Food services sector set to reachRs 7.76 lakh crore by FY28: NRAI
   Date :10-Jul-2024

Food services sector
 
 
INDIA’S food services sector is estimatedtogrowby8.1percenttoreach a size of Rs 7.76 lakh crore by FY28 from Rs 5.69 lakh crore in FY24, National Restaurant Association of India said on Tuesday. In its India Food Services Report 2024, the National Restaurant Association of India (NRAI) said the organised segment of the food services sector is pegged to grow at a CAGR of 13.2 per cent by FY28. The sector has recovered from the setback of the COVID-19 pandemic during which it shrunk to Rs 2 lakh croreinFY21,downfromRs4.24lakh crore in FY20. In FY22, it recovered toreachRs4.72lakhcrore,Rs5.3lakh croreinFY23andincreasedtoRs5.69 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 setbacksduring 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 attentionto“recognisethesocio-economic impact” of thesectorandtakeimmediate 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. Thesector’staxcontributionisslated to reach Rs 55,594 crore by 2028, up from Rs 33,809 crore in 2024.
 
The share of the organised segment of the food services sector is estimated to reach 52.9 per cent of theoverallbyFY28from43.8percent in FY24, while that of the unorganisedsegmentis slatedtodropto 47.1 per cent by FY28 from 56.2 per cent in FY24, the report said. NRAI Report Steering Committee Chairman Nitin Saluja stressed the need to have a separate ministry for food services, which can better understandthechallengesofthesector, saying it would enable to push for an agenda for faster growth of the industry.