The food ingredients industry in India, supported by the nation's rich and diverse culinary heritage, has demonstrated consistent growth and expansion over recent years. The sector's growth is propelled by evolving consumer habits, increasing urbanisation, and rising demand for ready-to-use and functional food products. Present market trends indicate strong consumer interest in nutritious, protein-rich products, clear ingredient declarations, environmentally responsible sourcing practices, and plant-based alternatives. We conducted an interview with Mr Ayush Agarwal, Director, Calpro Specialities Pvt Ltd, a prominent Indian manufacturer and distributor of specialised food ingredients, to understand the current developments in this vibrant market that offers extensive opportunities and continues to innovate. Having spent more than 20 years in the sector, Mr Agarwal has played a crucial role in transforming Calpro from a specialised distributor into a comprehensive ingredients organisation.
What is the size and growth potential of the Indian food ingredients industry? What segments are emerging, and what trends are shaping the market?
The Indian food ingredients industry is valued at approximately ₹55,000–60,000 crore and is growing at a robust CAGR of 7-7.5%. This growth is fuelled by evolving consumer preferences, rapid urbanisation, and rising demand for convenience and functional foods. Key emerging segments include proteins (dairy and non-dairy), clean label and fortified ingredients, and functional blends for bakery, snacking, and dairy.
Trends shaping the industry include a shift towards healthier, protein-rich, and low-sugar formulations, a preference for clean, minimal-label ingredients, growing interest in sustainable and locally sourced inputs, increasing adoption of plant-based and dairy-alternative solutions, and regional taste adaptation in global food formats.
How is the industry addressing concerns around purity and quality in processed foods?
With rising consumer awareness around food safety, the industry is proactively aligning with FSSAI regulations and global certifications such as FSSC 22000, HACCP, and SEDEX to ensure transparency and trust. Companies in India adopted global standards in quality and now offer full traceability of raw materials, third-party audits, and stringent internal lab testing, along with rigorous FG testing to ensure product consistency. These steps build trust, especially in an environment where ingredient quality is directly linked to public health.
What are the main challenges faced by the Indian food ingredients industry, and how are companies managing affordability amidst price volatility?
The key challenges include heavy import dependence for specialty ingredients, volatile global pricing of commodities like dairy, cocoa, and others, infrastructure gaps in the cold chain and warehousing, and regulatory complexities and lack of harmonised standards. To manage rising costs and affordability, manufacturers like Calpro are offering localised and blended alternatives, optimising formulations to reduce dosages while maintaining functionality, working closely with customers to strike the right price–performance balance, and exploring alternative cheaper ingredients with similar performances.
How is India placed in terms of innovation and access to global technologies? What role does R&D play in the industry?
India is rapidly improving its capabilities in core processing areas such as spray drying, processing, and fermentation. However, access to high-end technology, economies of scale, and restricted connected infrastructure limits the pace of innovation. Despite this, several Indian companies have been deploying R&D to develop in-house capabilities to successfully deliver superior product characteristics and nutrition to Indian consumers.
What impact did the Covid-19 pandemic have on consumer food habits, and how did it affect the ingredient industry?
The pandemic led to a decisive shift in consumer preferences, with higher demand for health-focused, including protein and immunity-boosting foods, increased label awareness and ingredient scrutiny, and a preference for hygienic, packaged foods over loose/unlabelled alternatives. This transformation expanded the market for functional and clean label ingredients. For companies like ours, it meant realigning our portfolio to include more protein-rich, fortified, and transparent ingredient solutions.
Do Indian food ingredients face greater scrutiny globally? How are Indian manufacturers positioned in exports?
Historically, Indian ingredients faced extra scrutiny in global markets. However, Indian manufacturers are rapidly gaining ground by meeting international documentation and compliance standards like certification (FSSC 22000, BRC, GMP, SEDEX, etc.), batch-level traceability and documentation, and technical dossiers and third-party tests for each export shipment. Key export destinations include the Middle East, Africa, and Southeast Asia, where Indian-made functional ingredients offer a strong value proposition. Growth is expected to continue as Indian companies offer scalable and cost-effective alternatives.
Where do you see more growth potential—in domestic consumption or in exports?
In the short to medium term, domestic demand will drive growth, particularly from the rise of regional and Tier 2/3 city food companies, evolving snacking and dairy-based beverage categories, and demand for clean label and affordable functional ingredients. Over the longer term, exports will gain momentum, especially in price-sensitive international markets looking for high-quality Indian alternatives. Both markets are growing, and our strategy is to serve both with a focused, tailored approach.
What is the scale of your operations and your company’s key areas of focus?
Calpro Specialities is among India’s leading food ingredient manufacturers and solution providers. Our dairy unit in Kosi Kalan (UP) processes 4 lakh litres each of milk and whey daily, with five dryers producing a wide range of dairy and non-dairy ingredients. We focus on providing innovative solutions to bakery premix companies, nutrition companies, and protein supplement brands. This is enabled through our Gurgaon application lab and collaborations with international partners to deliver unique solutions to our customers.
Can you take us through the range of your products?
Our portfolio includes dairy-based ingredients such as milk powders, butter, AMF, lactose, and proteins. The non-dairy Bluebox range includes fat-filled milk powder (FFMP), cheese powders, integrated emulsifier systems, non-dairy creamers, and fat powders. Our distribution range includes cocoa powders, whey proteins, pectins, soya proteins, and more. We cater to over 100 applications across food segments such as ice cream, biscuits, sauces, and beverages.
What are Calpro’s future plans in terms of products and expansion?
We are expanding in three areas: scaling manufacturing capabilities, especially in dairy and functional spray-dried systems; developing strong technical capabilities to support customer innovations through unique solutions; and strengthening our export presence with tailored, cost-effective solutions for the Middle East and South Asia. We are also investing in digital platforms for customer support, application trials, and technical training, aiming to become the most trusted partner for food manufacturers.