The report titled “India Online Food Delivery Outlook to 2025 - Growth
Supported by Advent of Cloud Kitchen and Discounts Offered by Food Delivery
Aggregators” provides a comprehensive analysis of the Online
Food Delivery Market in India. The report also explains the pain points of the
consumers and the operators in the market. Further it proceeds with explanation
of current demand and the supply infrastructure in India. It also includes the
trends, developments, challenges, technological stack, revenue streams,
marketing strategies and government regulations driving the industry. It gives
detailed explanation of competitive scenario including cross comparison between
major players, their operating models and detailed company profiles of major
players. It concludes with future scope, upcoming technologies and delivery
channels in the market.
Market
Overview and Demand Scenario
Increased
disposable income per capita, long working hours and increase in dual income
and nuclear families have given rise to demand for online food delivery in
India. The Online Food Delivery Market of India is currently in its growth
stage. The Gross Merchandise Value of
the market has been growing over a Positive CAGR of 120% during the review
period of 2014-2019. The trend in the market indicates likelihood towards
healthy alternatives and diet food. The decrease in the average order value
over the years has further given rise to demand in the market.
Supply
Scenario of the Market
The
market players began entering the Indian market back in 2006, with “JustEat”
and “FoodieBay” being the first ones to tap the market. Furthermore, companies like Foodpanda,
TinyOwl, Swiggy and Uber Eats entered the market over the time period. But
consolidation and successful exits from the market has resulted in only two
players, Swiggy and Zomato sustaining in the market. Past few years have
witnessed the growth of cloud kitchens in the Indian market with players such
as Rebel Foods and Biryani by Kilo beginning to tap global markets.
Consumer
Behavior in the Market
Consumers
have displayed skewed likeliness towards fast food and north Indian cuisine.
The consumers also tend to order food online predominantly in the dinner time
most likely because long working hours as compared to all other global peers. Increased
smart phone penetration led to increase in orders placed through the mobile as
compared to website on laptop or desktop. The market has also been segmented by
Gender amongst which males have shown high likeliness towards ordering food
online more often. Consumer demand by age groups revealed that people in the
age group of 18-35 years tend to order food more frequently.
Demand by
Region
Cities
such as Bengaluru, Delhi NCR, Hyderabad, Mumbai and Pune generate the highest
revenue for the market. The higher concentration of millennials belonging to
the age group of 23-34 years derives higher demand from these markets. However,
aggregators as well as cloud kitchens have started penetrating to the Tier 2
and Tier 3 cities as an effort to tap potential customers.
Cloud
Kitchen Space in India
The
requirement for low investments while establishing a cloud kitchen backed by no
necessity of store front has given rise to number of cloud kitchens in India. Cloud
kitchens have witnessed growth due to low operational cost and high profit
margins as compared to dine-in restaurants. The cloud kitchen market is further
expected to grow in the future with companies across industries looking to
invest in this particular model owing to its huge untapped potential. Major
players such as Rebel Foods, Box8, Biryani by Kilo and Eat.Fit have aced the
competition by offering high quality food at affordable prices.
Competitive
Landscape
The
India Online Food Delivery Market has consolidated over the years leading to
only two major aggregators (order and delivery) players in the market which is
Zomato and Swiggy. Uber Eats exited the market in 2020 by buying 9.99% stake in
Zomato. The cloud kitchen space in India is in its booming phase with more
players entering the market recently. Companies like Rebel Foods and Biryani by
Kilo has been successful in scaling through Tier 2 and Tier 3 cities in India.
They have also been one of the first Indian cloud kitchens to establish global
foot prints. The low investment and high return characteristics of the cloud
kitchen space has also attracted the aggregators to the cloud kitchen market (Swiggy
Access).
Future
Outlook and Projections
The
demand is expected to grow at a CAGR over 25% during the period 2019-2025. The
demand is expected to be driven by growing penetration into Tier 2 and Tier 3
cities. The future is expected to witness other E-commerce companies such as
Amazon debuting into online food delivery service. The cloud kitchen space is
further expected to grow with aggregators offering infrastructure to amateur
players. Technologies such as drone delivery and 3D food printing are expected
to boost the operational efficiency of the market.
By Type
of Kitchen
Private
Cloud Kitchens
By Region
Bengaluru
Delhi NCR
Hyderabad
Mumbai
Chennai
Pune
Kolkata
By
Markets
Core Markets
Emerging Markets
Rest of India
By Mode
of Payment
COD
Credit/Debit Card
Payment Wallets
Net Banking
By Type
of Food
Fast Food
North Indian
South Indian
Street Food
Others
By Age
18-24 Years
25-34 Years
35-44 Years
45-54 Years
By Gender
Male
Female
By Share
of Meals
Dinner
Lunch
Breakfast
Others
By Mode
of Ordering
Mobile
Website
Companies Covered:-
Zomato
Swiggy
Rebel Foods
Biryani by Kilo
Box8
Eat.Fit
Fresh Menu
Key
Target Audience:-
Online Food Delivery Companies
E-commerce Companies
Cloud Kitchen Companies
Private Venture Capital Firms
3rd Party Logistic
Companies
Time
Period Captured in the Report:-
Historical Period: FY’2015–FY’2020
Forecast Period: FY’2021-FY’2025
Key
Topics Covered in the Report:-
Pain Points of the Companies
Present Day Pain Points of the Operators
Target Addressable Audience
Operating Models in the Industry
Addressable Gaps in the Market
Types of Users
Impact of Covid-19 on the Industry
Cloud Kitchen Investment Model
Revenue Models in the Market
Analyst Recommendations
For More Information on
the research report, refer to below link:-
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Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
