India’s food service market is expected to reach $75.6 billion by 2028, growing at a CAGR of 11.19 percent from $41.1 billion in 2022, according to the report. Although more than 20 lakh jobs were lost during the CCIDID-19 pandemic, the industry is expected to reach the number of 1 crore employees by 2025, according to 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 sectors with the unorganized sector accounting for the largest share, the report said, adding that the organized sector also grew at a strong rate between 2014 and 2020.
“India’s food service market is expected to grow strongly during the forecast period with an impressive CAGR of 11.19 percent and reach $79.65 billion by 2028,” he said.
It also said that the global market for quick service restaurants (QSR) is estimated to be $ 690.21 million in 2022 and is expected to reach $ 1069.3 million by 2027, growing at a CAGR of 9.15 percent.
Over FY20-25, the QSR chain market is estimated to be the fastest-growing segment – at 23 percent CAGR – in the entire food service market, not just the chain market.
This will be behind large food service giants such as McDonald’s, Burger King, and Domino’s, among others, deepening their reach in the smaller cities of India and benefiting from the younger population.
The report showed that the average household’s annual spending on food restaurants in India’s Tier II and III cities has grown by 108 percent in the last two years, from INR 2,500 to INR 5,400.
In terms of employment, the report said that the food industry in India had a population of 7.3 million by 2021.
“Although more than 2 million jobs were lost during the CCID-19 pandemic, the industry is expected to reach 10 million by 2025,” he said.
The report also showed that due to rising prices, about 55 percent of consumers are eating less or ordering less, while about 40 percent of them are ordering less or ordering less expensive items in their order.
The main challenges of the sector remain the slow supply or lack of basic food or drinks which 96 percent of the workers experienced in 2021 and are likely to continue in 2022-2023, it added.
Follow and connect with us on Twitter, Facebook, Linkedin, Youtube