Mumbai, Nov 14 (PTI) Indian food services market isset to grow at 10 per cent annually to reach Rs 5.52 lakhcrore in the next five years, according to a report.
The FICCI-Technopak highlights that the food sectorhas emerged as a high-growth and high-profit sector due to itsimmense potential for value addition, particularly within thefood processing industry.
The food services sector is expected to have generateddirect employment for 5.5-6 million people in the financialyear 2016, which is expected to increase to 8.5-9 million bythe year financial year 2021, it added.
Indirect employment has seen a growth at CAGR of fourper cent from 2013-2016 and expected to grow six per cent till2021.
Further, it pointed out that the food services marketin India (organised and unorganised) is estimated at Rs 3.37lakh crore in 2017.
Mumbai and Delhi NCR contribute to 22 per cent of theoverall 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 whichis well travelled have double incomes and more eating out isdriving the growth of the market.
Availability of organised retail space is helping inconsistent growth of Indian and international brands acrossdifferent formats, the report said.
The space is attracting significant interest fromdomestic as well as international private equity and venturecapital funds, it added. PTI DSKNRB.
This is unedited, unformatted feed from the Press Trust of India wire.