Online Food Delivery To Grow 18 % By 2030; Value To Reach Rs 10 Lakh Crore (Photo @zomato)
Giving the online food delivery market a bigger boost, a recent study released by Bain & Company and Swiggy titled ‘How India Eats’ claimed that the industry will grow at 18%, with penetration to rise from 12% in 2023 to 20% by 2030. The sector, currently valued at Rs 5.5 lakh crore, is projected to reach Rs 9 to 10 lakh crore by 2030, projecting an annual growth rate of 10-12% in the coming seven years.
The report said that the growth pace will be driven by several factors including an increasing customer base, rising consumption occasions, and supply.
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Several other reasons such as the offers, availability of reviews, and customer data convenience might also have contributed to the expanding customer base for the online food delivery platform. Anticipating the boost, many popular platforms are also expanding their footprint in the market.
According to the CEO of Swiggy, an Indian online food ordering and delivery platform, the causes behind the buoyant growth over the last few years includes higher incomes, digitisation, improved customer experience, and an inclination to try new experiences. He also added that they are optimistic about the growth in the coming years, citing Chinese examples. “China has four times the number of restaurants per million urban population, as compared to India,” he said.
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The study also showed that the top market for online delivery is the city dwellers, noting that around 70% of food services consumption as of 2023 is concentrated in the top 50 cities. The consumption in the towns among upper-middle and high-income segments is projected to remain in high demand. It also forecasts incremental growth in the other cities as well. According to Navneet Chahal, a co-author of the report, exciting opportunities loom on both the demand and supply fronts, predicting an additional 110 million customers.
