Sector Trend Analysis – Food service in India

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

With a population of approximately 1.4 billion and the Gross Domestic Product (GDP) in India was worth US$3.2 trillion in 2021, according to official data from the World Bank. The GDP value of India represents 1.42% of the world economy.

COVID-19 had a strong impact on India especially in 2020 and 2021. Compared with the consumer spending US$55,175,7 million in 2019, consumer spending significantly declined to US$31,353.7 million in 2020, and recovered a little to US$44,289.4 million, but not recovered to the 2019 level.

Compared with pre-pandemic year 2019, consumer spending on the chained full-service restaurants declined to $1,052.4 million and US$1,584.8 million in 2020 and 2021 respectively, and independent full-service restaurants declined to US$4,132.4 million and US$6,376.3 million in 2020 and 2021 respectively.

Compared with pre-pandemic year 2019, consumer spending on the limited-service restaurants declined to US$2,963.0 million and US$4,229.7 million respectively in 2020 and 2021.

Sales of café/bars plummet in 2020 and 2021. The compound annual growth rate (CAGR) growth for Cafés/bars was −3.3% between 2016 and 2021, in which chained cafes/bars was −1.0% and independent cafes/bars was −3.6%. Sales of some subcategories started to rebound in 2022 although the total cafes/bars sales (chained and independent) still lower than the 2019 level.

Sales of self-service cafeteria plummet in 2020 and 2021 due to home seclusion and COVID-19 measures.

With street stalls/kiosks typically located in high-traffic areas, this put these outlets at a distinct disadvantage given the home seclusion seen in 2020.

 

Market overview and consumption trends

With a population of approximately 1.4 billion and the Gross Domestic Product (GDP) in India was worth US$3.2 trillion in 2021, according to official data from the World Bank. The GDP value of India represents 1.42% of the world economy.

Consumer foodservice

COVID-19 had a strong impact on India especially in 2020 and 2021. Compared with the consumer spending US$55,175,7 million in 2019, consumer spending significantly declined to US$31,353.7 million in 2020, and recovered a little to US$44,289.4 million, but not recovered to the 2019 level. In 2022, the consumer spending US$44,289.4 million, almost caught up with 2019 level.

Same wise, the chained consumer spending and independent consumer spending all declined in 2020 and 2021 compared with 2019. But compared with the chained and independent consumer spending in 2016, chained and independent consumer spending in 2021 was higher. That is why the CAGR of chained consumer foodservice was 6.5% and independent cosumer foodservice was 0.2% between 2016 and 2021.

With changes in consumer behaviour accelerated by the pandemic, consumer foodservice businesses are increasingly shifting to contactless payment and delivery options. There are a number of innovations for dine-in, such as Point of Sale (POS) devices, which make food ordering easy with a single click, table reservation through online applications, QR codes for scanning to order food and make payments, etc (Euromonitor 2022).

India Consumer Spending in Foodservice in US$ million, 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Consumer Foodservice by Type 42,729.4 46,763.3 50,978.7 55,175.7 31,353.7 44,289.4 0.7
Chained Consumer Foodservice 3,177.2 3,632.6 4,130.2 4,601.2 2,994.6 4,349.1 6.5
Independent Consumer Foodservice 39,552.2 43,130.7 46,848.5 50,574.5 28,359.1 39,940.3 0.2

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Consumer spending is forecast to increase at a CAGR of 12.1% between 2021 and 2026. Among which chained consumer foodservice will grow 16.2% and independent consumer foodservice will grow 11.7% between 2021 and 2026.

India Consumer Spending in Foodservice in US$ million, 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Consumer Foodservice by Type 44,289.4 54,658.3 61,224.0 66,948.4 72,699.8 78,520.6 12.1
Chained Consumer Foodservice 4,349.1 5,262.2 6,167.0 7,129.7 8,138.8 9,202.6 16.2
Independent Consumer Foodservice 39,940.3 49,396.1 55,057.0 59,818.7 64,561.1 69,318.0 11.7

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Full-service restaurants

Compared with the pre-pandemic year 2019, consumer spending on the chained full-service restaurants declined to US$1,052.4 million and US$1,584.8 million in 2020 and 2021 respectively, and independent full-service restaurants declined to US$4,132.4 million and US$6,376.3 million in 2020 and 2021 respectively. Same situation falls on Asian full-service restaurants (chained and independent), European full-service restaurants (chained and independent), north American full-service restaurants (chained and independent), Pizza full-service restaurants (chained and independent), other full-service restaurants (chained and independent). Sales did not return to the level seen before the pandemic. Full-service restaurants suffer as operating costs increase during the pandemic. In 2022, sales of all categories and subcategories except chained other full-service restaurants rebound to pre-pandemic level.

