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Indian foodservice sector to reach Rs 5,52,000 crore by ’22 with 10% growth
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Thursday, 13 December, 2018, 12 : 00 PM [IST]
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Our Bureau, Mumbai
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The performance of the foodservice industry is forecast to accelerate, with an anticipated compound annual growth rate (CAGR) of 10 per cent for the five-year period between 2017 and 2022. This is expected to drive the industry to a value of INR 5,52,000 crore by the end of 2022.
This was one of the highlights of the Federation of Indian Chambers of Commerce and Industry (FICCI)–PwC report on Changing Landscape of the Food Service Retail Industry, which was launched at FICCI’s Foodzania 2018 - The Food Service Retail Conference in New Delhi recently.
Leaders of the Indian food service retail sector highlighted the upcoming golden decade of the growth in the industry driven by the changing consumer behaviours and influx of technologies within the business.
Speaking at the event, Unnat Varma, chairman, FICCI Task Force on Food Service Retail, and managing director, India Sub-continent, Pizza Hut, said that the Indian food service industry is at the cusp of a massive growth.
He added that the changing landscape of the food service retail industry was largely driven by the changing consumer behaviour which can lead the sector for a sustained double-digit growth over a decade.
“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,” said Varma.
Jagbir Singh Sidhu, chief operating officer, north, Diageo India, said that the food services industry contributes significantly to the economy by creating millions of jobs.
“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,” he added.
Rahul Singh, president, National Restaurant Association of India (NRAI), and founder and chief executive officer, The Beer Café, highlighted the significant role of food aggregators in increasing the consumption of outside food.
He said that they were the creators of behavioural change among consumers that was going to increase the propensity of dining out. “Next 10 years are going to be the golden decade from the perspective of consumption,” Singh added.
Pravesh Sharma, former managing director, Small Farmers Agri-Business Consortium (SFAC), Department of Agriculture, Cooperation and Farmers Welfare, ministry of Agriculture and Framers Welfare, said that today, the agriculture sector is more market-driven.
“For at least a decade-and-a-half, all the major trends in the agriculture sector were signalled and driven by the market,” he added.
The other highlights of the FICCI–PwC report were as follows:
? In 2022, the Indian food service industry is forecast to have a volume of 77 billion transactions, an increase of 28.5 per cent since 2017. The CAGR of the industry during the period between 2017 and 2022 is predicted to be 5.1 per cent
? The evolution of food is happening, thanks to the innovation in traditional menus. Fusion food is attracting the experimental consumer. Foreign players are adapting to the local palate, whereas locals are introducing foreign flavours in their food
? 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 artificial intelligence (AI) and Internet of Things (IoT) in ordering. These developments are set to revolutionise home delivery with faster availability of food at home or office
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