Inside BENEO’s new pulse plant: pioneering sustainable protein from faba beans
Although the Indian food and nutraceutical industry entered 2025 with cautious optimism, it’s ending the year having undergone one of its most decisive structural shifts in a decade. What began as a period of recovery from global volatility quickly transformed into a year of deep realignment, where collaboration, technology, nutrition science, and institutional adoption took centre stage. And it is these very shifts that now set the stage for the forces that will define 2026. Let’s explore further.
2025 marked a decisive shift in how innovation happens in the Indian food industry. Companies moved away from siloed R&D and embraced collaboration as a competitive capability. FMCG leaders partnered with ingredient specialists, dairy firms worked with biotech innovators, and processing technology players teamed up with QSRs, nutraceutical brands, and institutional caterers. These alliances accelerated formulation timelines, expanded technical depth, and enabled cross-category product development.
The investment landscape also rebounded. After two cautious years, funding returned to foodtech, ingredient science, fermented proteins, functional beverages, climate-smart agriculture, and supply-chain technologies. Investors clearly favoured science-driven, export-ready, and margin-resilient business models. The millet ecosystem, too, experienced a structural leap, moving from consumer promotion to institutional adoption, with Compass Group, Sodexo, TajSATS, and government canteens integrating millet meals at scale. This shift created stable demand and triggered investments in processing lines, shelf-life technology, and bulk procurement.
AI adoption reached a turning point, moving from pilot experiments to real deployment on factory floors for predictive maintenance, energy optimisation, quality uniformity, and demand forecasting. Parallelly, consumer expectations evolved: everyday foods are now expected to deliver everyday health benefits, fuelled by mass-market uptake of protein-fortified, gut-friendly, low-GI, and millet-based formats.
Together, these shifts don’t just define 2025, they set the launchpad for a more precise, transparent, and globally competitive 2026. And with this context in place, we are now ready to look ahead at the predictions for 2026.
Prediction 1: Nutra Will Merge Fully Into Daily Foods
In 2026, the boundary between “food” and “nutraceutical” will blur so significantly that the two will almost become indistinguishable. What was once delivered through capsules, powders, and specialized supplements will increasingly be built directly into daily diets, through staples, beverages, dairy, snacks, and even culinary ingredients. This shift is driven by two parallel forces: the rise of precision nutrition, and the growing consumer expectation that wellness should not require an extra step. As DNA-based insights, microbiome mapping, and continuous metabolic tracking become more accessible, Indian consumers will demand foods that respond to their bodies, not general assumptions.
India’s largest food companies are preparing for this shift by turning functional science into everyday convenience. Amul has been strengthening its high-protein and probiotic dairy portfolio, moving beyond basic flavoured milk into gut-health drinks, electrolyte dairy beverages, and immunity-boosting formulations for daily use. Mother Dairy is following a similar path, focusing on fermented dairy formats and micronutrient-enriched milk lines that naturally fit into breakfast and snacking routines.
On the packaged foods front, ITC is building a strong nutria-foods architecture across biscuits, noodles, beverages, and ready-to-eat meals, with fibre blends, plant proteins, and digestive-support formulations integrated into mass categories. Britannia is pushing functional reformulations in bakery and biscuits with iron, B-vitamins, and immunity-support ingredients designed for children and adult wellness needs. Tata Consumer Products is scaling functional teas, hydration drinks, and nutrient-infused staples, bringing precision-led wellness to items Indians consume every single day.
Simultaneously, India’s heritage wellness companies are modernising nutraceutical ingredients for mainstream food formats. Dabur is transitioning ayurvedic actives like ashwagandha, giloy, amla, tulsi into RTD beverages, fortified syrups, and food-based immunity enhancers. Marico is exploring functional oils, omega-rich blends, and fortified breakfast foods that deliver science-backed health benefits without complexity. These developments signal one core reality: nutra is moving into the kitchen, not the medicine shelf.
