India's foodservice market set to grow 12% to ₹10 lakh cr by 2030

India’s food services market is currently valued at ₹5,50,000 crore (₹5.5 lakh cr), reveals ‘How India Eats’ study by global consultancy Bain & Company and food-tech startup Swiggy. This market includes dining out and ordering in and is expected to see an annual CAGR of 10%–12%, touching the milestone of ₹9-10 lakh crore by 2030.

This will result from a diversified customer base, increased instances of consumption, and a supply rise.

“Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth,” said Rohit Kapoor, CEO, of Food Marketplace, Swiggy. The sector’s dynamic nature, characterised by shifting consumer behaviours, digitisation, and regional diversity, offers immense growth potential.

“This study highlights that the Indian food service market catering to middle- and higher-income segments will expand from ₹400-500 thousand crore at present, to about ₹1000 thousand crore by 2030,” he added.

While on average Indian consumers eat out 5 times a month, it is anticipated to rise to 7–to 8 times by 2030. “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,” said Navneet Chahal, partner and co-author of the report.

Over 70% of food services consumption comes from the top 50 cities and the upper-middle and high-income sections of the nation. While these will remain demand hotspots in the medium term, consumption from other Tier-2 and beyond cities will also grow manifold.

The propensity to seek variety in dining experiences and Gen-Z-driven consumption are some of the key patterns identified by the study.

Online food delivery is poised to rise at a CAGR higher than the industry’s at around 18%, making up for 20% of the overall food services market in 2030. The study anticipates its market penetration to increase from the present 12% to 20% by 2030.

“The shift to online food delivery has also unlocked new growth avenues while permanently altering consumption preferences, including – an uptick in new dining occasions, evolving customer criteria for selecting restaurants, and the increase in competition,” the study highlights.

The report underlines trends such as ‘Self-love’, ‘Experience Upgrade’, ‘Digitisation’, and ‘Glocalisation’ will cause a shift in eating patterns in the country. The researchers claim convenience-led formats like QSRs and cloud kitchens with quick service, simple menus, and other propositions will grow 40% faster than the overall market by 2030.