Mumbai: India’s food services market is projected to grow at a compounded annual growth rate (CAGR) of 8.1%, reaching Rs 7.76 trillion in four years. India’s food services market is currently valued at Rs 5.7 trillion. A report published by the National Restaurant Association of India (NRAI) revealed this.
The organized segment will grow at a CAGR of 13.2% between 2024 and 2028. By 2028, India’s food services market will surpass Japan, trailing only the US and China. It will also be the second-fastest growing market after Brazil, employing 10.3 million people by 2028. The market, which includes the organised segment valued at Rs 2.49 trillion and the unorganised segment valued at Rs 3.19 trillion, currently employs 8.5 million people.
A report by Swiggy and Bain & Company indicated that the frequency of eating out would increase from an average of 5 times per month currently to 7-8 times by 2030. The report also predicted that the food services market in India would double by 2030 to Rs 9-10 trillion from Rs 5.5 trillion now, growing at 10-12% annually.
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The Swiggy-Bain report had said the addressable customer base for the Indian food services market would expand by 110 million, growing from the current 320-340 million to approximately 430-450 million by 2030.
Thew share of the organised food services market will grow to 52.8% by 2028 from 43.8% now. The unorganised segment, on the other hand, would shrink to 47.2% from 56.2% over the same period.
According to the NRAI report, the top nine cities in India contribute approximately 59% to the total revenue of the food services market. Cafes, quick-service restaurants and dessert and ice-cream parlours will be among the fastest-growing segments, with growth rates of 18.6%, 17.5%, and 15%, respectively, between 2024 and 2028. Between 2019 and 2024, these three segments had grown at a CAGR of 15-20%.
Casual dining, fine dining, pubs, bars and lounges are expected to grow at 9.3%, 12.9% and 8%, respectively, between 2024 and 2028. Cloud kitchens, on the other hand, are projected to be the fastest growing segment, with a CAGR of 35.2%, driven by the booming online delivery market, the report states.
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