Will Indian Kitchens Go Away? Nikhil Kamath Invokes Singapore To Reflect On Restaurant Market Back Home
Zerodha co-founder Nikhil Kamath shared insights from his Singapore trip, drawing parallels between Singapore’s dining habits and India’s shifting food consumption trends.
India's obsession with home-cooked meals is undergoing a gradual shift, with the country's foodservice market projected to grow to Rs 9-10 lakh crore by 2030, Zerodha Co-Founder Nikhil Kamath said on Tuesday.
Sharing insights from his recent trip to Singapore, Kamath highlighted how he found that Singaporeans rarely cook at home and many don't have a kitchen, an idea that might shock many Indians.
"I was in Singapore this week; most I met said they never cook at home, and others don't have a kitchen. If India were to follow this trend, investing/opening restaurants would be a massive opportunity, but we don't have restaurant brands that have close to the scale Southeast Asian chains do.
What's different in our consumption behaviour? And will this change say when GDP per capita crosses 5k USD, and labour costs increase? To my restaurateur friends, if one thing could change to make this industry in India thrive, what would that be?" Kamath wrote in a post on X.
Indians Eat 5 Non-Home Cooked Meals A Month
Kamath's post also provided detailed insights into India's eating habits. Citing a report from food delivery platform Swiggy and Bain & Company, he highlighted that Indians consume just 5 non-home-cooked meals per month, one of the lowest rates globally. In comparison, people in China average 33 non-home-cooked meals per month, while those in the US consume 27, and in Singapore, 19.
The post also highlighted that factors like shifting generational dynamics and the rise of 'party culture' are set to fuel non-home food consumption among Indians, taking it to 7-8 days a month by the year 2030.
Indian Food Service Market to Achieve CAGR 10-12% By 2030
The report also projected that by 2030, every fifth non-home-cooked food order will be fulfilled by online delivery, highlighting the potential of India’s food service market.
While the food service market in India is expected to achieve a compounded annual growth rate (CAGR) of 10-12% by 2030, the report also highlighted that 55% of this booming market is unorganised. "Only 30% of the organised food market is chained in India, versus 55% in the US," the post read.
These figures shed light on how chained restaurants made a relatively late entry into the Indian market and are still trailing behind other countries. For example, McDonald's, a popular American fast-food chain, operates only 500 outlets in India, compared to 13,500 in the US and 5,000 in China.
