NRAI Unveils India Food Services Report 2024: Mumbai’s Organized Food Services Sector Leads with ₹55,181 Crores Valuation
The National Restaurant Association of India (NRAI) released the highly anticipated India Food Services Report 2024 (NRAI IFSR 2024) in New Delhi on July 9th. The report, launched in Mumbai along with a special booklet on the city’s food services sector, was presented by Mr Bhushan Gagrani, IAS, Municipal Commissioner of the Brihanmumbai Municipal Corporation (BMC).
The 5th edition of the NRAI India Food Services Report, along with a supplementary report on the Food Services sector in Mumbai, offers comprehensive insights from industry stakeholders and consumers. It explores operational models, investment strategies, dining trends, and sustainability efforts in the sector. The event was attended by the Office Bearers of the Mumbai Chapter of NRAI, including Ms. Rachel Goenka, Mumbai Chapter Head, and Mr. Pranav Rungta, Vice President and National Committee Member of NRAI.
Ms. Rachel Goenka, Chapter Head of NRAI and CEO of The Chocolate Spoon Company Pvt. Ltd., stated, “Mumbai today has the largest number of restaurants in the country. This trend is driven by increasing urbanization, evolving customer tastes, rising demand for efficient food delivery, and significant advancements in food tech. The report shows that Mumbai’s restaurants are leading the way by integrating cutting-edge technologies like AI, robotics, and automation to optimize operations and enhance customer experiences.”
According to the NRAI IFSR 2024, the organized sector of the Mumbai Food Services Industry is valued at ₹55,181 crores, making it the leader among the top 21 cities in the organized food service sector. Mumbai hosts a total of 141,456 restaurants in both the organized and unorganized sectors, with Fine Dining and Casual Dining being the most popular choices.
Mr Bhushan Gagrani, Municipal Commissioner of Mumbai, expressed his enthusiasm, saying, “I extend my heartfelt congratulations to the NRAI and its dedicated members for their remarkable efforts. This report is not merely a compilation of statistics; it provides a visionary path for our thriving food service industry, which is vital to our nation’s economic growth. The passion and dedication of industry leaders have transformed the food service industry into a vibrant and essential part of modern life. From maintaining high standards of hygiene and service to fostering innovation and sustainability, your contributions have been invaluable. Together, we look forward to a future filled with delicious possibilities, continued collaboration, and shared success. Congratulations once again to the entire NRAI team!”
The food services industry has shown remarkable resilience and recovery following the pandemic’s impact, now experiencing several key trends. Consumers are increasingly investing in higher-quality and fine dining experiences, significantly influencing the industry. Moreover, social media platforms have profoundly shaped consumer demand. This report aims to be a credible source of information for all stakeholders, detailing the industry’s size, segments, and growth opportunities. It will guide restaurant owners and operators in understanding the key drivers of business growth, helping them to increase their revenues profitably.
National Data Highlights:
The food services sector is expected to grow at a CAGR of 8.1% during 2024-2028, with the organized sector growing at 13.2%. It is the third-largest industry in India, valued at ₹5.69 lakh crores, contributing 1.9% to India’s GDP, and is estimated to grow to ₹7.76 lakh crores by 2028. The sector’s tax contribution is expected to increase from ₹33,809 crores in 2024 to ₹55,594 crores by 2028. The size of the food services sector is 33.5 times that of the Indian Film Industry, 2.18 times that of the Hotel Industry, and 1.26 times that of the pharmaceutical industry. It is the second-largest employer with 85.5 lakh employees in 2024, estimated to rise to 103.2 lakh by 2028. The organized sector is projected to grow from 43.8% to 52.9% by 2028, with the Casual Dining Restaurants (CDRs) segment holding the largest share at 48%.
India is expected to become the third-largest food services market by 2028, overtaking Japan, and is the second-fastest-growing food services industry globally, after Brazil. The sector contributes 1.4% to the GST collection.
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