India’s online food ordering market to touch $8b by 2022: Google-BCG study

Photo: Zomato

Consumer appetite for food ordering is set to rise with India’s online food ordering market expected to grow at a compound annual growth rate of 25-30% to touch $7.5- $8 billion by 2022, up from $4 billion, according to a report by Google and Boston Consulting Group (BCG).

Increased reach of internet in India’s smallest cities will help consumers discover new platforms, even as online food companies expand their reach to more cities and rope in more restaurants, prompting users of apps to spend more time and money on them.

“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. 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, he said.

Between 2017 to 2019, the reach of food tech aggregators grew six times.

The time spent exploring and ordering food online has also nearly doubled from 32 minutes in 2017 to 72 minutes per month in 2019.

The report also expects ordering frequency to grow by 18-20%, though average order values may soften by 5-10% as consumers try small portions but order more. “Higher order frequency though offset by lower average order value,” the report said.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.