Eating out, meals supply marketplace to hit Rs 10 trillion by way of 2030 – Trade Information

India’s food service industry, currently valued at Rs 5.5 trillion, is on track for a decade of remarkable expansion, according to a new report by Swiggy and Bain & Company.

The report predicts a growth trajectory of 10-12% annually over the next seven years, which would nearly double the market size to a staggering Rs 9-10 trillion by 2030.

This surge encompasses both dining out and delivery, highlighting the growing consumer demand for convenient and flavourful options.

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“The Indian food services market, especially food delivery, has witnessed buoyant growth over the last few years.

“Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth. We are very upbeat about the growth in the coming years”, said Rohit Kapoor, CEO, Food Marketplace, Swiggy.

The report, titled ‘How India Eats’, said penetration of online food delivery has steadily increased, rising from 8% to 12% between 2019 and 2023, representing a 2.8 times growth compared to overall food services.

This rise was accelerated by the Covid pandemic, it added. Online food delivery is estimated to grow at approximately 18% year-on-year, reaching Rs 2.1 trillion over the next seven years. Its market penetration is expected to increase to around 20% by 2030.

The current food service industry (as of 2023) is primarily concentrated in the top 50 Indian cities and caters to upper-middle and high-income segments (making up 70% of consumption), and these areas are likely to remain key markets in the near future, the report said. However, the growth is expected to spill over into tier 2 and beyond cities too.

“There are hundreds of cities across the country with a population of over 1 million. There is a fair amount of wealth there, and they have several similar issues and advantages as big metros do.  You can see an incredible amount of growth happening here, and the next big thing will definitely be food delivery services. These cities will be engines of significant growth for platforms such as Swiggy,” said Samit Sinha, managing partner, Alchemist Brand Consulting.

Gen Z and younger demographics, accounting for 40% of the current consumption, have a stronger tendency to eat out. This trend is expected to accelerate as their purchasing power increases. In fact, the addressable customer base for the Indian food services market is expected to expand by 110 million, growing from the current 320–340 million to approximately 430–450 million by 2030. “This surge will be supported by macroeconomic tailwinds, including rapid urbanisation and a rise in affluence,” the report said.

It noted that for Indian consumers, dining out is currently a special event, with an average of five visits per month. However, this is poised to change, as the report predicts a significant increase to 7-8 times per month by 2030. Several factors are fueling this transformation: the emergence of new dining occasions (like mid-day snacks and late-night meals), and increased accessibility due to the expansion of organised restaurant chains. This trend mirrors developed markets like the US and China, where eating out is driven by convenience, with consumers averaging 25-30 visits per month.

Another data point reveals the diverse palates of Indian consumers. The average customer on online platforms orders from over six restaurants, trying more than three different cuisines in a year. The report noted that across areas, there was stark variation in top dishes and flavours. For instance, Mumbai’s top two dishes were dal kichdi and margherita pizza, while Delhi’s were the McAloo Tikki burger and Pizza McPuff. Bengaluru ordered masala dosa and chicken biryani the most, and Kolkata was most fond of chicken and mutton biryanis.