If there’s one industry that’s benefited the most from traffic snarls and busy lifestyles, it’s online food delivery. The organized food business in India is worth INR 3.24 trillion, of which, food delivery is valued at a whopping INR 1.01 trillion. This is a huge opportunity in a country that’s fast going digital. According to Netscribes research, the online food delivery market in India is currently worth INR 10.27 billion. Despite decelerated investments into the segment and many online delivery businesses shutting down, India’s online food delivery market grew by 29% in 2016.
But not everything is hunky-dory. With strong players such as Foodpanda, Swiggy, Faasos, and Zomato dominating the online food delivery space, the fight for market share is getting increasingly aggressive. Additionally, there have been several new entrants cropping up after the Indian government’s nod for 51 percent FDI in online retail and 100 percent FDI in single brand online retail.
Our report Online Food Delivery Market in India 2017 gives a holistic view of the present scenario and growth prospects of the online food delivery market in India. Here are some of the key highlights of our study:
- According to Netscribes research, the Indian food retail market is expected to reach INR 61 trillion by 2020.
- Encouraging demographics, rising income and living standards are some of the factors contributing to the growth of online food delivery industry.
- The food-tech industry has been witnessing an accelerating descent since the second half of 2015, as many companies struggled to raise funds, particularly mid-and late-stage investments.
- Several food-tech startups are still reeling under financial pressure to control costs and sustain investor interest.
- Despite the visible popularity of online food ordering, market penetration is only around 0.7%.
Download the full report to know the challenges facing the industry, competitive landscape and market drivers.