Growing disposable income and busy lifestyles of young and working population coupled with increasing internet penetration and rising smart phone users to drive India food-tech market through 2021.
According to a recently released TechSci Research report, “India Foodtech Market Forecast & Opportunities, 2021", the food-tech market in India is projected to grow at a CAGR of over 12 per cent during 2016 - 2021.
Growth in the market is anticipated on account of increasing disposable income, growing average household income and rising trend of double-income-no-kids concept.
Backed by growing internet penetration from 10 per cent in 2011 to 27 per cent by 2015, and increasing smartphone users from 123 million in 2014 to 167 million by 2015, coupled with budding e-commerce market and rising young working population, the food-tech market in India is anticipated to grow at robust pace during forecast period.
Another major factor propelling demand for food-tech in India is the growing youth population, primarily in urban regions of the country.
The country has a large base of young consumers who form majority of the workforce and due to time constraints barely get time for cooking.
Rise of online delivery
In India, the concept of ordering food online is gaining popularity due to various convenience provided by the companies in terms of delivering food at the doorstep of the customer, option of alternate payment methods, and continuous announcement of attractive cash backs/ discounts offers.
On the basis of operation type, the India food-tech market has been segmented into two categories, namely, restaurant based and food aggregators.
In 2015, restaurant based dominated the overall market, and is anticipated to maintain its dominance over the next five years.
However, in terms of growth, the other segment i.e. food aggregators segment is expected to outpace restaurant based segment over the next five years. Food aggregators acts as a mediator between customers and restaurants, and provides the option of choosing from different cuisines from multiple restaurant and food outlets registered with them.
"Yum Foods, Jubilant Foodworks, Zomato, and McDonald's are the leading players in India food-tech market. These players are anticipated to maintain their dominance in the market through 2021, predominantly on account of their future expansion plans. With increasing private equity and venture capital funding, the foodtech companies are focusing towards expanding their business in Tier II & III cities across India. With growing competition, online food ordering companies are focusing on providing faster delivery in major metro cities to increase their customer base.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"India Food-tech Market Forecast & Opportunities, 2021", has analyzed the potential of India food-tech market and provides statistics and information on market sizes, shares and trends. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and key challenges faced by the industry.