Food Services Market

India's food service market is expected to reach USD 79.65 billion by 2028, growing at a CAGR of 11.19 per cent from USD 41.1 billion in 2022, according to a report. Despite over 20 lakh jobs lost during the peak of the COVID-19 pandemic, the industry is expected to reach employment figures of 1 crore by 2025, as per the Food Service and Restaurant Business Report 2022-23, by Francorp and restaurantindia.in. The restaurants and food service market in the country is divided into two segments with the unorganised segment accounting for the major share, the report said, adding that the organised sector also grew at a strong rate between 2014 and 2020. "India's food service market is anticipated to project robust growth in the forecast period with an impressive CAGR of 11.19 per cent and reach USD 79.65 billion by 2028," it said. It further said that the country's quick service restaurants (QSR) market is estimated to be USD 690.21 million in 2022 and is expected to reach USD 1069.3 ..

The contraction in the food services industry led to the permanent closure of over 25 per cent of food business operators, which resulted in job losses of nearly 2.4 million in India

Although massively under-penetrated when compared to the US and China, online penetration of food services market in India is set to grow two times by 2025 with the right tailwinds

This comes as restaurants grapple with a 33% patron cap and restricted business hours, something many say will delay recovery

The food services sector is expected to have generated direct employment for 5.5-6 million people in the financial year 2016

It is not without reason that the Indian food services market is considered a sunrise sector. The market, according to the National Restaurant Association of India (NRAI), an apex body of food service operators, and Technopak, is estimated to grow at a compounded annual growth rate of 10 per cent over the next five years. This is ahead of the 7.7 per cent the market registered annually between 2013 and 2016. While a discretionary slowdown is still a challenge for most players, especially, organised players, a robust outlook for the market hints that most remain bullish about food services in the country over the medium to long term