“The offers and discounts being offered by the market players have been successful in luring the consumers and getting them hooked to food delivery, but for how long lies the question”.
Changing Lifestyle of the Consumers: Consumer lifestyle has been changing over the years. Long working hours has led to inability to prepare food at home and thereby consumers resort to ordering food online. As per the NSSO sample survey, workers in Indian urban cities work for approximately 53-54 hours/week. The increased transparency being offered by restaurants in terms of the ingredients being used and nutritional value of the food being consumed has further helped in diminishing the taboo attached with online food delivery.
Increased Smartphone and Internet Penetration: Smartphone and internet has helped the industry foster the growth by enabling the consumers to order food while they are on the go without having to open a desktop or laptop. The increasing number of internet users in from 259.8 Million in 2015 to 564.5 Million users in 2019 has positively impacted the growth in the market. Consumers have revealed that they prefer ordering from their mobile phone as compared to laptop or desktop. Definitely the increase of smart phone users from 199 Million in 2015 to 339.9 Million users in 2018 has further stimulated the growth of the market.
Benefits for Restaurant Operators: The growth of the industry has also been supported by the restaurant operators in the market. Being the supply pillars in the market, they online food delivery service has definitely benefitted restaurant businesses all over the country. Online partnerships have enabled restaurants to scale their business with improved kitchen utilization and strong brand impact. The aggregators deliver food on their behalf for a small margin.
The Increasing Trend of Diet and Healthy Food: Health has been of great concern to the consumers when it comes to online food delivery as it is generally attached to the taboo of being unhealthy. Consumers find it easier to buy healthy food with transparent nutritional values than to make it themselves. Companies like Eat.Fit and Freshmenu are known for offering healthy and diet food for health conscious consumers.
According to a report by Ken Research titled “India Online Food Delivery Outlook to 2025- Growth Supported by Advent of Cloud Kitchen and Discounts Offered by Food Delivery Aggregators” Cloud Kitchens are expected to boom with Food Aggregators also starting their Private Brands to maximize their margins and make them more sustainable in the future. The market is expected to grow at a positive CAGR of more than 25% during the period 2019-2025.
Key Segments Covered:-
By Type of Kitchen
Rest of India
By Mode of Payment
By Type of Food
By Share of Meals
By Mode of Ordering
Biryani by Kilo
Key Target Audience:-
Online Food Delivery 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
For More Information on the research report, refer to below link:-
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Ankur Gupta, Head Marketing & Communications