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Indian Food Services Market Projected To Double By 2030

The Indian food services market, which includes both dining out and ordering in, is currently valued at INR 550K crore. According to a recent report by Swiggy and Bain & Company, this market is set to grow at an annual rate of 10%-12%, reaching INR 900-1000K crore by 2030. This growth will be driven by […]

Indian Food Services Market Projected to Double by 2030
Indian Food Services Market Projected to Double by 2030

The Indian food services market, which includes both dining out and ordering in, is currently valued at INR 550K crore. According to a recent report by Swiggy and Bain & Company, this market is set to grow at an annual rate of 10%-12%, reaching INR 900-1000K crore by 2030. This growth will be driven by an expanding customer base, more frequent consumption occasions, and increased supply. Online food delivery, in particular, is expected to grow at an 18% CAGR, contributing 20% to the overall market by the end of the decade.

The study, titled ‘How India Eats’, highlights significant shifts in consumer behavior and industry dynamics over the past few years. Higher incomes, increased digitization, improved customer experiences, and a growing willingness to try new culinary experiences have all contributed to the market’s rapid growth. Rohit Kapoor, CEO of Swiggy’s Food Marketplace, notes that the Indian food service market catering to middle- and higher-income segments will expand from the current INR 400-500K crore to about INR 1000K crore by 2030. Additionally, the report predicts that hyperlocal consumption patterns will drive growth, particularly in Tier 2 and beyond cities.

The report also forecasts a substantial increase in the addressable customer base, expected to grow by 110 million, from 320-340 million currently to approximately 430-450 million by 2030. This surge will be supported by macroeconomic factors such as rapid urbanization and rising affluence. The frequency of eating out is projected to rise from an average of five times per month to 7-8 times by 2030, transitioning from special occasions to more convenience-led dining. Online food delivery will play a crucial role, with its penetration expected to increase from the current 12% to around 20% by 2030, further driving market growth and transforming the dining landscape in India.

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