Catering anticipate 10% CAGR 2017-2022
The landscape of food service retail industry is changing with forecast to have 77 billion transactions in 2022, up by an impressive 28.5% over 2017.
The food service industry performance is forecast to accelerate, with an anticipated CAGR of 10% for the five-year period 2017-2022. This is expected to drive the industry to a value of Rs.552,000 crore by the end of 2022.
“Evolution of food is happening, thanks to the innovation in traditional menus. Fusion food is attracting the experimental consumer,” said a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and PricewaterhouseCoopers.
Foreign players are adapting to the local palate, whereas locals are introducing foreign flavours in their food, it added.
It noted the internet penetration and smartphone usage to increase the demand for specialised food and gourmet.
Technology is disrupting the market with the advent of web-based ordering and use of AI and IoT in ordering.
“These developments are set to revolutionise home delivery with faster availability of food at home or office,” said the report.
“With the advent of newer technology, the industry has seen a paradigm shift with consumers opting for ‘dining out’ experiences, making it an important partner for the beverage alcohol sector,” observed Jagbir Singh Sidhu, Chief Operating Officer (North), Diageo India.
“There is a huge consumer market, changing consumer habits, increase in disposable income, and as the industry has evolved, it has become bigger and better,” added Unnat Varma, Chairman – FICCI Task Force on Food Service Retail and MD – Pizza Hut India Sub Continent.
The report was released at FICCI’s Foodzania 2018 – The Food Service Retail Conference on the theme of ‘Changing Landscape of the Food Service Retail Industry’ in Delhi on 12 Dec 2018.
Rahul Singh, President – NRAI and Founder & CEO – The Beer Café, highlighted the significant role of food aggregators in increasing the consumption of outside food.
He said that they are the creators of behavioral change among consumers that is going to increase propensity of dining out.
“Next 10 years are going to be the golden decade from the perspective of consumption,” he added.
Pravesh Sharma, Former MD, Small Farmers Agri-Business Consortium (SFAC), Department of Agriculture, Cooperation and Farmers Welfare, noted that the agriculture sector is more market driven.
“For at least a decade-and-a-half, all the major trends in agriculture sector were signaled and driven by the market,” he said. fiinews.com
