New Delhi, Jul 3 (IANS): The food services market in India is poised to grow at 10-12 per cent annually over the next seven years, reaching Rs 9-10 lakh crore by 2030, a report showed on Wednesday.

The food services market in India, which encompasses dining out and ordering in, is currently valued at Rs 5.5 lakh crore.

The growth trajectory will be driven by robust fundamentals including an expanding customer base, growing consumption occasions, and a rise in supply, according to the report by Bain & Company and online food aggregator Swiggy.

Additionally, online food delivery is expected to grow faster at 18 per cent CAGR, contributing 20 per cent to the overall food services market by 2030.

“Higher incomes, digitisation, improved customer experience and an inclination to try new experiences have all contributed to this growth. We are very upbeat about the growth in the coming years,” said Rohit Kapoor, CEO, Food Marketplace, Swiggy.

The report suggests that the Indian food service market, catering to middle and higher-income segments, will expand from Rs 4-5 lakh crore at present, to about Rs 10 lakh crore by 2030, Kapoor added.

According to the report, approximately 70 per cent 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.

“By 2030, the market is poised to serve an additional 110 million customers, gradually shifting eating out from a special event into a convenient lifestyle,” said Navneet Chahal, Partner and co-author of the report.