Food Service Industry to touch Rs 5.99 lakh cr mark by 2022-23, says National Restaurant Association of India
NRAI report says Indian food service industry’s current market size of Rs 4.23 lakh crore is expected to grow at a CAGR of 9% to reach Rs 5.99 lakh crore by 2022-23.
The National Restaurant Association of India (NRAI) has expressed that the Indian food service industry’s current market size of Rs 4,23,865 crore in 2018-19, is expected to grow at a CAGR (Cumulative Annual Growth Rate) of 9 per cent to reach Rs 5,99,782 crore by 2022-23. The announcement has been made in the NRAI India Food Services Report 2019, which was launched by Amitabh Kant, CEO, NITI Aayog. In NRAI IFSR 2019 report - the National Restaurant Association of India’s research study has mapped trends, opportunities and challenges of the restaurant sector in India via a comprehensive compilation of data on India’s food service sector gathered from in-depth interactions with over 130 restaurant CEOs and 3500 consumers across 24 cities in India.
Comparing the Food Sevice Industry with other major industries Rahul Singh, President, NRAI said, “It is the largest industry in the service sector in the country after retail and insurance and is 20-times of the film industry, 4.7x of hotels and 1.5-times of the pharmaceutical sector.” While noting contributions of the Restaurant sector Rahul Singh of NRAI mentioned, “The Indian Restaurant Industry employed 7.3 million people in 2018-19. The organized food service sector, which is only 35 per cent of the total market, contributed a whopping Rs 18,000 crore as a way of taxes in 2018-19. The number is expected to more than double if the unorganised sector becomes organised.”
Amitabh Kant, CEO, NITI Aayog, GOI, while releasing the report and congratulating the NRAI said, “The Food Service industry is evolving rapidly with India being the youngest country with internet and tech-savvy consumer base, having a high disposable income with little time to cook indoors. This is reflected in the number of eating out frequency – an average of 6.6. per month in the country, providing food service players an exciting opportunity to expand.”
Amitabh Kant of Niti Aayog further added, “India is the 7th largest travel and tourism economy in the world according to the World Travel and Tourism Council. Globally, food businesses are being promoted to boost tourism. A similar effort can be implemented in India capitalizing on the diversity that the country has to offer. Food hubs, envisaged as experience centers can serve as places for experiencing local and regional cuisines as part of a larger culture.”
Introducing the trade report to the audience, Samir Kuckreja, Past President and Trustee, NRAI said, “NRAI IFSR 2019 is an in-depth research study which maps out the scale and impact of India’s food services sector. This report is crucial for the industry to garner the necessary support and recognition from the government and its agencies for providing a fillip for consistent and sustained growth.”
While the food services industry has seen steady growth over last three years, the report reveals that the industry has its fair share of roadblocks and challenges like high real estate and manpower costs, inadequate supply chain infrastructure, financing issues and majorly policy formulation. The main aim of the report is to aid entrepreneurs and investors to take informed decisions and unite the industry under one banner.