How big is India's food delivery market?

India's food delivery market is expected to expand at a high growth rate, making it one of the world's largest growth markets. The growth of the middle-income class and the spread of smartphones and digital payments are supporting this growth.

What is the difference between Zomato and Swiggy?

Zomato is the market leader, with its synergy with the quick commerce service Blinkit as a strength. Swiggy, meanwhile, is built around the instant-delivery service Instamart and the subscription service Swiggy One. Because the two companies account for most of the market, understanding this duopoly structure is essential when entering.

How does ONDC affect the delivery market?

ONDC is an open protocol led by the Indian government, a framework that lets small and medium-sized restaurants run delivery operations without depending on Zomato or Swiggy. For Japanese companies, it is an option for direct sales that avoids the high commissions of the major platforms.

What should be kept in mind when developing menus for delivery?

Because a majority of Indian consumers are vegetarian, clearly separating veg and non-veg is a basic premise. Developing products such as vegetarian ramen or sushi is also key to capturing demand. Designing packaging that looks good on social media increases its appeal to younger consumers.

What kind of entry method is the cloud kitchen model?

It is a method of starting a business in a delivery-only kitchen without a physical storefront. It keeps initial investment down and allows gradual expansion while watching market response, which suits Japanese companies well. Kitchen space can be secured relatively easily in major cities.

When should FSSAI certification be prepared when starting a delivery business?

A delivery business requires FSSAI certification, which takes several months to obtain. If the process is not started from the earliest stage of business planning, the launch schedule can be pushed back. It is realistic to proceed with it in parallel with menu development and platform listing preparations.

SOJAPAN

Services India Market By industry Case Studies Trade Shows Insights News Company Download Materials

Free Consultation →

Home ／ Insights on entering the Indian market

Zomato and Swiggy: Latest Trends in India's Delivery Market and How to Crack It

2026.03.24

Article summary

India's online food delivery market is projected to grow from about $46.34 billion (about 6.9 trillion yen) in 2025 to $269.77 billion by 2034 (CAGR 21.62%). About 63% of users are millennials aged 25-34. Zomato holds 58% share with FY2025 revenue of about 20,243 crore rupees (1 crore = 10 million rupees) (+67% year on year), while Swiggy holds 42% share with FY2025 revenue of about 15,227 crore rupees (+35%).

This article is based on what we could verify As of August 1, 2026 in public records and news reports from India. India revises its tax rules and regulations frequently, and the details here may have changed since. When making an actual business decision, please check the latest information with primary sources such as the ministries responsible and local experts.

The state of India's delivery market: a huge $46.3 billion market in 2025

India's online food delivery market has achieved explosive growth. According to a study by Renub Research, the market size in 2025 is about $46.34 billion (about 6.9 trillion yen), and it is expected to grow to $269.77 billion by 2034 (CAGR 21.62%).

The main factors behind this growth are as follows.

The rapid growth of the urban middle-income households middle class
Smartphone adoption and digital payments penetration
Rising disposable income as dual-income households increase
Delivery demand driven by India's characteristic heat and traffic congestion

About 63% of users are millennials aged 25-34, and the reasons cited for using delivery are reported as promotional discounts (95%), saving cooking time (84%), convenience (78%), and a wide variety of food choices (73%).

Reference:

Zomato and Swiggy strategy comparison and points of differentiation

India's food delivery market is Between the two companies, Zomato holds 58% and Swiggy 42%, reflecting a duopoly dominated by these two players. Emerging frameworks such as ONDC also exist, but their scale remains limited, making it essential for Japanese companies' entry strategies to center on these two companies in practice.

Zomato: the strength of the market leader

Founded in 2008 in Gurugram, it was originally a restaurant listing site but entered the food delivery business in earnest in 2015. It expanded its share by acquiring the Uber Eats business in 2020. FY2025 revenue was about 20,243 crore rupees (about 364 billion yen), 67% growth year on year achieved. Monthly active users have reached 70 million.

Zomato's strength lies in its "Blinkit" (formerly Grofers), through which it runs its quick commerce (Q-commerce) business — a service delivering groceries and daily necessities within 15 minutes — creating synergy with food delivery.

