Wednesday, December 3, 2025

More Than Meals: India’s Fastest Growth Is Happening Between the Bites

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R S Roy
R S Roy
R S Roy serves as Editorial Advisor at IMAGES Group

For years, scale in Indian food meant adding more cities, more menus, more kitchens. Now, the fastest growth happens quietly between the bites: a 2 AM cake ordered via Zomato’s peer-turned competitor set, a post-gym smoothie via Blinkit, or a regional favourite in emerging cities like Indore, Madhya Pradesh, India gaining more traction than legacy dinner slots. Whether you run a café corner in a shopping centre or a fast-growing cloud-kitchen cluster, the story is clear: India’s food economy is expanding by occasion, not just consumption.

A USD 125 Billion Food Services Market by 2030 — But the Shape of Growth Matters

  • According to the 2025 edition of “How India Eats,” the 2nd annual study Swiggy, this year in collaboration with Kearney India, Indian food services market (dine-in + delivery + cloud kitchens + QSR etc.) is forecast to cross US$ 125 billion by 2030
  • In 2025, the market is estimated at about US$ 78 billion, up from ~US$ 49 billion in 2019. 
  • Importantly: the organized segment (platforms, branded QSRs, cloud kitchens) is growing at twice the pace of the unorganized sector, and is expected to overtake the unorganized segment before 2030. 
  • That implies more than just volume growth: a structural shift in how Indians consume food — and a huge opportunity for institutional players (restaurants, real-estate owners of food real estate, food-tech, retail, supply chain).

Thus, we’re not just seeing a bigger food-services pie, but a different one: more organized players, brands, and consumption occasions.

From Biryani to Boba: Culinary Curiosity, Rediscovery and Duality

One of the most striking findings: food preferences are diversifying in opposing yet complementary ways — global curiosity and regional rediscovery are rising in tandem.

  • According to “How India Eats,” there’s been a 20% increase in the number of unique cuisines ordered per customer, and a 30% increase in the number of restaurants ordered from per customer. 
  • On the “global cuisine” front: Korean food demand has grown 17×, Vietnamese 6×, Mexican ~3.7–4× (various reports cite ~4×). 
  • On the “heritage / hyper-regional” side: cuisines such as Goan, Bihari, Pahari — long underrepresented — are now growing 2–8× faster than “mainstream” cuisines. 
  • Drink preferences reflect this duality too: local beverages like buttermilk, sharbat, traditional drinks are seeing growth at 4–6× compared with overall beverage category; meanwhile, global-style beverages like Matcha and Boba tea have seen search interest surge by 4× and 11× over the past few years respectively. 
  • On top of that, “indulgence” and “health-conscious eating” are growing simultaneously — not substituting each other. For instance: healthy / “better-for-you” meals are reportedly growing at 2.3× the rate of overall orders. 

Implication: The modern Indian consumer is embracing a hybrid palate — craving both comfort & nostalgia (local/regional) and novelty/global (international cuisines). For restaurants/QSRs/food-tech, it means portfolios need to balance — maybe a regional-heritage menu alongside global fare, or curated offerings for “health” and “treat” segments.

The “New Occasion” Framework: Late-Night, Mid-Week, Tier-2/3 & Beyond Metros

The report — and some corroborating data — point to a fundamental shift in when, where and how India eats out / orders in.

  • Late-night meals are reportedly growing at a rate of roughly 3× that of dinner
  • The fastest-growing late-night categories: pizzas, cakes, soft drinks — suggesting snacking / indulgence post-midnight is becoming mainstream. 
  • At the same time, “healthy / better-for-you” meals are rising fast (as above). 
  • Beyond metros: demand growth in Tier-2 and Tier-3 cities (and beyond Top-8) is now twice that of the top 8 cities (metros). 
  • Demographic drivers: younger consumers (Gen Z), who are more experimental, social-media–savvy, and open to global cuisines and “Instagram-worthy” experiences — are reportedly growing faster than other age cohorts in the dining-out segment. 

Implication: Food businesses — QSRs, cloud kitchens, ghost kitchens, even quick-commerce / convenience delivery — cannot focus just on metro dinner/ lunch demand. The “occasion stack” has expanded: late-night, mid-week, value meals, healthier options, regional & global fare — in smaller cities too.

For investors and landlords: food real estate value may shift — spaces that cater to late-night, snack/ dessert, quick-service, and tier-2/3 demand could see disproportionate growth compared with traditional full-service dine-in only outlets.

Quick Commerce + Cloud Kitchens: The Acceleration Engine

The shift is not just in what people eat — but how they order and when. The report points to a rising role for quick-commerce and instant-fulfilment.

  • The quick-commerce arm of Swiggy — Swiggy Bolt — now apparently contributes over 10% of all orders on the platform. 
  • For many brands on Bolt, quick-commerce is already “dominant,” especially in demand-dense categories like snacks, desserts, beverages — and even late-night consumption. 
  • This suggests a continuing shift from dine-in and classical food delivery toward “instant, on-demand” food and beverage consumption — anytime, anywhere.