It is forecast that the foodservice sales will grow at a CAGR of 17.5% between 2021 and 2026 as the COVID-19 dies down and customer choose to enjoy the full service restaurants more often.

Full-service restaurant: Chained full-service restaurant vs. independent restaurant US$ million 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Full-Service Restaurants 7,015.1 7,753.5 8,564.5 9,338.8 5,184.8 7,961.2 2.6
Chained full-service restaurants 1,229.1 1,394.7 1,585.7 1,770.3 1,052.4 1,584.8 5.2
Independent full-service restaurants 5,786.0 6,358.8 6,978.8 7,568.5 4,132.4 6,376.3 2.0
Full-Service Restaurants by Type 7,015.1 7,753.5 8,564.5 9,338.8 5,184.8 7,961.2 2.6
Asian Full-Service Restaurants 6,351.1 6,994.8 7,713.4 8,396.8 4,601.1 7,116.8 2.3
Chained Asian Full-Service Restaurants 565.0 636.0 734.5 828.3 468.6 740.4 5.6
Independent Asian Full-Service Restaurants 5,786.0 6,358.8 6,978.8 7,568.5 4,132.4 6,376.3 2.0
European Full-Service Restaurants 27.7 30.7 33.3 35.7 18.2 29.7 1.4
Chained European Full-Service Restaurants 27.7 30.7 33.3 35.7 18.2 29.7 1.4
North American Full-Service Restaurants 39.9 44.9 49.6 54.3 28.0 46.2 3.0
Chained North American Full- Service Restaurants 39.9 44.9 49.6 54.3 28.0 46.2 3.0
Pizza Full-Service Restaurants 491.5 559.3 628.9 698.3 457.4 641.7 5.5
Chained Pizza Full-Service Restaurants 491.5 559.3 628.9 698.3 457.4 641.7 5.5
Other Full-Service Restaurants 105.0 123.8 139.4 153.7 80.3 126.8 3.8
Chained Other Full-Service Restaurants 105.0 123.8 139.4 153.7 80.3 126.8 3.8

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Full-service restaurant: Chained full-service restaurant vs. independent restaurant US$ million 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Full-Service Restaurants 7,961.2 9,711.2 11,490.0 13,482.8 15,561.6 17,846.7 17.5
Chained full-service restaurants 1,584.8 1,930.8 2,295.5 2,697.5 3,114.7 3,557.8 17.6
Independent full-service restaurants 6,376.3 7,780.4 9,194.6 10,785.3 12,446.9 14,289.0 17.5
Full-Service Restaurants by Type 7,961.2 9,711.2 11,490.0 13,482.8 15,561.6 17,846.7 17.5
Asian Full-Service Restaurants 7,116.8 8,683.4 10,270.5 12,063.5 13,938.4 16,019.1 17.6
Chained Asian Full-Service Restaurants 740.4 903.0 1,075.9 1,278.2 1,491.5 1,730.1 18.5
Independent Asian Full-Service Restaurants 6,376.3 7,780.4 9,194.6 10,785.3 12,446.9 14,289.0 17.5
European Full-Service Restaurants 29.7 36.0 42.3 49.1 56.6 64.5 16.8
Chained European Full-Service Restaurants 29.7 36.0 42.3 49.1 56.6 64.5 16.8
North American Full-Service Restaurants 46.2 57.9 67.4 77.1 86.8 96.4 15.8
Chained North American Full-Service Restaurants 46.2 57.9 67.4 77.1 86.8 96.4 15.8
Pizza Full-Service Restaurants 641.7 788.1 944.0 1,106.0 1,270.5 1,434.4 17.5
Chained Pizza Full-Service Restaurants 641.7 788.1 944.0 1,106.0 1,270.5 1,434.4 17.5
Other Full-Service Restaurants 126.8 145.8 165.8 187.1 209.3 232.4 12.9
Chained Other Full-Service Restaurants 126.8 145.8 165.8 187.1 209.3 232.4 12.9

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Limited-service restaurants

Compared with pre-pandemic year 2019, consumer spending on the limited-service restaurants declined to US$2,963.0 million and US$4,229.7 million respectively in 2020 and 2021. For the chained limited-service restaurants, consumer spending decreased to US$1,664.8 million in 2020 compared with US$2,370.3 million in 2019, but in 2021 rebound to US$2,390.9 million back to 2019 level. For the independent limited-service restaurants, consumer spending decreased in 2020 and 2021 compared with 2019, but in 2022 returned to and surpassed 2019 level.

