India Food Service Market 2024–2033

Reports Description

India Food Service Market was valued at USD 49.8 Billion in 2024 and is expected to reach USD 116.8 Billion by 2033, at a CAGR of 10.3% during the forecast period 2024 – 2033.

The term “food service” describes the sector of the economy that includes companies and facilities that prepare, serve, and transport food and drinks to patrons. This industry encompasses a wide range of organisations, including food trucks, catering services, fast-food restaurants, and cafés.

India Food Service Market: Growth Factors

Rising demand for customized and innovative food menu options

One of the main factors propelling the expansion of the food service industry in India is the growing need for unique and inventive menu alternatives. Consumers in India are looking for a variety of individualised eating experiences as the country’s population grows more urbanised, prosperous, and aware of international culinary trends.

The need for eateries and food service businesses that provide distinctive and adaptable menu selections to suit individual tastes and preferences has increased as a result of this shift in customer preferences. Customers are increasingly searching for restaurants that can deliver creative and personalised culinary options to suit their demands, whether it is due to dietary restrictions, cultural preferences, or just a desire for novelty.

Major Indian cities now have an abundance of specialist eateries, gourmet cafés, and food trucks providing anything from fusion cuisine to personalised meal options as a result of this trend. To meet this need and improve the whole eating experience, food service companies are making investments in technologically advanced solutions, innovative menus, and creative cooking.

This focus on innovation and personalisation not only draws clients but also encourages repeat business and consumer loyalty, which propels the thriving Indian food service industry’s development and expansion.

Shifting inclination  toward the ready-to-eat  food

The Indian food service sector is being driven mostly by consumers’ growing preference for ready-to-eat cuisine. Numerous socioeconomic factors that influence consumer behaviour are driving this trend. There is a greater need for convenience in food consumption due to the growing working population and expanding urbanisation.

For people with hectic schedules who might not have the time or expertise to make meals from scratch, ready-to-eat meals provide a convenient and expedient option. Ready-to-eat solutions are becoming more popular because of changing lifestyles, such as longer work hours and dual-income homes.

Furthermore, the need for a wide variety of easily accessible food options has been stoked by the growing impact of global food culture, which is made possible by exposure to different cuisines via travel and digital media.

Additionally, this tendency has been driven by the COVID-19 epidemic, which has made customers prioritize cleanliness and safety. As a result, packed and ready-to-eat meals that are thought to be safer alternatives have become increasingly popular.

As a result, the Indian food service market is witnessing a significant shift towards ready-to-eat options, encouraging food service providers to adapt their offerings to cater to this evolving consumer preference.

India Food Service Market: Restraints

High competition

Businesses operating in the Indian food service sector face substantial obstacles due to intense competition. It is challenging for firms to remain profitable because of the numerous rivals fighting for market dominance, which results in price wars and narrow profit margins.

Furthermore, fierce competition frequently makes it necessary to constantly innovate and differentiate in order to stand out in a crowded market. The demand to consistently provide distinctive goods and services can put a burden on resources and make it more difficult for smaller competitors to successfully compete with bigger, more well-known companies.

Furthermore, because there is intense competition, it is difficult to maintain client loyalty because consumers have many options and can quickly move between providers based on convenience, cost, or other considerations.

India Food Service Market: Opportunities

Growing trend of socializing at bars and restaurants

The Indian food service industry has grown dramatically as a result of the tendency of people meeting for social gatherings in pubs and restaurants. A discernible cultural change towards dining out and socialising in cities has occurred recently, driven by a growing number of young people who value experiences above material belongings, changing lifestyles, and rising disposable incomes.

The need for restaurants that provide not just food but also atmosphere, entertainment, and social contact has increased as a result of this trend. Indians of all ages now choose bars and restaurants as their favourite locations for get-togethers, parties, business meetings, and informal outings.

This tendency has been further fostered by the emergence of fashionable cafés, expensive restaurants, casual dining chains, and themed pubs. Furthermore, as cities become more populated, customer tastes are shifting to favour convenience, variety, and special eating experiences, which is propelling the food service industry’s growth.

As a result, the food service sector in India has experienced rapid expansion, drawing capital from both local and foreign investors and making a substantial economic contribution to the nation while meeting the changing demands and tastes of Indian customers.

India Food Service Market: Segmentation Analysis

India Food Service market is segmented by system, ownership and region.  Based on system, the market is classified into conventional foodservice system, centralized foodservice system, ready prepared foodservice system and assembly-serve foodservice system.

