India's food services industry set to reach $77bn by 2021: report

Country's food services industry is expected to touch $77 billion (about Rs 4,98,130 crore) by 2021, growing at an annual rate of 10 percent, a recent report said.

In 2016, the food services market is expected to be at Rs 3,09,110 crore, where the unorganised sector will account for 67 percent share with an estimated size of Rs 2,07,635 crore, National Restaurant Association of India said in a report. However, unorganised market is expected to fall to 59 percent by 2021, the report by India Food Services said.The organized market, which includes chain outlets, standalone eateries and restaurants in hotels, is estimated to grow at 15 percent to reach Rs 2,04,180 crore by 2021, the report added.

"Sound macro-economic performance in turn will help the food services industry to become a key sector of the economy. Over the years, the Indian consumers' profile, behaviour and spending patterns have evolved with the changing economic, social and demographic landscape," according to the report.

The widening exposure to new cultures and cuisines, increased propensity of eating out and the growing popularity of home delivery and takeaway has led to the growth of food services market, it explained.

In terms of tax revenue, the chain and standalone market together are expected to contribute Rs 22,000-22,400 crore in 2016 and an estimated Rs 45,000 crore in 2021. The report also noted that Delhi and Mumbai constitute a total of 22 percent of the food services market while the six mini-metros account for 19 percent.

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In 2016, the total food services market is expected to generate direct employment to 5.8 million people, the report said.

According to a research, the food industry is touted to be a $78-billion dollar market that’s growing 16 percent yearly, VCs have hurried to place bets in India before it becomes too late. Unsure of which US food tech model may work, they have adopted a spray-and-pray approach.