The report states that food services presents a massive headroom for growth with contribution of 1.9 per cent to the gross domestic product (GDP) in India
With the organised segment outpacing the unorganised segment in terms of growth, Swiggy has stated that India’s food services market will cross USD 125 billion by 2030. The organised segment will drive over 60 per cent of the overall growth in food services and overtake the unorganised segment.
Swiggy has released a report titled How India Eats, in partnership with Kearney, and has highlighted that food services presents a massive headroom for growth with contribution of 1.9 per cent to the gross domestic product (GDP) in India, as compared to 5 per cent in China and 6 per cent in Brazil.
“On one hand, consumers are demanding affordability in familiar cuisines like Indian and Italian and on the other hand, adopting Matcha and Boba Tea like never before. Our restaurant partners are keeping pace, with quick-service restaurants (QSRs) and cloud kitchens projected to grow at a CAGR of over 17 per cent, nearly 1.5 times of organised food services growth,” said Rohit Kapoor, Chief Executive Officer (CEO) at Swiggy Food Marketplace.
The Indian consumer is experimenting more, revealed by the 20 per cent growth in unique cuisines ordered per customer and 30 per cent growth in restaurants ordered from per customer. The report emphasised that late night meals are growing around three times that of dinner, with pizzas, cakes and soft drinks seeing the highest growth in consumption beyond 11 PM.
Local Indian beverages like Buttermilk and Sharbat are growing at over four to six times of overall beverages. Korean, Vietnamese and Mexican cuisines are becoming mainstream with growth indices of 17 times, 6 times and 3.7 times. Even Peruvian and Ethiopian food have made their debut, the report revealed. Boba Tea and Matcha Tea have seen an 11 times and 4 times surge in search volumes, respectively, in the last five years.
The report added that to effectively address these trends, food services players will need to balance multiple priorities and deliver, focusing on speed, affordability and experience. Restaurants are spending over 75 per cent of their marketing budgets on digital channels especially to tap younger consumers. Pre-booking in dining-out is growing at 7 times of walk in orders, the report showed.
