With an outlook of a promising consumer market, India’s hotel, restaurant and retail food sectors continued to grow in 2018. Rising disposable income, urbanization and societal change has increased consumer spending. Although Indian demographics appear favorable, with a population of 1.35 billion with 50 percent below the age of 25, the market is still difficult to navigate with high tariffs, a constantly changing regulatory environment, and geographic proximity of competing countries.
Becoming world’s most populous country in 2026
India accounts for 17.74 percent of the global population and is the world’s second most populous country. India is expected to be the world’s most populous country by 2026. With 50 percent of the population under the age of 25, India has the title of the youngest country in the world. With this status however, it is facing a disparity with the number of people entering the workforce and job creation, with the added burden of accommodating rural-to-urban population migration patterns.
India has one of the world’s fastest-growing large economies and is projected, by some estimates, to become the world’s third largest economy by 2025, behind the U.S. and China.
India maintains its rank as 77 out of 190 countries in the most recent World Bank's Doing Business Report. While there are efforts to improve the business investment climate and support Indian exports, the GOI continues to raise tariffs on imported food and agricultural commodities. Purchasing of value-added imported foods is mostly limited to higher income consumers. The consumption patterns and preferences are shaped by several factors such as demand for specialty and high-value foods such as chocolates, nuts and dried fruits, cakes, fresh fruits, confectionery items, and fruit juices. This demand peaks during the fall festival season, especially at Diwali, the Hindu festival of lights, which occurs during October or November.