Mumbai, 20th January 2016: India’s food service sector is witnessing a shift in investor penchant towards food technology in a bid to access consumer and improve last mile delivery, said Anurag Mathur, Partner, PwC.
Speaking on Day-2 of India Food Forum 2016, Anurag Mathur said, “Five years back investments were all going in restaurant business and but now it is going into food technology and delivery business. The growth and promise of the sector has also driven an increased level of deal activity.”
“The growth in the food sector is driven by the fact that while income has gone up, savings have more or less remained the same.” said Rachit Mathur, Partner & Director ,BCG.
“A baby born in India is consuming 20 times more today compared to his or her grandparents,” Rachit Mathur said.
Speaking on broader trends, Rachit Mathur pointed out that the macro-economic landscape is setting the stage for secular growth in the food service industry, with significant focus on health and wellness.
“By 2018, the food service industry is projected to grow to $78 billion from $48 billion and casual dining and Quick Service Restaurant is constituting a market share of 72%, with growth rate of 18%.” Anurag Mathur said.
“Cold chain and last mile for delivery will be critical to the growth and food safety standardization, which has been a deterrent to scale up will be key.” Anurag Mathur said.
The investment in technology to improve the last mile reach to client through digital means is re-crafting the food service experience both – onsite and offsite. Online ordering is estimated $500 million and growing fast while restaurant aggregator constitutes $7 billion food delivery model.
Traditional service models will get challenged by changing technology and consumer behavior through menu innovation, dynamic ordering, payments, delivery and catering.
Overall, while consumption and dietary habits are deeply rooted in Indians, Rachit pointed out that emerging tier II and below cities will play a larger role in driving growth as Indian prefer to upgrade fast on food rather on apparels, consumer durables or any other category.
About India Food Forum:
India Food Forum was formed in the year 2007 with support from MoFPI and leading Indian and global trade bodies to take up a series of support initiatives for the Indian Food Business. The forum serves through its knowledge platforms – print and online publications, research, workshops, conventions and
Food Council roundtables. The annual event of the forum has emerged as the largest congregation of business captains from India and overseas - spanning the vast array of Food & Grocery and Food Service (HoReCa) businesses.