food service – trends and opportunities · market outlook key growth challenges & way forward...
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Food Service – Trends and Opportunities
Agenda
Market Outlook
Key Growth Challenges & Way Forward
Changing landscape of food service
Trends and Insights
GDP Growth (%)
02
46
810
12
0
2
4
6
8
10
12
USD
Tn
Sources: GOI Website, Industry News NRAI Techopak food service report
Demographic Dividend
• 2002 • 2026FemaleMale
60 40 20 0 20 40 60
60 40 20 0 20 40 60Mn People Mn People
One of the Youngest Population Country, leading to a large & growing earning middle class.
• Age • Age
0200
400600
Mn
Urban Population
Urbanization is leading to lifestyle related changes driving consumerism
India Outlook
Industry Outlook Per Capita Spend Vs Population
02
46
810
12
02
46
810
12
Sources:NRAI Techopak food service report
0100000
Indian Food Service Market
Key Takeaways• The Organized Sector is expanding at a breakneck speed of 19%. • Organized Vs Unorganized Contribution to sector is expected to go to 41:59 ratio from the current 33:67.• Presence of 1.2 Billion people, changing consumption patterns ensures constant growth of the sector and
industry overall.• Food Service is expected to be at 2.1% of the country GDP by 2021.
All Values are in INR Crores. Data Source: Technopak NRAI Report 2016
Increasing Investments in Food
Service
All Values are in USDSource – DIPP, Industry news,
35 Mn
Swiggy
16.5 Mn
Freshmenu
3.23 Mn
BOX 85 Mn
Chayos
100 Mn
Food Panda
29 Mn
Indigo Rest.
3.1 Mn
Hola Chef
31 Mn
Pizza Hut
110 Mn
Zomato
India Witnessed 6.82 Bn in FDI in the Food Sector between Apr’00 to Mar’16
Agenda
Market Outlook
Key Growth Challenges & Way Forward
Changing landscape of food service
Trends and Insights
Key Growth Challenges & Way ForwardSkilled Manpower
Shortage
Inconvenience of all in-house processing
Technological Disruptions
Changing Consumer Preferences
Innovation
Access to Trends and Insights
Reliable Partners
Rising Inflation / Changes in the prices
of Raw Materials
Quality and Consistency
Standardization
Regulatory & Legal Framework
Agenda
Market Outlook
Key Growth Challenges & Way Forward
Changing landscape of food service
Trends and Insights
Consumption Eating outside as a social event
Food trendsFew branded food outlets,
Local food
DemographicsLess working women
Necessity, Brand awareness
Change in consumer lifestyle,Disruptive changes
Young India (below 30) - 45% Female workforce – 32%
BE
FOR
E NO
W
Consumer lifestyle: Outside food as occasional,
indulgent food.Experimental mindset,
Convenience and Social media penetration
Changing Consumer Preferences
• Innovation with new Ingredients
• Quality • Consistency• Access to global
ingredient Database• Local Sourcing
Ingredients are the new
hero• International Cuisines –
Italian, Mexican• Fusion – International
with a desi touch• Changing culinary trends• Experimental Consumer• Health and wellness
focus.
Food Evolution
• Takeaways• Online Ordering
Platforms• Food Home Delivery• Use of Technology
Convenience & Speed
• Chefs becoming multi dimensional.
• Food Consultants• Food Bloggers
influencing consumers• Social Connect through
Social Media• Dieticians/ Nutritionists• Regulatory Experts
Rise of Specialists
Changing Landscape
Chef’s / F&B Manager’s Role are Becoming Multi-
DimensionalDecision
Maker / DriverInnovation
Cost Controller
Leader & Mentor
Quality
Agenda
Market Outlook
Key Growth Challenges & Way Forward
Changing landscape of food service
Trends and Insights
Rise of Indian Ethnic
From Beverages to Food, the ethnic products have paved way into all saleable food formats
- Dosa Burger of McDonalds
- Paperboat product Range
- Pan Shots instead of aftermint
- Tikka Flavored Chips/Nachos
- Mint Mayonnaise
International Flavors
International Flavors have found their acceptance with Indian consumers off late.
- Piri Piri- Wasabi- Chipotle- Srirarcha- Habanero- Bakery Boom- Miniature concepts- Cocktail Flavors- Artisanal Tea/Coffee
Snacking / Light Meals
Macro snacking is the new trend of eating multiple small meals/snacks throughout the day.
- 75% Indian adults snack once a day
- The traditional “three meals a day” has changed.
- 27% of Indian consumers snack to satisfy a craving.
Health & Wellness
52% of Indian consumers say that they regularly eat a healthy diet as part of living a healthy lifestyle.
- Salads make a comeback
- Turmeric across beverages, Snacks,
- Vegetable Chips- Smoothies- Indian Millets - Probiotic Drinks
Food and Beverage Trends
Established/ Evolving Formats
• Home Delivery• Online Ordering
Convenience• Food Trucks.• Take-away joints.• Drive Thru
On the Go• Fine Dine Models• Molecular
Gastronomy• Food Festivals
Experience• Food Courts• Food Aggregators
Consolidation
How is Technology Disrupting the Industry?
>2%
Market on Apps
1 Mn
Daily Phone Orders
$ 30 Mn
Online Food Orders
Source – CMR Report, Statista.com
India Global
Data Analytics to drive decisions
Digital Payments
Drone Delivery
Self Ordering
Big Mac Dispenser
39% by 2019
Smartphone Users
200 Mn
Active Internet Users
HoReCa Evolution
HoReCa 1.0
HoReCa 2.0
HoReCa 3.0
• Food outlets were serving what they were good at. • No experiments, no innovation. • No mass marketing, relying on Word of Mouth for new
customers.
• Food outlets started brand-building and becoming customer-centric.
• Rise in specialty restaurants with innovation and improvisation. • Aspiring to grow, they started to rely on mass marketing.
• Adaptation to rapidly changing consumer preferences, convenience, technology.
• Innovation to keep afloat for tapping and attracting consumers.• Working with Reliable Partners.
HoReCa is not just a channel but a full - fledged rapidly growing Industry
Thank you