The Channel market value (OSP) of the foodservice industry in India reached USD 168,958.33 million in 2024
The indicator recorded a historical growth (CAGR) of 8.90% between 2021 to 2024 and is expected to grow by ...
GlobalData projects the indicator to grow ...
India foodservice market analysis
The overall value of the Indian foodservice profit sector grew between 2015 and 2020. The growth of the profit sector in the Indian foodservice market in recent years has been predominantly driven by an increasing amount of transactions. The period saw a surge in businesses of food-delivery providers, concurrent with the growing demand for takeaways and deliveries. 2020 saw deliveries and takeaways prove to be critical in continuing operations for many foodservice businesses to the expense of those who had not adopted these practices prior to the outbreak. The foodservice industry’s dependence on technology will increase, with technological advancements featuring prominently in every stage of foodservice operations, from supply chain management to delivery.
Quick service restaurants: The COVID -19 pandemic brought significant changes in the operations of quick-service restaurants. Nevertheless, 2020 saw a net reduction in outlets. Over the forecast period between 2020 and 2025, the value will grow, indicating a steep rebound and continued growth for the channel. Contactless dining and take-aways were adopted by leading QSR players, instead of a tangible menu, consumers were asked to scan a QR code on the table to access the menu digitally. Cloud kitchens are expected to proliferate in the post-pandemic period, as operators seek to make delivery more profitable and sustainable, in conjunction with the aggregators who often deliver for them.
Full-service restaurants: FSR is the third largest channel in the Indian profit sector. FSR experienced sizable value growth for the most part of the review period. A booming tourism industry, a growing middle class, rapid urbanization, increasing dual-income households, and the strong affinity for eating out of home amongst millennials has historically fueled this strong growth. Home deliveries played an important role during the pandemic, with more consumers preferring to get their food delivered to their homes, reflecting rising concerns around hygiene.
Coffee & tea shop: The coffee and tea shop channel has seen sales fall between 2015 and 2020. This growth is expected to accelerate toward 2025, primarily due to rising average transaction prices and transaction numbers and a resumption of pre -COVID habits, with a resurgence, particularly in busy urban centers. Although the Indian coffee and tea shop channel remain dominated by independent operators, the leading role played by larger international and local chains makes it one of the more consolidated channels comparatively. The coffee & tea shop's future growth can be attributed to rising demand from the young population, rapid urbanization, business culture, and increasingly western lifestyle.
Pub, club & bar: In 2020, the pub, club & bar channel was the second-largest foodservice profit sector channel. The channel registered a decline between 2015 and 2020 due to the restrictive lockdowns imposed in 2020. However, the channel is expected to rebound and grow during the forecast period. The Indian market is heavily fragmented and dominated by independent operators as there are no major pub, club, and bar chains, with small local outlets a key foundation of the market. The rising demand for craft spirits among young consumers will drive the sales of craft beer in the channel.
Channel future growth highlights
Outlet and transaction growth rates across all profit sector foodservice channels are forecast to accelerate to 2025. However, the forecasts for growth measures will depend on economic factors, which are highly susceptible to change, dependent on the passage of the virus and the current wave of infection. The growth will also depend on operators’ continued dedication to improving and finessing business models, as well as innovating, as has been seen over the last year. QSR will continue to lead the profit sector in terms of outlet growth, leisure is expected to witness the highest growth in transaction numbers during the same period. As travel restrictions have been lifted in many countries only for business and essential travels, a ray of hope emerges for the accommodation and travel foodservice sector that is currently incurring heavy losses.
Operator selling prices (OSP) represent the amount that the consumer spends on food and drinks in foodservice channels, once the foodservice operator has added on any fees and levies, and their margin. This is often known as “retail sales equivalent” and represents the end value of the foodservice market.
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