India’s food services market to cross US$125b by 2030

India’s food services market is expected to cross US$125 billion by 2030, driven by the rapid expansion of the organized segment, according to the 2025 edition of Swiggy’s ‘How India Eats’” report, developed in partnership with Kearney.

The market is presently estimated at US$ 78 billion in 2025, up from US% 49 billion in 2019, reflecting robust growth driven by rising incomes, digital adoption, and changing consumer preferences. The 2030 projections mark a 60% absolute growth from 2025. 

The organized sector—led by cloud kitchens, quick-service restaurants (QSRs) and café chains—is growing at twice the pace of the unorganized market and will account for more than 60% of the industry’s overall growth in the years ahead. The sector will expand at a 12-14% compound annual growth rate (CAGR) compared to 5-7% for unorganized players.

Cloud kitchens—currently 2% of the organized food services sector—are expected to grow the fastest at 32-37% annually over the coming years, driven by digital ordering and delivery-led consumption.

Despite India’s rich culinary landscape, food services currently contribute only 1.9% to the country’s GDP, compared with 5% in China and 6% in Brazil, highlighting significant potential for expansion.

Changing consumption  

Rising disposable incomes, digital adoption, and the growing demand for convenience are reshaping how Indians eat. Consumers today are far more adventurous, ordering from a wider range of restaurants and experimenting with new cuisines. The report notes that the average customer now orders from 30% more restaurants and explores 20% more cuisines than in previous years, reflecting an increasingly experimental dining culture.

Interestingly, two contrasting but simultaneous trends are emerging: indulgence and health. Late-night meals—dominated by pizzas, cakes, and soft drinks—have grown nearly three times faster than regular dinner orders, underscoring India’s appetite for convenience-driven snacking. At the same time, there is a noticeable surge in demand for healthier options, with protein-rich, low-calorie, and low-sugar meals increasing at 2.3 times the rate of overall orders.

India is rediscovering its own culinary heritage even as it embraces global tastes. Hyper-regional cuisines such as Goan, Bihari, and Pahari are witnessing growth rates two to eight times higher than mainstream Indian dishes. Traditional beverages like buttermilk and sharbat are also enjoying a renaissance, growing four to six times faster than the broader beverage category. 

This resurgence has prompted international QSR chains to innovate for Indian palates, resulting in offerings like Kala Khatta cold brew at Starbucks and Chilli Guava drinks at McDonald’s. Even tea, the nation’s favourite beverage, has experienced a threefold rise in consumption, supported by the growing reach of digital ordering platforms that connect even small, roadside vendors to new customers.

Global palates  

While Indian consumers are rediscovering regional flavours, they are also embracing international cuisines at an unprecedented rate. The popularity of Korean, Vietnamese, and Mexican dishes has soared, growing 17 times, six times, and 3.7 times, respectively, while cuisines such as Peruvian and Ethiopian have made their entry into the Indian market. 

The shift extends beyond food to beverages: Boba Tea and Matcha Tea have seen 11-fold and fourfold increases in search volumes over the past five years, signalling strong interest among younger, trend-conscious consumers. For India’s urban, globally connected diners, items like sushi, tacos, and Korean BBQ have moved from being exotic indulgences to becoming part of the weeknight dining routine.

Commenting on the findings, Rohit Kapoor, CEO of Swiggy Food Marketplace, said that the food industry has undergone a dramatic transformation in just over a decade. “Expectations on speed are being shaped by quick commerce,” he noted. 

“Our 10-minute delivery service, Bolt, already contributes more than 10 percent of platform orders. Consumers are seeking both affordability in familiar cuisines and novelty through emerging trends like Matcha and Boba Tea. QSRs and cloud kitchens are projected to grow at a CAGR exceeding 17 percent—nearly one and a half times faster than the broader organised food services segment.”

Rajat Tuli, Partner and F&B Lead at Kearney, added that India’s food economy is fundamentally broadening beyond major metros. “Dining-out growth outside the top eight cities is twice as fast as within them, with corporate, industrial, and tourist hubs leading the way,” he said. 

“Gen Z, growing three times faster than other consumer cohorts, is driving demand for innovative experiences—from coffee raves to Instagram-worthy menus. The next wave of leadership in food services will come from businesses that truly understand these new markets and consumers. In delivery, innovation in packaging will play a defining role, becoming as important as the dining experience itself.”