Indian Economy News

Indian food services sector to grow by 8.1% from 2024 to 2028: Report

  • IBEF
  • July 10, 2024

The Indian food services sector is poised for robust growth, with a projected CAGR of 8.1% between 2024 and 2028. This growth is expected to be driven by many factors, including rapid urbanization, strong GDP growth, a growing young population, and increased consumer exposure. The sector currently contributes 1.9% to India's GDP. It is expected to grow to US$ 93.16 billion (Rs. 7.76 trillion) by 2028, up from US$ 68.31 billion (Rs. 5.69 trillion). Despite the setbacks experienced during the COVID-19 pandemic, the industry has demonstrated remarkable resilience, underlining the need for the government to recognize its socio-economic impact and take immediate steps to unlock its full potential.

The organized segment of the food services industry is expected to grow at a CAGR of 13.2%, achieving a market share of 52.9% by 2028. Within the organized sector, casual dining restaurants are the fastest-growing, with a 48% market share, followed by quick-service restaurants (QSRs) at 27%. By 2028, it is anticipated that QSRs will gain market share by approximately 4-5% points at the expense of casual dining restaurants. The sector is also the second-biggest employer, with 8.5 million employees currently expected to increase by over 20% to 10.3 million by 2028. The industry has also witnessed rapid growth in the online food delivery market, with an estimated 6.6 crore food delivery platform users among the urban population, showcasing the changing consumption patterns driven by convenience.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.