A good example of this shift is unfolding in dairy, the category historically closest to nutrition in Indian homes. As Srideep Kesavan, CEO of Heritage Foods Ltd., notes, “In 2026, food innovation will mean choosing clean nutrition over complexity. There is a clear trend towards foods being fortified with micro and macro nutrients. Heritage Foods has pioneered this with Vitamin D and B12 added to every milk packet, addressing Indian deficiencies tied to vegetarian diets. We see continuing momentum in fortifying dairy products with high protein and calcium.” His outlook reflects how India’s most mass-consumed staples are becoming the primary vehicles for everyday wellness, especially for preventive and functional nutrition.
Consumers will increasingly experience nutraceuticals through formats like high-protein chapatis, mood-support teas, sleep-support dairy beverages, metabolic-friendly snacks, women’s wellness bars, gut-health buttermilks, and fortified multi-grain products designed for glucose control or digestive balance. With microbiome tests, metabolism tracking apps, and personalised diet diagnostics becoming mainstream in urban India, companies are expected to offer more segmented SKUs, from children’s growth-focused nutrition to senior-friendly bone and cognitive health foods, plant-based immunity drinks for daily use, and formulations for working professionals focused on stress, fatigue, and energy.
It is this shift that will define how consumers engage with food: wellness without effort, nutrition without thinking, and functionality without medicine-like experiences. As Sparsh Sachar, Director & Business Head, FMCG, Nutrica (BN Group), summarises, “In 2026, food innovation will move from healthy choices to purposeful living. People will want to know where their food comes from, how it is made, and whether it truly supports their wellness and modern lifestyle. This shift will see health and fitness enthusiasts seeking products that represent a holistic approach, blending wellness, lifestyle, and fitness to support both physical and mental wellbeing. At Nutrica, these three pillars form the foundation of everything we do. Through them, we aim to make health simpler, enjoyable, and accessible, offering food that not only nourishes but also brings genuine delight and purpose to everyday living.” His sentiment captures the incoming era perfectly, where food becomes a psychological, emotional, and physical wellness tool, not just a nutritional one.
The coming year will also see collaborations between food brands, diagnostics companies, AI-driven health platforms, and ingredient suppliers. These partnerships will make it possible to integrate clinically validated ingredients, prebiotics, bioactive plant extracts, collagen, adaptogens, peptides, and fortified protein blends, into mass categories at scale.
Prediction 2: AI Will Become a Core R&D Collaborator
In 2026, artificial intelligence will graduate from pilot projects to become a routine collaborator in both R&D and factory operations across India’s food and nutraceutical sector. The immediate value, predictive quality control, demand forecasting, process optimisation and remote monitoring, is already visible in public disclosures from major Indian firms; the next step is deeper integration into formulation science, accelerated validation cycles and scenario-driven product design.
Several large Indian companies are explicitly building the digital infrastructure that makes this transition feasible. ITC has articulated a company-wide digital transformation agenda that embeds AI/ML, IoT and advanced analytics across sourcing, manufacturing and planning, a foundational move that supports more data-driven R&D and line-level optimisation. Nestlé India’s recent annual disclosures likewise describe investments in AI-enabled analytics and digital workflows that improve supply-chain visibility and manufacturing efficiency; these capabilities create a bridge from operational gains to research applications such as sensory-preservation during reformulation.
Cooperative and private dairy networks are also investing in data systems that pave the way for AI to inform product development. Case studies and industry reports document Amul’s use of IoT and analytics for procurement, waste reduction and process optimisation, capabilities that permit faster feedback loops between farm variability and R&D decisions on shelf-stable formulations. Similarly, consumer-facing food companies such as Britannia have made digital and automation investments that underpin more agile product development and targeted consumer engagement.
Global food multinationals provide concrete playbooks India can adapt. Unilever has applied digital twins and AI to speed content creation and simulate product behaviour, while Kraft Heinz and PepsiCo are using generative and predictive AI across product development, control towers and manufacturing digital twins to detect defects and optimise formulations. These examples show how AI can move from improving operations to actively shaping R&D decisions, suggesting that Indian companies will follow a similar path as their data maturity increases.
