NRAI: Indian Food Services sector to reach Rs.7.76lakh cr by FY28

According to the latest Food Services Report 2024 by the National Restaurant Association of India (NRAI), India’s food services sector is estimated to grow by 8.1% to reach a size of Rs 7.76 lakh crore by FY28 from Rs 5.69 lakh crore in FY24.

The organised segment of the food services sector is pegged to grow at a CAGR of 13.2% by FY28.

The sector has recovered from the setback of the COVID-19 pandemic during which it shrunk to Rs 2 lakh crore in FY21, down from Rs 4.24 lakh crore in FY20. In FY22, it recovered to reach Rs 4.72 lakh crore, Rs 5.3 lakh crore in FY23 and increased to Rs 5.69 lakh crore in FY24.

According to the report, in FY25, the sector size is estimated to touch Rs 6.13 lakh crore. India will become the third-largest food services market by 2028, overtaking Japan. The US remains the largest global market.

“Despite the setbacks during the COVID-19 pandemic, the food services industry in India is experiencing rapid growth. The post-COVID recovery highlights the resilience of the industry,” NRAI President Kabir Suri said.

He drew the government’s attention to “recognise the socio-economic impact” of the sector and take immediate steps to unlock its full potential.

NRAI said the sector is the second largest employer, with employment of 85.5 lakh in FY24 and is set to increase to 1.03 crore in FY28.