging expenses, transportation costs and regulatory compliance may influence operating margins.
Competition from national brands, regional manufacturers and local unorganised suppliers also creates pricing pressure. Maintaining consistency in taste, purity, freshness and quality across products and markets remains essential.
Despite these challenges, the long-term outlook remains positive. Essential consumption, increasing health awareness, formalisation of the food market and expansion of organised and digital retail are expected to support continued demand for branded flour and spices.
Sources:
| Particulars | Indian Packaged Atta Market | Indian Spices Market | Indian FMCG Market |
| Base Year | 2025 | 2025 | 2025 |
| Forecast Period | 2026-2034 | 2026-2034 | 2026-2034 |
| Market Size in 2025 | Rs.9,510 Crore | Rs.2,21,832 Crore | Rs.25,00,000 Crore |
| Forecast Market Size | Rs.28,640 Crore by 2034 | ^5,28,986 Crore by 2034 | Rs.61,48,720 Crore by 2030 |
| Expected CAGR | 12.64% | 10.14% | Approx. 19.7%* |
The market is being driven by growing demand for hygienically processed flour, increasing health awareness, urbanisation and the gradual shift from loose atta to branded and conveniently packaged products.
Demand for packaged spices is supported by increasing concerns regarding purity and adulteration, preference for consistent taste, growth of blended spices and wider availability through organised retail, B2B distribution and e-commerce.
Indias FMCG market continues to benefit from rising disposable incomes, changing consumer lifestyles, brand awareness, premiumisation and the expansion of organised retail, e-commerce and quick-commerce channels.
The FMCG growth rate has been calculated using the market values published by IBEF. Market estimates may vary among research agencies because of differences in category coverage and methodology.
Sources: IMARC - Packaged Atta Market IMARC - Indian Spices Market IBEF - Indian FMCG Industry
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