Indian food services market projected to hit US$ 144-152 bn by 2030: Report
- IBEF
- January 31, 2025
According to a recent report by Redseer Strategy Consultants titled "The Big Bite: Scaling Success in India’s Food Services," the Indian food services market, valued at Rs. 6,92,320 crore (US$ 80 billion) in 2024, is projected to grow to between Rs. 1,246,176 crore (US$ 144 billion) and Rs. 1,315,408 crore (US$ 152 billion) by 2030, with a compound annual growth rate (CAGR) of 10-11%. The report suggests that multi-brand companies and cloud kitchens are well-positioned to take advantage of this growth opportunity. These models have disrupted traditional dining by providing scalability and flexibility to meet diverse consumer needs.
A partner at Redseer, Mr. Rohan Agarwal, noted that cloud kitchens enable rapid growth, with new brands potentially reaching Rs. 100 crore (US$ 11.6 million) in revenue within two to three years, compared to the six to ten years typically required for dine-in restaurants. This model allows businesses to scale more quickly and efficiently, unlocking higher profit margins while remaining adaptable in a competitive market. He emphasized the importance of agility, operational excellence, and innovation for businesses aiming to thrive in this dynamic sector.
The report also highlights that the organized food services market, which currently makes up half of the overall sector, is growing faster than the unorganized segment. This trend is largely driven by the rise of online food delivery and an influx of new brands. Consumers in metropolitan and Tier-I cities are increasingly choosing to order food or dine out for convenience and to break from their routines. Eating out is increasingly seen as a social activity, providing opportunities for quality time with family and friends during celebrations. Additionally, social media, pop culture, and a growing demand for diverse cuisines are contributing to the increasing frequency of dining out.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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