Conventional Foodservice System dominated market in 2023 with market share of 45.1% and is expected to keep its dominance during the forecast period 2024-2033.  The traditional foodservice system propels the Indian food service industry by providing customers throughout the nation with a dependable and easy eating experience.

This method is based on standard procedures for preparing, distributing, and serving food, which are frequently seen in physical restaurants, on the streets, and in catering services. In India, where customary culinary arts are deeply ingrained in the culture, traditional foodservice outlets are essential in meeting the needs of a wide range of palates.

They draw both locals and visitors looking for genuine dining experiences by offering a venue for the spread of regional cuisines and culinary traditions.

Based on ownership, the market is classified into standalone and chained. Standalone dominated market in 2023 with market share of 64.1% and is expected to keep its dominance during the forecast period 2024-2033.

The food service industry in India is seeing a surge due to a combination of reasons that address changing consumer tastes and lifestyle changes. These stand-alone businesses provide distinctive eating experiences instead of following the conventional restaurant model, ranging from gourmet cafés to street food vendors.

They showcase regional specialties and creative fusion cuisines, making the most of India’s varied gastronomic environment. They frequently place a high value on accessibility and convenience, and many of them provide takeout and delivery alternatives to accommodate the hectic schedules of city dwellers.

Additionally, the emergence of digital platforms and social media has increased the visibility of stand-alone restaurants, allowing them to attract a larger clientele and promote community involvement. This trend represents a break from the traditional eating conventions as customers look for experience dining, affordability, and authenticity.

Report Scope

India Food Service Market: Regional Analysis

India Food Service market is segmented into South India, North India, West India and East India. The West India dominated the global market in 2023 with market share of 43.1% in 2023 and is expected to keep its dominance during forecast period.

The West India region plays a significant role in driving the food service market in India through its rich culinary heritage, diverse cultural influences, and thriving urban centers. West India is known for its highly developed food culture, which is exemplified by its new culinary concepts, traditional cuisines, and fusion of flavours, particularly in places like Ahmedabad, Pune, and Mumbai.

Mumbai, which is sometimes called the “food capital” of India, offers a wide variety of gastronomic experiences, from high-end restaurants serving foreign cuisines to street food vendors selling classic delicacies like vada pav and pav bhaji.

Pune, which is well-known for its young population and educational institutions, has a thriving culinary scene because to the abundance of cafés, restaurants, and food trucks that serve a wide range of cuisines.

Furthermore, Gujarati food, which is well-known for its unique flavours and vegetarian delights, makes a substantial contribution to the region’s culinary scene. The powerful infrastructure of the West Indian states, which includes transportation networks and tourism hubs, makes it easier to distribute and promote local specialties and draws tourists from both domestic and foreign locations.

The rise of food tech firms, delivery platforms, and immersive dining ideas is further stimulated by the region’s tendency towards innovation and entrepreneurial spirit, which in turn drives the food service business.

India Food Service Market: Recent Developments

• In June 2022, ITC Hotels launched a curated “Feel-Good” menu of food items on the World Environment Day aiming at the environmental sustainability of local producers and asserted that home delivery will continue to be an important offering in the future.

• In February 2022, ITC introduced an app for its hotels, as well as its Welcomhotels and Fortune Hotels in select areas, that offers features including restaurant and room bookings, food delivery and takeaway, and reward programmes.

• In March 2024, Lite Bite Foods expanded it hotels in tier 1 and 2 markets to capitalize on India’s growing organized food services sector.

List of the prominent players in the India Food Service Market:

• Jubilant FoodWorks Limited
• Devyani International Limited
• McDonald’s India
• Yum! Brands
• Cafe Coffee Day
• Burger King India
• Pizza Hut India
• Subway India
• Starbucks India
• Barbeque Nation
• Haldiram’s
• Indigo Delicatessen
• Taj Group of Hotels
• The Indian Hotels Company Limited
• The Oberoi Group
• ITC Hotels
• Domino’s Pizza India
• Smoke House Deli
• Lite Bite Foods
• Sagar Ratna Restaurants
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Food Service Market is segmented as follows:

By System

• Conventional Foodservice System
• Centralized Foodservice System
• Ready Prepared Foodservice System
• Assembly-Serve Foodservice System

By Ownership

• Standalone
• Chained