Indian online food industry is growing rapidly and reports suggest that this market is going to be bigger in the future. A report from Google and Boston Consulting Group (BCG) suggests that variety in cuisine (35 percent) is one of the biggest reasons for recurrent use of online food ordering apps, followed by good discounts and convenience.
Rapid digitization and growth in both the online buyer base and spending will help the food industry to become an $8 billion market by 2022 growing at a CAGR of 25 to 30 percent.
Roma Datta Chobey, Director-Travel, BFSI, Classifieds, Gaming, Telco & Payments, Google said:
Food tech has now made its presence in greater than 500 cities in India and with consumer confidence growing, there are new opportunities for the players to ‘win with the consumer’ in an evolving market.
Peer or network advocacy (52 percent) played a significant role in attracting people to try online food ordering for the first time. This was followed by advertisements (19 percent) that emerged to be a strong driver in metros and among the higher income groups across the country.
Rachit Mathur, Managing Director and Partner, India Lead of BCG’s Consumer & Retail Practice said:
Overall online spending in India is rising rapidly and expected to grow at 25 percent over the next five years to reach over $130 billion.
Riding on the wave of rapid digitization and steadily growing consumption, the reach of Food Tech companies has grown six times over the last couple of years and will continue to increase further.
Zomato and Swiggy are currently dominating the online food industry in India. Both Zomato and Swiggy collectively completed 150 Million+ downloads. Last week Zomato acquired UberEats and gave 3 months free gold subscription to its users.
Why People Are Afraid of Trying Online Food
One of the biggest reasons that stop people in India from trying online food is the taxes, food quality concern, and a few other things. A report suggests delivery charges (18 percent) food quality concern (13 percent) and lack of customization (10 percent) are the main reasons why customers so far didn’t try online food.
We all know the online food industry is growing rapidly in India with a significant growth rate. Well, you can tell us will you prefer buying food online or offline. If you order food online which app do you use! Is it Swiggy or is it Zomato.
