India Vapor Heat Treatment (VHT) Machine Market Assessment, By Treatment Capacity [Below 1500 kg/Batch, 1500 to 3000 kg/Batch, Above 3000 kg/Batch], By End-users [Exporters, Quarantine Stations, Manufacturers] By Region, Opportunities and Forecast, FY2018

India Vapor Heat Treatment (VHT) Machine Market Assessment, By Treatment Capacity [Below 1500 kg/Batch, 1500 to 3000 kg/Batch, Above 3000 kg/Batch], By End-users [Exporters, Quarantine Stations, Manufacturers] By Region, Opportunities and Forecast, FY2018-FY2032

India vapor heat treatment (VHT) machine market is projected to witness a CAGR of 10.15% during the forecast period FY2025-FY2032, growing from USD 5.34 million (INR 448.14 million) in FY2024 to USD 11.56 million (INR 970.13 million) in FY2032. The market has attained phenomenal growth within the last couple of years and is likely to continue with a decent stride during the forecast period, powered by continuous growth in food and beverage and agriculture industry, across India.

Technological changes, such as automation, better control systems, and energy-efficient designs, have made machines more appealing to industries. Technological changes improve the efficiency and results of vapor heat treatment (VHT), therefore enhancing the adoption rate in India and Asia-Pacific.

India's Food Processing Industry is Growing at a Speedy Rate

The rapid expansion of the food processing industry in India drives the demand for vapor heat treatment (VHT) machines. As India’s urban population continues to grow, there is a notable shift in consumer preferences towards packaged and processed foods. Modern lifestyles, characterized by busy schedules and a desire for convenience, have led to higher consumption of ready-to-eat meals, snacks, and beverages. This changing demand pattern is compelling food processing companies to adopt advanced technologies, such as vapor heat treatment systems, to ensure high standards of quality and safety in their products.

VHT offers a safe and effective alternative to traditional fumigation methods that rely on toxic chemicals. It eliminates the risk of pesticide residues on treated produce, ensuring consumer safety. Additionally, VHT maintains the natural taste, texture, and appearance of fruits and vegetables, unlike chemical treatments that can negatively impact product quality.

As per Invest India Government data India’s food processing sector is one of the largest in the world and its output is expected to reach USD 535.00 billion by FY2025-FY2026. The Ministry of Food Processing Industries (MoFPI) is making efforts to encourage investments across the value chain, which will increase the market growth of all related food equipment and other related products.

Technological Advancements and Innovation in VHT Machines and Systems

New technologies and innovations in vapor heat treatment systems make them more effective and efficient. Machines with advanced control features and energy efficiency are expected to drive market growth. Companies are therefore engaged in designing machines that can be more efficient and energy consumption for operating the VHT systems can be reduced compared to earlier systems that needed high-performance levels. It can further reduce the overall costs of the system so that the technology can serve a greater cause of reducing carbon emissions and growing green practices in India. The use of heat recovery systems in heat treatment machines with vapors allows waste heat to be utilized better, increasing the overall energy efficiency.

Indian Government Support, Incentives, and Financial Assistance to Drive Market Growth

The Indian government plays a crucial role in fostering growth and innovation in the industrial sector, including the vapor heat treatment machine market. Through various support mechanisms, incentives, and financial assistance programs, the government aims to enhance the adoption of advanced technologies, improve industrial efficiency, and promote sustainable practices. The state is home to major horticultural production centers in Surat, Vadodara, Rajkot, and Junagadh. These districts offer a favorable combination of abundant horticultural production, well-developed infrastructure, and supportive government policies, making them prime locations for establishing VHT facilities.

For instance, the Gujarat government recognized the importance of the food processing industry and is actively promoting its development. The state has implemented various initiatives to support VHT facilities, including financial incentives, tax benefits, and regulatory assistance. These incentives aim to reduce the cost of establishing and operating VHT facilities, making them more attractive to entrepreneurs and investors.

For instance, according to the new policy of the Gujarat government, a subsidy of up to 30% on capital investment in plants and machinery for VHT facilities is provided for suitable locations for VHT processing facilities.

Growing Export Potential and Rising Consumer Demand for Safe and Chemical Free Produce

The demand for safe and high-quality fruits and vegetables is gradually increasing within the international markets. VHT is among the key treatments that exporters have to resort to meet the phytosanitary requirements of other countries and thus reach new markets. Exporters adopting VHT processing would ensure that their produce meets the stringent standards set by importing countries, thus opening new export opportunities and expansion into a wider market. This growing export potential acts as a big driver for the adoption of global VHT processing.

There is a growing trend of health-conscious consumers globally who make informed decisions about the type of food they consume. Consumer demand for safe and chemical-free produce is on the rise to avoid toxic pesticide residues. This makes traditional fumigation methods, which depend on toxic action by chemicals, highly questionable to consumers who are skeptical about their possible health effects. VHT processing provides an effective and safe alternative to conventional fumigation techniques, and hence eliminates the use of chemical fumigants and assurance that the produce which goes into the market is free of dangerous residues. This has aligned with consumers' preference for safety and chemical-free produce, which has been the major determinant of VHT processing market growth in India.

Future Market Scenario (FY2025 – FY2032)

The vapor heat treatment machine (VHT) market is expected to witness substantial growth in India, driven by increasing industrial applications and technological advancements, expanding adoption, and import and export activities of fruits and vegetables.

Indian government is expected to continue offering financial incentives, subsidies, and tax benefits to support the adoption of advanced vapor heat treatment technologies and other facilities across India.

In India, manufacturers will focus on developing cost-effective machines that offer high performance and reliability, catering to the needs of various industries and businesses of different sizes to fulfill customer needs.

Key Players Landscape and Outlook

Key participants of India vapor heat treatment machine market are adopting different strategies to expand in the market. Collaborations, participation, product launches, and high-end market research are some of the leading strategies that the industry players adopt. Furthermore, companies are open to adopting foreign technologies to deliver higher precision and productivity.

In August 2024, India officially urged New Zealand to approve its VHT facilities to improve grape exports. This request is part of a broader strategy to enhance the fruit trade between the two countries. By achieving VHT approval, India aims to meet New Zealand's stringent import requirements, thus facilitating greater market access for Indian grapes.

In India, according to the Maharashtra State Agricultural Marketing Boars (MSAMB) 2024, MSAMB is targeting to export 5,000 tons of mangos from MSAMB Vapor Heat Treatment (VHT) facilities in the next summer season. This exporting news and development will further create awareness about VHT machines in India in the forecast period.

In June 2023, the Union Government inaugurated APPPC Workshop on Fruit Fly Management for Mangoes, highlighting the commitment toward advanced agricultural practices. The workshop highlights the role of Vapor Heat Treatment (VHT) in effectively managing fruit fly infestations, essential for meeting international export standards. This initiative benefits local farmers by improving mango quality and enhances India's global agricultural standing.