What’s Powering ITC’s Foods Division Growth in 2025? | Market Position, Financials & Outlook

ITC’s Foods Division has rapidly evolved into a core growth engine within the FMCG space, leveraging strategic acquisitions, product innovations, and premiumisation to capture consumer share. This article unpacks the business model, market drivers, and digital strategies propelling its impressive expansion trajectory.

Table of Contents

1. Introduction: ITC’s Foods Business Transformation
2. ITC Foods: Historical Growth and Market Position
3. Major Growth Drivers for ITC’s Foods Division
4. Strategic Acquisitions and Inorganic Growth Moves
5. Focus on Premiumisation and Shifting Consumer Trends
6. Product Portfolio Expansion and New Product Innovations
7. ITC’s Supply Chain and Distribution Network Strength
8. Digital Transformation Through ‘ITC Next’ & ‘Mission DigiArc’
9. Strength of Agri Business Backward Integration
10. Financial Performance Highlights and Future Outlook
11. Conclusion: Why ITC’s Foods Division is Poised for Leadership
12. FAQs

Introduction: ITC’s Foods Business Transformation

ITC Limited, once primarily known for its cigarettes business, has strategically repositioned itself as a multi-business conglomerate. Its Foods Division, part of its FMCG portfolio, has risen to become one of India’s fastest-growing packaged food companies. Through relentless innovation, acquisitions, and consumer-centric strategies, ITC is redefining its place in Indian kitchens.

Wrap-Up: The Foods Division is now a strategic growth pillar for ITC, perfectly aligned with its 'ITC Next' transformation agenda.

ITC Foods: Historical Growth and Market Position

ITC entered packaged foods around 17 years ago to reduce its dependence on tobacco. It has since outpaced major incumbents to become India’s second-largest listed packaged foods player by sales.

Key Numbers:

• ₹17,194.5 crore in FY24 consolidated sales
• Surpassed Britannia, trailing only Nestlé
• 13% CAGR over the last decade in foods business

Wrap-Up: ITC’s consistent focus on food innovation and strategic market positioning has made it a formidable force in India's packaged foods market.

Major Growth Drivers for ITC’s Foods Division

The division’s growth is fuelled by a multi-dimensional strategy: inorganic acquisitions, premiumisation, innovation, a powerful supply chain, digital enablement, and agri-linkages. This integrated approach helps ITC address shifting consumer trends while maintaining operational resilience.

Wrap-Up: An agile, consumer-first, tech-enabled strategy anchors ITC Foods' rapid market share gains.

Strategic Acquisitions and Inorganic Growth Moves

Strategic acquisitions have become a core pillar of ITC’s Foods Division growth strategy. These value-accretive deals have enabled swift entry into premium, health-focused, and convenience food segments. Notable acquisitions include Yoga Bar and 24 Mantra Organic in the health and organic space, and Ample Foods for strengthening its frozen foods portfolio. This inorganic growth complements ITC’s organic product innovation pipeline, enhancing market presence and consumer reach.

Key Deals:

• Yoga Bar & 24 Mantra Organic (Health & Organic segment)
• Ample Foods (Prasuma & Meatigo for frozen foods)

Wrap-Up: Targeted acquisitions have given ITC Foods speed and scale in emerging, premium food categories.

Focus on Premiumisation and Shifting Consumer Trends

Focus on premiumisation is central to ITC Foods’ strategy as consumer preferences shift towards healthier, indulgent, and convenient options. With 30% of its portfolio now in the premium segment, the company is capitalising on this fast-growing category.

Its health-focused offerings, led by millet-based products under brands like Aashirvaad and Bingo!, are expanding at a remarkable pace 400 times faster than other categories. This approach ensures ITC stays ahead of evolving market demands and lifestyle trends.
 

Highlights:

• 30% of ITC’s food portfolio now premium products
• Health segment growing 400 times faster than others
• Launch of millet-based products under brands like Aashirvaad and Bingo!

Wrap-Up: Premiumisation and health-focused innovation are central to ITC’s foods strategy, positioning it for sustained growth.

Product Portfolio Expansion and New Product Innovations

ITC’s Foods Division thrives on relentless product innovation and portfolio expansion, backed by deep consumer insights and culinary expertise from its Hotels business. In the past three years alone, the company has launched 300 new FMCG products, with over 100 fresh launches planned annually. A significant majority of these introductions are in the packaged foods segment, reinforcing ITC’s position as a dynamic, consumer-focused brand in India’s evolving food market.

Numbers to Note:

• 300 FMCG product launches in 3 years
• 100+ new products planned annually
• Majority of new launches in packaged foods

Wrap-Up: A diverse, constantly refreshed product portfolio gives ITC a competitive edge in an evolving consumer market.

