India’s Food Services Market to Surge to ₹11.25 Lakh Crore by 2030

According to a recent report, the Indian food services market is expected to reach $12,500 crore (approximately ₹11.25 lakh crore) by 2030. Over the next five years, the organized food service segment is projected to double in size, surpassing the unorganized segment.The report was jointly released on Thursday by Swiggy and global consulting firm Kearney under the title “How India Eats.”

In 2019, the Indian food services market was valued at $4,900 crore, and it is expected to reach $7,800 crore (₹6.97 lakh crore) by 2025, according to the report.

Key Highlights of the Report

Organized Segment Growing Rapidly

Over the next five years, the organized segment is expected to capture more than 60% of market growth, overtaking the unorganized segment.

Rising Income Will Drive Spending

As disposable incomes increase, consumer spending on food services is projected to rise significantly over the next seven years.

Huge Growth Opportunities in India

Currently, the food services sector contributes only 1.9% to India’s GDP, compared to 5% in China and 6% in Brazil. This indicates substantial growth potential in India.

High-Growth Segments

Cloud kitchens

Quick Service Restaurants (QSRs)

Dessert parlors

These segments are expected to grow faster than average.

Innovative Food Orders on the Rise

Innovative food orders - 20% growth

Restaurant orders - 30% growth

Demand for healthy food items - 2.3x growth

Changing Food Preferences

Indians are increasingly enjoying both traditional and international cuisines.

Domestic cuisines like Goan, Bihari, and Pahari dishes → 2–8x growth

International cuisines like Korean, Vietnamese, and Mexican → 17x, 6x, 3.7x growth, respectively

Beverage Segment Seeing Record Growth

Domestic drinks like buttermilk and sherbet → 4–6x growth

Boba tea → 11x growth

Matcha tea → 4x growth

Expert Opinions

Rohit Kapoor, CEO, Swiggy Food Marketplace:

Over the past decade, the food service industry has seen massive transformation. While consumers still seek affordable Indian and Italian dishes, they are also enjoying new beverages like Boba and Matcha at record levels.

Rajat Tuli, Kearney Representative:

Compared to India’s 8 major cities, the number of people dining out in other cities is twice as high.
This trend is particularly strong in corporate, industrial, educational, and tourist hubs.
Additionally, Gen Z diners in restaurants outnumber other age groups by three times.