How Much Does the Food and Beverage Sector Contribute to India's Retail Leasing in 2025?
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Synopsis
The food and beverage sector is leading India's retail leasing growth, rising from 16% to 22% in just two years. Major cities like Bengaluru and Mumbai are at the forefront, showcasing a robust demand for quality retail spaces. This report highlights the transformative impact of F&B in reshaping India's retail landscape.
Key Takeaways
- F&B sector's share in retail leasing increased to 22% by 2025.
- Bengaluru leads with over one-third of leasing volume.
- Developers are dedicating up to 25% of mall space to F&B.
- Rapid absorption of new F&B spaces is anticipated by 2028.
- High streets account for over 50% of F&B leasing transactions.
New Delhi, Sep 15 (NationPress) The food and beverage sector's share in total retail leasing surged from 16 percent in 2023 to 22 percent in 2025 across India's top seven cities, as reported on Monday. This sector has become the backbone of the nation's retail real estate expansion, showcasing 4 million square feet of leasing activities in major cities, including Mumbai, Delhi, NCR, Chennai, Hyderabad, Kolkata, and Pune since 2023.
According to JLL, this impressive growth highlights the sector's significant role in driving India’s retail transformation, which has seen nearly 18.6 million sq. ft of new shopping mall space added over the last five years.
Bengaluru has emerged as the leading city for F&B, capturing more than one-third of the total leasing volume, with the Indiranagar area being a favored choice for operators.
Mumbai and Delhi NCR are also key markets, contributing to a sector that illustrates resilience and considerable growth potential.
“The F&B sector is fundamentally transforming India’s retail real estate landscape. We are witnessing a paradigm shift where developers are planning to allocate up to 25 percent of space in upcoming destination malls for F&B—this clearly responds to the sector’s strong demand dynamics,” stated Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
With expectations of 6 million square feet of dedicated F&B space becoming available in the top seven cities by 2028, rapid absorption within 3-5 years is anticipated, fueled by both domestic and international operators looking for premium retail spots, Das added.
What stands out is that high streets are dominating F&B leasing, making up over 50 percent of transactions in the past 30 months.
The report indicates that the sector's growth trajectory is attracting significant interest from international operators, with more than 20 new global food and beverage brands entering India since 2023.
US-based brands have led the charge in international expansion, while Delhi NCR and Mumbai remain hotspots for global brands establishing their first presence in India. Multi-cuisine venues have taken the lead, accounting for a 41 percent share of leasing activities, reflecting India's evolving culinary landscape influenced by travel and global trends.
“The growth narrative is a story of multiple cities, each developing its unique identity. Bengaluru has not only emerged as the leading city in F&B absorption with over one-third market share but is also at the forefront of the craft beverage movement, with 40 percent of new pubs and breweries, particularly in Indiranagar,” explained Rahul Arora, Head - Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Point of View
I see the remarkable transformation in India's food and beverage sector as a vital indicator of our retail industry’s resilience. The notable rise from 16% to 22% in leasing shares signifies not just growth, but a robust response to changing consumer preferences. Each city is contributing uniquely to this narrative, and it is imperative that we continue to monitor these evolving trends closely.
NationPress
12/11/2025
Frequently Asked Questions
What is the current share of the food and beverage sector in retail leasing in India?
As of 2025, the food and beverage sector's share in retail leasing has increased to 22% from 16% in 2023.
Which cities are leading in food and beverage retail leasing?
Bengaluru, Mumbai, and Delhi NCR are the key cities leading in food and beverage retail leasing activities.
How much new F&B space is expected by 2028?
An estimated 6 million square feet of dedicated F&B space is expected to be available across the top seven cities by 2028.
What percentage of retail space is being dedicated to F&B in new malls?
Developers are planning to allocate up to 25% of space in upcoming destination malls for food and beverage.
How many global food and beverage brands have entered India recently?
Since 2023, over 20 new global food and beverage brands have entered the Indian market.
