India Catering Market Outlook to 2028

The catering market in India is influenced by a dynamic landscape shaped by various factors

The catering market in India is influenced by a dynamic landscape shaped by various factors. Given the diverse tastes and preferences within the population, the industry has adapted to meet a wide range of demands. Global and local players contribute to the market, providing a mix of traditional and contemporary culinary experiences.

The market covers corporate catering, institutional catering, event catering, and more, with significant roles played in sectors like corporate events, weddings, and educational institutions. The industry's resilience is evident in its ability to align with changing consumer lifestyles, emphasizing quality, customization, and adherence to stringent food safety standards.

Technological integration, particularly through online platforms, has become integral to the industry, facilitating seamless service. Sustainability is a growing focus, with eco-friendly practices gaining prominence. As India experiences urbanization and economic growth, the catering market is poised for ongoing evolution. Opportunities for innovation, regional diversification, and strategic partnerships are anticipated to shape the industry's future, cementing its dynamic and essential role in the broader food services sector of the country.

India's catering market is a diverse and evolving ecosystem that caters to a variety of needs in corporate, institutional, and event sectors. It encompasses a range of service providers, from global entities to local players, contributing to the diverse culinary landscape. The market thrives on a blend of international standards and local preferences, adapting to the varied tastes of consumers. Innovations in food offerings and personalized services are key drivers of growth in this sector. The dynamic nature of the Indian catering market is shaped by a continuous interplay between global influences and indigenous culinary practices. This results in a lively and extensive ecosystem, providing a broad spectrum of catering solutions to meet the changing requirements of businesses and consumers in the country.

India Catering Market Analysis

India has a large and growing student population across schools, colleges, universities, and coaching centers. With more students pursuing education, the demand for catering services within educational institutions has increased significantly. ​
For instance, in 2021-22, total students enrolled from primary to higher secondary levels stood at 25.6 crore with an increase of 19.4 lakh.

Educational institutions have a much larger student population compared to the number of executives in a workplace, resulting in higher demand for cafeteria services. For instance, there were more than 14 lakh schools in India in 2022.

Additionally, vegetarian ingredients tend to be more cost-effective than meat, which aligns with educational institutions' budget constraints. For instance, a veg thali cost INR 100 whereas non-veg thali cost INR 132 in 2022.

Large hospitals have highest contribution of 64.0% annual meals in 2023 because it handle a significant number of patients, both in-patients and out-patients, resulting in a higher need for catering services to provide meals for a larger population. There were more than 69,000 hospitals (both public and private) in India in 2022.

During weddings and festivals like Diwali, Eid, Christmas, and more, special traditional dishes are prepared and shared. For instance, ~ 32 lakh wedding solemnized across the country in 2022.

Catering services are highly sought after, particularly during lunchtime, especially in corporate offices.

In industrial catering, lunchtime is leading because having lunch provided on-site eliminates the need for employees to leave the premises to find food, saving time and effort. For instance, there were ~14.8 Lakh registered active companies across India as of June 2022.

Key Trends by Market Segment

By Meal Type in Educational Catering: The lunch segment leads the educational catering market with a 62.0% market share in 2023, primarily due to its vital role in meeting students' daily nutritional needs. Educational institutions prioritize providing balanced and nutritious meals during lunch, making this segment crucial. The focus on offering healthy and substantial food options positions the lunch segment as a key factor, contributing significantly to its dominant market share in catering services for educational settings.

By Facility Type in Healthcare Catering: The large hospital segment has the highest market share of 64% in the healthcare catering market in 2023, due to its substantial capacity and the high volume of patients served. These hospitals require consistent and extensive catering services to meet the dietary needs of patients, staff, and visitors. The dominance of the large hospitals segment is rooted in its ability to efficiently cater to a significant number of individuals, making it a central player in healthcare catering.

By Industry Type in Contract Catering: With a substantial 68.0% market share, the industrial segment prevails in the contract catering market, largely driven by its size and consistent demand. Industries, characterized by a sizable workforce, favor contract catering for efficient and professional management of employee meals. The dominance of the industrial segment is rooted in the need for cost-effective, scalable, and well-managed food solutions, making it a key player in the contract catering landscape.

Competitive Landscape

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Market is in growth stage due to factors such as rising disposable incomes, changing lifestyles, urbanization, increasing demand for convenience, diverse dietary preferences.

India Catering Market is fragmented in FY'23 with large number of small and medium players in the market.

The rise of cloud kitchens and virtual catering platforms has added a new dimension to the market, enabling companies to cater to a broader audience without the need for a physical restaurant setup.

The growth of culinary tourism in India has influenced catering services, with companies incorporating diverse regional cuisines to cater to the preferences of tourists and locals alike.

Entry barriers, such as stringent licensing requirements and the need for substantial initial capital, impact the competitive landscape by limiting the entry of new players.

Companies investing strategically in marketing campaigns, social media presence, and promotional activities effectively capture consumer attention, contributing to their competitive positioning in the market.

Future Outlook

Future market size for India Catering market is set for substantial growth from 2023 to 2028.

With an increasing number of students opting for higher education, there is a growing need for catering services in colleges and universities to accommodate the varied dietary preferences of a larger and more diverse student community.

Various future trends in the healthcare catering market include increased use of mobile apps and online ordering, sustainability and eco-friendly practices aligning with the consumer demand for environmentally conscious options.

The growth opportunities for healthcare catering service lie in offering tailored and nourishing meal solutions within healthcare facilities, ensuring patients receive personalized dietary care that complements their medical needs, enhancing the overall healing experience.

By 2028, every fourth German company wants to use India as its R&D center, this indicates strong growth in the corporate market. Increase in number of working women, nuclear families, and health-conscious groups in the corporate world encourages the companies in providing ready-to-eat lunch options, and this trend is expected to continue in the coming years.

The average working hours for companies in India range between 9-10 hours per day, this increases the prevalence of digestive health problems. The population is becoming more aware about such problems and usually prefer easy to digest vegetarian meals during the working hours, fueling the market for vegetarian meals provided by corporate catering players.

By 2030, ~68.0%of the Indian population is expected to reach to fall under the working group, this also indicates the large potential workforce for corporate companies.