NEW YORK, July 25, 2016 /PRNewswire/ --
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.
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