Indian food services market likely to surpass $100 bn by 2028: Report
The Indian organised food services market is expected to double by 2028 from $30 billion to $60 billion, driven by evolving consumer behaviour, according to the report by market intelligence firm Redseer.
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NEW DELHI: The overall food service market in India is likely to surpass $100 billion by 2028, growing at a compound annual growth rate (CAGR) of 8-12 per cent, a report said on Thursday.
The Indian organised food services market is expected to double by 2028 from $30 billion to $60 billion, driven by evolving consumer behaviour, according to the report by market intelligence firm Redseer.
Notably, the organised sector growth is expected to outpace the unorganised segment by 3 times, said the report.
Outside eating behaviour is now more habitual for metro and tier 1 consumers rather than being a luxury, which can be seen by the frequency of outside eating going up by 30 per cent and 20 per cent for students and young adults and mid-lifers, respectively, compared to 2018.
“The Indian food market will need a lot more of mid-sized brands than fewer mega brands owing to the diversity it brings,” said Rohan Agarwal, Partner at Redseer.
In this context, House of Brands (HoBs) has emerged as the most effective strategy for scaling food brands in the country.
The sharing of resources within the HoB strategy also facilitates increased kitchen utilisation and enables better operating leverage such as lower cost of goods sold (COGS), further solidifying their competitive advantage in the market, the report noted.