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India's food services market is expected to grow from around USD 90 billion in 2025 to USD 150 billion by 2030, driven by rising consumer demand for convenience, increasing preference for organised dining and the continued expansion of online food delivery, according to a report by Redseer Strategy Consultants.
The report projects the organised food services segment to grow at a 17-18 per cent compound annual growth rate (CAGR) through 2030, significantly outpacing the unorganised market's expected 3-4 per cent growth. Organised players are expected to account for 60-70 per cent of the overall market by 2030, up from 45-50 per cent in 2025, reflecting a steady shift towards branded restaurants and food service chains.
Online Delivery To Capture A Larger Share
Online food delivery is expected to remain one of the biggest growth drivers for the industry. According to the report, the online channel's share of the food services market will increase from 11 per cent in FY26 to 18 per cent by FY31, supported by growing digital adoption and stronger demand from Tier-2 and smaller cities.
Food delivery transactions in Tier-2 and smaller cities have nearly tripled since FY21, while monthly transacting users have risen from around one crore to nearly three crore. New-age food brands now derive nearly 90 per cent of their revenue online, compared with around 50 per cent for legacy restaurant chains, highlighting the growing importance of digital-first business models.
Cloud Kitchens, Premium Brands Seen As Growth Enablers
Despite the sector's rapid expansion, Redseer noted that India's organised food services industry remains underpenetrated. Of more than 1,000 organised food service companies, only around 2 per cent generate annual revenue exceeding Rs 500 crore, indicating significant headroom for brands to scale.
The report said cloud kitchen-led operations, focused menus and premium brand positioning have emerged as key drivers of profitability, allowing food service companies to improve margins while expanding their reach.
Redseer also identified snacks, desserts and beverages as the fastest-growing opportunities across meal occasions. Within beverages, premium tea and coffee chains are expected to outperform the broader market, supported by higher margins and stronger store-level growth.
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