Over the forecast period, limited-service restaurants are projected to increase at a CAGR of 14.0% from 2021 to 2026, reaching US$8,138.8 million in 2026. All the subcategories grow between a CAGR of 10.7% and 17.9% from 2021 to 2026.

Reverse migration from tier 1 cities during the pandemic, higher disposable incomes, and aspirational buying behaviour in tier 2 and 3 cities gave chained limited-service restaurants an opportunity to expand into these markets (Euromonitor 2022). With increasing per capita GDP, lower unemployment and high consumer confidence, the demand for limited-service restaurants is expected to rise in the forecast years (Euromonitor 2022).

Limited-service restaurant: chained vs. independent limited-service restaurants, US$ million 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Limited-Service Restaurants 3,188.6 3,586.7 3,983.7 4,371.6 2,963.0 4,229.7 5.8
Chained Limited-Service Restaurants 1,557.4 1,817.1 2,096.0 2,370.3 1,664.8 2,390.9 9.0
Independent Limited-Service Restaurants 1,631.3 1,769.6 1,887.8 2,001.3 1,298.1 1,838.7 2.4
Limited-Service Restaurants by Type 3,188.6 3,586.7 3,983.7 4,371.6 2,963.0 4,229.7 5.8
Asian Limited-Service Restaurants 1,741.8 1,902.2 2,041.1 2,173.7 1,418.2 2,010.0 2.9
Chained Asian Limited-Service Restaurants 184.8 212.9 239.6 264.6 177.3 253.7 6.5
Independent Asian Limited-Service Restaurants 1,557.0 1,689.4 1,801.5 1,909.1 1,240.9 1,756.4 2.4
Bakery Products Limited-Service Restaurants 162.2 191.3 216.6 240.2 167.9 242.2 8.3
Chained Bakery Products Limited-Service Restaurants 136.7 163.2 186.1 207.1 146.8 211.7 9.1
Independent Bakery Products Limited-Service Restaurants 25.5 28.0 30.5 33.1 21.2 30.6 3.7
Burger Limited-Service Restaurants 269.9 329.3 398.5 465.5 303.2 463.9 11.4
Chained Burger Limited-Service Restaurants 269.9 329.3 398.5 465.5 303.2 463.9 11.4
Chicken Limited-Service Restaurants 395.3 446.7 504.6 555.0 448.4 610.5 9.1
Chained Chicken Limited-Service Restaurants 395.3 446.7 504.6 555.0 448.4 610.5 9.1
Ice Cream Limited-Service Restaurants 122.8 134.9 145.9 157.3 95.3 140.4 2.7
Chained Ice Cream Limited-Service Restaurants 92.3 103.0 112.8 123.0 75.4 111.3 3.8
Independent Ice Cream Limited-Service Restaurants 30.5 31.8 33.1 34.3 19.9 29.1 −0.9
Latin American Limited-Service Restaurants 3.2 3.7 4.4 5.1 3.9 4.9 8.9
Chained Latin American Limited-Service Restaurants 3.2 3.7 4.4 5.1 3.9 4.9 8.9
Middle Eastern Limited-Service Restaurants 1.7 2.0 2.2 2.4 1.5 1.9 2.2
Independent Middle Eastern Limited-Service Restaurants 1.7 2.0 2.2 2.4 1.5 1.9 2.2
Pizza Limited-Service Restaurants 475.1 558.2 650.0 749.9 509.9 734.9 9.1
Chained Pizza Limited-Service Restaurants 475.1 558.2 650.0 749.9 509.9 734.9 9.1
Other Limited-Service Restaurants 16.6 18.5 20.4 22.5 14.6 20.7 4.5
Independent Other Limited-Service Restaurants 16.6 18.5 20.4 22.5 14.6 20.7 4.5

