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The India foodservice market size was worth USD 103.52 billion in 2024 and is estimated to grow from USD 114.40 billion in 2025 to USD 230.63 billion by 2032. The market is projected to grow at a CAGR of 10.53% during the forecast period.
The foodservice market in India has witnessed exponential growth, driven by the rise of cloud kitchens and growing disposable income. Over the past few years, Indians have experienced a spike in disposable income, which has been a key factor in the expansion and transformation of the country’s foodservice industry. Moreover, the surging demand for prepared meals to save cooking efforts and the rising popularity of dine-out culture are further fueling the growth of the India food service market.
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According to the above figure, the increasing women’s employment rate is also a notable factor responsible for the market’s potential.
Rising Consumer Inclination towards Cloud Kitchen is the Current Trend
Cloud kitchens are an emerging and crucial trend in India’s foodservice industry, augmented by the growth of online ordering and changing consumer preferences. In comparison to traditional dine-in cafes/restaurants, virtual kitchens operate with reduced overhead costs by eliminating the requirement for physical outlets. The popularity of cloud kitchens has improved since the COVID-19 pandemic, which pushed foodservice providers to adopt delivery-focused models. Additionally, such kitchens provide operational efficiency and a streamlined supply chain, allowing faster deliveries and improved profitability. Moreover, the use of robotics and artificial intelligence in operations management further enhances scalability and efficiency.
Surging Disposable Income Boosts the Market’s Potential
Growing disposable income is a pivotal factor fueling the India foodservice market growth. With more disposable income, consumers are spending more on out-of-home food at cafes, fast food outlets, and restaurants. Higher personal income supports a hectic lifestyle that prioritizes convenience, resulting in increased demand for ready-to-eat and prepared meal options. Moreover, improved earning power contributes to greater utilization of online food delivery services, which makes it convenient and easier for individuals to access a vast range of food products from their home/workplace.
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Lack of Adequate Infrastructure Hinders Industry’s Potential
One of the major difficulties faced by foodservice operators in India is inadequate infrastructure. The sector struggles with inadequate availability of storage and cold chain facilities, which often leads to significant food loss and spoilage of perishable items. Moreover, unreliable transportation networks and poor quality roads further challenge the efficient transport of finished food items, adding to logistics costs and delivery timelines. Additionally, a few foodservice sectors face hurdles with inconsistent power supply, further forcing them to sustain high costs for electricity backup.
Based on type, the market is segmented into full service restaurants, quick service restaurants, institutes, and others.
Full service restaurants held the highest India foodservice market share. Compared to institutional catering and QSRs, full-time restaurants offer more personalized and complex dishes, appealing to a large consumer base. These restaurants often generate higher revenue, particularly from beverage/alcohol sales and multi-course meals. Moreover, the physical presence of a full-time restaurant aids in building a strong brand identity by offering a flexible and diverse menu to consumers. The quick service restaurant segment is expected to grow at a faster pace, driven by a surge in demand for fast, convenient meals.
Based on service type, the market is trifurcated into dine-in, takeout, and delivery.
The dine-in segment led the Indian market and holds numerous advantages over takeaway/delivery services. Dining out is often viewed as a social activity that needs a physical space. Moreover, the dine-in sector assures control over food quality, whereas delivery and packaging can hamper food presentation and quality. Additionally, diners can easily interact with staff, allowing instant feedback and enhancing customer retention.
The delivery segment is expected to witness the highest growth rate during the forecast period, owing to discounts and offers.
Based on restaurant type, the market is divided into chained and independent.
Independent restaurants lead the India food service market. In comparison to chained restaurants, the independent sector experiments with seasonal specials and local ingredients to create unique fusion dishes. They can easily adapt menus as per market trends and consumer feedback. Moreover, the managers and owners are actively involved on-site, assuring improved attention to consumers’ requirements. Additionally, it provides the option of tailored dishes, whereas a chained restaurant focuses on mass appeal.
The chained restaurants are expected to witness the highest growth rate, due to growing brand recognition.
India is recognized as one of the fastest-growing markets in the foodservice sector. Urbanisation and globalization have influenced the eating habits of Indians, resulting in a diverse culinary landscape that caters to varied lifestyles and flavors. The emergence of bar and cafe culture has captivated the attention of millennials and Gen Z, looking for high-quality food in social settings. Moreover, the surging work-from-home trend boosts the growth of online food ordering services and co-working spaces, which offer accessible food options. Additionally, the growing demand for fast food meals provides convenient access to meals. The growing number of food courts is further propelling the food industry in India.
Café Coffee Day, Jubilant FoodWorks, and Barbeque Nation Hospitality Limited are the active players in the Indian market. Jubilant FoodWorks is one of the largest foodservice companies in India, which offers a wide range of beverages and food products through its portfolio of brands, including Popeye’s, Dunkin', Domino’s, and others.
Other companies with a moderate presence in the market include Rebel Foods, Wow! Momo and Bikanervala, and other small & medium-sized market players. These enterprises are undertaking strategic moves, such as expanding their market presence by opening new outlets and enhancing their menus with innovative items to attract customers.
The report provides a detailed India foodservice market analysis. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growth in food chain outlets and an increase in consumer spending. Besides this, the report also offers insights into the latest India foodservice market trends and the impact of various factors on the food service market.
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ATTRIBUTE |
DETAILS |
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Study Period |
2019-2032 |
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Base Year |
2024 |
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Estimated Year |
2025 |
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Forecast Period |
2025-2032 |
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Historical Period |
2019-2023 |
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Growth Rate |
CAGR of 10.53% from 2025 to 2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
By Type
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By Service Type
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By Restaurant Type
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Fortune Business Insights says that the India market was valued at USD 103.52 billion in 2024.
The market is expected to exhibit a CAGR of 10.53% during the India foodservice market forecast period (2025-2032).
By type, the full service restaurants segment led the market.
Cafe Coffee Day, Jubilant FoodWorks, and Barbeque Nation Hospitality Limited are the leading players in the market.
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