Processed food exports climb 16 per cent as US remains India’s biggest overseas market

New Delhi: India’s processed food exports are cooking up fresh momentum, with ready-to-eat meals, instant coffee and frozen potato products finding growing acceptance in international markets. According to an analysis by The Economic Times, outbound shipments of processed food products rose sharply in 2025-26, supported by rising demand across developed and emerging markets.

Exports of ready-to-eat and cooked food products increased 16 per cent year-on-year to $2.4 billion in 2025-26 from $2.1 billion in the previous financial year. The analysis covered 11 processed food categories, including pasta, sweet biscuits, pastries, papad, coffee and tea.

The largest segment within the basket, food preparations not elsewhere specified, recorded exports of $794 million, up 13.3 per cent from $700.6 million a year earlier. The United States remained India’s biggest export destination in this category, importing products worth $204.7 million during the year compared with $191.2 million in 2024-25.

The United Arab Emirates retained the second position with imports worth $78.9 million, while exports to the United Kingdom rose 21.8 per cent to $59.5 million, reflecting stronger demand beyond traditional diaspora markets.

Instant coffee emerged as another standout performer. Exports of flavoured and unflavoured varieties climbed 20.6 per cent to $630.5 million in 2025-26 from $523 million in the previous fiscal. Unflavoured coffee led the growth, with shipments to Russia surging to $132.2 million from $74.8 million. Other major destinations included Poland at $41.2 million, the United States at $37.3 million and Türkiye at $35.4 million.

The flavoured coffee segment also expanded its global footprint. El Salvador emerged as a new export destination with purchases worth $9.5 million during the year, while exports to Myanmar increased to $3.2 million.

Prepared and preserved frozen potato products also posted robust growth. Exports jumped 34.8 per cent to $289.4 million in 2025-26 from $214.6 million in the previous year, driven by higher demand across Asian and Gulf markets.

The report noted that the Rs 10,900 crore Production Linked Incentive scheme for the food processing sector has supported export growth by encouraging investments in value-added food manufacturing. Ready-to-eat and cooked food is one of the four focus segments under the scheme and has attracted investments of nearly Rs 4,100 crore over the past five years.

With demand broadening across mainstream retail, hospitality and food service channels in overseas markets, India’s processed food industry is steadily strengthening its presence on global shelves, aided by product diversification and expanding market reach.