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Limited-service restaurant: Chained full-service restaurant vs. independent restaurant US$ million 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Limited-Service Restaurants 4,229.7 5,063.5 5,849.8 6,621.0 7,384.3 8,138.8 14.0
Chained Limited-Service Restaurants 2,390.9 2,881.5 3,359.1 3,856.5 4,383.0 4,936.8 15.6
Independent Limited-Service Restaurants 1,838.7 2,182.0 2,490.7 2,764.5 3,001.3 3,202.0 11.7
Limited-Service Restaurants by Type 4,229.7 5,063.5 5,849.8 6,621.0 7,384.3 8,138.8 14.0
Asian Limited-Service Restaurants 2,010.0 2,383.9 2,733.8 3,051.6 3,334.5 3,582.1 12.3
Chained Asian Limited-Service Restaurants 253.7 302.7 355.1 410.3 467.4 525.9 15.7
Independent Asian Limited-Service Restaurants 1,756.4 2,081.2 2,378.7 2,641.4 2,867.0 3,056.2 11.7
Bakery Products Limited-Service Restaurants 242.2 273.7 322.1 367.7 415.8 467.5 14.1
Chained Bakery Products Limited-Service Restaurants 211.7 234.8 278.9 320.5 364.4 411.8 14.2
Independent Bakery Products Limited-Service Restaurants 30.6 38.9 43.3 47.2 51.3 55.7 12.7
Burger Limited-Service Restaurants 463.9 568.1 658.0 756.4 863.8 980.1 16.1
Chained Burger Limited-Service Restaurants 463.9 568.1 658.0 756.4 863.8 980.1 16.1
Chicken Limited-Service Restaurants 610.5 727.0 820.7 912.2 1,009.8 1,115.9 12.8
Chained Chicken Limited-Service Restaurants 610.5 727.0 820.7 912.2 1,009.8 1,115.9 12.8
Ice Cream Limited-Service Restaurants 140.4 178.7 198.9 220.7 243.0 264.7 13.5
Chained Ice Cream Limited-Service Restaurants 111.3 143.2 160.3 178.7 197.8 216.4 14.2
Independent Ice Cream Limited-Service Restaurants 29.1 35.5 38.6 42.0 45.2 48.3 10.7
Latin American Limited-Service Restaurants 4.9 5.7 6.6 7.5 8.4 9.4 13.9
Chained Latin American Limited-Service Restaurants 4.9 5.7 6.6 7.5 8.4 9.4 13.9
Middle Eastern Limited-Service Restaurants 1.9 2.3 2.7 3.1 3.6 4.1 16.6
Independent Middle Eastern Limited-Service Restaurants 1.9 2.3 2.7 3.1 3.6 4.1 16.6
Pizza Limited-Service Restaurants 734.9 900.0 1,079.6 1,271.0 1,471.3 1,677.3 17.9
Chained Pizza Limited-Service Restaurants 734.9 900.0 1,079.6 1,271.0 1,471.3 1,677.3 17.9
Other Limited-Service Restaurants 20.7 24.1 27.4 30.7 34.1 37.7 12.7
Independent Other Limited-Service Restaurants 20.7 24.1 27.4 30.7 34.1 37.7 12.7

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Cafés and bars

Sales of café/bars plummet in 2020 and 2021. The CAGR growth for cafés/bars was −3.3% between 2016 and 2021, in which chained cafes/bars was −1.0% and independent cafes/bars was −3.6%. Sales of some subcategories started to rebound in 2022 although the total cafes/bars sales (chained and independent) still lower than the 2019 level.

With restrictions on movement in most cities and the working from home model gaining popularity, many people, mainly young adults, chose to move back to their home towns. This movement impacted the cafés and bars located in cities, as they lost their target consumer group (Euromonitor 2022).

Over the forecast period, cafés/bars are projected to increase at a 20.1%, reaching US$6,860.6 million in 2026. Although the recovery of cafés/bars is expected to be slower than other consumer foodservice channels, sales of the most categories and subcategories are expected to return to pre-COVID levels in 2023.

Because of the high cost of operation for cafés/bars during the pandemic, many businesses closed down permanently. With the expected reduction in pandemic-related regulations and life getting back to normal, these outlet closures will lead to a huge gap in the market (Euromonitor 2022).

Cafés/bars: chained vs. independent cafés/bars in US$ millions 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Cafés/Bars 3,242.0 3,561.4 3,895.2 4,170.2 2,018.6 2,745.8 −3.3
Chained cafés/bars 358.5 386.7 412.6 423.1 254.4 341.2 −1.0
Independent cafés/bars 2,883.5 3,174.8 3,482.6 3,747.2 1,764.2 2,404.5 −3.6
Bars/Pubs 1,889.3 2,077.3 2,278.3 2,442.3 928.9 1,344.9 −6.6
Chained bars/pubs 26.8 28.5 30.8 33.0 13.4 19.8 −5.9
Independent bars/pubs 1,862.5 2,048.7 2,247.5 2,409.3 915.5 1,325.1 −6.6
Cafés 767.0 838.9 914.7 986.7 613.5 782.7 0.4
Chained cafés 59.9 66.1 72.3 78.6 50.5 65.2 1.7
Independent cafés 707.1 772.9 842.4 908.1 563.0 717.4 0.3
Juice/Smoothie Bars 307.8 345.3 383.2 418.4 280.1 352.7 2.8
Chained juice/smoothie bars 12.4 13.0 13.7 14.2 9.3 13.2 1.3
Independent juice/smoothie bars 295.4 332.3 369.5 404.2 270.8 339.5 2.8
Specialist Coffee and Tea Shops 277.9 299.9 319.0 322.8 196.2 265.5 −0.9
Chained specialist coffee and tea shops 259.4 279.0 295.8 297.3 181.3 243.0 −1.3
Independent specialist coffee and tea shops 18.5 20.9 23.2 25.6 14.8 22.6 4.1