At the same time, the industrialisation of digital transformation, not just experimentation, will determine which players scale. As Sachin Salunkhe, Automation and Digital Business Development Manager, Tetra Pak India, emphasises, “Over the next 12–24 months, India’s food and beverage industry will strengthen its resolve to move from digital experimentation to digital industrialization, as the value of data-driven operations becomes undeniable. We expect to see a decisive shift from isolated pilots to enterprise-wide transformation, particularly among mid-sized producers seeking scale, efficiency, and resilience.” His view captures the critical strategic leap that will allow AI to become a dependable collaborator across R&D and operations rather than a standalone tool.
The human dimension of this transformation will be just as important as the digital one. As Ranjith Mukundan, CEO & Co-Founder of Stellapps Technologies, notes, “Food innovation will centre around trust and responsibility. Technology will quietly power this shift by helping us understand where our food comes from, how it was produced and its true nutritional value.” His perspective crystallises the next leap for AI: not automation for efficiency, but automation for precision, transparency and validated nutrition outcomes, the core of all future product pipelines.
Practically, 2026 will see companies combine institutional data (consumer panels, shelf tests), lab data (stability, bioavailability) and factory telemetry into unified models that propose formulation adjustments, predict shelf life under multiple scenarios, and suggest cost-quality trade-offs. Early returns will appear as shorter time-to-market for reformulated products, fewer pilot runs, and improved first-pass yields on new SKUs. That shift will not be frictionless: data quality, legacy equipment, and skills shortages remain constraints. But with ITC, Nestlé India, Amul and other large players already building the digital backbone, the pathway is clear: AI will become a standard co-pilot for both R&D and factory operations in 2026, accelerating innovation while lowering operational risk.
Prediction 3: Export Competitiveness Will Drive Formulation Quality
If the last decade was about building India’s nutraceutical consumption base, 2026 will be about proving India’s nutraceutical credibility to the world. The next wave of growth will not come from new domestic customers alone, but from the ability of Indian companies to build export-grade formulations that meet EU, US, and Southeast Asian regulatory and clinical expectations. Quality, traceability, and validation will become the currency of global competitiveness.
This shift is already visible in the investment patterns of major Indian ingredient and finished-product players. Companies that historically saw exports as incremental revenue are now building product pipelines with export compliance as the baseline, not a later adaptation. Ashwagandha, curcumin, probiotics, plant proteins, and botanical actives, once pushed mainly in loose global categories, are now being developed with clinical substantiation, purity specifications, and safety dossiers that match or exceed the requirements of FDA, EFSA, TGA, and Singapore HSA.
Indian nutraceutical exporters like Arjuna Natural, Sami-Sabinsa, Akay Group, OmniActive, and Natural Remedies are already aligned with global regulatory frameworks. Their strategy, standardised actives, transparent supply chains, and third-party clinical trials, has established a blueprint that other mid-sized players will follow. The fact that multiple Indian ingredient suppliers are now cited in global scientific journals and clinical registries represents a structural reputational change for India.
Food companies are entering the same race. ITC, Tata Consumer, Marico, Amul, Nestlé India and dairy cooperatives are expanding value-added portfolios with future export opportunities in mind, from functional dairy, clean-label staples and protein beverages to immunity-supportive and gut-health SKUs. Even mainstream snack and ready-to-eat players are reworking preservatives and additives to match “Global No-No Lists” used by premium retailers in Europe and the US.
The strategic reason is compelling: exports reward science and compliance. A single export-approved SKU with validated efficacy can generate higher long-term revenue than multiple domestic launches built on marketing claims alone. As a result, 2026 will see a strong jump in:
- clinical studies and ingredient substantiation
- bioavailability claims supported by human trials rather than lab simulations
- GMP + GLP + clean-label certification as a core part of brand positioning
- QR-based transparency that tracks supply chain, origin and clinical reference data
- reformulations to remove contested additives and improve stability profiles
Contract manufacturers and private-label formulators will also feel the pressure. Export-aligned brands will demand stability studies under multiple climatic zones, pharma-grade documentation, and batch-level traceability. This will favour CMOs with advanced analytical labs, tech-enabled QA/QC, and global certifications, pushing smaller facilities to either upgrade or lose scale clients.
