India's food services market projected to reach US$ 150 billion by FY31
- IBEF
- July 10, 2026
India's food services market is projected to expand from Rs. 7,95,330 crore (US$ 90 billion) in FY26 to Rs. 14,28,150 crore (US$ 150 billion) by FY31, driven by rising consumer spending, growing preference for convenience and the rapid adoption of online food delivery platforms, according to a Redseer Consulting report. The online segment's share of the food services market is expected to increase from 11% in FY26 to 18% by FY31, reflecting changing consumption patterns and the increasing popularity of digital ordering. The report noted that the market has grown significantly over the past five years, rising from Rs. 4,15,520 crore (US$ 56 billion) in FY21 to around Rs. 7,95,330 crore (US$ 90 billion) in FY26. Organised food service brands now account for 45-50% of the overall market and are expected to outpace the unorganised segment as consumers increasingly seek quality, convenience and branded dining experiences. Rising demand for eating out, social gatherings and food delivery is expected to continue supporting the sector's long-term expansion.
Online food delivery has emerged as a major growth driver, with transactions in metro cities increasing from around 30 crore in FY21 to approximately 106 crore in FY26. The report highlighted significant opportunities across snacks, desserts and beverages, with categories such as shakes, juices, cakes, premium tea and coffee recording strong growth due to their suitability for online delivery. Despite the presence of around 1,000-1,500 organised food service companies, only about 2% have annual revenues exceeding Rs. 500 crore (US$ 56.58 million), indicating substantial scope for business expansion and market consolidation. Continued digital adoption, increasing disposable incomes and the expansion of organised food service brands are expected to create new opportunities for restaurants, cloud kitchens and food-tech platforms. The sector's sustained growth is likely to strengthen employment, encourage entrepreneurship and reinforce India's position as one of the world's fastest-growing consumer markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
