Analysis of the food delivery market in India
The relevance of research
Food delivery in India began to actively take shape as a market in 1990–2000. During this period, the main players were chain pizzerias and Japanese restaurants, and the main channel for orders was the telephone. In Europe and America, such services began to operate actively in the 1960s. Now you can order a variety of food in various restaurants and with the help of several types of communication: the Indian food delivery market has been going to this for almost 20 years.
Purpose of the study
Analysis of the state of the food delivery market, assessment of the market volume, analysis of competitors, consumers, as well as identification of factors affecting the market.
Content
Part 1. Overview of the Indian food delivery market
1.1. Definition and Characteristics of the Indian Food Delivery Market
1.2. Dynamics of the volume of the Indian food delivery market, 2015-2019
1.3. Market structure by type of service provided in India
1.4. The structure of the food delivery market in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive Analysis in the Food Delivery Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of food delivery consumption
3.1. Estimated per capita consumption of food delivery
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the food delivery market until 2024
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian food delivery market
1.1. Definition and Characteristics of the Indian Food Delivery Market
Food delivery in India began to actively take shape as a market in 1990–2000. During this period, the main players were chain pizzerias and Japanese restaurants, and the main channel for orders was the telephone. In Europe and America, such services began to operate actively in the 1960s. Now you can order a variety of food in various restaurants and with the help of several types of communication: the Indian food delivery market has been going to this for almost 20 years.
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1.2. Dynamics of the volume of the Indian food delivery market, 2015-2019
Consider the volume dynamics of the Indian market for food delivery services in 2014-2019. The boom in the development of the ready-to-eat food delivery segment occurred in 2013 (annual growth was more than …%), already in 2014 the growth was much calmer. In the crisis years of 2015 and 2016, the growth rate continued to slow down. According to GidMarket, over five years (2015-2019), the volume of the food delivery market in terms of money (ruble equivalent) has increased by more than ...: from ... billion Rs. in 2015 to … billion Rs. in 2019. The share of the food delivery segment in the structure of public catering turnover increased from …% in 2015 to …% in 2019.
Diagram 1. Dynamics of the food delivery market in India, 2014-2019, billion Rs.
It should be noted that an important factor in the growth of the food delivery market for the period 2016-2019. became a price one: rising prices against the backdrop of general inflation, increasing the cost of dishes, organizing the delivery process. At the same time, even in comparable prices, the volume of the food delivery services market shows stable growth. In the study period, in all years except 2015, the annual market growth rate exceeds the inflation rate in the country as a whole. …
1.3. Market structure by type of service provided in India
Today in India, according to Rosstat, there are more than ... cafes, restaurants and bars, while the total number of chain restaurants is approximately equal to .... About half of them are located in the largest cities of India - and.
Diagram 2. Structure of the food delivery market by type in 2019 (multiple choice, % of the number of respondents ordering meals with delivery), %
1.4. The structure of the food delivery market in the Union Territories
Chart 3. Structure of food delivery services in India by Union Territories, %
1.5. Assessment of current trends and development prospects of the studied market
The following trends and prospects can be noted in the food delivery market:
- Delivery of ready-made food in India is growing at a high pace: in 2019, the market exceeded … billion rupees and took over …% of the country’s public catering turnover. The growing direction attracts large companies, provides fertile ground for promising start-ups - and all this has a connection with the world's technological progress.
- The delivery of food and related products from supermarkets is developing at a similar pace with the delivery of ready-made food from restaurants: according to Leonid Dovladbegyan, director of strategy and e-commerce at Perekrestok, in the next three to four years, FMCG will account for about …% of the online retail market in the country. The food segment is growing the fastest. “This market has a great future, great prospects, and investments there are completely justified.” Moreover, the differences in the specifics of the markets are increasingly blurred - the delivery of both ready-made food and products from stores is now as sensitive as possible to general cultural shifts in the minds of consumers and to the development of technologies.
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1.6. Assessment of factors affecting the market
Macroeconomic factors affect the dynamics of all sectors of the Indian economy, including the food delivery market. The main groups of factors are: economic, political, social and technological.
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Concluding the assessment of the factors of influence on the Indian food delivery market, we will summarize the key ones in the framework of the STEP analysis.
Table 4. STEP analysis of factors influencing the food delivery market
Thus, at the moment, the Indian food delivery market is experiencing a positive impact of environmental factors ...
Part 2. Competitive Analysis in the Food Delivery Market in India
2.1. Major players in the market
Despite the active development of the market due to the development of aggregator companies, only two of them are market leaders - Delivery Club and Yandex.Eda (food delivery is the basis of their business). Also in the category of the largest operators of the food delivery market are …
Table 7. Main companies participating in the food delivery market in 2019
Over the past few years, food delivery aggregators have become more active in the food delivery market, and this segment is already competing with the own delivery segment of large federal catering networks.
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2.2. Market shares of the largest competitors
2.3. Profiles of major players
Delivery Club
Delivery Club is a mobile and desktop food delivery platform owned by Mail.ru Group. The head office is located in India.
