New Delhi
India’s food services market is projected to expand from around USD 90 billion in FY26 to USD 150 billion by FY31, driven by rising consumer spending, online food delivery growth and increasing preference for eating outside the home, according to a report by Redseer Consulting.
The report said the share of online food delivery in the overall food services market is expected to rise from 11 per cent in FY26 to 18 per cent by FY31, reflecting changing consumer habits and wider adoption of digital platforms.
Over the past five years, India’s food services sector has witnessed strong growth, increasing from USD 56 billion in FY21 to nearly USD 90 billion in FY26. During the same period, the online segment’s contribution grew from 4 per cent to 11 per cent.
Redseer said the sector is benefiting from increased demand for convenience, higher spending on dining experiences and the expansion of organised food service brands. Younger consumers, especially in metropolitan and Tier-1 cities, are increasingly opting for outside meals not only for convenience but also for social events and celebrations.
The report highlighted that the organised food services segment currently contributes around 45-50 per cent of the total market and is expected to grow faster than the unorganised segment. However, significant opportunities remain as only a small number of organised companies have achieved large-scale revenues.
Among approximately 1,000-1,500 organised food service companies, only about 2 per cent have crossed revenues of Rs 500 crore, while nearly 89-90 per cent earn less than Rs 50 crore annually.
Online food delivery has emerged as a major growth engine, with transactions in metro cities rising from around 30 crore in FY21 to nearly 106 crore in FY26.
The report identified snacks, desserts and beverages as high-potential categories, with products such as shakes, juices and cakes benefiting from their suitability for delivery. Premium tea and coffee brands are also witnessing strong growth due to better margins and store-level performance.