ITC’s Supply Chain and Distribution Network Strength

ITC’s extensive and digitally-enabled supply chain is a key driver of its Foods Division’s market success. With a reach spanning 7 million retail outlets including 2.6 million serviced directly the company ensures product freshness and market agility. Its 11 integrated consumer goods manufacturing and logistics hubs enhance distribution efficiency, while quick commerce platforms further boost accessibility and consumer engagement.

Key Facts:

• 7 million retail outlets reach, with 2.6 million direct
• 11 integrated manufacturing & logistics hubs
• Strong D2C & quick commerce presence via ITC e-Store and other platforms

Wrap-Up: A digitally-enabled, expansive supply chain ensures ITC’s product availability and operational agility.

Digital Transformation Through ‘ITC Next’ & ‘Mission DigiArc’

Digital transformation under ‘ITC Next’ and ‘Mission DigiArc’ is redefining how ITC’s Foods Division operates and connects with consumers. By integrating AI, ML, and advanced analytics, the company enhances efficiency, demand forecasting, and personalised marketing. The ‘6th Sense’ Marketing Command Centre enables real-time content and commerce decisions, while D2C models like cloud kitchens are unlocking new digital-first consumption experiences.

Key Initiatives:

• AI, ML, advanced analytics adoption
• ‘6th Sense’ Marketing Command Centre
• D2C models like cloud kitchens

Wrap-Up: Digital transformation via ‘Mission DigiArc’ enhances ITC’s decision-making, brand engagement, and customer responsiveness.

Strength of Agri Business Backward Integration

ITC’s strong backward linkages with its Agri Business give its Foods Division a distinct competitive advantage. By sourcing over 3 million tonnes of agri-produce annually, including being India’s largest private wheat procurer, ITC ensures quality, consistency, and price efficiency. Its ITCMAARS platform further strengthens this value chain by digitally empowering farmers, enhancing traceability, and promoting sustainable sourcing practices.

Highlights:

• Sourcing from 3 million tonnes of agri-produce
• India's largest private wheat procurer
• ITCMAARS platform digitises farmer services and traceability

Wrap-Up: ITC’s agri integration provides a significant supply chain advantage for its food business.

Financial Performance Highlights and Future Outlook

Despite macroeconomic challenges, ITC’s Foods Division has delivered strong, consistent financial performance. FMCG revenue grew to ₹20,967 crore in FY24, registering an impressive 11.9% CAGR over FY20-24. Segment EBITDA margins also expanded by 94 basis points in FY24, reflecting operational efficiencies and a premiumisation-led mix. With an ambitious ₹1 lakh crore FMCG revenue target by 2030, ITC is well-positioned for sustained, profitable growth in the years ahead.

Key Financials:

• FMCG revenue: ₹20,967 crore in FY24 (CAGR: 11.9% over FY20-24)
• Segment EBITDA margins rose 94 bps in FY24
• ₹1 lakh crore FMCG revenue target by 2030

Wrap-Up: Strong financial performance and ambitious growth targets underline ITC Foods’ future-ready business model.

Conclusion: Why ITC’s Foods Division is Poised for Leadership

The growth story of ITC’s Foods Division is a result of disciplined execution of a consumer-centric, digitally driven, and innovation-led strategy. Strategic acquisitions, product premiumisation, supply chain strength, and agricultural integration collectively position ITC Foods for long-term leadership in India's growing packaged foods market.

Wrap-Up: ITC’s Foods Division exemplifies a modern FMCG business agile, health-conscious, digital-first, and deeply rooted in consumer understanding.

FAQs

Q1: What is 'ITC Next' strategy?
It’s ITC’s future-ready transformation plan to expand non-cigarette businesses, including aggressive growth in FMCG, digital integration, and supply chain modernisation.

Q2: How big is ITC’s Foods Division?
It’s India’s second-largest listed packaged foods firm by sales and reaches three out of four Indian households.

Q3: How is ITC Foods using acquisitions?
ITC strategically acquires brands in health, organic, and frozen categories to fast-track growth and market entry.

Q4: What’s ITC doing about consumer demand for health foods?
Launching millet-based products, health snacks, and premium offerings; health is its fastest-growing food segment.

Q5: What is ‘Mission DigiArc’ and how is it helping ITC’s Foods Division?
‘Mission DigiArc’ is ITC’s enterprise-wide digital transformation program integrating AI, ML, analytics, and advanced marketing tools like the ‘6th Sense’ Command Centre. It enhances operational efficiency, demand forecasting, and consumer engagement.

Q6: How does ITC’s Agri Business support its Foods Division?
ITC sources over 3 million tonnes of agri-commodities annually and is India’s largest private wheat procurer. Its ITCMAARS platform digitises farmer services and traceability, ensuring quality, cost-efficient, and sustainable raw material sourcing.

Q7: What are ITC Foods’ long-term financial targets?
ITC aims to achieve ₹1 lakh crore in FMCG revenue by 2030, with its Foods Division projected to contribute 60-65% of this total, supported by robust growth, premiumisation, and product innovation.