India Foodservice market is forecasted to reach USD 95.75 billion by 2025, registering a CAGR of 10.3% during the forecast period.
The India foodservice sector is one of those vibrantly growing markets that has seen exceptional growth during the past decade and continues to expand rapidly during the forecast period.
A high percentage of the young and working population is driving the India foodservice market. The availability of organized retail space aids the industry to encourage the growth of local and International brands across different formats.
The India foodservice market space is attracting significant interest from domestic as well as international private equity and venture capital funds.
Key Market Trends
Increase in Eat Out Habits Among Indians
Factors such as rise in frequency of eating out, experimenting with new cuisines, and growing brand consciousness drive the India foodservice market. This has led to the dominance of full-service restaurants in India. As there has been a significant growth in the working population across the country, more and more people are getting engaged in outdoor activities like shopping, outings with friends, families and colleagues, leisure plans and others. Therefore, dine out preference of Indians has significantly contributed to the foodservice market of the country. Notably, shopping and casual dining were the prime reasons for eating out occasions for Indians in 2018.
Growing Quick Service Restaurants (QSR) Franchises
India has observed a significant growth in Quick Service Restaurants (QSR) in the past 10-15 years. The concept of quick serving restaurants has been successful in the country due to shorter lead time and quicker food consumption alternatives for the consumers. Foodservice players such as McDonald’s, Burger King, Pizza Hut, Domino’s, KFC, Subway, Wendy’s, and TacoBell are few famous quick service restaurants widely present in almost every city of the country. Therefore, quick service restaurants are contributing to the foodservice market in India significantly.
India foodservice market is largely dominated by the players in the unorganized sector. The organized sector restaurants are present only in the tier-1 and tier-2 cities in India and could not cater to the demand of other cities. The organized sector is gaining a high market share during the forecast period due to rapid urbanization and expansion of these existing players as chained restaurants. The top international foodservice companies are strongly engaged in the innovation of their service as they are strategizing their food menu as per Indian cuisine.
The market estimate (ME) sheet in Excel format
3 months of analyst support