The Indian food services industry is projected to grow by 10-12% annually over the next seven years, according to the recent “How India Eats” study by Swiggy and Bain & Company. By 2030, the addressable market could expand to 450 million customers. This growth is driven by an expanding customer base, increased eating-out occasions, and more available food options.
The study shows that food consumption in India is diverse and varies by consumer, region, time of day, cuisine, and channel. Seventy percent of consumption occurs in the top fifty cities, but Tier 2 and 3 cities are expected to contribute more in the future. Gen Z and younger people make up 40% of food consumption and are expected to eat out more as they earn more. Consumers enjoy variety, typically trying over three cuisines and six restaurants annually. Mid-meal times like brunch and evening snacks are becoming more popular, creating a need for restaurants to be open during off-peak hours and offer innovative snack options.
The rise of food delivery has increased consumption during new times of the day, such as late nights and special occasions like Mother’s Day. It has also changed how people select their food. Convenience, taste, and price have become significantly more important in choosing where to order from. Food delivery has also increased competition by making discovering and comparing restaurants easier. India’s online food delivery market has grown 2.8 times from 2019 to 2023. This industry is expected to grow at 18% year on year, 1.5 times the growth rate of the Indian food services industry.
To stay ahead, restaurants also need to adapt to trends like increased indulgence and self-love among consumers, preferences for upgraded dining experiences, and the growing use of digital platforms. Key strategies include expanding menu options, exploring new dining occasions, and offering local twists on international cuisines. With the Indian food services market expanding and digital platforms playing a bigger role, there are many opportunities for innovation and growth.
Want to Learn More?
Watch our exclusive webinar featuring Rohit Kapoor, CEO of Swiggy Food Marketplace, and Navneet Chahal, Partner at Bain & Company, as they delve deep into the study’s findings.
