Google and Boston Consulting Group have released a new report on India’s food-technology industry. Titled ‘Demystifying the online food consumer’, the report states that the online food ordering industry in the country is expected to hit US$ 8 billion by 2022.
Looking at India’s rapid advancement in internet adoption, the report tells that although the food tech industry is nascent in the country but is one of the fastest growing in terms of reach (presence in over 500 cities in India), engagement and investment.
Talking about investment, the food tech funding has exploded in recent years – grown by 25 times in the last five years says the report.
Demystifying the online food consumer highlights macro trends in the sector – rising internet penetration, higher order frequency, favourable consumer disposition, expanding reach in smaller tiers and network of restaurants on food-tech platforms continue to drive momentum in the industry.
The key findings show that peer or network advocacy (52 per cent) play a primary role in drawing people to try online food ordering for the first time, followed by advertisements (19 per cent), which emerges stronger in metros and also is among the higher income groups across the country.
The study says that while delivery charge is the main reason for not ordering food online in metro cities; in tier I cities, lack of trust in apps (29 per cent) emerged as the barrier.
Overall, online spending in India is rising rapidly and expected to grow at 25 per cent over the next five years to reach over US$130 billion.
