Indian Food Services Market Set To Grow To $144-152 Billion By 2030

According to a recent report, the Indian food services market, valued at $80 billion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 10-11%, reaching $144-152 billion by 2030.

The report by Redseer Strategy Consultants states that the organised food services sector, which currently makes up half of the total market, is outpacing the unorganised segment, largely due to the rise of online food delivery and the influx of new brands.

Cloud kitchens are particularly thriving, as they leverage shared infrastructure and resources to operate multiple brands efficiently.

This model has disrupted traditional dining, offering scalability and flexibility to meet diverse customer needs.

Cloud kitchens are growing rapidly, operating with lower capital and overhead costs by using shared kitchen spaces.

Rohan Agarwal, Partner at Redseer noted, “The plug-and-play model of cloud kitchens facilitates scalability, with new brands reaching Rs 100 crore revenue in as little as 2-3 years, significantly faster than the 6-10 years typically taken by dine-in-focused brands.”

Consumers in metro and tier 1 cities are increasingly preferring the convenience of ordering food in or dining out, both for relaxation and to break their routines.

Dining out is also becoming a social activity, offering opportunities to spend quality time with family and friends, the report highlighted.

Social Media & Pop Culture Fueling The Food Services Market Demand

Social media trends and pop culture have fueled the demand for niche cuisines, further increasing the frequency of outside meals.

“Multi-brand strategies have proven to be the winning formula, enabling businesses to diversify portfolios, mitigate risks, and scale efficiently across various customer segments and meal slots,” the report asserted.

However, the report also pointed out that only 1-2% of companies in India have scaled beyond Rs 500 crore, with most success stemming from a multi-brand approach.

Yet, simply expanding the number of stores may lead to diminishing returns as the market diversifies with new cuisines and service models.

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