Online Food Delivery in India: A Market with Huge Growth Potential
Online Food Delivery Still Just 11% Of Total Food Services, Shows Large Untapped Market: Report
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A report by Investec Equities reveals that online food delivery in India constitutes only 11% of the total food services market, despite growing from 3% in 2018. The market is projected to expand significantly, reaching approximately $27 billion by 2030, indicating a large untapped potential for further growth.
- 01Online food delivery's market share has increased from 3% in 2018 to 11% currently.
- 02The market is expected to grow from $9.1 billion in 2024 to approximately $27 billion by 2030.
- 03Key growth drivers include urbanization, time constraints, and a younger working population.
- 04Improvements in logistics and the restaurant ecosystem are enhancing service reliability.
- 05The segment's low market share suggests substantial potential for future expansion.
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According to a report by Investec Equities, online food delivery in India currently accounts for only 11% of the total food services market, despite a rise from 3% in 2018. The market has expanded significantly from $1.4 billion in 2018 to an anticipated $9.1 billion by 2024, reflecting a compound annual growth rate (CAGR) of about 37%. Looking ahead, it is projected to reach approximately $27 billion by 2030, with a CAGR of around 19%. The growth is driven by increasing urbanization, a shift towards convenience, and the rise of digital adoption, including the widespread use of smartphones and seamless payment options. Additionally, improvements in the organized restaurant ecosystem and logistics capabilities have enhanced service reliability, encouraging repeat usage. Despite the strong growth, the relatively low market share indicates substantial potential for further expansion as digital adoption continues to deepen.
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The growth of online food delivery services is likely to enhance convenience for consumers, potentially changing their dining habits and increasing access to a variety of food options.
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