Swiggy IPO: How big is India’s food services delivery market compared with US, China?

Team BL Updated - November 08, 2024 at 01:15 PM.

At the end of 2023, India’s food services market was a tenth of China’s and almost one-twentieth of the US’s

 India has a food services market of about $70 billion with food services constituting 9-12% of total food consumption | Photo Credit: JOTHI RAMALINGAM B

The food market varies significantly in size across the U.S., India, and China, with differences in overall market values, food services market percentages, and online food delivery. In 2023, the U.S. food services market was estimated at $1,340 billion, representing 55-60% of the total food consumption, whereas China’s market stood at $750 billion, covering 37-42%. India, on the other hand, has a smaller market at around $70 billion but is growing rapidly, with food services constituting 9-12% of total food consumption.

Online food delivery is another dynamic segment, with the U.S. market reaching $134 billion in 2023 (10-15% of the food services market) and China hitting $184 billion (22-27%). India’s online delivery market, though smaller at $8 billion, is projected to grow to $17-21 billion by 2028, making up 15-17% of the food services market. This shows the U.S. and China are more established, while India’s food market is quickly expanding.

India’s food services market has seen substantial growth in both the organised and unorganised segments.

In 2018, the market was valued at ₹4 lakh crore ($48 billion), with the unorganised segment leading at 60-65% of the market. By 2023, the market grew to ₹6 lakh crore ($70 billion), with the organised sector capturing a larger share at 40-45%. This shift is projected to continue, with the organised sector expected to hold 55-60% by 2028, as the market expands to ₹9.2-9.6 lakh crore ($115-120 billion).

While both sectors have grown in absolute terms, the organised segment has shown faster growth, driven by a higher CAGR.

Source: Swiggy’s red herring prospectus

(This article was generated by AI and was reviewed by a journalist)

Published on November 8, 2024 07:42

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