India’s foodservice industry is entering its next phase of growth, with the market projected to reach US$150 billion by FY2031, driven by rapid expansion of organized restaurant chains, digital ordering and changing consumer lifestyles.
The forecast comes from a joint report by National Restaurant Association of India (NRAI) and consulting firm Redseer Strategy Consultants, cited by The Economic Times Hospitality.
According to the report, India’s total foodservice market is expected to grow at a compound annual growth rate (CAGR) of around 10–11%, expanding from approximately US$90 billion in FY24 to US$150 billion by FY31.
One of the most notable shifts will be the increasing role of digital commerce.
The report estimates that online food delivery’s share of the total foodservice market will increase from around 11% today to nearly 18% by FY31, reflecting continued consumer preference for convenience-led dining experiences and the expansion of delivery infrastructure into smaller cities.
The organised restaurant segment is expected to outperform the broader market.
While independent restaurants will continue accounting for a significant share of India’s foodservice economy, organised brands—including quick-service restaurants, cafés, cloud kitchens and casual dining chains—are projected to capture a growing proportion of consumer spending through stronger brand recognition, operational consistency and digital capabilities.
The report attributes this transformation to several structural factors.
Urbanization, rising disposable incomes, increasing workforce participation, nuclear family structures and greater exposure to international cuisines are reshaping dining behavior across India. Consumers are also dining out more frequently while simultaneously increasing spending through online ordering platforms.
Tier II and Tier III cities are expected to contribute significantly to future expansion.
Restaurant chains are increasingly targeting these markets as improving infrastructure, shopping centers, digital payments and food delivery networks create favorable conditions for organized foodservice growth beyond metropolitan areas.
