Chennai: Food service market to surpass $100 billion mark by 2028, growing at a CAGR of 8 – 12 per cent.
Indian food service market -organised and unorganised together- have grown from $62 billion in 2022 to $70 billion and is expected to grow to $100 -120 billion by 2028, finds RedSeer Consultancy.
Of this, the organized food services market is expected to double by 2028 from $30 billion to $60 billion, growing at a CAGR of 13 -18 per cent. The share of the organised sector is expected to rise from 44 per cent to 55 per cent by then. This is being driven by the evolving consumer behaviour.
However, the market share of the unorganised segment might go down from 56 per cent to 45 per cent as it is growing by 3-5 per cent.
Since 2018, online food services market has clocked a higher growth from $1 billion to $7 billion in 2023 and is expected to grow to $15 -20 billion by 2028. Offline organised food service market, on the other hand, has grown from $18 billion in 2018 to $23 billion in 2023 and is likely to touch $40 – 45 billion by 2028.
Outside eating behaviour is now more habitual for Metro and Tier 1 consumers rather than being a luxury, which can be seen by the frequency of outside eating going up.
Among students and youth in metros and tier I cities, there has been a 30 per cent growth in outside food consumption between 2018 and 2023. Among mid-lifers, this growth has been 20 per cent.
Among different regions of the country, north and south India have an equally strong market of $24 billion, while West India accounts for $16 billion and East India contributes $6 billion.
Brands are also leveraging this opportunity and scaling their presence in the Indian market. Companies having different brands have been able to achieve 5x growth over standalone outlets.
