According to a report released by Swiggy-Bain called ‘How India Eats’, the food delivery market in India has been projected to generate a revenue of 2.12 lakh crores by the year 2030. The industry, which will clock a compounded annual growth rate (CAGR) of 18% in the next six years, is expected to rise from 12% to a meteoric 20% in the duration. The duopoly – dominated by food tech giants like Zomato and Swiggy, accounts for the majority share – given that the number of people ordering food online has increased significantly.
The latter, which has been introducing and rehashing features such as ‘pockethero’ and homestyle meal delivery service, plans on promoting the ‘reorder’ and Swiggy Explorer features to consumers. The company’s CEO, Rohit Kapoor, stated that the delivery app also plans on rolling out additional features for its users across 50 densely populated Indian cities from where 70% of its customer base are consumers of the food delivery business. With consumption patterns for shopping and dining all set to evolve, smaller cities will also come into play for the usage of these services.
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Currently valued at INR 5.5 crores, the market has been poised to display a growth of up to INR 10 crores by the time it is 2030. Factors like higher incomes, digitisation, improved customer experience and consumers eager for new experiences have been some of the key factors that have contributed to the surge in demand. Amongst these, consumers belonging to the upper-middle or higher class segments will continue to dominate the numbers whereas income generation is expected to also rise from tier 2 cities and locations that are beyond city limits as well, thanks to increased connectivity.