Food services market to reach Rs 10L crore, online food delivery to grow 18% by 2030: Study

In its latest study, ‘How India Eats’ released by Bain & Company and Swiggy’, it said the online food delivery is estimated to grow at 18% CAGR, with penetration to rise from 12% in 2023 to 20% by 2030.
Zomato food delivery executive. Image used for representation.
Zomato food delivery executive. Image used for representation.

BENGALURU: The food services market in India, currently valued at Rs 5.5 lakh crore, will grow at 10-12% annually over the next seven years, and reach Rs 9 lakh to Rs 10 lakh crore by 2030.

In its latest study, ‘How India Eats’ released by Bain & Company and Swiggy’, it said the online food delivery is estimated to grow at 18% CAGR, with penetration to rise from 12% in 2023 to 20% by 2030.

Rohit Kapoor, CEO, of food marketplace Swiggy, “The Indian food services market, especially food delivery, has witnessed buoyant growth over the last few years. Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth.”

He added, “We are very upbeat about the growth in the coming years. For instance, China has four times the number of restaurants per million urban population, as compared to India.”

According to the study, about 70% of food services consumption as of 2023 is concentrated in the top 50 cities and among upper-middle and high-income segments, which are expected to remain demand hotspots in the medium term. However, incremental growth is expected to come from other tier 2 and beyond cities as well.

“As we look toward the next decade, with an estimated growth rate of 10%–12% annually, exciting opportunities loom on both the demand and supply fronts. By 2030, the market is poised to serve an additional 110 million customers, gradually shifting eating out from a special event into a convenient lifestyle,” said Navneet Chahal, Partner and co-author of the report.

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