Press Release

India Food Service Market to Grow with a CAGR of 11.29% through 2029

India food service market's growth is driven by a confluence of factors, including the demographic dividend and urbanization, digitalization and delivery services, and the exploration of diverse culinary experiences.


According to TechSci Research report, “India Food Service Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029”, the India Food Service Market stood at USD42.5 billion in 2023 and is anticipated to grow with a CAGR of 11.29% in the forecast period, 2025-2029. The India Food Service Market is a dynamic and rapidly evolving sector that plays a pivotal role in the country's culinary landscape and economy. From street food vendors and traditional eateries to international restaurant chains and gourmet establishments, this industry encompasses a wide range of dining experiences that cater to diverse tastes and preferences.

India's youthful population, with a median age of around 28 years, has a significant impact on the food service industry. A rising number of young professionals and urban millennials are inclined towards dining out, ordering food online, and exploring diverse cuisines. This demographic shift has led to a surge in demand for food services across the country.


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India's urban centers are expanding rapidly, with a significant influx of people into cities in search of better employment opportunities and improved lifestyles. Urbanization has resulted in changing dietary habits, with an increased preference for convenience and a wide variety of dining options. This has created a thriving market for restaurants, cafes, and fast-food outlets.

As the Indian economy continues to grow, there has been a notable increase in disposable income levels among urban consumers. This has translated into a willingness to spend on dining experiences, both in terms of quality and quantity. Consumers are now more open to exploring upscale restaurants and premium dining experiences.

India's rich cultural heritage, diverse landscapes, and historical attractions make it a popular destination for both domestic and international tourists. Tourism contributes significantly to the food service sector, with travelers seeking authentic Indian cuisine and international dining experiences. This has driven the growth of restaurants and eateries in tourist hotspots.

The proliferation of smartphones and the availability of high-speed internet have revolutionized the way Indians order food. Online food delivery platforms have gained immense popularity, making it convenient for consumers to access a wide range of food options from the comfort of their homes. This digital transformation has opened up new avenues for food service providers.

The market is highly competitive, with a plethora of dining options available to consumers. From small street food vendors to international restaurant chains, businesses in the food service industry must constantly innovate and differentiate themselves to stand out and attract patrons. Additionally, maintaining consistent quality and hygiene standards is a challenge, especially for small and unorganized food vendors. Ensuring food safety and adherence to regulations can be a daunting task, particularly in crowded urban areas. Additionally, the food service industry is subject to a complex web of regulations, which can vary significantly from state to state and even from city to city. Obtaining licenses, permits, and adhering to hygiene and safety norms can be a bureaucratic challenge for entrepreneurs.

The COVID-19 pandemic exposed vulnerabilities in the food supply chain. Lockdowns and restrictions disrupted the procurement of ingredients and created logistical challenges for restaurants and delivery services. Businesses have had to adapt to these disruptions. Furthermore, inflation, increased real estate prices, and the rising cost of ingredients have put pressure on profit margins for food service providers. Balancing affordability for customers while maintaining quality and profitability is a constant struggle.

The rise of online food delivery platforms has transformed the way consumers access food services. Companies like Zomato, Swiggy, and Uber Eats have made it convenient for consumers to order food from a wide range of restaurants, cloud kitchens, and street food vendors. Furthermore, with a growing emphasis on health and wellness, there is a surge in demand for healthier dining options. Consumers are seeking restaurants that offer organic, gluten-free, and plant-based menu items. Many establishments are incorporating healthier choices into their menus.

Consumers are increasingly adventurous in their culinary preferences, leading to a demand for unique and fusion cuisines. Restaurants are experimenting with diverse ingredients and cooking techniques to cater to these evolving tastes. Furthermore, there is a growing awareness of ethical and sustainable dining practices. Consumers are concerned about the sourcing of ingredients, environmental impact, and fair labor practices. Restaurants that prioritize sustainability and transparency are gaining popularity. Additionally, the integration of technology is becoming commonplace in the food service industry. From digital menus and contactless payments to kitchen automation and data analytics, technology is enhancing efficiency and customer experience.

India Food Service market is segmented into market type, type, ownership, brands, and region.

Based on type, the market is segmented into dining service, QSR (quick service restaurants), PBCL, and others. Among these, QSR (quick service restaurants) has a significant share in the India food service market. These establishments, often characterized by their speed and convenience in serving a wide range of food items, have witnessed remarkable growth and popularity across the country.

Based on region, the market is segmented into East, West, North, and South. Among these, the North region has a significant share of the India food service market. The North region is renowned for its rich and diverse culinary traditions. From the delectable Mughlai cuisine of Delhi to the spicy and hearty Punjabi fare, each state within this region offers a unique gastronomic experience. This culinary diversity has led to the proliferation of restaurants, eateries, and street food vendors, each specializing in regional delicacies.


Major companies operating in India food service market are:

  • Jubilant Foodworks Ltd (Domino's, Dunkin Donuts, Hong's Kitchen,Chef Boss, etc.)
  • McDonald's India Private Limited
  • Haldiram Snacks Private Limited
  • Devyani International Limited (KFC, Pizza Hut,Costa Coffee,Vaango, etc.)
  • Burger King India Limited
  • Barbeque-Nation Hospitality Limited
  • Coffee Day Enterprises Limited
  • Tata Starbucks Private Limited
  • Bikanervala Foods Private Limited (BFPL)
  • Subway Systems India Private Limited    


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 “India Food Service Market is a vibrant and dynamic industry that mirrors the changing demographics and preferences of the country. While it faces challenges related to competition, quality control, and regulatory complexities, it continues to thrive and innovate. With evolving consumer trends and the integration of technology, the future prospects of this industry remain bright, making it an exciting and promising sector in the Indian economy.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

India Food Service Market By Market Type (Organized Segment and Unorganized Segment), By Type (Dining Service (Hotels, Restaurants), QSR (Quick Service Restaurants), PBCL (Pubs, Bars, Clubs and Lounges), and Others (Cafeteria, Cloud Kitchen, Catering and Vending)), By Ownership (Standalone Outlets and Chained Outlets), By Brands (Domestic and International), By Region, By Competition Forecast & Opportunities, 2019-2029F, has evaluated the future growth potential of India food service market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India food service market.



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