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Rapid Digitization May Help Online Food Industry in India To Become $8bn Market By 2022: Report

Food tech startups have revolutionized the way Indians eat

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Food tech has now made its presence in greater than 500 cities in India and with consumer confidence growing, there are new opportunities for the players to 'win with the consumer' in an evolving market. Pixabay

 Rapid digitization and growth in both online buyer base and spending will help India’s online food industry to become a $8 billion market by 2022 — growing at a CAGR of 25-30 per cent, a new report said on Tuesday.

The report by Google and Boston Consulting Group (BCG) revealed that variety in cuisines (35 per cent) was one of the top reasons for recurrent use of online food ordering apps, followed by good discounts and convenience.

“Food tech has now made its presence in greater than 500 cities in India and with consumer confidence growing, there are new opportunities for the players to ‘win with the consumer’ in an evolving market,'” said Roma Datta Chobey, Director-Travel, BFSI, Classifieds, Gaming, Telco & Payments, Google.

Peer or network advocacy (52 per cent) played a critical role in drawing people to try online food ordering for the first time. This was followed by advertisements (19 per cent) that emerged to be a strong driver in metros and among the higher income groups across the country.

“Overall online spending in India is rising rapidly and expected to grow at 25 per cent over the next five years to reach over $130 billion,” said Rachit Mathur, Managing Director and Partner, India Lead of BCG’s Consumer & Retail Practice.

“Riding on the wave of rapid digitization and steadily growing consumption, the reach of Food Tech companies has grown six times over the last couple of years and will continue to increase further,” Mathur added.

Zomato and Swiggy currently dominate the online food delivery market in India. Zomato last week announced it has acquired Uber’s Food Delivery Business in India in an all-stock deal of nearly $350 million and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform. The Google-BCG report also suggested that consumers have common impediments that hinder adoption.

Pizza, Delivery, Bike, Order, Online, Screen, Service
Rapid digitization and growth in both online buyer base and spending will help India’s online food industry to become a $8 billion market by 2022 — growing at a CAGR of 25-30 per cent, a new report said on Tuesday. Pixabay

A fifth of the respondents stated a lack of trust in the app as the main barrier to usage. Delivery charges (18 per cent), food quality concerns (13 per cent) and lack of customization (10 per cent) are other reasons why customers have, so far, not experimented with online food ordering.

“Interestingly, these observations vary based on the maturity of the market. While delivery charges is the top reason for not ordering food online in metro cities; in Tier I cities, lack of trust in apps (29 per cent) is the primary roadblock,” the findings showed.

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“Food tech startups have revolutionized the way Indians eat. Ordering food online is now a habit. There is large headroom to increase reach, engagement and usage frequency for food tech apps,” said Abheek Singhi, Senior Partner and Managing Director at Boston Consulting Group. (IANS)

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Lenovo Retains its Dominance Over Tablet Market in India With 37% Market Share

This, in turn, implies the chances for a potential dent in tablet shipments in Q2 2020 of upto 6-8 per cent, according to the projections by CMR

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Lenovo
However, among the top five brands, only Lenovo and Apple registered growth in 2019. While Lenovo registered 28.1 per cent year-over-year growth in 2019, Apple grew 12.3 per cent year-over-year. Wikimedia Commons

While the India tablet market declined 18 per cent in 2019 compared to a year ago, Lenovo has retained its dominance for the 10th consecutive quarter, grabbing 37 per cent market share in 2019, a report from CyberMedia Research (CMR) said on Thursday.

In terms of share in the India tablet market in 2019, Samsung came second with 16.7 per cent share, followed by iBall (13.9 per cent), Apple (12.4 per cent) and Datawind (5.4 per cent), said the report titled “Tablet PC Market Report Review for 4Q CY2019”

However, among the top five brands, only Lenovo and Apple registered growth in 2019. While Lenovo registered 28.1 per cent year-over-year growth in 2019, Apple grew 12.3 per cent year-over-year.

“During the course of 2019, the average sales value (ASV) for tablets in India increased, indicating a latent demand from enterprise players for variants with higher-end specifications. While Lenovo grew 28 per cent YoY in 2019, all other tablet brands saw their market share erode, with the notable exception of Apple,” Kanika Jain, Manager, Client Device Research, Industry Intelligence Group (IIG), CMR, said in a statement.

While the tablet market declined 18 per cent YoY, 4G Tablets grew sequentially by 22 per cent year-over-year, said the report.

As per the report, shipments of tablets with 6-7 inch displays constituted 39 per cent of the overall shipments in the India market. On the other hand, tablets with 10-inch and above displays contributed to 35 per cent of the shipments. Lenovo continued to show innovation with launch of E, M, P & V series tablets. Its M10 (HD & FHD) series garnered 16 per cent market share.

Samsung launched several tablets in 2019, including the Tab A 10.1, Tab A8.0, Tab S5e & S6. However, Samsung’s tablet shipments declined by 24 per cent year-over-year. Across all the tablet launches from Samsung, the Tab A 10.1 was the most successful, accounting for a massive 32 per cent share across the Samsung tablet portfolio.

iBall regained the third position for 2019, but declined 17 per cent year-over-year. Apple’s newly launched iPad 7, Air 2019 and Mini 2019 series helped it to register a year-over-year growth of 12 per cent during the year. In 2020, the tablet market is likely to start on a slower note, according to CMR.

Given that Chinese original equipment manufacturers (OEMs) control 40 per cent of the Indian tablet market, the reliance on China would see a negative impact on overall tablet shipments.

Lenovo
While the India tablet market declined 18 per cent in 2019 compared to a year ago, Lenovo has retained its dominance for the 10th consecutive quarter, grabbing 37 per cent market share in 2019. Wikimedia Commons

Though OEMs typically stock tablet inventories to tide over the Chinese New Year holidays, the coronavirus outbreak-caused disruption has led to an extended closure.

This, in turn, implies the chances for a potential dent in tablet shipments in Q2 2020 of upto 6-8 per cent, according to the projections by CMR.

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“Traditionally, Q1 has been a slow quarter for the tablet market in India owing to the Chinese New Year holidays. However, with the coronavirus outbreak impacting manufacturing supply chain, we are, in effect, looking at an unexpected situation, wherein we believe, tablet shipments would see a further dip towards end of Q1, and more realistically in Q2 2020,” said Prabhu Ram, Head-Industry Intelligence Group, CMR. (IANS)