By Vishnu Sultania, Avinash Singh
The food catering industry in India is a vibrant sector, offering a wide range of culinary services for events, from grand weddings to casual gatherings to airline catering among others, businesses are constantly innovating to meet diverse consumer tastes. With increasing urban disposable incomes, the demand for unique dining experiences is growing, this report explores the current landscape, trends, and opportunities within India’s catering market.
Catering industry can be categorized into the following:
The catering business in India is subject to various regulations to ensure food safety, hygiene, and compliance with local laws such as FSSAI License, Local Health and Safety Regulations etc.
Festivals, Events, Corporates, Industrial, Hospitality, Healthcare, Educational, Sports & Leisure, and Others.
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 organised segment expected to grow at a CAGR of 13.2%
According to the Bain’s report, approximately 70% of food services consumption as of 2023 is concentrated in the top 50 cities and among upper-middle and high-income segments, which are expected to remain demand hotspots in the medium term. However, incremental growth is expected to come from other tier 2 and beyond cities as well.
Currently the catering industry is led by many small and medium size businesses. While after the COVID 19, a shift is being observed. The organised food services market segment is projected to touch 51% ($36.46 billion) of the total $71-billion domestic food service market in 2025, while the unorganised segment will stand at 49%. This can also be observed as per the FSSAI data showing number food establishments in this sector:
Catering sector | 2013 | 2016 | 2021 |
Unorganized Market | 70 % | 67% | 59% |
Organized Standalone | 22% | 23% | 28% |
Chain Market | 5% | 7% | 10% |
Restaurants in Hotel | 3% | 3% | 3% |
India Catering Service market is fragmented with the manifestation of small, medium, and large corporations. Some of the major players includes Sodexo, Compass India, Box8, HungerBox, LSG Sky Chefs, Chartwells Higher Education Dining Services, Canteen.
The Indian food and beverage industry has witnessed healthy growth over the recent years and has illustrated a forward moving approach, resulting in multiple factor that escalates consumption for F&B industry in India. The diagram below depicts the major factors that are contributing to the growth of this industry.
The catering industry in India is evolving, with several key trends emerging are given below:
In summary, the catering industry in India is set for robust growth, fuelled by rising disposable incomes and evolving consumer preferences. With opportunities emerging in organized segments and innovative models like cloud kitchens, stakeholders can navigate challenges effectively to capitalize on this vibrant market.
Vishnu Sultania is the Managing Director at AKMV Consultants, and a financial advisor to United Nations UNDP | vishnu@akmv.co.in | +91 98100 25049 | +91 88519 31474
Avinash Singh is a qualified Chartered Accountant and serving as a Finance Analyst at AKMV Consultants | avinash.singh@akmv.co.in | +91 89291 04081