Online Food Ordering Trend is Hot and on a Roll
With
rapidly growing food market in India, which stood at over US$400 billion in
2015, the food ordering and delivery companies are capitalizing on the
opportunity to increase their “evolving-faster-than-ever” customer base. Mounting
Internet Penetration, snowballing smartphone users, palate pleasing food
offerings along with convenience associated with ordering food online to propel
the Foodtech Market in India.
Recently published report by TechSci
Research, “India
Foodtech Market Forecast & Opportunities, 2021”, talks about the online food ordering
and delivery market in India. Earlier foodtech was referred as food processing
and manufacturing technology, but now foodtech is defined as online food
ordering and delivery service market. With splurging investments and funding
into this market space, foodtech companies have been able to offer online food
ordering services like never before. Internet is being crowded with the
companies offering food delivery services online day in & out. With huge
demand for food and consistently growing customer base in the country, the
growth associated with this market is anticipated to be highly lucrative.
Surging disposable income, increasing
popularity of Double-Income-No-Kids (DINKs) trend in India, growing internet
users, which stood at over 27% of the total population in 2015, and rising
sales of smartphones, which were over 167 million in 2015 as compared to 123
million in previous year, are few of the major factors which can attributed to
the growth of foodtech market in India. the concept of ordering food online is
gaining popularity due to convenience being provided by the companies in terms
of delivering food at the doorstep of the customer, option of alternate payment
methods and attractive discounts, reward points & cash back offers which
are being offered by the company. Restaurants and Cafes, are also preferring
the online mode as operational cost incurred in maintaining the infrastructure,
call center and other expenses is reduced to half when a restaurant takes
online orders only.
College students, working couples and
office goers are the key target audience for foodtech companies. Increasing
working population in the country on the back of improving economy, growing
number of college students with rising infrastructural developments in
education sector, and, with increasing employment opportunities, surging
working professionals are few of the key demand generators for foodtech market
in India which are anticipated to boost the growth in this market during the
forecast period of 2016-2021.
The foodtech players can be categorized
into two groups – Online restaurant based companies and Food aggregator
companies. The online restaurant based segment is dominating the market with a
revenue share of over 70% in 2015. On the back of longer presence in the
market, check on quality of food items, loyalty and trust of consumer towards
the restaurants, etc., this segment is forecast to remain dominant during the
next five years in India foodtech market. Players like McDonalds, Zomato, Domino’s
Pizza (a franchisee brand of Jubilant FoodWorks) and Pizza Hut (a licensed
brand of Yum Foods) are the major companies which contributed the majority
revenue share in India foodtech market in 2015. These companies are expected to
maintain their dominance during the projected period. In 2015, South and West
regions of the country emerged as the major demand generator, followed by
North, in the foodtech market whereas, by 2018, North region is anticipated to
surpass West and forecast to hold second place in revenue share contribution in
foodtech market in India.
“With increasing private equity investments
and venture capital funding flowing into this market, the foodtech companies
are eyeing towards expanding their footprints in Tier II and Tier III cities
across India. Further, the number of companies entering into the market every
year is increasing at a rapid pace. With growing competition, online food
ordering and delivery companies are also focusing on faster delivery in major hot-spots
in the market to increase their customer base. Increasing internet penetration
in the country, growing number of smartphone users coupled with the ease of
getting food delivered at the customers’ doorstep are few of the factors attributing
to the growth in the India foodtech market”, said Mr. Ruchit Mahendru, Consultant
with TechSci Research.
“India
Foodtech Market Forecast & Opportunities, 2021”, has evaluated the
future growth potential of India foodtech market and provides statistics and
information on market structure, size, share and future growth of India
foodtech market. The report is intended to provide cutting-edge market
intelligence and help decision makers to take sound investment evaluation.
Besides, the report also analyses the major companies in the country’s foodtech
market, the operation type, leading mode of payment and source of order in the
foodtech market in the country.
About TechSci Research
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research reports. Serving 700 global clients with more than 600 premium market
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