India’s food services industry is set for strong growth, with the market expected to expand from around USD 90 billion in FY26 to USD 150 billion by FY31, driven by rising incomes, changing lifestyles and rapid adoption of online food delivery.
According to a new report by Redseer Consulting, online food delivery is projected to contribute 18% of India’s food services market by FY31, compared to 11% in FY26, highlighting the growing role of digital platforms in consumer spending.
The growth is being fuelled by urbanisation, higher discretionary spending and increasing preference for ordering food at home, especially among younger consumers in metro and Tier-I cities. The organised food services sector, which already accounts for nearly half of the market, is expected to grow faster than the unorganised segment.
Digital ordering has emerged as a major growth driver, with food delivery transactions in metros rising from nearly 30 crore in FY21 to about 106 crore in FY26.
Beyond regular meals, snacks, desserts and beverages are expected to lead the next phase of expansion as they suit delivery formats and changing consumption habits. Premium tea and coffee chains, shakes, juices and cakes are also witnessing strong growth as consumers seek convenience, quality and upgraded experiences.
The report indicates that technology, premiumisation and evolving consumer behaviour will shape the future of India’s food services industry.