A FICCI – Technopak report ‘Indian Food Services Industry: Engine for Economic Growth & Employment – A Roadmap for Unlocking Growth’, which highlights the overall potential of the food services industry in India and captures the emerging trends in the industry was launched by Pawan Kumar Agarwal, Chief Executive Officer, Food Safety and Standards Authority of India (FSSAI) at ‘Foodzania’, the food service retail conclave organised by FICCI in New Delhi today.
The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The Food Services sector is expected to have generated direct employment for 5.5-6 million people in the financial year 2016, which is expected to increase to 8.5-9 million by the year financial year 2021. Indirect employment has seen a growth at CAGR of 4 percent from 2013-2016 and expected to grow 6 percent till 2021.
Food Services emerge as a key segment in Indian economy. Indian Food Services market in India, organised as well as unorganised, is estimated at Rs 337,500 crore in 2017 and is projected to grow at a CAGR of 10 percent over the next 5 years to reach Rs 552,000 crore by 2022. Two mega metros, Mumbai and Delhi NCR contribute to 22 percent of the overall Food Services market – 11% each – followed by six mini metros – Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad and Kolkata – comprising of 20 percent share in the Food Services market.
Availability of organised retail space is helping in consistent growth of Indian and International brands across different formats. The Indian Food Services market is attracting significant interest from domestic as well as international private equity and venture capital funds. The large number of investments can be attributed to the fact that the Food Services market is a domestic consumption driven story with great growth potential.
Underlining the importance of the Food Services sector Sanjaya Baru, Secretary General, FICCI said, “India’s overall retail opportunity is substantial, and coupled with a demographic dividend – young population, rising standards of living and upwardly mobile middle class – and rising internet penetration; strong growth in retail and e-Commerce is expected. The Indian government’s Make in India, Digital India, and Start-up India project is indeed giving a great stimulus to the Food Services retail sector”.
Saloni Nangia, President, Technopak Advisors said, “Hopefully, the various state and the central governments will provide the requisite policy and fiscal support to enable it – Food Services sector – to grow steadily and thereby make an even bigger positive impact by way of creating more employment and by way of meeting the changing consumer needs more efficiently”