Swiggy: the challenger catching up

Founded in 2014 in Bengaluru. Estimated FY2025 revenue was about 15,227 crore rupees (about 274 billion yen), up 35% year on year. It listed on the NSE and BSE in November 2024.

Swiggy's points of differentiation are its instant-delivery grocery service "Instamart" and its "Swiggy One" subscription model. It also invests heavily in a welfare program for delivery partners, boosting brand loyalty.

Reference:

How ONDC and Dark Stores Are Reshaping the Future of Delivery

The Indian government-led ONDC (Open Network for Digital Commerce) is bringing a new competitive axis to the delivery market. ONDC has adopted an open protocol, building a framework that lets small and medium-sized restaurants avoid depending on Zomato and Swiggy to run their delivery operations.

In addition, dark stores (delivery-only hubs) are rapidly increasing as well, a trend worth watching. In addition to Zomato's Blinkit and Swiggy's Instamart, Zepto (which touts 15-minute delivery in startups) is expanding its dark-store network and broadening into delivery of goods beyond food.

This structural shift also represents a new entry opportunity for Japanese companies. Going through ONDC makes it possible to sell directly while avoiding the high commissions charged by the major platforms.

Practical strategies for Japanese companies to succeed in delivery

1. Low-cost entry through the cloud kitchen model

This is a method of starting a business in a delivery-only kitchen without a physical storefront. Delhi and Mumbai In major cities of India, cloud kitchen space can be secured for around 100,000-300,000 yen a month.

2. Developing vegetarian-friendly menus

About 30-40% of Indian consumers are vegetarian. Delivery menus need to clearly separate veg and non-veg, and developing vegetarian options ramen and sushi and similar dishes is essential.

3. Coordinating with Instagram Marketing

Instagram An O2O strategy that links product appeal on social media with driving traffic to delivery apps is effective. Since millennials and Gen Z are the main users, packaging that looks good on social media also matters.

4. Getting ahead by entering Tier 2 cities early

Tier 2 cities In Tier 2 cities, delivery market growth outpaces that of the major cities, and with less competition, it is an environment where first-mover advantage is easier to capture.

5. Obtaining FSSAI certification early

A delivery business requires FSSAI certification, which is mandatory. Since obtaining it typically takes 2-3 months, preparations should begin from the earliest stage of business planning.

Reference:

Frequently asked questions

How big is India's food delivery market?: India's food delivery market is expected to expand at a high growth rate, making it one of the world's largest growth markets. The growth of the middle-income class and the spread of smartphones and digital payments are supporting this growth.
What is the difference between Zomato and Swiggy?: Zomato is the market leader, with its synergy with the quick commerce service Blinkit as a strength. Swiggy, meanwhile, is built around the instant-delivery service Instamart and the subscription service Swiggy One. Because the two companies account for most of the market, understanding this duopoly structure is essential when entering.
How does ONDC affect the delivery market?: ONDC is an open protocol led by the Indian government, a framework that lets small and medium-sized restaurants run delivery operations without depending on Zomato or Swiggy. For Japanese companies, it is an option for direct sales that avoids the high commissions of the major platforms.
What should be kept in mind when developing menus for delivery?: Because a majority of Indian consumers are vegetarian, clearly separating veg and non-veg is a basic premise. Developing products such as vegetarian ramen or sushi is also key to capturing demand. Designing packaging that looks good on social media increases its appeal to younger consumers.
What kind of entry method is the cloud kitchen model?: It is a method of starting a business in a delivery-only kitchen without a physical storefront. It keeps initial investment down and allows gradual expansion while watching market response, which suits Japanese companies well. Kitchen space can be secured relatively easily in major cities.
When should FSSAI certification be prepared when starting a delivery business?: A delivery business requires FSSAI certification, which takes several months to obtain. If the process is not started from the earliest stage of business planning, the launch schedule can be pushed back. It is realistic to proceed with it in parallel with menu development and platform listing preparations.

Summary: A Roadmap for Entering India by Leveraging the Delivery Market

India's food delivery market is one of the world's largest growth markets, continuing to grow at a CAGR of more than 20%. After understanding three trends — the Zomato-Swiggy duopoly, the rise of ONDC and dark stores, and the evolution toward Q-commerce — Japanese companies should consider entering through the following steps.