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Cafés/bars: chained vs. independent cafés/bars in US$ millions 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Cafés/Bars 2,745.8 3,655.7 4,504.1 5,337.7 6,129.8 6,860.6 20.1
Chained cafés/bars 341.2 409.8 468.1 528.7 591.2 655.7 14.0
Independent cafés/bars 2,404.5 3,245.9 4,036.0 4,809.0 5,538.6 6,204.9 20.9
Bars/Pubs 1,344.9 1,895.2 2,487.7 3,083.2 3,649.1 4,162.5 25.4
Chained bars/pubs 19.8 27.5 34.6 41.5 48.5 55.4 22.8
Independent bars/pubs 1,325.1 1,867.7 2,453.1 3,041.7 3,600.6 4,107.1 25.4
Cafés 782.7 1,021.9 1,185.5 1,341.8 1,487.4 1,620.2 15.7
Chained cafés 65.2 85.4 99.1 112.4 124.9 136.4 15.9
Independent cafés 717.4 936.5 1,086.4 1,229.4 1,362.5 1,483.8 15.6
Juice/Smoothie Bars 352.7 429.4 482.3 521.5 556.4 592.1 10.9
Chained juice/smoothie bars 13.2 15.5 16.7 17.8 18.7 19.7 8.3
Independent juice/smoothie bars 339.5 413.9 465.5 503.7 537.6 572.5 11.0
Specialist Coffee and Tea Shops 265.5 309.2 348.6 391.2 436.9 485.8 12.8
Chained specialist coffee and tea shops 243.0 281.4 317.7 356.9 399.1 444.2 12.8
Independent specialist coffee and tea shops 22.6 27.7 30.9 34.2 37.8 41.6 13.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Self-service café

Sales of self-service cafeteria plummet in 2020 and 2021 due to home seclusion and COVID-19 measures.

Over the forecast period, self-service cafeteria is expected to see a 9.0% CAGR between 2021 and 2026, reaching US$49.3 million in 2026.

Unlike other channels, such as limited-service restaurants or cafés/bars, self-service cafeterias cannot have an online presence because of its format, which is not suited for takeaway or home delivery (Euromonitor 2022).

Self-service cafeteria: chained vs. independent self-service cafeteria in US$ millions 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Self-Service Cafeterias 33.7 35.0 36.3 37.5 23.4 32.0 −1.0
Chained self-service cafeterias
Independent self-service cafeterias 33.7 35.0 36.3 37.5 23.4 32.0 −1.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Self-service cafeteria: chained vs. independent self-service cafeteria in US$ millions, 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Self-Service Cafeterias 32.0 39.6 42.8 45.1 47.3 49.3 9.0
Chained self-service cafeterias
Independent self-service cafeterias 32.0 39.6 42.8 45.1 47.3 49.3 9.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Street stalls / kiosks

With street stalls / kiosks typically located in high-traffic areas, this put these outlets at a distinct disadvantage given the home seclusion seen in 2020.

The channel remained highly fragmented being dominated by independents, US$29,288.7 million in 2021 compared with US$37,220.0 million in 2019. Chained street stalls / kiosks only represented US$32.1 million in 2021. In 2020, independent street stalls / kiosks saw declined sales at US$21,141.0 million while chained street stalls / kiosks saw only US$22.9 millions, compared with US$37.6 million in 2019.

Over the forecast period, street stalls / kiosks are projected to see a 9.2% CAGR from 2021 to 2026, reaching US$45,625.2 million in 2026.

With the travel industry yet to recover to pre-pandemic levels, street stalls / kiosks is expected to continue to witness recovery moving into the forecast period, with the channel expected to show full current value recovery only in 2023 (Euromonitor 2022).

