India's online food delivery market to grow 18% to 2 lakh crore by 2030, says report

India’s food delivery space is likely to cross ₹2.12 lakh crore by 2030, with a CAGR (compound annual growth rate) growth rate of 18%, according to a joint report by Bain & Company and Swiggy.

The report released on Wednesday indicates that the share of online services in India's food delivery market is expected to increase from 12% currently to 20% over the next seven years.

The study, titled “How India Eats”, mentions that the growth of the online food delivery service is ahead of the wider food services market, which comprises dining out and ordering in. The current value of the food services market is ₹5.5 lakh crore. It is expected to grow at a rate of 10-12% annually over the next seven years and is likely to reach ₹9 lakh to ₹10 lakh crore by 2030.

This growth will be driven by a slew of factors such as robust fundamentals, a growing customer base, a rise in celebratory occasions, and the supply quotient, the report said.

The Indian food services market, particularly in food delivery, has seen robust growth in recent years, said Rohit Kapoor, chief executive officer of Food Marketplace Swiggy. Factors such as increased incomes, digital adoption, enhanced customer experiences, and a willingness to explore new options have all played key roles in this expansion.

The study underscores the growth potential, indicating that the Indian food service market, serving middle and higher-income segments, is expected to grow from ₹4–5 lakh crore currently to approximately ₹10 lakh crore by 2030.

The report said that for Indians, eating out is a special event, with an average of five times per month, which is expected to increase to 7-8 times by 2030.

The survey found that 70% of the food service demand comes from the top 50 cities, from customers who belong to the upper-middle class and high-income segments. Now, a similar growth trajectory will be noticed in tier II cities and beyond.

Another observation made by the study is that GenZ and younger people form 40% of the customer base, which will only grow in the coming years due to their increasing purchasing power.

Swiggy’s rival and online food delivery major, Zomato, reported revenue of ₹12,114 crore in the fiscal year that ended on March 31, 2024, up 71.12% YoY. Shares of Zomato jumped 67.26% on a year-to-date basis, and over 178% in the past year.