The food services market in India is expected to reach up to Rs 10 lakh crore by 2030 with the addressable customer base estimated to expand to up to 45 crore, according to a report.
The online food delivery segment is estimated to grow at 18 per cent CAGR (compound annual growth rate) and penetration is set to rise from 12 per cent in 2023 to 20 per cent by 2030, said the report titled ‘How India Eats’ by Bain & Company and Swiggy.
The food services market in India, which encompasses dining out and ordering in, 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 lakh crore to Rs 10 lakh crore by 2030, it said.
The food delivery major and the consulting company cited macroeconomic tailwinds, including rapid urbanisation and the increase of purchasing power of GenZ, who have a higher propensity to not eat at home. The report compared India, where people eat out an average of five times per month, to US and China, where eating out has moved from purely special occasions to a matter of convenience, with the expansion of organised supply and food delivery growth. “A trend that mirrors developed markets like the US and China, where eating out is convenience-led and the monthly eating-out frequency is 25–30, thus indicating massive headroom to drive new occasions in India,” the report said.
