According to TechSci Research report, “India Online Food Ordering and Delivery Market – Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the India Online Food Ordering and Delivery Market stood at USD 28.3 billion in 2022 and is anticipated to grow with a CAGR of 26.89% in the forecast period, 2025-2029. The India online food ordering and delivery market has witnessed a remarkable transformation in recent years, reshaping the way people dine and enjoy their favorite meals. This industry has seen explosive growth, driven by a combination of factors such as changing consumer preferences, technological advancements, increased internet penetration, and a burgeoning urban population.
The concept of ordering food for delivery is not new to India, as it has long been a part of the culture, with street food vendors and dabbawalas in Mumbai serving as early examples. However, the advent of the internet and the proliferation of smartphones brought about a seismic shift in the way food is ordered and delivered. The first wave of online food ordering platforms in India emerged in the mid-2000s, but it wasn’t until the early 2010s that the market truly began to take off.
Browse over XX market data Figures spread through XX Pages and an in-depth TOC on “IndiaOnline Food Ordering and Delivery Market” – https://www.techsciresearch.com/report/india-online-food-ordering-and-delivery-market/3952.html
The India online food ordering and delivery market is highly competitive and fragmented, with numerous players vying for a piece of the pie. Some of the major players include Swiggy, Zomato, UberEats (now acquired by Zomato), and Foodpanda (now merged with Ola). These platforms offer a wide array of cuisines, from local favorites to international delicacies, and cater to various consumer segments.
Swiggy, founded in 2014, has established itself as a market leader with its extensive network of restaurants and a robust delivery system. Zomato, founded in 2008, initially started as a restaurant discovery platform but later ventured into food delivery, becoming a fierce competitor to Swiggy. The intense rivalry between Swiggy and Zomato has shaped the dynamics of the market, leading to innovations, discounts, and promotional offers to attract and retain customers.
The entry of UberEats (now integrated into Zomato) and Foodpanda further intensified the competition. These platforms brought in their expertise in ride-hailing technology to enhance food delivery services. However, the market consolidation over the years has reduced the number of major players, creating a more stable competitive landscape.
One of the driving forces behind the growth of online food ordering in India is changing consumer behavior. Urbanization, hectic lifestyles, and the desire for convenience have led people to opt for the convenience of ordering food online rather than cooking at home or dining out. The younger demographic, in particular, has embraced this trend, preferring to use mobile apps for ordering food.
The COVID-19 pandemic accelerated this shift in consumer behavior as lockdowns and social distancing measures made dining out less feasible. Many consumers who had never used online food delivery services before turned to them for their meal requirements, further boosting the market’s growth.
Another noteworthy trend in the India online food ordering market is the increasing demand for healthier food options. Consumers are becoming more health-conscious and are actively seeking out restaurants and dishes that align with their dietary preferences, whether it’s vegetarian, vegan, gluten-free, or organic options. This has led to a rise in specialized food delivery platforms focusing on healthy and organic foods.
Despite its rapid growth, the India online food ordering and delivery market faces several challenges. One of the primary concerns is the profitability of food delivery platforms. Achieving profitability in this highly competitive market has proven to be a daunting task. The need to offer discounts and promotions to attract and retain customers, along with the costs associated with delivery logistics and restaurant partnerships, often outpaces the revenue generated. As a result, many platforms operate at a loss, relying on investor funding to sustain their operations.
Food quality and hygiene standards are also a critical challenge. Ensuring that food remains safe and of high quality during transit is essential to retain customer trust. Complaints related to food quality, delayed deliveries, or incorrect orders can harm a platform’s reputation and drive customers away.
Additionally, regulatory challenges and local laws pose hurdles for online food delivery platforms. Different states and cities in India have varying regulations related to food safety, licensing, and delivery hours. Navigating this complex regulatory landscape can be cumbersome for companies operating across multiple regions.
