Online Food Delivery Market in India to Expand at 38.08% CAGR Till 2023
According to a new Research on Global Markets report, the online food delivery market in India is expected to expand at a compound annual growth rate (CAGR) of 38.08% during 2018-2023. Food technology in India has evolved from being an enabler of food processing to online food ordering and delivery services. Considerable investments in the online food delivery market in India have facilitated companies to offer online food delivery services that were previously unavailable. Online food delivery is predominant in metropolitan cities like Bengaluru, Delhi, Mumbai, Pune, Kolkata, Chennai, and Hyderabad, which accounted for 87% of the overall online food delivery market in India in 2017.
Check out the Research on Global Markets report featured in this article:
According to the report, the online food delivery industry of India, which forms a part of the e-services market, has two different delivery service solutions – restaurant-to-customer delivery system, and platform-to-customer delivery system, and the service providers in this industry operate in any of the four delivery models - milk run model, hub and spoke model, point to point delivery model, and decentralized delivery network.
The report highlights that based on the volume of food ordered online, Bangalore accounted for almost 31% share of the entire market, followed by Delhi NCR (19%), Mumbai, Hyderabad, and Pune. The report also features profiles of some of the major players in the online food delivery market in India. Among the major players, Bengaluru-based online food delivery player, Swiggy leads the market, accounting for 36.5% market share, followed by Zomato. As of March 2018, Swiggy has handled 200,000 orders, and Zomato has handled 180,000 orders. Foodpanda and UberEats are the other two competitors and have handled 30,000 and 15,000 orders, respectively.
Of the 1.35 Bn population in India, 50% are under the age of 25 years and the half of the remaining population are aged under 35 years, thus representing one of the youngest populations of the world. Since the majority of demand for online food delivery comes from the age group between 18 and 40, India appears to be a market full of growth opportunities. Growing per capita income in India has also emerged as a major growth driver for the online food delivery market in India. India's per capita income has witnessed a growth of 8.6% in fiscal year 2018, thus highlighting a high purchasing power, which in turn is paving the way for significant growth of online food delivery market in the country, according to Research On Global Markets.
Key highlights of this report:
- Online food delivery market size and growth forecast - value-wise (2018-2023)
- Online food delivery business models - overview
- Traditional delivery models
- Milk run model
- Hub and Spoke model
- Modern delivery models
- Point to point delivery model
- Decentralized delivery network
- India online food delivery market
- Top five Indian states as per online food ordering volume (2017)
- Delhi NCR
- Delhi NCR
- Daily order volumes of online food aggregators (as of March 2018)
- Trends in online food delivery across major five cities (2017)
- Key growth drivers of the market
- Key deterrents to growth in the market
This report has been formulated and designed with the purpose of giving businesses a concise understanding of the demand for online food delivery in India to determine the viability of the market, develop strategies based on the drivers, and to help brands identify competition and respond accordingly.