<p> India’s organised food services market is expected to grow by 16 per cent over the next five years and touch $28 billion on the back of changing consumption habits of consumers and emergence of new players in the sector, a report said on Tuesday.<br /><br /></p>.<p>The National Restaurant Association of India (NRAI) in its report said that the size of the total market (organised and unorganised) is $13 billion in 2013 and is expected to grow to $78 billion by 2018. <br /><br />Within this, the unorganised market holds 70 per cent share with an estimated market size of $33.7 billion.<br /><br />The organised market (chain and licensed standlaone outlets) is currently estimated at USD 13 billion and is expected to touch “$28 billion by 2018”, the report, which was released by Commerce and Industry Minister Anand Sharma here, said.<br /><br />“The organised food services market is slated to witness a double-digit growth of 16 per cent over the next five years, spurred by the changing consumption habits of consumers and the emergence of new players in the space,” it said.<br /><br />Pointing out several issues and challenges the industry is facing, it asked the government to address those matters in order to catalyse growth to optimum levels.<br />The report said that food price inflation is a key factor affecting the food services market in India and is impacted by delayed monsoons, economic slowdown and unfavorable demand- supply conditions.<br /><br />“Across all food service formats, food costs (raw materials) account for about 30-35 per cent of the revenues. The perpetual ris in food costs narrows the players’ margins. compelling them to increase menu prices,” it said.</p>
<p> India’s organised food services market is expected to grow by 16 per cent over the next five years and touch $28 billion on the back of changing consumption habits of consumers and emergence of new players in the sector, a report said on Tuesday.<br /><br /></p>.<p>The National Restaurant Association of India (NRAI) in its report said that the size of the total market (organised and unorganised) is $13 billion in 2013 and is expected to grow to $78 billion by 2018. <br /><br />Within this, the unorganised market holds 70 per cent share with an estimated market size of $33.7 billion.<br /><br />The organised market (chain and licensed standlaone outlets) is currently estimated at USD 13 billion and is expected to touch “$28 billion by 2018”, the report, which was released by Commerce and Industry Minister Anand Sharma here, said.<br /><br />“The organised food services market is slated to witness a double-digit growth of 16 per cent over the next five years, spurred by the changing consumption habits of consumers and the emergence of new players in the space,” it said.<br /><br />Pointing out several issues and challenges the industry is facing, it asked the government to address those matters in order to catalyse growth to optimum levels.<br />The report said that food price inflation is a key factor affecting the food services market in India and is impacted by delayed monsoons, economic slowdown and unfavorable demand- supply conditions.<br /><br />“Across all food service formats, food costs (raw materials) account for about 30-35 per cent of the revenues. The perpetual ris in food costs narrows the players’ margins. compelling them to increase menu prices,” it said.</p>