Implication: Cloud kitchens, dark kitchens, QSRs optimized for quick consumption & delivery — especially in snack, dessert, beverage, light meal categories — stand to benefit disproportionately. For real estate (mall food courts, high-street quick-service corners), there may be renewed value in small footprint, high-turnover formats.

The New Competitive Arena: Value, Premiumisation & Packaging Innovation

Another dimension the report highlights: a tension (or balance) between value-led consumption (especially in “familiar” cuisines) and premiumisation/ experimentation.

  • For traditional/familiar cuisines (Indian, Italian, etc.), there’s “tilt toward lower price bands” — signalling that consumers are being value-conscious even as dining out becomes more frequent. 
  • On the other hand, there’s “steady premiumisation” in cuisines such as Mughlai, American, South-Indian gourmet, and in global cuisines — meaning there is rising demand for tastier, curated, experience-led food. 
  • Packaging and delivery-experience are becoming a differentiator: examples include “butterfly burger boxes that unfold into plates,” or “slow-cooked biryani delivered in earthen handis” — reflecting that delivery packaging is increasingly being designed as part of the “dining experience.” 

Implication: Players who combine value with experience — e.g., affordable comfort food with aspirational packaging/brand narrative — will have an edge. Also opens opportunities for cloud kitchens and QSRs to differentiate not just on menu, but on delivery-experience and convenience.

What This Means for Key Stakeholders

Here’s a quick breakdown of what these trends mean — and what the winning playbook might look like — for different stakeholder groups:

Why This Report Matters — And What to Watch Out For

  • The forecast to US$ 125B by 2030 signals that India’s food-services market still has deep structural headroom — especially compared to peer economies (organized segment’s share of GDP is currently low: ~1.9% vs 5–6% in Brazil/China). 
  • The simultaneous rise of “comfort/regional” + “global/experimentational” eating suggests that Indian food culture is becoming more heterogenous — opening space for niche, differentiated food concepts rather than just mainstream or premium.
  • Food consumption is evolving into a 24×7, multi-occasion phenomenon — not limited to main meals, dine-in occasions or weekends. That materially expands the value of convenience, speed, and affordability.
  • The growth of quick commerce and delivery-led consumption — especially in “snacking / beverage / late-night” — could reframe the competitive battlefield.

But there are also challenges, or at least questions to examine:

  • Will supply-side (kitchens, delivery partners, quality, packaging) be able to scale at the same pace as demand — without compromising margins or service?
  • As smaller cities drive the next wave, will infrastructure (logistics, delivery density, kitchen quality, supply chain) be robust enough for consistent consumer experience?
  • As competition intensifies (cloud kitchens, QSRs, FMCG meal-kits, restaurants), will brand differentiation and consumer loyalty become harder — meaning only those with tight cost control, execution, and brand identity will win?

What’s Next — The Strategic Playbook for 2026–2030

Based on the data and directional shifts, here’s what food-sector players should ideally be doing now:

  1. Build “menu portfolios” not just restaurants — hybrid menus combining regional comfort, global curiosity, health-forward & indulgent options; dynamically switching per city / consumer segment.
  2. Lean into quick-commerce, small formats and cloud-kitchen models — especially for late-night, snacking, beverage, dessert, convenience meals.
  3. Use data (city, time, consumption patterns) to segment & localise offerings — Tier-2/3 vs metros, young vs older, weekday vs weekend, lunch vs late-night.
  4. Invest in packaging & “delivery as experience” — delivery must go beyond just food-on-box; premiumisation & unboxing experiences will matter.
  5. Tap health / wellness demand — high-protein meals, better-for-you options, dietary conscious offerings can ride the rising preference for nutrition and wellness.
  6. Rethink real estate strategy — smaller footprint, high-turnover formats may outperform sprawling dine-in outlets. Mall owners and landlords need to re-evaluate yield per sq ft vs occupancy cost.
  7. Position for scale — but don’t lose nimbleness — in a fast-evolving market, agility, menu relevance, and cost-efficient supply chain will be as important as scale.

A Market in Flux — But the Direction Is Clear

The 2025 edition of “How India Eats” captures a moment of transformation for Indian food culture and commerce. The old dichotomies — dine-in vs delivery, metro vs small-city, regional vs global, indulgence vs health — are collapsing. A new food-economy is emerging: fluid, hybrid, convenience-driven, data-educated and expansive.

For those who read the signals right — be they cloud-kitchen entrepreneurs, QSR chains, FMCG brands, real-estate owners or investors — the next five years offer a once-in-a-generation opportunity. But success will depend on understanding the nuance: catering to multiple occasions, consumer moods, price-points, geographies and formats — not just replicating legacy models.

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