The National Restaurant Association of India’s India Food Services Report 2019 is a comprehensive accumulation of data on the food service industry in India. With steady growth in the last decade, the food service industry has also seen a consistent evolution in terms of trends, investments, consumer food eating habits and spending capacities. Here are some key takeaways from the recently launched NRAI India Food Services Report 2019.
The Market: The Indian Food Services Industry has seen tremendous growth in the last 3 years, growing at 11% CAGR between 2015 and 2018. The industry is estimated at Rs. 4,23,865 crore in 2018-19 while the predicted increment is Rs. 5,99,784 crore at a CAGR of 9% by 2022-23.
The organised standalone market has a share of 75% with an estimated size of Rs. 1,10,534 crore in 2018-2019. In a further subdivision of the market, ACDR (Affordable Casual Dining Restaurant) is the fastest growing format in the organised food service market with 41% followed by QSR with 22% share. The average spends on non-home cooked food per month, by an individual is estimated at Rs. 2,548. The frequency of eating out has also gone up to 6.6 times a month.
The Consumers: The non home-cooked food market has grown considerably in the last few years. With a large millennial population whose food choices are different and modern, the food service industry has benefitted. People these days eat out not only on weekends but also on weekdays. Consumer are spending on an average of Rs. 2500 per month on non-home cooked food and leading upto 6.6 transactions per month.
The popularity of North Indian cuisine is also high as compared to that of Chinese and South Indian which stand second and third in popularity respectively.
Job opportunities: With a direct impact on employment, the food service industry currently employs 7.3 million people (2018-2019). This figure is supposed to grow to 9.2 million by 2022-2023. The organized food service industry is expected to employ 3.7 million people in 2018-2019, contributing 51% to the total industry workforce.
Tax contribution by F&B (non-liquor) is 38%. Input tax credit contributes 33% followed by liquor with 23%. The organized food service market is estimated at 18,000 crore for 2018-2019 which is 12% of the total market.
Trends: Two dominating trends were noticed. Firstly, the willingness in Indian consumers to experiment with food and secondly, the digital revolution and use of technology in the food service industry.
Challenges: High operational costs are a major challenge due to factors like high real estate costs, high attrition rate, lack of skilled labour, removal of input tax credit etc.
Conclusion: The Indian food service industry is full of opportunities. However, the challenges need to be addressed. In terms of policies, a joint decision between the industry players and the government will bring in constructive solutions. Finally, there needs to be ease of doing business that can fuel growth. The report has more details on consumer behaviour, market trends and other aspects of the food service industry. Buy it here – https://nrai.org/buy-report/