Another challenge is the increasing scrutiny of the gig economy and the classification of delivery personnel as gig workers. The debate over workers’ rights and fair compensation has implications for the cost structure and operational efficiency of food delivery platforms.
Despite the challenges, the India online food ordering and delivery market continues to evolve and innovate. Several trends and developments are expected to shape its future:
Many platforms are focusing on hyperlocal delivery to reduce delivery times and costs. This involves setting up smaller distribution centers in neighborhoods to serve customers more efficiently. Additionally, the rise of ghost kitchens, which are delivery-only kitchens, is changing the restaurant landscape. These kitchens operate without dine-in facilities, catering exclusively to online orders, reducing overhead costs for restaurant owners. Furthermore, integration of AI and machine learning for personalized recommendations, route optimization, and demand forecasting will enhance the efficiency of food delivery.
With increased awareness of environmental issues, consumers are looking for sustainable packaging and delivery options. Platforms are exploring eco-friendly packaging and electric vehicle fleets. Additionally, online food delivery platforms are diversifying their services beyond food delivery, offering groceries, medicine delivery, and more, creating new revenue streams.
Health and Wellness: Continued growth in the demand for healthier food options will lead to more specialized platforms catering to specific dietary preferences. Furthermore, as urbanization spreads to smaller cities and towns, online food delivery platforms are expanding their reach, tapping into new markets.
India Online Food Ordering and Delivery market is segmented into operation type, platform, payment, and region.
Based on operation type, the market is segmented into food aggregators & restaurant based. Among these, restaurant based have a significant share in the India online food ordering and delivery market. Restaurant-based platforms have managed to build extensive networks of partner restaurants across various cuisines and price ranges. This diversity caters to a wide spectrum of consumer preferences, making these platforms a one-stop solution for customers looking for a diverse selection of meals.
Based on region, the market is segmented into North, West, East, and South. Among these, South has a significant share of the India online food ordering and delivery market. The South region of India is known for its high levels of internet penetration and smartphone usage. The tech-savvy population in urban centers like Bangalore, Chennai, and Hyderabad has readily embraced online food ordering and delivery services. These cities are home to a large number of young professionals and students who prefer the convenience of ordering food online through mobile apps. This demographic trend has boosted the demand for online food delivery services in the South.
Major companies operating in India online food ordering and delivery market are:
- Jubilant FoodWorks
- Zomato Limited
- Box8
- Bundl Technologies Private Limited (Swiggy)
- FoodVista India Private Limited
- Rebel Foods Private Limited (Faasos)
- Yum! Brands, Inc.
- Biryani by Kilo
- Eat.Fit
- Fresh Menu
Download Free Sample Report – https://www.techsciresearch.com/sample-report.aspx?cid=3952
Customers can also request for 10% free customization on this report.
“The India online food ordering and delivery market has witnessed phenomenal growth, driven by changing consumer preferences, technological advancements, and the convenience of mobile apps. Despite challenges related to profitability, food quality, and regulatory hurdles, the industry continues to evolve and innovate. The future promises more personalized and sustainable food delivery options, diversification into related services, and expansion into untapped markets. As the Indian dining landscape undergoes this digital transformation, online food ordering and delivery are expected to remain a dominant and indispensable part of the culinary experience in the years to come.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.
“India Online Food Ordering and Delivery Market Size By Operation Type (Food Aggregators & Restaurant-based), By Platform (Mobile Applications and Websites), By Payment (Mobile Wallet, Card Payment, Cash on Delivery, and Net Banking), By Region, By Competition Forecast & Opportunities, 2019-2029F, has evaluated the future growth potential of India online food ordering and delivery market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in India online food ordering and delivery market.
Download Free Sample Report – https://www.techsciresearch.com/sample-report.aspx?cid=3952
Contact
Mr. Ken Mathews
Techsci Research LLC
420 Lexington Avenue, Suite 300,
New York, United States- 10170
Tel: +1-332-258-6602
Email: [email protected]
Website: www.techsciresearch.com