According to a recent report presented at the India Food Forum in Mumbai by consultancy firm Wazir Advisors, the organised segment of the domestic food service market is expected to reach 51% ($36.46 billion) of the total $71-billion market by 2025, surpassing the unorganised segment standing at 49%. This marks the first time the organised sector is set to overtake the unorganised sector in the country’s food service market. The report predicts further growth, projecting the organised market to reach 53% by 2026. Factors contributing to this shift include the increasing popularity of organised food services, the efforts of food aggregators, and evolving consumer preferences. Despite the positive outlook, challenges such as the rise of ready-to-eat meals, supply chain inefficiencies, and potential spikes in food prices may impact the organised food service market in the coming years. The report anticipates the overall domestic food service market to grow at a compounded annual growth rate of 11.3%, reaching $78 billion by 2026, with the organised segment at $41.7 billion and the unorganised segment at $37.1 billion.
