The Indian food services market is on track for unprecedented growth, with projections indicating a nearly twofold increase to ₹9 trillion by 2030, up from the current ₹5.5 trillion. This surge is driven by a combination of increasing affluence, rising digital adoption, and evolving consumer lifestyles, according to a recent report by Swiggy and Bain & Company.
The report highlights a significant transformation in the food services landscape over the past decade, marked by the proliferation of fast-food chains and the advent of online food delivery platforms. “Higher incomes, digitization, improved customer experience, and an inclination to try new experiences have all contributed to this growth,” said Rohit Kapoor, CEO of Food Marketplace at Swiggy.
Online food delivery, a major catalyst in this growth, is expected to expand at an 18% compound annual growth rate (CAGR), contributing 20% to the overall market by 2030, compared to the current 8%. The increase is fueled by a growing customer base and rising consumption occasions, as well as a surge in new eateries across the country.
The report also notes that about 70% of total food services consumption currently occurs in India’s top 50 cities, predominantly among upper-middle and high-income segments. These cities will remain demand hotspots, but growth will also extend to tier 2 cities and beyond.
By 2030, the addressable customer base for the Indian food services market is expected to expand by 110 million, from the current 320-340 million to approximately 430-450 million. This expansion will be supported by macroeconomic trends like rapid urbanization and increasing affluence. Eating out, which currently happens about five times a month for the average Indian consumer, is anticipated to rise to seven or eight times per month by 2030.
Evolution of Consumer Preferences
Consumer preferences have also evolved significantly, with a notable increase in the frequency of eating out and ordering in. The report underscores a trend toward convenience-led dining, with more consumers seeking diverse culinary experiences. On average, a customer orders more than three different cuisines from over six restaurants through online platforms annually.
“The Indian food services market stands at the cusp of transformation, characterized by shifting consumer behaviors, digitization, and regional diversity, offering immense growth potential,” said Navneet Chahal, partner at Bain & Company and co-author of the report.
Despite the rapid growth, there remains significant potential for expansion. “China has four times the number of restaurants per million urban population compared to India, indicating a vast opportunity to open more eateries across the country,” added Kapoor.
Future Outlook
The market’s growth is further accelerated by the pandemic-driven rise in online food delivery, which saw penetration increase from 8% to 12% between 2019 and 2023. Convenience-oriented formats like quick service restaurants (QSR) and cloud kitchens are expected to grow 40% faster than the overall market in the coming years.
By 2030, the Indian food services market is poised to cater to an additional 110 million consumers, transforming eating out from a special occasion to a convenient lifestyle choice, and mirroring trends seen in developed markets such as the US and China.