How Is the Online Food Delivery
Market In India Positioned
The India
Online Food Delivery Market has experienced three digit growths in
the review period of 2014-2019, fuelled by arising needs of the consumers and
added convenience offered within the service. The supply ecosystem of the
Indian market too has evolved through these years leaving behind clear market
leaders in the country. Increasing smart phone and internet penetration in the
country has led to increased in the number of online food delivery users from
~Mn in 2017 to ~Mn in 2019.
The new concepts such as Cloud Kitchens and Shared Kitchens have been
received well in the market. India has witnessed increase in the number of
cloud kitchens with Rebel Foods claiming to be the World’s Largest Internet
Kitchen.
The pain points of the consumers include long working hours which makes
it difficult to cook them a meal, increase in the number of nuclear families
which promotes family time over mundane activities such as cooking, increase in
women workforce, unavailability of ample options to choose from, high traveling
cost and experience dining out experience at home.
The gaps in the current market include difficulty in expansion to Tier 2
and Tier 3 cities which entails to general taboo of online food delivery
service offering unhealthy and expensive food, low disposable income and high
delivery cost per order. The service providers have also shown concerns with
third party logistics and maintenance of food temperature while delivering
food.
How is the Market Segmented?
By Region: The revenue
generated in 2019 has been segmented by the various regions contributing to the
total revenue. South of India has been a major contributor to the revenue of
the market. Some of the major cities generating revenue for the market include
Bengaluru, Delhi NCR, Mumbai, Hyderabad, Pune and Kolkata. The demand generated
from these regions depends on the demography and population characteristics.
By Type of Kitchen: The market
has been segmented by Private Kitchen and Cloud Kitchen. Private kitchen
includes orders generated from a restaurant or an eatery with has a store
front. On the other hand there are orders generated by cloud kitchens which do
not have a store front. The requirement of low investment and high profit
margins being earned in the cloud kitchen space has proved to be beneficial.
By Type of Market: The Indian
market has been divides into core markets, emerging market and rest of India
market. The core markets are cities which have been generating high order
volumes since 2013 and emerging markets are cities which have higher potential
for generating volumes and revenues in the near future. Core markets are
generally Tier 1 cities and Emerging markets are generally Tier 2 and Tier 3
cities. ~% of the total orders is believed to have come from emerging markets.
Annual Spending by Middle Class Household in Tier II and Tier III cities
has increased from ₹~
to ₹~, ~% increase on Fast
Food Restaurants. In the future, ~% of the orders is set to come from
Tier II, Tier III and Tier IV cities.
Who Are My Consumers?
By Type of Food: The Indian
consumers have displayed inclination towards fast food and street food while
ordering out. North Indian and South Indian food has also been preferred by
many. Other food types such as healthy and diet food has been chosen by people
who have been following the trend of healthy and clean eating.
By Type of Meal: Online Food
Delivery consumers tend to order food for various meals such as breakfast,
lunch and dinner. Meals in the between such as brunch and evening snack are
also being ordered frequently.
By Mode of Payment: The
various modes of payments are Cash on delivery, card payments, payment wallets
and net banking.
By Age: The consumers have
been segmented by the age groups of (18-24 years), (25-34 years), (35-44 years)
and (45-54 years). The generation Z and generation Y consumers tend to order
more often.
By Mode of Ordering: Consumers
generally use mobile phones or laptops/desktops to place their order. However,
the convenience that a mobile phone offers is more as compared to other
options.
Competitive Landscape
The competition in the market is concentrated with presence of only two
major companies in Order and Delivery Market namely Zomato and Swiggy. Zomato
and Swiggy both also operate via Only Order business model as well. The
companies in the market are placing their emphasis towards better logistic
efficiency and improved consumer retention.
Other concepts such as Cloud Kitchen and Shared Kitchen have also gained
traction in the market. Major cloud kitchen players include Rebel Foods, Box8,
Biryani by Kilo, Eat.Fit and Freshmenu. There are other cloud kitchen players
who have stepped into the game lured by the benefits and potential of the cloud
kitchen space.
What is the Future of India Online
Food Delivery Market?
The demand is expected to grow with 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. The cloud kitchen space is
expected to grow in the future with more players steeping into the space.
Aggregators in the cloud kitchen space offering infrastructure to restaurants
to operate from more than 1 location is also expected to drive the cloud
kitchen space. The market is also expected to experience entrance of other
E-commerce companies such as Amazon into the food delivery space as an effort
to diversify their service offerings.
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
For
More Information on the research report, refer to below link:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
