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Indian food services market set to reach $144-152 billion by 2030: Report

The report states that the Indian food services market is expected to grow with a CAGR of 10-11% by 2030

Bengaluru: The Indian food services market, valued at $80 billion in 2024, is expected to reach $144-152 billion by 2030, indicating a compound annual growth rate (CAGR) of 10-11% through 2030, according to a report by Redseer Strategy Consultants.

It finds that the organised food services market, currently constituting half of the overall sector, is outpacing the unorganised segment, driven by online food delivery and brand influx. 

As per the study, consumers in metro and tier-1 cities are increasingly opting for ordering in and dining out, driven by convenience and a desire for a break from routine. Additionally, outside meals are increasingly viewed as a social activity, offering opportunities to spend quality time with loved ones and to celebrate all occasions. Social media, pop culture, and the demand for variety have fueled the rise of niche cuisines, contributing to the rising frequency.

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. Globally, multi-brand companies are increasingly leveraging acquisitions to broaden their offerings and cater to a wider audience across various meal slots.

Among multi-brand companies, the cloud kitchen model is giving a tough competition to dine-in setups resulting in higher revenue per kitchen, optimizing shared resources, and enabling brands to scale 2-3 times faster than traditional restaurant models.

“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,” said Rohan Agarwal, Partner at Redseer Strategy Consultancy. 

“By reducing the time and investment required to scale, cloud kitchens empower businesses to unlock higher margins while staying flexible and efficient in a competitive landscape. It is imperative that businesses focus on agility, operational excellence and innovation to succeed and lead the next wave of growth in this exciting sector,” added Rohan.

While traditional single-brand models are experiencing growth plateaus as customers demand more variety and unique experiences, the report reveals that multi-brand players, driven by acquisitions, collaborations, and innovative cloud kitchen models, are uniquely positioned to capture a larger market share. 

Moreover, only 1-2% of companies in India have scaled beyond Rs 500 crore, with most of this success driven by the multi-brand approach. However, even for these companies, rapidly expanding the number of stores alone to drive scale can lead to diminishing returns, especially as the market diversifies with new cuisines and service models. 

The post Indian food services market set to reach $144-152 billion by 2030: Report appeared first on India Retailing.



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