The online food delivery market in India is growing in tandem with evolving lifestyle patterns and eating habits of Indians. Hectic work schedules and rise in disposable incomes have popularized food delivery, especially in urban areas.

The online food delivery market in India is expected to expand at compound annual growth rates of ~30.55% (based on revenue) and ~10.19% (based on the number of users) during the 2020-2024 period, to generate a revenue of INR ~1,334.99 Bn and develop a user base of ~300.57 Mn by 2024.

Major players currently operating in the Indian online food delivery market include platform-to-customer service providers like Swiggy (Bundl Technologies Private Limited), FreshMenu (FoodVista India Private Limited), Faasos (Rebel Foods Private Limited) and Zomato (Zomato Media Private Limited). Apart from these, there exist certain companies that operate with a restaurant-to-customer delivery model like Box8, Domino’s (Domino’s Pizza, Inc.), and KFC (Yum! Brands, Inc.).

Segment-wise market overview
As of 2019, millennials accounted for ~63% of the overall user base of the online food delivery market. This is owed to increasing disposable income of the millennials, especially in the urban regions in India. Also, millennials prefer ordering food online since it is easy to handle and saves time and energy of cooking at home.

In 2019, out of the major online food delivery service providers, Zomato held a share of ~38% in terms of user base. Swiggy held a share of ~27% in the online food delivery user base of India in 2019. High adoption rates in tier I and tier II cities, as well as swift delivery services has helped these two companies to gain the high share in the Indian market.

Key growth driver of the market
In the recent years, the number of working women has increased in the Indian workforce, especially in the city-based organized sectors. As a result, the number of double income families in also on the rise. With both the partners working and maintaining hectic working schedules, it become difficult for people to get time and energy to cook at home. Moreover, the dual income scenario has increased the overall spending capacity of the families. Also, the key players like Swiggy, and Zomato keep on announcing lucrative offers for the customers, both existing and new, in order to keep up the stiff competition in the online food ordering market. This in turn is leading towards people’s preference towards ordering food online and enjoying their favourite cuisine at home at an affordable price, thereby increasing the overall value and user base of the online food ordering market in India.

Key deterrent to the growth of the market
Recently, there have been several instances of spurious and closed restaurants; and food shops taking orders on food platforms, only to be informed later that either the shop cannot be located or had shut operations. Cases were reported where certain outlets registered on these food delivery apps have turned out to be makeshift, or operate out of home joints, with hardly any focus on hygiene and quality. This has caused annoyance among both the customers and the food delivery executives. Also, consumers are becoming concerned about the quality of food since such unauthorized food stalls seldom maintain hygiene both while cooking and packaging. This, in turn, is developing dissatisfaction among the customers of the online food delivery market in India.

Companies covered
• Box8
• Bundl Technologies Private Limited
• FoodVista India Private Limited
• Rebel Foods Private Limited
• Zomato Media Private Limited
• Domino’s Pizza, Inc.
• Yum! Brands, Inc.

Online Food Delivery Market in India 2020

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Market segment insights:
Based on product categories, the Indian e-commerce market can be segmented into online travel, online retail, online financial services, online matrimony and classified, and other online services segments.
The online travel segment held the highest market share in 2019. Improved air and rail connectivity, coupled with growing number of Internet users in tier II and tier III cities has boosted the online travel market. Moreover, government initiatives to promote tourism such as Athiti Devo Bhava and Incredible India have attracted international travelers in India, which has had a positive impact on market growth. Companies including MakeMyTrip, Goibibo, IRCTC, Clear trip and Yatra.com are leading the players in the online travel market in India.
By 2024, the online retail market is expected to dominate the e-commerce market in India and reach a value of INR 4289.64 Bn, expanding at a CAGR of ~20.22%. In this segment, demand for electronics products was the highest, followed by apparels and home furnishing products, in 2018. Deep discounts offered by e-retailers in the form of cashback offers, and buyback schemes have driven the market for online retail in India. Moreover, growing appetite for international brands, especially for apparels, has also positively affected market growth. In the online retail space, companies such as Amazon, Flipkart and Snapdeal are the major players.
The online financial services market in India is expected to be the fastest growing segment, expanding at a CAGR of ~33.55% during the forecast period. An increase in the number of mobile wallet and digital transactions, coupled with the proliferation of high-speed Internet has propelled the adoption of online financial services among consumers, thereby fueling market growth. Furthermore, lucrative discounts, free coupons and cashbacks offered by companies like Paytm, Google Pay, Mobikwik and PhonePe have attracted more consumers to use digital financial services during payment for bills like telephone, and electricity.

Competitive insights:
E-commerce companies are incorporating various technologies like voice recognition, virtual and augmented reality (VR & AR), Fintech, artificial intelligence (AI) and machine learning (ML) to attract customers and compete with other players. Companies like Amazon, Flipkart, Goibibo, Ola, Zomato and Ixigo have incorporated voice assistants for assisting customers with their queries, thereby improving customers’ satisfaction. E-commerce companies are also integrating Fintech-based payment platforms like PayPal, Apple Pay, Google Pay and Amazon Pay to offer secure and efficient online payment methods to consumers.
Companies covered
• Infibeam Avenues Ltd.
• Info Edge (India) Ltd.
• Thomas Cook (India) Ltd.
• BigTree Entertainment Pvt. Ltd.
• Flipkart Internet Pvt. Ltd.
• Jasper Infotech Pvt. Ltd.
• MakeMyTrip (India) Pvt. Ltd.
• One97 Communications Ltd.
• People Interactive (India) Pvt. Ltd.
• Amazon India Ltd.

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Segmentation based on product category:
The consumer electronics segment holds the largest market share, and is predicted to expand at a CAGR of XX% during the forecast period. Policies like easy returns, enhanced customer support, and an abundance of choices are making consumers prefer online shopping over brick and mortar stores for buying electronic gadgets. The auto accessories segment is anticipated to have the highest CAGR during the 2019-2024 period.

Segmentation based on channel:
The wholesale e-commerce market held the largest market share in 2018, and is expected to have the highest CAGR during the forecast period. Across regions, e-commerce platforms are focusing on enhancing their business to business transaction capabilities, to facilitate bulk merchandise purchasing procedures for retailers, for their registered businesses. Leading e-commerce giants like Amazon and eBay are improving their wholesale e-commerce services by providing features like pay-by-invoice, approval workflows, and multi-user accounts to help business customers.

Regional insights:
The e-commerce market in the Asia-Pacific region is projected to expand at the highest CAGR during the forecast period, owing to the presence of a number of major players in the region, like Alibaba and JD.COM. Companies are continuously reshaping the e-commerce landscape in the region by utilizing advanced technologies like the Internet of Things, data analytics, artificial intelligence, and machine learning to enhance the agility of the supply-chain to facilitate real-time tracking, quick responses to customers’ queries, and flexible adjustments in production.

Companies covered:
– Amazon
– eBay Inc.
– JD.COM
– Alibaba Group
– Walmart Inc.
– Booking Holdings Inc.
– Expedia Group
– Otto Group
– The Home Depot
– Costco Wholesale Corporation

The post Global E-Commerce Market (2019-2024) Share, Scope, Revenue, Trends, Drivers, Challenges, Segmentation based on Product Category (Consumer electronics, Food and beverage, travel and hospitality, Apparel and accessories, Health and beauty, Auto accessories, Others) Channel (Retail, Wholesale) and Geography (North America, Asia Pacific, The Middle East and Africa, Europe and Latin America) first appeared on CRI Report.