Food services to reach Rs 5.52 lakh crore by 2022: FICCI-Technopak

The FICCI-Technopak highlights that the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly with food processing.

Published: 14th November 2017 06:53 PM  |   Last Updated: 14th November 2017 06:53 PM   |  A+A-

By PTI

MUMBAI: Indian food services market is set to grow at 10 per cent annually to reach Rs 5.52 lakh crore in the next five years, according to a report.

The FICCI-Technopak highlights that the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry.

The food services sector is expected to have generated direct employment for 5.5-6 million people in the financial year 2016, which is expected to increase to 8.5-9 million by the year financial year 2021, it added.

Indirect employment has seen a growth at CAGR of four per cent from 2013-2016 and expected to grow six per cent till 2021.

Further, it pointed out that the food services market in India (organised and unorganised) is estimated at Rs 3.37 lakh crore in 2017.

Mumbai and Delhi NCR contribute to 22 per cent of the overall food services market followed by six mini metros (Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad and Kolkata) comprising of 20 per cent share, the report noted.

High percentage of young and working population which is well travelled have double incomes and more eating out is driving the growth of the market.

Availability of organised retail space is helping in consistent growth of Indian and international brands across different formats, the report said.

The space is attracting significant interest from domestic as well as international private equity and venture capital funds, it added.

 

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

facebook twitter whatsapp