Online food ordering market may grow at over 16%, likely to touch $17.02 billion by 2023: Study

Guwahati: The online food ordering market in India is likely to grow at over 16 percent 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 the 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 percent at $17.02 billion by 2023,” it said. According to the study, 95 percent of the respondents surveyed order food online, owing to promotional offers and discounts, while 84 percent individuals said its hassle-free and time-saving. [caption id=“attachment_4305325” align=“alignleft” width=“380”] Representational image. Reuters[/caption] It added that 78 percent of the individuals order food online because it’s convenient. And 73 percent 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 percent 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 percent, 17 percent, 15 percent and 12 percent, respectively, while other cities accounted for 18 percent of the market share. “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.