India’s Food Services Market Expected to Reach US$150 Billion by FY31: Report

India’s food services industry is projected to grow to US$150 billion (around ₹14.3 lakh crore) by FY31, up from an estimated US$90 billion (₹7.95 lakh crore) in FY26, driven by rising consumer spending, increasing demand for convenience and the continued expansion of online food delivery, according to a report by Redseer Consulting.

The report estimates that the market has nearly doubled over the past five years, growing from US$56 billion (₹4.16 lakh crore) in FY21 to around US$90 billion in FY26. The sector’s growth is being supported by higher disposable incomes, urbanisation, changing lifestyles and a growing preference for organised dining and digital food ordering.

One of the key trends highlighted in the report is the rapid rise of online food delivery. The online segment is expected to increase its share of the overall food services market from 11 per cent in FY26 to 18 per cent by FY31, reflecting changing consumer behaviour and wider adoption of app-based ordering.

Food delivery volumes have also grown sharply in metro cities, with annual transactions rising from about 300 million in FY21 to more than one billion in FY26. Categories such as snacks, desserts and beverages—including cakes, premium tea and coffee, juices and milkshakes—are witnessing strong demand because they are well suited to online delivery.

The organised food services segment now accounts for nearly 45–50 per cent of the market and is expected to grow faster than the unorganised sector. Consumers are increasingly choosing branded restaurants and food chains for their consistency, quality and convenience, creating opportunities for established operators as well as emerging brands.

Despite the sector’s rapid expansion, the report notes that the organised market remains highly fragmented. Of the estimated 1,000–1,500 organised food service companies operating in India, only around 2 per cent generate annual revenues exceeding ₹500 crore, indicating significant room for consolidation and business growth.

The report also points to strong opportunities for restaurants, cloud kitchens and food-tech platforms as digital adoption accelerates across the country. Continued investment in organised food services is expected to generate employment, support entrepreneurship and further strengthen India’s position as one of the world’s fastest-growing consumer markets.