F&B industry’s push for unprecedented growth in 2025

The F&B industry has seen unprecedented growth in 2024, showing an immense prospect for paramount growth in 2025. The F&B industry estimated at Rs 5,69,487 crore in FY24, is expected to reach Rs 7,76,511 crore by FY28, growing at a CAGR of 8.1 per cent. This data indicates how the future of the sector will pan out.

According to Parth Gupta, Chef and Founder, Cicchetti Italiano, Bloom Cafe and Cakery, and The Lavender Flavours, trends that will dictate the performance of the sector this year include concept-driven dining ie growing preference for restaurants with a strong identity and a clear focus on their cuisine. “In metros like Delhi, multi-cuisine establishments are giving way to specialised, experience-centric spaces. Whether it’s artisanal Italian small plates at Cicchetti Italiano or the premium vegetarian patisserie offerings at Bloom Cafe and Cakery, our brands have thrived by staying true to their unique concepts,” he says.

Then comes increased dine-in culture with a younger demographic embracing social lifestyles and for whom dining out has become a central activity for both convenience and socialisation. “Concert culture and a rise in events have also contributed to increased footfalls at restaurants,” he adds.

Gupta also draws attention towards alcohol sales that have seen significant growth as people adopt it as a way to connect with friends and family. He shares, “At Cicchetti Italiano, our innovative cocktail programme complements our curated cicchetti menu, creating an unparalleled dining experience.” He talks about today’s diners becoming more health-conscious and valuing fresh, high-quality ingredients. “Sustainability is no longer a buzzword but an expectation. At all our establishments, we prioritise sourcing the best ingredients, focussing on seasonal and sustainable produce. This not only ensures quality but also fosters customer loyalty and repeat clientele,” he says.

Offering perspective on the performance of the sector in 2025, Gupta states, “As the chef and founder of Cicchetti Italiano, Bloom Cafe and Cakery, and The Lavender Flavours, I have had the privilege of witnessing first-hand the remarkable evolution of India’s restaurant industry over the past few years. 2024 has been a transformative year, fuelled by digitisation, rising disposable incomes, and a shift toward concept-driven dining.”

Despite the pandemic’s impact, the organised food services segment has grown robustly, clocking a 10.5 per cent growth in FY23 and continuing its upward trajectory in FY24. This resurgence underscores the resilience of the industry and the opportunities it offers for innovative, customer-centric businesses. Puja Sahu, Founder, The Mission Bay, sheds light on how the restaurant industry performed in 2024. “In 2024, the restaurant industry embraced a dynamic evolution, driven by the desire for authenticity and immersive dining experiences. Culinary offerings reflected global inspirations, drawing from the vibrant flavours of Mexico, Japan, Italy, Korea and the Mediterranean, while farm-to-table practices underscored the importance of sustainability and seasonality. Restaurants became cultural storytellers, bridging traditional techniques with modern sensibilities,” she says.

Cocktail programmes also witnessed a remarkable shift, she opines, with intentional mixologists crafting beverages that not only complemented the menu but told their own stories through innovative techniques and locally sourced ingredients. “As we move into 2025, the emphasis will be on creating cohesive, sensory experiences where every element, from the food to the drinks and ambiance, is thoughtfully curated. The future of dining will celebrate bold experimentation, cultural authenticity, and a renewed commitment to sustainability, ensuring that every meal is both memorable and meaningful,” she puts in.

The role of a good beverage programme for any bar and restaurant is the need of the hour. The bartenders are keeping up with the trends and technology used globally but with keeping the Indian palate in mind. On mixology trends, Hemanshu Badola, Mixologist, Vietnom, opines, “Nowadays, people actually go to a bar to try out what’s new in the menu, try something unique and an overall good experience, this is how you have to make sure you have a good selection of cocktails on the menu to keep up with the trends. Many beverage competitions help the restaurant and bar community to see innovation and talent never seen before. It helps others keep up with the trends and try to be on the same page. Now the look, taste, profile of the beverages has totally changed from what it was a year ago, need to support the talent from the owners and encouraging staff members to give out a unique beverage programme that no one has ever seen before and thus how it will make us stronger and better for the upcoming future trends.”

As the sector enters a new chapter, adaptability, consistency and customer-centricity will remain the pillars of success. The future belongs to brands that not only weather economic challenges but also seize the opportunity to lead through innovation and unwavering commitment to their customers. Danny Alagh, Co-founder and CEO, Sandburgs, reflects on the future stating, “As we step into 2025, the industry faces both challenges and opportunities. The current economic conditions and a projected slowdown in GDP growth may lead to a few more subdued quarters. However, consumer preferences continue to evolve, creating opportunities for brands willing to innovate and adapt. Restaurants that prioritise consistency in quality while embracing key trends such as sustainable packaging, customisable menus and tech-driven experiences like AI-powered order personalisation are poised to thrive. The QSR sector is no longer defined solely by speed; it’s about delivering high-quality, memorable dining experiences that balance indulgence, convenience and innovation.”

He adds that despite short-term hurdles, the long-term growth story for the Indian economy remains strong. “With a projected growth rate of 6.5 per cent over the next five years, India is expected to retain its position as the fastest-growing major economy globally. This optimistic outlook presents an exciting landscape for the restaurant industry to innovate, expand, and redefine the dining experience for a new era,” he says.

Harmeek Singh, Director, Bon Mama Café, shares, “In 2025, consumer preferences are anticipated to evolve, with a growing inclination towards fusion and continental cuisines. This shift is driven by globalisation, urbanisation and an expanding middleclass seeking diverse and innovative dining experiences. Fusion cuisine, which blends traditional Indian flavours with international culinary techniques, is expected to gain prominence, reflecting the dynamic and experimental nature of India's gastronomic landscape. This year, we, at Bon mama, will be focussed on catering to the value and quality quotient with options for family members having varied taste/ cuisine liking.”

In 2024, consumers aged 26-35 led the charge, valuing authentic experiences and unique offerings. Toscano embraced this trend with successful openings in Hyderabad and Delhi, with another exciting launch slated for Mumbai in January 2025. This momentum highlights the industry’s ability to adapt to evolving tastes and emphasises the importance of distinctive brand USPs. “Looking ahead, 2025 offers opportunities and challenges alike. Brands must focus on enhancing their core values, delivering consistent quality and fostering trust with their patrons. For Toscano, this means doubling down on authentic Italian cuisine and unmatched customer service. As competition intensifies, embracing innovation while staying true to a brand’s ethos will be the cornerstone of sustained growth in this dynamic market,” elaborates Chef Rohit Tokhi, Toscano.

Vikrant Batra, Founder, Café Delhi Heights, informs, “Looking ahead to 2025, the industry is poised for continued growth, driven by trends such as plant-based cuisine, sustainable practices, digital ordering, and experiential dining.” Reflecting on the year, Rajat Agrawal, CEO, Barista Coffee, states, “We are excited about what’s ahead. More flavours, more experiences, and more connections are on the horizon. Thank you for making this year unforgettable. Here's to many more shared cups and moments together in the year to come!”

The demand for theme cakes has seen remarkable growth of 123 per cent, reflecting how celebrations are becoming more customised and meaningful. Additionally, it has been observed that people are embracing micro-occasions, and finding joy in celebrating even the smallest milestones. “In 2025, the industry is poised for even more exciting developments. Trends suggest a rise in immersive dessert experiences and storytelling through products, creating deeper connections with customers. At Bakingo, we aim to continue delivering not just desserts but cherished moments, crafting every creation with the love and attention that make celebrations unforgettable,” adds Himanshu Chawla, Co-founder, Bakingo.