Tier-2 cities fuel next wave of food delivery growth

The food delivery market is increasingly being powered by Tier-2 and smaller cities, where transaction volumes have nearly tripled over the past five years as platforms expand their reach beyond metros and organised restaurant brands deepen their presence in these markets.

Food delivery transactions in Tier-2 and smaller cities rose from around 60 million in FY21 to 180 million in FY26, according to Redseer’s State of India’s Food Services Market Report 2026. The trend reflects the growing adoption of digital ordering, wider availability of organised food brands and improving access to delivery services in smaller cities, which are emerging as the next growth engine for the industry.