Hyderabad: In a world where instant gratification reigns supreme, the Indian food services industry is poised to become the ultimate enabler of culinary laziness. With a current market size of a staggering Rs 5.5 lakh crore, this sector is expected to grow at a rate of 10-12 per cent per year, according to a study.
The forces that are driving this gastronomic revolution include increased supply, rising consumption occasions, and a burgeoning customer base — all of which cater to the ever-growing desire for convenience and the unwavering aversion to the arduous task of cooking.
“The Indian food services market, especially food delivery, has witnessed buoyant growth over the last few years," says Rohit Kapoor, the CEO of Swiggy's Food Marketplace.
“Higher incomes, digitisation, improved customer experience, and an inclination to try new experiences have all contributed to this growth."
In other words, the people of India have become increasingly adept at the art of tapping a few buttons on their smartphones and having a veritable feast delivered to their doorsteps.
But the real game-changer, according to Navneet Chahal, partner and co-author of ‘How India Eats’ study, is the dynamic nature of the industry, "characterised by shifting consumer behaviours, digitisation, and regional diversity."
Translation, the lazier we get, the more the industry will cater to our every culinary whim.
"My husband and I work in Hyderabad. I frequently use Swiggy to order food for ourselves when we're caught up with work or don't have time to cook. That's the only app we trust that we get food in our budget. thank you swiggy," said Sindhu Kanneti, a housewife from Hyderabad.
The report ‘How India Eats’, which was released by Bain & Company and Swiggy, paints a fascinating picture of the modern Indian consumers, or the convenience connoisseurs – ones who are not only unwilling to lift a finger in the kitchen but also demand a diverse array of dining options.
Seventy per cent of food services consumption is currently concentrated in the top 50 cities, among the upper-middle and high-income segments. But fear not, for the incremental growth is expected to come from the tier-2 and beyond cities as well, as the scourge of convenience-seeking spreads far and wide.
The demand for food services is driven by the Gen-Z and younger cohorts, who now account for a staggering 40 per cent of food services consumption. The tech-savvy, attention-deficit-disorder-afflicted individuals have a higher propensity to eat out, a trend that is expected to grow even further.
Key statistics:
- The Indian food services industry is currently worth Rs 550,000 crore, expected to grow 10-12 per cent annually to Rs 900,000 or Rs 1000,000 crore by 2030
- Online meal delivery to grow 18 per cent annually, reach 20 per cent market share by 2030
- 70% of consumption in top 50 cities, upper-middle/high-income segments, but growth expected in tier 2+ cities
- Gen-Z and younger cohorts comprise 40% of consumption, a higher propensity to eat out
- Customers order 3+ cuisines from 6+ restaurants per year, indicating desire for variety
- Addressable customer base to expand by 110 million to 430-450 million by 2030
- Eating out frequency to increase from 5 to 7-8 times per month by 2030
- Online food delivery penetration rose from 8% to 12% in 2019-2023, estimated 18% CAGR to Rs 212,000 crore by 2030
- Convenience-led formats like QSRs and cloud kitchens to grow 40% faster than the overall market 2023-2030
