New Delhi, The food services market in India is expected to reach up to Rs 10 lakh crore by 2030 and the addressable customer base is estimated to expand up to 45 lakh crore, according to a report.
The online food delivery segment is estimated to grow at a CAGR (compound annual growth rate) of 18 percent and penetration is expected to increase from 12 percent in 2023 to 20 percent in 2030, according to the report titled Bain's "How India Eats." & Company and Swiggy.
The food services market in India, which encompasses dining out and ordering, is currently valued at Rs 5.5 lakh crore. The market is poised to grow at 10-12 per cent annually over the next seven years, reaching Rs 9-10 lakh crore by 2030, he said.
"This growth trajectory will be driven by strong fundamentals, including an expanding customer base, increased consumption occasions and an increase in supply. Additionally, online food delivery is expected to grow faster at (around) 18 percent CAGR, contributing 20 percent to the overall foodservice market by 2030,” the report notes.
Swiggy Food Marketplace CEO Rohit Kapoor said the Indian food services market, especially food delivery, has seen buoyant growth in recent years.
"Increased revenues, digitalization, improved customer experience and inclination to try new experiences have contributed to this growth," he added.
Optimistic about growth in the coming years, Kapoor said China has four times more restaurants per million urban population compared to India and the study highlights this margin.
Navneet Chahal, partner at Bain & Company and co-author of the report, said the Indian food services market is on the cusp of transformation and the dynamic nature of the sector, characterized by changes in consumer behaviors, digitalization and regional diversity, offers immense potential for growth.
"As we look ahead to the next decade, with an estimated growth rate of 10 to 12 percent annually, there are exciting opportunities on both the demand and supply fronts.
By 2030, the market is poised to serve an additional 110 million customers, gradually transforming eating out from a special event to a convenient lifestyle," he stated.
The addressable customer base for the Indian food services market is expected to expand by 11 crore, rising from 32-34 crore currently to approximately 43-45 crore by 2030.
"This increase will be supported by macroeconomic tailwinds, including rapid urbanization and an increase in wealth," the report says.
The study noted that approximately 70 percent of food service consumption from 2023 will be concentrated in the top 50 cities and the upper-middle and upper-income segments, which are expected to remain demand hotspots in the medium term. .
"However, incremental growth is expected to come from other Tier 2 cities and beyond as well," he added.
The online food delivery segment has been steadily increasing, with penetration increasing from 8 percent to 12 percent between 2019 and 2023, representing a 2.8 times growth in online food delivery compared to food services in general, according to the report.
"This increase was accelerated by the Covid pandemic. However, there remains significant growth potential compared to markets such as the US and China, which have twice the penetration rates of India," he added.
The online food delivery segment is estimated to grow at a CAGR (compound annual growth rate) of 18 percent and penetration is expected to increase from 12 percent in 2023 to 20 percent in 2030, according to the report titled Bain's "How India Eats." & Company and Swiggy.
The food services market in India, which encompasses dining out and ordering, is currently valued at Rs 5.5 lakh crore. The market is poised to grow at 10-12 per cent annually over the next seven years, reaching Rs 9-10 lakh crore by 2030, he said.
"This growth trajectory will be driven by strong fundamentals, including an expanding customer base, increased consumption occasions and an increase in supply. Additionally, online food delivery is expected to grow faster at (around) 18 percent CAGR, contributing 20 percent to the overall foodservice market by 2030,” the report notes.
Swiggy Food Marketplace CEO Rohit Kapoor said the Indian food services market, especially food delivery, has seen buoyant growth in recent years.
"Increased revenues, digitalization, improved customer experience and inclination to try new experiences have contributed to this growth," he added.
Optimistic about growth in the coming years, Kapoor said China has four times more restaurants per million urban population compared to India and the study highlights this margin.
Navneet Chahal, partner at Bain & Company and co-author of the report, said the Indian food services market is on the cusp of transformation and the dynamic nature of the sector, characterized by changes in consumer behaviors, digitalization and regional diversity, offers immense potential for growth.
"As we look ahead to the next decade, with an estimated growth rate of 10 to 12 percent annually, there are exciting opportunities on both the demand and supply fronts.
By 2030, the market is poised to serve an additional 110 million customers, gradually transforming eating out from a special event to a convenient lifestyle," he stated.
The addressable customer base for the Indian food services market is expected to expand by 11 crore, rising from 32-34 crore currently to approximately 43-45 crore by 2030.
"This increase will be supported by macroeconomic tailwinds, including rapid urbanization and an increase in wealth," the report says.
The study noted that approximately 70 percent of food service consumption from 2023 will be concentrated in the top 50 cities and the upper-middle and upper-income segments, which are expected to remain demand hotspots in the medium term. .
"However, incremental growth is expected to come from other Tier 2 cities and beyond as well," he added.
The online food delivery segment has been steadily increasing, with penetration increasing from 8 percent to 12 percent between 2019 and 2023, representing a 2.8 times growth in online food delivery compared to food services in general, according to the report.
"This increase was accelerated by the Covid pandemic. However, there remains significant growth potential compared to markets such as the US and China, which have twice the penetration rates of India," he added.
