Indian food services market is set to grow at 10 per cent annually to reach Rs 5.52 lakh crore in the next five years, according to a report.

The FICCI-Technopak highlights that the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry.

The food services sector is expected to have generated direct employment for 5.5-6 million people in the financial year 2016, which is expected to increase to 8.5-9 million by the year financial year 2021, it added.

Indirect employment has seen a growth at CAGR of four per cent from 2013-2016 and expected to grow six per cent till 2021.

Further, it pointed out that the food services market in India (organised and unorganised) is estimated at Rs 3.37 lakh crore in 2017.

Mumbai and Delhi NCR contribute to 22 per cent of the overall food services market followed by six mini metros (Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad and Kolkata) comprising of 20 per cent share, the report noted.

High percentage of young and working population which is well travelled have double incomes and more eating out is driving the growth of the market.

Availability of organised retail space is helping in consistent growth of Indian and international brands across different formats, the report said.

The space is attracting significant interest from domestic as well as international private equity and venture capital funds, it added.