In a report by Google and Boston Consulting Group (BCG), it has been said that the food desire of Indian customer is going to rise with the ordering number taking a spike at a compound annual growth rate of 25-30%. The value of the industry is going to be between $7.5- $8 billion by 2022 from the earlier $4 billion.
With the internet available in the smallest of cities there is a soar in the user discovering new platforms to explore. Food companies also know this and are taking steps to diversify themselves in newer cities adding more restaurants to their platforms thereby promoting people to spend time on apps and ordering online.
“Overall online spending in India is rising rapidly and expected to grow at 25% over the next five years to reach over $130 billion,” said Rachit Mathur, managing director, and partner, India lead, consumer, and retail practice, BCG. He further added the reach of food-tech firms has grown six times over the last couple of years on the back of rapid digitization and steadily growing consumption and will continue to increase.
The report also shows that the time spent by people in search and order has almost gotten two times to 72 minutes per month in 2019 from the previous 32 minutes in 2017.
According to the report it is also expected that the frequency of order to grow by 18-20% even so the average order values may soften by 5-10% as the customer’s aim small portions but order more. The report also added “Higher-order frequency though offset by lower average order value,”