Online food ordering market may grow over 16% to $17.02 bn by 2023: Study
Guwahati: The online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023, according to a study by business consultancy firm Market Research Future.
The study, titled 'Digital Platforms Reign in the Food Ordering Market', said the growth in online food ordering market has been attributed to the rising number of women in working population in most of the metro cities. "The Indian online food ordering market is slated to grow at a CAGR (compound annual growth rate) of 16.2 per cent at $17.02 billion by 2023," it said. According to the study, 95 per cent of the respondents surveyed order food online, owing to promotional offers and discounts, while 84 per cent individuals said its hassle-free and time-saving.
It added that 78 per cent of the individuals order food online because its convenient. And 73 per cent order food online because of a wide variety of cuisines on a single-click.
"Lunch is the most preferred meal to be ordered online and card payment is the most preferred mode of payment," it added. Bengaluru gets the highest number of online orders as compared to other cities with 20 per cent of the market share acquired by the southern city, the report said. It is followed by Mumbai, Pune, Delhi and Hyderabad with a share of 18 per cent, 17 per cent, 15 per cent and 12 per cent, respectively.
"The rising number of logistics providers has also enabled food delivery companies to optimise their fleet, thereby reducing delivery time. Online food delivery platforms are focused towards acquisitions and are collaborating with logistics companies to manage delivery operations in the dedicated region," it added.