Online food delivery estimated to grow at 18% y-o-y: Report
| Photo Credit: Haider Ali Khan
Online food delivery penetration in India has gone up from 8% to 12% between 2019 and 2023, representing a 2.8 times growth in online food delivery compared to overall food services, noted a joint report by Bain & Company and Swiggy released on Wednesday. It adds that markets like the U.S. and China have double the penetration rates of India.
The restaurants density in India is currently around 1,000-2,000 per 10 lakh people while it is four times higher in China.
The report says that over 70% of food services consumption as of 2023 is concentrated in the top 50 cities and among upper-middle and high-income segments, which are expected to remain demand hotspots in the medium term. However, incremental growth is expected to come from other tier 2 and beyond cities as well.
Overall, the food services market in India, including dining out and ordering in, is currently valued at ₹5,50,000 crore. It is poised to grow at 10%–12% annually over the next seven years, reaching ₹900–1000,000 crore by 2030.
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Additionally, online food delivery is expected to grow at around 18% CAGR, contributing 20% to the overall food services market by 2030.
The addressable customer base is expected to expand by 110 million, growing from the current 320–340 million to 430–450 million by 2030.
Online food delivery is estimated to grow at approximately 18% year-on-year, reaching ₹2,12,000 crore over the next seven years. Its market penetration is expected to increase from the current 12% to around 20% by 2030.
The report found that Gen-Z and younger cohorts comprise 40% of consumption. Each customer, on average, is ordering more than three cuisines from over six restaurants on an online platform in a year.
Indians on an average eat out 5 times per month, which is expected to increase to 7–8 times by 2030. In U.S. and China, the frequency is 25–30 per month.
It says, people are using Instagram to discover new restaurants. 58% follow food bloggers. There has been 1.6X surge in search on Google about restaurants. UPI remains the preferred mode of payment. Payment-on-order is also on rise.
