India to be the 3rd Largest Food Service Market by 2028 overtaking Japan: NRAI IFSR 2024
India to be the 3rd Largest Food Service Market by 2028 overtaking Japan: NRAI IFSR 2024

Indian Food Services sector to grow by 8.1% CAGR during 2024-2028, and organized to grow at 13.2%, shared NRAI on its long-awaited India Food Services Report 2024 (NRAI IFSR 2024). 

According to the report, Restaurant is the second largest employer with 85.5 lakh in 2024. The number is also estimated to increase by over 20% by 2028, it added.

“Despite the setbacks during the COVID-19 pandemic, the Food Service Industry in India is experiencing rapid growth. The sector directly employs 85.5 lakh people and contributes Rs 33,809 crore to the Indian Exchequer. The post-COVID recovery highlights the resilience of the industry, highlighting the need for the Government to recognize its socio-economic impact and take immediate steps to unlock the sector’s full potential,” shared Kabir Suri, President, NRAI, Co-Founder & Director, Azure Hospitality.

The 5th edition of the NRAI India Food Services Report provides an in-depth analysis shared by the industry stakeholders and consumer voices. The report delivers valuable insights into operational models and practices, investment strategies, dining trends, and sustainability efforts. 

According to the NRAI IFSR 2024, the Indian Food Services Industry is estimated to be valued at Rs 5,69,487 crores as of FY24. It is projected to grow to Rs 7,76,511 crores by FY28, achieving a CAGR of 8.1% overall, with the organized segment expected to grow at a CAGR of 13.2%.

Speaking on the report, Nitin Saluja, Chairman, Report Steering Committee, NRAI and Founder, Chaayos said, “Over the past five years, the Food Services Industry has undergone significant change, with food delivery increasingly replacing home-cooked meals. This sector is crucial, providing livelihoods for many Indians and supporting those who have migrated to major cities in search of better opportunities, often lacking the time to prepare daily meals. Our report aims to offer unique and valuable insights to our members, establishing itself as the most credible source of information regarding industry size, segments, and growth opportunities.”

The National Restaurant Association of India (NRAI), has also demanded a dedicated ministry at the centre to enable advocacy for faster growth of the sector in the country. Currently, the food services industry has to deal with multiple ministries and departments of the government which delays policy interventions required to enable potential growth of the sector.

“The Food Services Industry in India is evolving rapidly, driven by one of the world's largest young populations, rapid urbanization, greater exposure, and high disposable incomes. Dining out and ordering in has become a popular choice for customers to spend quality time with loved ones, especially during late evenings and dinner times,” added Sagar Daryani, Vice President, NRAI, CEO & Co-Founder, Wow! Momo Foods.

The food services industry has demonstrated remarkable resilience and recovery following the pandemic's impact, now experiencing several key trends. Consumers are increasingly investing in higher-quality and fine dining experiences, significantly influencing the industry. Moreover, social media platforms have profoundly shaped consumer demand. This report aims to be a credible source of information for all stakeholders, detailing the industry's size, segments, and growth opportunities. It will guide restaurant owners and operators in understanding the key drivers of business growth, helping them to increase their revenues profitably.

 
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