By 2030, India’s online food delivery market is expected to reach Rs 2.12 trillion. It is anticipated to expand at an annual compound growth rate of 18 per cent, as per a joint report by Bain & Company and Swiggy.
The report adds that the proportion of online services in India's food delivery market is expected to increase from 12 per cent to 20 per cent within the next seven years. Additionally, as per predictions in the report, the country's total food services market, encompassing dining out, food delivery, and all non-home-cooked food segments, will grow from the current Rs 4-5 lakh crore to Rs 9–10 lakh crore by 2030.
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Rohit Kapoor, CEO, Food Marketplace, Swiggy, reportedly said that high income, digitization, an improved customer experience, and an indication to try new places led to this growth.
He said, “We are very upbeat about the growth in the coming years. For instance, China has four times the number of restaurants per million urban population as compared to India.” He reportedly added that while India did see a slowdown in the food delivery segment in the latter part of 2023, it is improving now.
Speaking to the Economic Times, Kapoor said, “There was a phase where there was a slowdown...during November-December. The reason could be simply that consumers were prioritizing some consumption over others, but it was quite temporary. Structurally, there is no issue in the market.”
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According to the report, Indian customers eat out five times a month on average, and that number is projected to rise to seven or eight times by 2030. Eventually, eating out will see a transition from a matter of specific occasions to a matter of convenience. This is a trend that is visible in developed countries such as the USA and China, where eating out is more a matter of convenience, “thus indicating massive headroom to drive new occasions in India," adds the report.
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