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 India's organised food services market may grow at about 10.5 per cent CAGR to $37 billion over during FY20-25, said a report by Kotak Institutional Equities.

Within the organised segment, chains can potentially grow at 13 per cent CAGR to $9.5 billion, capturing 12 per cent share in the overall food services market from 9 per cent at present, it said.

"We expect India's organised food services market to grow at about 10.5 per cent CAGR to $37 billion over FY2020-25E, garnering 46 per cent market share from 40 per cent at present," it said.

"Our bottom-up analysis of the market opportunity for western QSRs (quick service restaurants) across 541 districts in India indicates potential for over 50 per cent store growth by FY2025E."

As per Kotak's city-wise forecast, factors include purchasing power, addressable population, palate preferences, extant QSR penetration, cluster-based expansion and economic viability. Even as western QSRs are widely accepted in India, their penetration and share of the food services market at 3-4 per cent is much lower than in developed markets (over 15-20 per cent), it added.