Street stalls / kiosks: chained vs. independent street stalls / kiosks in US$ million 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Street stalls / kiosks 29,250.0 31,826.6 34,498.9 37,257.6 21,163.9 29,320.8 0.0
Chained street stalls / kiosks 32.2 34.2 35.9 37.6 22.9 32.1 −0.1
Independent street stalls / kiosks 29,217.7 31,792.4 34,463.0 37,220.0 21,141.0 29,288.7 0.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Street stalls / kiosks: chained vs. independent street stalls / kiosks in US$ million 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Street stalls / kiosks 29,320.8 36,188.3 39,337.3 41,461.9 43,576.8 45,625.2 9.2
Chained street stalls / kiosks 32.1 40.2 44.3 47.1 49.8 52.4 10.3
Independent street stalls / kiosks 29,288.7 36,148.1 39,293.0 41,414.8 43,527.0 45,572.8 9.2

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Online vs offline ordering

The online consumer service became very popular after the pandemic started. It increased from 6.3% in 2019 to 9.7% in 2020 and 10.7% in 2021 respectively. The CAGR grew 41.3% between 2016 and 2021 while the offline saw a negative growth −1.9%.

The online café/bars increased from 3.6% in 2019 to 5.7% in 2020 and 6.7% in 2021 respectively. The CAGR grew 68.0% between 2016 and 2021 while the offline saw a negative growth −1.3%.

The online full-service restaurants increased from 15.2% in 2019 to 24.4% in 2020 and 24.7% in 2021 respectively. The CAGR grew 43.9% between 2016 and 2021 while the offline saw a negative growth −4.7%.

The online limited service increased from 22.5% in 2019 to 32.3% in 2020 and 32.4% in 2021 respectively. The CAGR grew 24.1% between 2016 and 2021 while the offline saw a negative growth −5.4%.

The online street stalls / kiosks increased from 2.4% in 2019 to 3.4% in 2020 and 4.1% in 2021 respectively. The CAGR grew 52.3% between 2016 and 2021 while the offline saw a negative growth −0.7%.

It is projected that all online category and subcategories will continue to grow steadily from 2021 to 2026.

Online vs offline ordering breakdown %, 2016 to 2021
Category Type 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Consumer Foodservice by Type Offline 98.1 97.2 95.7 93.7 90.3 89.3 −1.9
Consumer Foodservice by Type Online 1.9 2.8 4.3 6.3 9.7 10.7 41.3
Consumer Foodservice by Type Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Cafés/Bars Offline 99.5 98.9 97.9 96.4 94.3 93.3 −1.3
Cafés/Bars Online 0.5 1.1 2.1 3.6 5.7 6.7 68.0
Cafés/Bars Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Full-Service Restaurants Offline 96.0 94.6 90.5 84.8 75.6 75.3 −4.7
Full-Service Restaurants Online 4.0 5.4 9.5 15.2 24.4 24.7 43.9
Full-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Limited-Service Restaurants Offline 89.0 87.4 83.0 77.5 67.7 67.6 −5.4
Limited-Service Restaurants Online 11.0 12.6 17.0 22.5 32.3 32.4 24.1
Limited-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Self-Service Cafeterias Offline 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Self-Service Cafeterias Online
Self-Service Cafeterias Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Street stalls / kiosks Offline 99.5 98.8 98.2 97.6 96.6 95.9 −0.7
Street stalls / kiosks Online 0.5 1.2 1.8 2.4 3.4 4.1 52.3
Street stalls / kiosks Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Online vs offline ordering breakdown %, 2021 to 2026
Category Type 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Consumer Foodservice by Type Offline 89.3 88.6 87.6 86.3 84.8 84.0 −1.2
Consumer Foodservice by Type Online 10.7 11.4 12.4 13.7 15.2 16.0 8.4
Consumer Foodservice by Type Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Cafés/Bars Offline 93.3 92.4 91.7 91.0 90.6 90.5 −0.6
Cafés/Bars Online 6.7 7.6 8.3 9.0 9.4 9.5 7.2
Cafés/Bars Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Full-Service Restaurants Offline 75.3 73.8 71.8 69.7 67.0 66.8 −2.4
Full-Service Restaurants Online 24.7 26.2 28.2 30.3 33.0 33.2 6.1
Full-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Limited-Service Restaurants Offline 67.6 66.4 65.2 63.3 61.2 60.0 −2.4
Limited-Service Restaurants Online 32.4 33.6 34.8 36.7 38.8 40.0 4.3
Limited-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Self-Service Cafeterias Offline 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Self-Service Cafeterias Online
Self-Service Cafeterias Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Street stalls / kiosks Offline 95.9 95.3 95.1 94.8 94.3 94.1 −0.4
Street stalls / kiosks Online 4.1 4.7 4.9 5.2 5.7 5.9 7.6
Street stalls / kiosks Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Eat-in vs delivery and to-go sales

The consumer service home delivery became very popular after the pandemic started. It increased from 6.6% in 2019 to 10.8% in 2020 and 12.4% in 2021 respectively. Its CAGR grew 44.0% between 2016 and 2021 while the eat-in saw a negative growth −2.5% and takeaway −1.7%.