Delivery Club was founded in 2009 by Levon Oganesyan and Anna Shkirina. The company was officially registered in July 2009. Delivery Club received its first investment in the amount of $500 from the project founders. Since 000, Addventure has acted as shareholders of the company, having invested $2011 million over the entire period of cooperation. In March 1,5, the company began to make a profit. In December 2012, there was a public round of $2013 million from Phenomen Ventures, most of which went to buy out the shares of Delivery Club from the first investors. The total amount of investments for the development of the project is not disclosed. In June 8, the German food delivery company Foodpanda (Rocket Internet project) bought a 2014% stake in Delivery Club. In October 100, the company entered into a partnership with Alfa-Bank, developing a project for paying for orders using bank cards.
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Table 8. Basic information about participant No. 1 of the food delivery market
Part 3. Analysis of food delivery consumption
3.1. Estimated per capita consumption of food delivery
The consumption of food delivery services per capita is calculated by GidMarket based on the total population of India. If in 2015 a Indian on average used food delivery services for … Rs. per year, then in 2019 this figure increased by … times and amounts to … Rs./person. in year.
Diagram 18. Consumption of food delivery services per capita, 2015-2019, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
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3.3. Description of consumer preferences
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Diagram 19. Consumer preferences by way of ordering food, %
3.4. Price analysis
Table 14. Consumer price indices in the food delivery market in India in 2015-2020 (Jan.-Jun.), %
The consumer price index for food delivery services was calculated by GidMarket based on official statistics for the period 2014-2020 (Jan-Jun) for food products and the service segment. During the entire period, food delivery prices increased.
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Table 15. Commission from transactions of food delivery intermediary companies, %
The leaders among the aggregators Yandex.Food and Delivery Club, in cooperation with restaurants, take a higher commission. In the conditions of 2020, these companies introduced anti-crisis measures:
Yandex.Food, April 2020: “There is now a support program for Yandex.Food for independent restaurants and small chains with up to three establishments connecting to the service. The service will deliver the first 100 orders for them at its own expense. During the pandemic, new restaurants can once again start working with Yandex.Food on the marketplace model: receive orders through the service, but deliver them on their own. If independent establishments choose this delivery method, until June 15 they can work with Yandex.Food without any service fee.
Part 5. Forecast for the development of the food delivery market until 2024
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Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
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Diagrams
Diagram 1. Dynamics of the food delivery market in India, 2014-2019, billion Rs.
Diagram 2. The structure of the food delivery market by type in 2019 (multiple choice, % of the number of respondents ordering meals with delivery), %
Diagram 3. Structure of food delivery services in India by Union Territories, %
Diagram 4. Dynamics of India's GDP, 2007-2019, Q1 2020, % to the previous year
Diagram 5. Expert forecasts for a decline in real GDP in India in 2020 (baseline/neutral scenario), %
Diagram 6. Monthly dynamics of the US dollar against the rupee, 2015-2020 (Jan-July), Rs. for 1 US dollar
Diagram 7. Turnover of public catering at current prices, 2015-2019, billion Rs.
Diagram 8. Population dynamics in India as of January 1, 2010-2020, million people, %
Diagram 9. Population forecast in India for the period 2021-2024, million people
Diagram 10. Dynamics of real incomes of the population of India, 2011 - 2019, % to the previous year
Diagram 11. Internet penetration in India among the audience of 16 years and older, 2012-2019, %
Diagram 12. Profitability before tax (profit of the reporting period) in the field of food delivery in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 13. Current liquidity (total coverage) in the field of food delivery for 2015-2019, times
Diagram 14. Business activity (average receivables turnover) in food delivery, 2015-2019, days days
Diagram 15. Financial sustainability (security of own working capital) in the field of food delivery, in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 16. Shares of the largest competitors in the food delivery market in 2019, %
Diagram 17. Dynamics of the total revenue of the largest food delivery market operators (TOP-5) in India, 2015-2019, billion Rs.
Diagram 18. Consumption of food delivery services per capita, 2015-2019, Rs./person
Diagram 19. Consumer preferences by way of ordering food, %
Diagram 20. Consumer preferences in terms of waiting time, %
Diagram 21. Food delivery market volume forecast for two scenarios in 2020-2024, billion Rs.
Tables
Table 1. Expert forecasts for a decline in real GDP in India in 2020 (baseline/neutral scenario), %
Table 2. Urban and rural population in India in 2014-2019, million people, %
Table 3. Volume and dynamics of the advertising market in India, 2019, units rev.
Table 4. STEP analysis of factors affecting the food delivery market
Table 5. Gross margin of the food delivery industry in comparison with all sectors of the Indian economy, 2015-2019, %
Table 6. Absolute liquidity in the food delivery industry compared to all sectors of the Indian economy, 2015-2019, times
Table 7. The main companies participating in the food delivery market in 2019
Table 8. Basic information about the No. 1 participant in the food delivery market
Table 9. Basic information about the No. 2 participant in the food delivery market
Table 10. Basic information about the No. 3 participant in the food delivery market
Table 11. Basic information about the No. 4 participant in the food delivery market
Table 12. Basic information about the No. 5 participant in the food delivery market
Table 13. Consumer preferences for choosing a dish to order with delivery by age, %
Table 14. Consumer price indices in the food delivery market in India in 2015-2020. (Jan.-Jun.), %
Table 15. Commission from transactions of food delivery intermediary companies, %
Table 16. Average prices on the food delivery market in the Union Territories in 2020, Rs.
Table 17. Assessment of factors of investment attractiveness of the food delivery market
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