The food industry which is currently valued at US$ 39.71 billion, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018. Food and grocery account for around 31 per cent of India’s consumption basket. The sector has grown over the period of time and this industry keeps re-inventing itself to challenge its own record. Market segments keep changing every now and then and change is the only thing constant. It’s good that everybody is getting mature in food and beverage industry and they want to innovate something actually amazing to give customer an outstanding experience. Industry is growing towards specialised foods. Market segments are good to cut monotony as food is evolving in India, we are expanding and evolution must be there. Since customers and restaurateurs both are travelling more, experimentation with food has started. Other brands are coming to India and they are creating their own market. Definitely the change is inevitable and it is coming for good.
“Advent of social dining, trendy multi-functional places, bars with character, multi entertainment menus are some of the market segments that are changing the food and beverage industry and way the business are done. These are also challenging the conventional restaurant spaces,” says Sandeep Pande, Executive Chef, Weligama Bay Marriott Resort and Spa. In this aggressive growth, new trends evolve every day and bring a new change to this industry. Of course, the ethos of food remains the same but it is more about how one innovates that every day to be constant with the latest trend in this industry. Here are some segments which are changing food service sector in an exciting way.
Organic Eating Is In
Indian food service industry is expected to reach US$ 78 billion by 2018 and India's organic food market is expected to increase by three times by 2020. “Organic eating and seasonal producing are definitely in. Gone is the trend when people used to like something off seasonal. Now they tend to understand that there are certain things which taste the best when seasonal and organic,” says Chef Abhishek Basu, Executive Chef at The Park Hotel.
Increasing Preference Is A Change
Food industry is probably the most sensitive to change in the whole country. “To remain relevant is a huge challenge. But changes like increasing preference for new and healthier cuisines works in our favour as does the impetus on food deliveries. As the young and middle age working professionals’ start becoming the major segment we should see a greater stress on technology and innovative cuisine,” avers Kunal Gangwani, Co- founder at Salad Days.
Filling The Void
With the entry of new segments, the F&B operators should look at opportunities to tap that market and fill the gap by introducing products relevant to that segment and price point. This gives rise to more operators and more eateries, also bigger operators getting creative to lure the customers in those segments. This is ultimately good for the customers.
Changing Segments Are Opportunity
Every new change is an opportunity to build something amazing. “Changing market segments are more of an opportunity rather than a threat in the industry as they push Chefs to innovate something more delicious. Obviously there is a lot of competition but at the same time it enhances creativity,” says Chef Indrajit Saha, Executive Chef at Accor Luxe Group. In this industry, everyday you need to challenge yourself and innovate peculiar ideas.