Growing at 9 per cent, it is projected to reach Rs 599,784 crore by 2022-23, the National Restaurants Association of India (NRAI) said in its India Food Services Report 2019.
"The growth is noticeable at the segment and format levels of the sector," the report said, adding that the organised segment, which holds a 35 per cent share, grew 13 per cent in the last three years and is estimated at Rs 148,353 crore in 2018-19. It is estimated to grow at 15 per cent to Rs 257,907 crore in 2022-23.
Within the organised sector, affordable casual dining restaurants accounted for a whopping Rs 60,255 crore in 2018-19 and fine diners for Rs 2,872 crore with PBCLs (pubs, bar cafes and lounges) and cafes in between at Rs 17,979 crore and Rs 9,370 crore, respectively.
In terms of taxes, the organised sector contributed Rs 18,000 crore in 2018-19 - 12 per cent of the total organised market.
The unorganised sector rose 10 per cent in the past three years to touch Rs 275,512 crore in 2018-19 and is expected to touch Rs 341,877 crore by 2022-23 - a growth of 6 per cent. However, its share is expected to drop to 57 per cent in 2022-23 from the present 57 per cent.
In terms of employment, the organised sector provided jobs to 3.7 million people, or 51 per cent of the total in 2018-19, the unorganised sector to another 3.6 million people (49 per cent) of the total workforce. This is estimated to grow 6 per cent to 9.2 million in 2022-23
In terms of consumer outlook, the report states that the Indian market for non-home cooked food has grown rapidly during the last several years, with the country home to one of the highest millennial polulations (aged 18-35) "whose food habits and tastes are very different from those of previous generations".
"Many of the millennials happen to be tech savvy, independent, career-driven individuals with global exposure, possessing a higher speding capacity. It is this segment which is responsible for the burgeoning market of non-home cooked food with increased frequency (6.6 times a month) and more spends on a monthly basis (Rs 2,500 a month).
"Eating non-home cooked food on weekdays has become a common phenomenon, as opposed to only being a weekend activity. POpularity of North Indian cuisines has also increased over a period of time. Chinese and South Indian cuisines stand second and third respectively in terms of popularity," the report says.
To this end, the food service industry "is intertwined in the social, economic and cultural fabric of India. With its rapid growth over the last few years and a promising future, it supports not only millions of households but multiple allied agencies like real estate, food processing, consulting etc.," it added.