India's Food Services Market To Nearly Double By 2030, Say Swiggy & Bain
The report cited macroeconomic tailwinds, including rapid urbanisation and the increase of purchasing power of GenZ.
India's food services market, which covers dining out and delivery, is poised to grow at 10–12% annually over the next seven years, reaching Rs 9–10 lakh crore by 2030, according to a report by Swiggy and Bain on Wednesday.
The market is currently valued at Rs 5.5 lakh crore and the year-on-year growth will be slightly higher than the 8–9% growth seen so far, the joint report said. This would also mean that the total addressable customer base will grow from about 33 crore users currently to 45 crore users by 2030.
Of the total market, the online food delivery has steadily increased, with penetration rising from 8% to 12% between 2019 and 2023. It is further seen growing at a compound annual growth rate of 18% to about Rs 2 lakh crore, faster than eating out and contributing 20% to the overall food services market by 2030.
The food delivery major and the consulting company cited macroeconomic tailwinds, including rapid urbanisation and the increase of purchasing power of GenZ, who have a higher propensity to not eat at home.
The report compared India, where people eat out an average of five times per month, to US and China, where eating out has moved from purely special occasions to a matter of convenience, with the expansion of organised supply and food delivery growth.
"A trend that mirrors developed markets like the US and China, where eating out is convenience-led and the monthly eating-out frequency is 25–30, thus indicating massive headroom to drive new occasions in India," the report said.