The cafés/bars home delivery increased from 3.6% in 2019 to 5.4% in 2020 and 6.3% in 2021 respectively. Its CAGR grew 66.0% between 2016 and 2021 while the eat-in saw a negative growth −1.1% and takeaway −1.4%.

The full-service restaurants home delivery increased from 16.2% in 2019 to 29.0% in 2020 and 32.9% in 2021 respectively. Its CAGR grew 50.2% between 2016 and 2021 while the eat-in saw a negative growth −6.9% and takeaway −6.6%.

The limited service restaurant home delivery increased from 23.1% in 2019 to 33.4% in 2020 and 33.5% in 2021 respectively. Its CAGR grew 24.3% between 2016 and 2021 while the eat-in saw a negative growth −4.4% and takeaway −8.8%.

The street stalls / kiosks home delivery increased from 2.6% in 2019 to 3.7% in 2020 and 4.4% in 2021 respectively. Its CAGR grew 49.0% between 2016 and 2021 while the eat-in saw a negative growth −0.9% and takeaway −0.6%.

Eat-In vs Delivery and To-Go Sales, breakdown %, 2016 to 2021
Category Type 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Consumer Foodservice Eat-in 64.2 63.2 62.1 60.7 57.1 56.5 −2.5
Consumer Foodservice Home Delivery 2.0 2.9 4.5 6.6 10.8 12.4 44.0
Consumer Foodservice Takeaway 33.8 33.9 33.3 32.8 32.1 31.1 −1.7
Consumer Foodservice Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Cafés/Bars Eat-in 77.2 77.0 76.5 75.6 73.6 72.9 −1.1
Cafés/Bars Home Delivery 0.5 1.1 2.1 3.6 5.4 6.3 66.0
Cafés/Bars Takeaway 22.3 21.9 21.4 20.8 21.0 20.8 −1.4
Cafés/Bars Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Full-Service Restaurants Eat-in 90.5 88.9 84.5 78.4 66.9 63.4 −6.9
Full-Service Restaurants Home Delivery 4.3 5.8 10.1 16.2 29.0 32.9 50.2
Full-Service Restaurants Takeaway 5.2 5.3 5.4 5.4 4.1 3.7 −6.6
Full-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Limited-Service Restaurants Eat-in 62.7 64.0 62.5 59.1 48.4 50.1 −4.4
Limited-Service Restaurants Home Delivery 11.3 13.0 17.5 23.1 33.4 33.5 24.3
Limited-Service Restaurants Takeaway 26.0 23.0 20.0 17.7 18.1 16.4 −8.8
Limited-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Self-Service Cafeterias Eat-in 94.2 94.0 93.8 93.5 93.4 93.3 −0.2
Self-Service Cafeterias Takeaway 5.8 6.0 6.2 6.5 6.6 6.7 2.9
Self-Service Cafeterias Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Street stalls / kiosks Eat-in 56.6 55.3 54.9 54.7 54.3 54.0 −0.9
Street stalls / kiosks Home Delivery 0.6 1.3 1.9 2.6 3.7 4.4 49.0
Street stalls / kiosks Takeaway 42.8 43.4 43.2 42.8 42.1 41.6 −0.6
Street stalls / kiosks Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Eat-In vs Delivery and To-Go Sales, breakdown %, 2021 to 2026
Category Type 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Consumer Foodservice Eat-in 56.5 57.0 56.7 56.7 56.6 55.8 −0.2
Consumer Foodservice Home Delivery 12.4 12.5 13.7 14.9 16.1 17.6 7.3
Consumer Foodservice Takeaway 31.1 30.6 29.6 28.4 27.4 26.6 −3.1
Consumer Foodservice Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Cafés/Bars Eat-in 72.9 72.6 72.5 72.3 72.5 72.5 −0.1
Cafés/Bars Home Delivery 6.3 7.2 7.9 8.7 9.1 9.4 8.3
Cafés/Bars Takeaway 20.8 20.2 19.5 18.9 18.4 18.1 −2.7
Cafés/Bars Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Full-Service Restaurants Eat-in 63.4 66.9 65.8 65.6 65.5 65.2 0.6
Full-Service Restaurants Home Delivery 32.9 29.2 30.3 30.5 30.7 31.0 −1.2
Full-Service Restaurants Takeaway 3.7 3.9 3.9 3.9 3.8 3.8 0.5
Full-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Limited-Service Restaurants Eat-in 50.1 50.0 49.5 48.0 46.5 46.1 −1.7
Limited-Service Restaurants Home Delivery 33.5 34.7 35.9 37.8 39.9 40.4 3.8
Limited-Service Restaurants Takeaway 16.4 15.2 14.6 14.2 13.7 13.5 −3.8
Limited-Service Restaurants Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Self-Service Cafeterias Eat-in 93.3 93.1 93.0 92.9 92.7 91.4 −0.4
Self-Service Cafeterias Takeaway 6.7 6.9 7.0 7.1 7.3 8.6 5.1
Self-Service Cafeterias Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0
Street stalls / kiosks Eat-in 54.0 53.6 53.3 53.1 52.8 51.3 −1.0
Street stalls / kiosks Home Delivery 4.4 5.4 6.2 6.9 7.8 9.6 16.9
Street stalls / kiosks Takeaway 41.6 41.0 40.5 39.9 39.4 39.1 −1.2
Street stalls / kiosks Total 100.0 100.0 100.0 100.0 100.0 100.0 0.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Consumer foodservice by location

