In Short:
A report by Swiggy and Bain & Company predicts that the Indian food services market will double over the next seven years, reaching ₹9-10 lakh crore. Online food delivery is expected to grow even faster, reaching ₹2.12 lakh crore by 2030. Factors driving this growth include an increase in the customer base, rise of Gen Z consumers, and growth in restaurant numbers. The market is value-conscious, with average order spends expected to remain around ₹230-250. Additionally, the growth of convenience-led formats like QSRs and cloud kitchens is expected to outpace the overall market growth.
India’s Food Services Market Set to Double in Next 7 Years
Exciting news for all foodies out there! The Indian food services market is predicted to reach ₹9-10 lakh crore in the next seven years, according to a report by Swiggy and Bain & Company. Currently standing at ₹5 lakh crore, the market is set to see a staggering 10-12% year-on-year growth.
Online Food Delivery Segment to Witness Rapid Growth
Hold onto your seats because the online food delivery segment is expected to reach ₹2.12 lakh crore by 2030, growing at a speedy rate of 18% year-on-year from the current ₹66,000 crore. The future of food delivery looks brighter than ever!
What’s Driving this Growth?
The growth in the food service segment is driven by expanding customer base, increasing number of Gen Z consumers, more consumption occasions, and a surge in the number of restaurants. Eating occasions are projected to rise to 90-95 per annum from the current 60-65 per annum.
Rise in Spending and New Dining Experiences
Though India remains value-conscious, the average order spend is expected to increase slightly to ₹230-250 per order. Rohit Kapoor, CEO of Food Marketplace at Swiggy, believes that higher disposable incomes, digitization, improved customer experience, and the desire for new culinary experiences will continue to propel the food services industry forward.
Urban Cities Leading Consumption
Currently, nearly 70% of food services consumption is concentrated in the top 50 cities among upper-middle and high-income segments. However, growth is expected from Tier 2 cities and beyond. By 2030, the market is set to cater to an additional 110 million customers, transforming eating out into a lifestyle choice.
Future Trends in Food Industry
According to Kapoor, factors such as trying out new cuisines, convenience, social media influence, and indulgence will drive the growth of the sector. Online food delivery is also on the rise, expected to reach 20% penetration by 2030.
Exciting Times Ahead for Food Industry!
With convenience-led formats like QSRs and cloud kitchens expected to grow 40% faster than the overall market, the food industry in India is poised for remarkable growth and innovation in the years to come. Stay tuned for more delicious updates!
