India’s food services industry expected to surpass $150B by 2030: Redseer
The report highlighted the rapid rise of organised food services, which now make up about half of the market and are expanding faster than unorganised segments.
India’s food services market is on track for substantial expansion, with estimates suggesting it could reach $144-152 billion by 2030, according to a report by Redseer Strategy Consultants.
Currently valued at $80 billion in 2024, the sector is projected to grow at a compound annual growth rate (CAGR) of 10-11% over the next six years, it noted.
The report, titled ‘The Big Bite: Scaling Success in India’s Food Services’, highlighted the rapid rise of organised food services, which now make up about half of the market and are expanding at a faster pace than unorganised segments. Online food delivery, an increasing presence of branded players, and evolving consumer habits in metro and Tier I cities are key drivers of this growth.
Consumers are opting for dining out and food delivery more frequently, influenced by convenience, social factors, and the growing popularity of diverse cuisines, stated the report.
Multi-brand strategies, where a single operator runs multiple brands under one umbrella, are emerging as a preferred model for scalability, allowing businesses to diversify their offerings and mitigate risk. This strategy has enabled companies to optimise meal slots and leverage acquisitions for broader market reach. Cloud kitchens—centralised facilities hosting multiple delivery-only brands—are proving to be an efficient alternative to traditional dine-in restaurants, helping brands scale operations two to three times faster while reducing overhead costs.
“The plug-and-play model of cloud kitchens facilitates scalability, with new brands reaching Rs 100 crore in revenue in as little as two to three years, compared to six to ten years for dine-in-focused brands,” said Rohan Agarwal, a partner at Redseer Strategy Consultants.
Despite the strong growth trajectory, scaling beyond a certain threshold remains a challenge. Redseer’s analysis indicates that only 1-2% of companies in India have surpassed Rs 500 crore in revenue, with multi-brand operators leading the way. However, simply increasing store counts does not always lead to higher profitability, given the constantly shifting consumer landscape.
As the food services industry continues to evolve, businesses that emphasise agility, operational efficiency, and innovation are likely to emerge as leaders in the sector, the report noted.
Founded in 2009, Redseer Strategy Consultants is a Bengaluru-based strategy consulting firm with a global presence. The firm specialises in growth advisory, private equity consulting, and strategic consumer insights, working with industry leaders to navigate digital transformations.
Edited by Kanishk Singh