Consumer foodservice through standalone decreased to US$25,459.2 million and US$34,999.0 million in 2020 and 2022 respectively compared with US$43,197.1 million in 2019. Consumer foodservice through leisure decreased to US$846.6 million and US$1,284.4 million in 2020 and 2021 respectively compared with US$1,601.9 million in 2019. Consumer service through retail decreased to US$2,948.6 million and US$4,595.8 million in 2020 and 2021 respectively compared with US$5,558.4 million in 2019. Consumer foodservice through lodging decreased to US$815.2 million and US$1,195.8 million respectively compared with US$1,550.4 million in 2019. Consumer foodservice through travel decreased to US$1,254.1 million and US$2,214.5 million respectively compared with US$3,267.8 million in 2019.

Consumer Foodservice by Location in US$ million 2016 to 2021
Category 2016 2017 2018 2019 2020 2021 CAGR* % 2016-2021
Consumer Foodservice by Location 42,729.4 46,763.3 50,978.7 55,175.7 31,353.7 44,289.4 0.7
Consumer Foodservice Through Standalone 33,949.9 37,005.5 40,145.9 43,197.1 25,459.2 34,999.0 0.6
Consumer Foodservice Through Leisure 1,067.6 1,231.0 1,415.3 1,601.9 846.6 1,284.4 3.8
Consumer Foodservice Through Retail 4,115.5 4,562.1 5,032.7 5,558.4 2,978.6 4,595.8 2.2
Consumer Foodservice Through Lodging 1,217.8 1,309.4 1,427.4 1,550.4 815.2 1,195.8 −0.4
Consumer Foodservice Through Travel 2,378.6 2,655.3 2,957.4 3,267.8 1,254.1 2,214.5 −1.4

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

Consumer Foodservice by Location in US$ million 2021 to 2026
Category 2021 2022 2023 2024 2025 2026 CAGR* % 2021-2026
Consumer Foodservice by Location 44,289.4 54,658.3 61,224.0 66,948.4 72,699.8 78,520.6 12.1
Consumer Foodservice Through Standalone 34,999.0 41,845.0 46,342.8 50,221.8 54,139.6 58,501.8 10.8
Consumer Foodservice Through Leisure 1,284.4 1,953.1 2,318.1 2,654.0 3,053.4 3,321.4 20.9
Consumer Foodservice Through Retail 4,595.8 5,776.9 6,557.1 7,230.4 7,924.3 8,480.2 13.0
Consumer Foodservice Through Lodging 1,195.8 1,530.4 1,720.4 1,887.9 2,057.4 2,226.1 13.2
Consumer Foodservice Through Travel 2,214.5 3,552.8 4,285.7 4,954.2 5,525.2 5,991.1 22.0

Source: Euromonitor 2023

*CAGR: Compound Annual Growth Rate

For more information

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For additional information on the AAHAR - International Food & Hospitality Fair 2023, please contact:

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Resources

  • Euromonitor, 2023
  • Euromonitor March 2022:
    • Country report: Consumer Service in India
    • Country report: Full-service restaurants in India
    • Country report: Limited-service restaurants in India
    • Country report: Cafes/bars in India
    • Country report: Self-service restaurants in India
    • Country report: Street stalls/kiosks
  • World Bank 2022

Sector Trend Analysis – Food service in India
Global Analysis Report

Prepared by: Hongli Wang, Senior Market Analyst

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