India’s Food Industry in 2025: Budget Reactions, Nestlé’s Growth Plans, and the Rise of Cultivated Meat
- PYD
- Feb 28
- 2 min read
India’s food and beverage sector is at a pivotal moment, shaped by government policy, shifting consumer preferences, and emerging food technologies. The 2025 Budget prioritises cold chain infrastructure and organic farming, but industry players lament the lack of excise tax support. Meanwhile, Nestlé is doubling down on coffee expansion, and Biokraft Foods is set to launch India’s first competitively priced 3D-printed cultivated chicken. Regulatory updates on food safety and protein investments further highlight India’s evolving food landscape.
Insights & Strategic Moves
India Budget 2025: Cold Chain Investment Welcomed, but Excise Concerns Remain
The INR5.07tn (US$58bn) 2025-26 Budget funds cold chain infrastructure, logistics, and quality improvement projects, seen as a positive step for agrifood growth.
Industry concerns persist over tariff structures for food ingredients, impacting key categories like dry fruits and FMCG food production.
Nestlé’s Coffee Expansion in India
India is a priority market for Nestlé’s CHF44bn (US$48.3bn) global coffee business, led by Nescafé, Nespresso, and Starbucks.
Growth will be driven by premiumisation, expanding consumption occasions, and innovations in cold coffee formats.
Cultivated Meat Gains Momentum: Biokraft’s 3D-Printed Chicken to Launch in 2025
60% of Indian consumers are open to cultivated meat, with 46% willing to pay a premium.
Biokraft Foods plans to launch 3D-printed chicken at Rs300–350 (US$3.50–4) per kg, targeting B2B markets.
This price is comparable to premium restaurant-grade traditional chicken, increasing its market viability.
Food Safety Reforms Face Regulatory Gaps
India’s Ministry of Health and Family Welfare is updating FSSAI regulations, growing from six in 2011 to 29 today.
Industry experts call for clarity on food vs. drug regulations to enable faster nutraceutical and functional food innovation.
India’s Protein Market Boom: 90% of Investment in the Last Two Years
VC fund Rainmatter reveals that 90% of its protein-related investments were made in the past two years.
Investment spans protein supplements, functional foods, shakes, energy bars, and even protein chocolates, highlighting growing consumer demand.
Future Outlook
India’s food sector is entering a high-growth phase, with investments in cold chain logistics, premium coffee, cultivated meat, and protein-based nutrition shaping the future. Regulatory clarity and tax reforms will be crucial in sustaining this momentum.
India’s food industry in 2025 is a blend of policy-driven infrastructure growth, multinational investment, and cutting-edge food tech innovation, positioning the country as a key player in the global food economy.
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