According to a report released on Wednesday, the food services sector in India is expected to expand at a rate of 10–12 per cent per year over the next seven years, reaching Rs 9–10 lakh crore by 2030.
India’s food services industry, which includes both ordering takeout and delivery, is currently estimated to be worth Rs 5.5 lakh crore.
According to a report by Bain & Company and online food aggregator Swiggy, strong fundamentals such as an increasing client base, greater consumption occasions, and an increase in supply will propel the development trajectory.
Furthermore, by 2030, online meal delivery is anticipated to develop at a quicker rate of 18% CAGR and account for 20% of the total food services market.
This rise has been attributed to a number of factors, including increased incomes, digitization, better customer experiences, and a willingness to try new things. The expansion in the upcoming years is something we are really optimistic about,” stated Rohit Kapoor, CEO of Swiggy’s food marketplace.
According to the report, the Indian food service industry, which serves middle-class and upper-class consumers, is expected to grow from its current size of approximately Rs 4-5 lakh crore to roughly Rs 10 lakh crore by 2030, according to Kapoor.
The study estimates that as of 2023, 70 per cent of food services consumption will be concentrated in the top 50 cities and among upper-middle-class and high-income individuals. These areas are predicted to continue to be demand hotspots throughout the medium future.
Nevertheless, additional growth is anticipated from Tier 2 and beyond cities as well. Navneet Chahal, a partner and co-author of the research, stated that “by 2030, the market is poised to serve an additional 110 million customers, gradually shifting eating out from a special event into a convenient lifestyle.”
