What are the Key Factors Driving India's Food Services Market Growth to ₹9 Trillion by 2030?

The food services market in India is projected to expand significantly, reaching ₹9 trillion by 2030 from the current ₹5.5 trillion. This growth is allocated to factors like increasing affluence, growing digitization, and evolving lifestyles. The emergence of fast-food chains has witnessed substantial changes in the past decade, including the emergence of fast-food chains and the importance of food delivery platforms. It is expected that the love for dining out and ordering in among Indians will escalate in the coming years.

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According to the report, nearly doubling of the market for eating out and ordering in, reaching ₹9 trillion by 2030. The growth is driven by an increasing number of customers, more consumption opportunities, and an increase in the presence of new restaurants in the industry. The online food delivery sector is expected to accelerate, with an estimated compound annual growth are (CAGR) of 18%, making up 20% of the total food services market by 2030.

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As per the report, the frequency of eating out in India is expected to increase from the current average of 5 times per month to 7–8 times by 2030, indicating a shift in the way eating out is perceived – from special occasions to a matter of convenience, with opportunities for new occasions and greater access.

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Lastly, the report notes that the market for eating out has evolved over time, with online aggregators driving the shift to home deliveries, and an increase in fine-dining chains catering to wealthy consumers. The data points to the fact that, on average, customers order more than three cuisines from over six restaurants across the online platforms in a year, signifying their interest in diverse dining experiences across different occasions. There is also significant potential for growth on the supply side, with an opportunity to open more restaurants across the country.