India Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Foodservice Market is Segmented by Type (Full-service Restaurants, Quick-service Restaurants, Cafes and Bars, and 100% Home Delivery) and Structure (Chained Outlets and Independent Outlets). The report offers the size and forecast for all the above segments in value (USD million).

Market Snapshot

India Foodservice Market Size
Study Period: 2016 -2027
Base Year: 2021
CAGR: 10.51 %
India Foodservice Market Major Players

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Market Overview

The Indian foodservice market is expected to register a CAGR of 10.51% during the forecast period 2022-2027.

Indian consumers, in general, prefer street food varieties at reasonable prices. But the COVID-19 pandemic resulted in a very sharp decline in revenues of street food vendors and for foodservice companies as a whole. The major reason for this decline was because of the importance that was given to cleanliness in light of the COVID-19 pandemic. The strict lockdowns enforced by the government too restricted consumers to their households. There was an opposite effect on the organized food market, which matched the taste, flavor, and expectations of consumers along with the maintenance of hygiene and convenience of delivery. As a result, consumers showed a greater preference for restaurants in the organized food market.

The Indian foodservice market is one of those vibrantly growing markets that has seen exceptional growth during the past decade and is expected to continue to expand rapidly during the forecast period. A high percentage of the young and working population is driving the Indian foodservice market. The availability of organized retail space aids the industry in encouraging the growth of local and international brands across different formats.

The companies operating in the Indian foodservice market are also attracting significant interest from domestic as well as international private equity and venture capital funds. This reflects the growth potential that the market holds.

Scope of the Report

The foodservice market includes businesses that prepare meals outside the home. The scope of the Indian foodservice market includes segmentation of the food services by type and structure. By type, the market is segmented into full-service restaurants, quick-service restaurants, cafes/bars, and 100% home delivery. By structure, the market is segmented into chained outlets and independent outlets. For each segment, the market sizing and forecasting have been done in value terms (USD million).

By Type
Full-service Restaurants
Quick-service Restaurants
Fast Food Restaurants
Street Stalls/Kiosks
Cafes and Bars
100% Home Delivery
By Structure
Chained Outlets
Independent Outlets

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Key Market Trends

Growing Dine-out Habits of Consumers

The Indian food industry is expected to witness significant growth during the forecast period while increasing its contribution to the global food trade every year. Over the past few years, India has witnessed a proliferation of fine dining restaurants, cafes, pubs, bars, clubs, lounges, and international fast-food joints, which cater to the millennial population’s changing food habits. Millennials or Generation Y (people between 18 and 35 years of age) make up about 65% of India's population. They are tech-savvy, constantly exposed to global trends and lifestyles, well-informed, travel widely, and have high spending power. Furthermore, they drive the growth index of restaurants and the foodservice market. Additionally, a high percentage of the Indian population is on the move, migrating to different cities for employment. These trends are further contributing to the growth of the Indian foodservice market.

India Foodservice Market Growth

Quick-service Restaurant Segment Holds Major Market Share

India has observed a significant growth in the quick-service restaurant (QSR) segment in the past 10-15 years. The concept of quick-serving restaurants has been successful in the country due to shorter lead times and quicker food consumption alternatives for consumers. According to FICCI, QSRs have the highest growth rate, followed by casual dining restaurants in the country. QSRs will be driving the growth based on the operating model, where centralized commissaries and a robust supply chain will help in attaining deeper penetration in tier-2 and tier-3 cities. Foreign brands that understand the needs of local consumers and adapt are more successful in India. Pizza Hut has localized its flavor (its newest offering is Biriyani Pizza) and communicates this message through regular marketing. On the other hand, Subway's Chatpata Chana and Chicken Tandoori have a loyal following in the region, and the restaurant also makes an effort to segregate the vegetarian and non-vegetarian serving counters, subject to space constraints.

India Foodservice Market Analysis

Competitive Landscape

The Indian foodservice market is largely competitive and dominated by players in the unorganized sector. The organized sector restaurants are present only in the tier-1 and tier-2 cities in India and cannot cater to the demand from other Indian cities. The organized sector is expected to gain a high market share during the forecast period due to rapid urbanization and expansion of these existing players as chained restaurants. The top international foodservice companies are strongly engaged in innovating their services and strategizing their food menus as per Indian tastes and preferences. Major organized players in the market studied include Westlife Development Ltd and Yum! Brands Inc.

Recent Developments

· In February 2021, KFC India launched an all-new range of Value Burgers with various vegetarian and chicken burgers to choose from, such as Classic Chicken, Classic Veg, Spicy Chicken, and Spicy Veg.

· In January 2021, Westlife Development Ltd, which owns Hardcastle Restaurants, the master franchisee of McDonald's restaurants for western and southern India, announced plans to open three new stores in the same quarter and add 25-40 stores annually from the next fiscal year.

· In December 2020, Domino's Pizza introduced India's first plant-protein-based product, called 'The Unthinkable Pizza.' The pizza is made from plant-based proteins. Domino's latest offering is "100% vegetarian and yet has the sensory properties of chicken," the company said.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Quick-service Restaurants

        1. 5.1.2.1 Fast Food Restaurants

        2. 5.1.2.2 Street Stalls/Kiosks

      3. 5.1.3 Cafes and Bars

      4. 5.1.4 100% Home Delivery

    2. 5.2 By Structure

      1. 5.2.1 Chained Outlets

      2. 5.2.2 Independent Outlets

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Yum! Brands Inc. (KFC)

      2. 6.4.2 Restaurant Brands International (Burger King)

      3. 6.4.3 Tata Starbucks Private Ltd

      4. 6.4.4 Westlife Development Ltd (McDonald's)

      5. 6.4.5 Dunkin' Brands

      6. 6.4.6 Coffee Day Enterprises Ltd

      7. 6.4.7 Doctor's Associates Inc. (Subway)

      8. 6.4.8 Barbeque Nation Hospitality Ltd

      9. 6.4.9 Jubilant Food Works Ltd (Domino's Pizza)

      10. 6.4.10 Connaught Plaza Restaurants Pvt. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The India Foodservice Market market is studied from 2016 - 2027.

The India Foodservice Market is growing at a CAGR of 10.51% over the next 5 years.

Yum! Brands Inc., Westlife Development Ltd., Jubilant Food Works Ltd., Barbeque Nation Hospitality Ltd., Doctor's Associates Inc. are the major companies operating in India Foodservice Market.

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