At this inflection point, the sentiment across the value chain is clear. As Vikram Marwaha, Joint Managing Director of DRRK Foods, puts it, “In 2026, the Indian food and agri sector will solely depend on export competitiveness as the biggest factor that drives product quality and brand differentiation. Modern-day buyers want transparency and traceability from the paddy field to the plate, and that demand is reshaping the core of our operations.” His observation mirrors the shift sweeping across nutraceuticals and functional foods, where export preparedness is not a market extension, but a quality mandate.
Countries like the US, UAE, Singapore, Japan, Saudi Arabia, and Australia will remain key growth destinations, not just because of diaspora consumption, but because the global wellness market is shifting from synthetic supplements to natural, clinically proven, functional nutrition, a category where India has unique agricultural and botanical advantage.
Prediction 4 — Protein Transition 2.0
If Phase 1 of plant-based protein in India was defined by soy- and pea-based retail alternatives, Phase 2 is taking a deeper scientific and infrastructure-driven turn. The next wave of protein innovation is moving from “novelty products for niche urban buyers” toward ingredient-grade proteins manufactured through precision fermentation, pulse isolates, and millet protein concentrates, with applications across food, nutraceuticals, and institutional catering.
The clearest signs of this shift come from companies that have already built validated platforms instead of simply branding themselves as alt-meat players. String Bio and Laurus Bio stand out as two of the most mature precision-fermentation companies in the country, with industrial-scale capability to produce high-quality protein ingredients suitable for food and nutrition applications. Their work marks a major structural change: India’s protein evolution is no longer limited to consumer-facing plant-based products, it is advancing upstream into fermentation-driven B2B ingredient supply.
At the consumer product end of the ecosystem, the evolution is equally visible. Shaka Harry, Blue Tribe Foods, and GoodDot, three of the most established protein-alt brands in India, have strategically shifted focus to texture, nutrition quality, and menu-fit products to drive repeat consumption rather than experimental first-time buying. These players have been intentionally widening their product portfolios beyond novelty SKUs and working on improvements in taste, amino acid profile, satiety value, and protein density, directly responding to early category learnings. This emphasis on nutrition performance and everyday applicability signals maturity in the sector.
Meanwhile, mainstream FMCG companies are bringing protein beyond speciality aisles and into daily food formats. ITC and Tata Soulfull have already placed millet-based and protein-enhanced innovations at the center of their snacking and breakfast portfolios, showing that large-scale demand for protein in India will not be driven only by imitation meats but by familiar foods with upgraded protein density. Their continued momentum in millet and high-protein RTE/RTC formats provides a strong foundation for India’s broader protein transition.
Going forward, multiple industry signals point to where the category may head next:
- Institutions could become a major force in protein adoption due to price sensitivity and menu-scale purchasing power.
- QSRs and cloud kitchens are shortlisting protein-rich menu innovation as eating-out customers increasingly prefer high-protein SKUs.
- Hospitals and fitness-center catering programs are evaluating protein-dense meals for targeted nutrition applications.
These are not confirmed commercial roll-outs yet, but the directional movement is consistent across procurement, menus, and product R&D discussions.
At the philosophical level, the protein category is also reflecting a broader nutrition reset. As Dr Jalachari Ella, Managing Director of Ella Foods, cautions, “Although I believe protein is essential, it is currently being consumed in excess. The best amino acids come from animal sources, so we need to improve the quality of animal protein. Diets rich in fermented foods, collagen, and protein are also becoming increasingly common.” Her observation underscores the direction for 2026 and beyond: protein innovation cannot only be about more protein, it must be about the right kind, supported by science, bioavailability, and responsible processing.
In 2026, Protein Transition 2.0 won’t be defined by replacing meat, it will be defined by expanding protein access, improving ingredient science, and embedding protein into everyday eating patterns. The companies leading this shift are not the ones shouting the loudest, but the ones building the deepest scientific and manufacturing capabilities.
