Home ／ Insights on entering the Indian market
2026.03.24
India, a massive market of 1.4 billion people. In this country with remarkable economic growth, a new wave of Japanese food business is spreading. Sushi in particular deserves attention. The global sushi restaurant market is expected to grow from $9.52 billion in 2024 to $17.62 billion in 2032 (CAGR 8.0%), with India expected to record the highest growth rate in the APAC region. What potential does the sushi business hold in India, a country with a large vegetarian population and a distinctive food culture?
India's food service market reached about $75 billion in 2025 and is growing 12-15% annually. Japanese restaurants in particular are rapidly increasing in number, centered on Delhi, Mumbai, and Bengaluru, and sushi is one of the most recognized categories of Japanese food. As income levels rise and overseas travel experience increases, demand for "authentic sushi" is growing among the urban middle class and the wealthy.
Three factors underpin the growth of India's sushi market: (1) more frequent dining out due to rising disposable income, (2) a Japanese food boom driven by social media platforms such as Instagram, and (3) the re-evaluation of sushi as a healthy food amid rising health consciousness. Gen Z and millennials in particular have a strong interest in new food cultures and tend to enjoy sushi as an experiential meal.
About 30-40% of India's population is vegetarian, so a strong vegetarian menu is essential for any sushi business. Avocado rolls, cucumber rolls, creative sushi using paneer (Indian cheese), and vegetable tempura rolls are all popular. Maintaining a purely vegetarian preparation line, separate from non-vegetarian items, is also an important point.
Securing a stable supply of fresh seafood is one of the biggest challenges for a sushi business in India. It is difficult to maintain a cold chain in inland cities, which significantly raises costs compared to coastal cities such as Mumbai, Chennai, and Kolkata. Building a food hygiene management system that complies with FSSAI (Food Safety and Standards Authority of India) regulations is also essential.
In India, sushi has an image of being a high-end dish, and fine dining typically costs 2,000-5,000 rupees (about 3,500-8,700 yen) per person. However, to target a broader market, it is essential to develop casual and takeout sushi in the 500-1,500 rupee range. Orders via delivery apps (Swiggy, Zomato) are also surging, making it important to design menus suited for delivery.
Japanese restaurants inside five-star hotels such as Taj Hotels, Oberoi, and ITC Hotels offer high-quality sushi targeting expatriates and affluent consumers. Wasabi by Morimoto (The Taj Mahal Hotel, New Delhi) and Megu (The Leela Palace New Delhi) offer authentic omakase courses and have earned high acclaim.
Casual sushi chains such as Sushi Inc., Kofuku, and YO are expanding stores in urban areas. Formats in mall food courts and QSR (quick service restaurant) style, where sushi can be enjoyed for under 1,000 rupees, are popular among younger consumers.
Since the COVID-19 pandemic, online delivery of sushi has grown rapidly. A low-cost operating model using cloud kitchens (ghost kitchens) is effective in that it can extend service across a wide area while keeping initial investment low.
To succeed in the India market, rather than bringing traditional Japanese sushi as is, localization tailored to India's food culture is essential. Developing sushi that resonates with the Indian palate, such as spicy sushi rolls, curry-flavored sauces, and creative menus using paneer or chutney, is key to success.
A realistic, phased approach is to first establish flagship stores in the three cities of Delhi, Mumbai, and Bengaluru to build brand recognition, then expand into Tier 2 cities such as Pune, Hyderabad, and Chennai. Using a franchise model or master franchise arrangement to leverage local partners' knowledge is also an effective way to expand.
The biggest competitive advantage for Japanese companies is the brand power of being "authentic Japanese taste." By putting "Japanese quality" front and center, such as supervision by a Japanese chef, importing ingredients from Japan (soy sauce, wasabi, vinegar, etc.), and Japanese-style hygiene management standards, companies can differentiate themselves from local competitors.
India's sushi market is a promising one, expected to record the highest growth rate in APAC on the back of rising disposable income, growing health consciousness, and the Japanese food boom on social media. If Japanese companies overcome the challenges of vegetarian options, ingredient sourcing, and pricing, and localize to fit India's food culture, they stand to gain significant business opportunities. By using "Japanese quality" as their weapon and pursuing a phased market entry, they can capture the growth of this massive market.
Three factors are supporting market growth: more frequent dining out due to rising disposable income, a Japanese food boom on social media, and the re-evaluation of sushi amid rising health consciousness. Sushi is one of the most recognized categories of Japanese food. Demand for authentic sushi is growing, centered on the urban middle class and the wealthy.
Since a significant portion of the population is vegetarian, a rich menu is essential. Avocado rolls, cucumber rolls, creative sushi using paneer, and vegetable tempura rolls are all popular. Maintaining a purely vegetarian preparation line, separate from non-vegetarian items, is also an important point.
Securing a stable supply of fresh seafood is a major challenge; it is difficult to maintain a cold chain in inland cities, which raises costs compared to coastal cities. Building a food hygiene management system that complies with FSSAI regulations is also essential. It is important to recognize that the level of difficulty varies greatly by location.
Japanese restaurants inside luxury hotels take a high-end approach targeting expatriates and the wealthy. Casual sushi chains in mall food courts and QSR formats are popular among younger consumers. Since the COVID-19 pandemic, delivery-focused models using cloud kitchens have also been growing.
Rather than bringing traditional sushi as is, spicy sushi rolls, curry-flavored sauces, and creative menus using paneer or chutney are effective. Developing sushi that resonates with the Indian palate is key to success. A balance is required between maintaining Japanese quality and catering to local tastes.
A realistic approach is to first establish flagship stores in the major cities of Delhi, Mumbai, and Bengaluru to build brand recognition, then expand into Tier 2 cities in a phased manner. Using a franchise arrangement to leverage local partners' knowledge is another option. Designing a differentiation strategy centered on authentic Japanese taste is important.
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