Indian Food Services Sector Projected To Expand To Rs 10 Lakh Crore By 2030: Report

According to the report jointly published by Bain & Company and online food aggregator Swiggy, the projected growth trajectory of the food services market will be underpinned by solid fundamentals

Furthermore, it is anticipated that online food delivery will experience accelerated growth at a compound annual growth rate of 18 per cent (Image Source: Pexels)

The food services market in India is projected to experience steady annual growth of 10-12 per cent for the next seven years, according to a report released on Wednesday. By 2030, it is expected to expand to Rs 9-10 lakh crore. Currently, the Indian food services market, encompassing both dining out and food delivery services, is valued at Rs 5.5 lakh crore.

According to the report jointly published by Bain & Company and online food aggregator Swiggy, the projected growth trajectory of the food services market will be underpinned by strong fundamentals. These include an expanding customer base, increasing consumption occasions, and a rising supply of food services across various segments.

Furthermore, it is anticipated that online food delivery will experience accelerated growth at a compound annual growth rate (CAGR) of 18 per cent. This segment is projected to make up 20 per cent of the total food services market by the year 2030.

Rohit Kapoor, CEO of Food Marketplace, Swiggy, said, “Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth. We are very upbeat about the growth in the coming years.”

Kapoor further elaborated on the report's findings, which show that the Indian food service market, primarily serving middle—and higher-income segments, is projected to grow significantly from its current valuation of Rs 4-5 lakh crore to approximately Rs 10 lakh crore by the year 2030. 

The report also highlights that as of 2023, around 70 per cent of food services consumption is concentrated in the top 50 cities and among upper-middle and high-income segments. These segments are anticipated to remain key demand centres in the medium term.

Nevertheless, additional growth is anticipated to originate from cities beyond Tier 2 and extend further into smaller urban centres and towns across the country.

Navneet Chahal, Partner and co-author of the report, emphasised, “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.”