Prediction 5 — Health Policy Push
If 2025 was the year of accelerating product innovation, 2026 is poised to become the year of accountability. India’s food and nutraceutical industry is entering a new era driven not only by consumer demand, but by regulatory tightening around safety, transparency, scientific validation, and digital traceability.
The Food Safety and Standards Authority of India (FSSAI) has already laid the groundwork. Key measures in recent years, including clearer nutraceutical ingredient lists, health supplement regulations, standards for fortified foods, and the early rollout of Front-of-Pack Nutrition Labelling (FoPNL), have sent a strong message: wellness claims can no longer rely on marketing language alone; they must be backed by data. The industry is now preparing for compliance with clean-claims enforcement, strong evidence-based communication, validated health benefits, and full labelling transparency.
The direction of policy is also influencing R&D investments and formulation strategy. Nutra and food companies are increasingly prioritising: clinically backed ingredients with traceability of origin, standardised plant extracts, purity and dosage precision, and human-study data for premium claims.
Large organisations, including Amway India, Himalaya, Tata Consumer Products, Marico, Dabur, and ITC, have publicly emphasised the importance of science-backed claims, quality standards, and transparency in communication in recent years. These companies are aligning portfolios to be future-ready for regulatory expectations, especially in immunity, gut health, metabolic health, cognitive wellness, women’s health, and senior nutrition categories.
A new wave of compliance maturity is also emerging from nutraceutical contract manufacturers and ingredient suppliers, who are now integrating safety documentation, batch transparency reports, certificate-of-analysis digitisation, and contamination risk assessments into their commercial offerings. In other words, compliance itself is becoming a market differentiator.
Industry voices echo this turning point. As Sanjay Sharma, CEO, Coldman Logistics, notes, “The upcoming FSSAI Food & Beverage and nutraceutical standardizations, along with front-of-pack labeling and clean-claims enforcement, represent a crucial shift in India’s food regulation landscape. As compliance becomes more stringent, it will promote innovation, build consumer trust, and align India’s food industry with global best practices. Ultimately, this health policy reform will shape a more responsible and health-conscious marketplace.” His observation captures the reality that regulation is no longer a defensive requirement, it is becoming an economic driver.
Looking ahead, the industry anticipates three major shifts to shape 2026:
- Front-of-Pack Nutrition Labelling (FoPNL) will push reformulation of high-fat/sugar/salt products across snacks, beverages, bakery, and dairy.
- Clear definitions of permitted vs non-permitted health claims will pressure brands to adopt clinical evidence rather than marketing language.
- Greater scrutiny of children’s foods and nutritional beverages will lead to significant reformulation — especially in protein drinks, immunity beverages, and growing-up milks.
For brands, the regulatory curve in 2026 will not be a hurdle, it will be a filter. Companies that have invested early in safety, science, validation, and labelling discipline will move further ahead, both domestically and in export markets. For others, compliance will no longer be optional, negotiable, or slow.
Not More Products, Better Products. The Future Begins Now
Taken together, these five shifts signal not just growth, but a structural evolution of India’s food and nutraceutical economy. The industry is moving away from fragmented innovation and toward science-backed, precision-oriented, globally benchmarked value creation.
India’s next wave will not be shaped by who launches more SKUs, raises more funding, or introduces more buzzwords, but by who delivers nutrition with proof, convenience with credibility, sustainability with scalability, and technology with purpose. As Sanjay Singal, CEO of Wagh Bakri Tea Group aptly notes, “In 2026, food innovation for the tea industry will mean blending heritage with modern science. As customers become more discerning, the focus will shift towards creating experiences that not only delight the senses but also promote wellbeing. With the rapid growth of food delivery and on-the-go consumption, the focus will be on ensuring consistent quality and freshness in the offerings.” This perspective reflects the larger direction of the food ecosystem: innovation isn’t about more, it’s about better.
2026 will be the year when the future of food becomes visible, in supermarket shelves, in institutional catering, in regulatory frameworks, and even in everyday home kitchens. The companies that succeed next will be those that understand that the era of transactions is over, the era of trust has begun.
Mansi Jamsudkar Padvekar