A recent report by Redseer Strategy Consultants, titled The Big Bite: Scaling Success in India’s Food Services, projects India’s food services market to expand significantly in the coming years. Valued at approximately $80 billion in 2024, the sector is expected to reach between $144 billion and $152 billion by 2030, growing at an annual rate of 10-11%. The report highlights how multi-brand food businesses and cloud kitchens are positioned to capitalize on this booming market. These innovative models offer scalability and flexibility, transforming the traditional dining experience.
According to Redseer partner Rohan Agarwal, cloud kitchens are proving to be a game-changer. Unlike traditional dine-in restaurants, which often take six to ten years to generate significant revenue, cloud kitchen brands can achieve $11.6 million in just two to three years. This model enables businesses to scale faster, optimize costs, and enhance profit margins while staying competitive. He emphasized that success in this evolving industry depends on agility, operational efficiency, and innovation.
The report further reveals that the organized segment of India’s food services market is expanding at a faster pace than the unorganized sector. This surge is largely driven by the rise of online food delivery platforms and the introduction of new brands. Consumers in major metropolitan and Tier-I cities are increasingly opting for takeout or dining out as a convenient alternative to home-cooked meals. Additionally, social dining has gained popularity, with more people viewing restaurant visits as a way to connect with family and friends during special occasions. Trends such as social media influence, pop culture, and a growing appetite for diverse cuisines are also contributing to the rise in dining out.
With these shifts, India’s food services industry is poised for substantial growth, creating opportunities for businesses that can adapt to evolving consumer demands and digital trends.