The report reveals India’s Organized Food Services Market May Reach $37 bn by FY25′

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India’s organized food services market may grow at about 10.5 percent CAGR to $37 billion over during FY20-25, said a report by Kotak Institutional Equities.

Within the organized segment, chains can potentially grow at 13 percent CAGR to $9.5 billion, capturing a 12 per cent share in the overall food services market from 9 percent at present.

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“We expect India’s organized food services market to grow at about 10.5 percent CAGR to $37 billion over FY2020-25E, garnering 46 percent market share from 40 percent at present,” it said.

“Our bottom-up analysis of the market opportunity for western QSRs (quick service restaurants) across 541 districts in India indicates potential for over 50 per cent store growth by FY2025E.”

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As per Kotak’s city-wise forecast, factors include purchasing power, addressable population, palate preferences, extant QSR penetration, cluster-based expansion, and economic viability. Even as western QSRs are widely accepted in India, their penetration and share of the food services market at 3-4 percent is much lower than in developed markets (over 15-20 percent), it added.

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