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Consumer Food Service Set to Rise in India

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100% Home delivery/takeaway saw a rise in India in 2016. This was mainly driven by increased number of working professionals within India, especially women. This decline resulted in a large proportion of the household/consumer base ordering food in, thereby helping to drive the growth of 100% home delivery/ takeaway.

As more consumers are moving out of their homes, 100% home delivery/takeaway increased in growth. This is because, while it is relatively common for people to live with their parents past education, many Millennials are moving out to set up their own home. When living with their parents, these consumers were used to a cook or someone at home to prepare a home-cooked meal. Now these consumers are leaning towards single-portion home delivery for lunch and dinner, especially in metropolitan cities.

Indian or traditional cuisine was the most popular form of 100% home delivery/takeaway in India. Consumers generally ordered from 100% home delivery/takeaway only for everyday eating purposes, in which case, consumers preferred local cuisine.

Independent 100% home delivery/takeaway continued to be the only type of 100% home delivery/takeaway in India in 2016. This continued to be a very fragmented channel in India, with a large number of small players, who focus only on the food and delivery, and not on ambience or design of the outlet.

This channel is used by consumers who did not cook on a regular basis, and prefer affordable, quick and hygienic food. Hence, all the players, though small in their operations, focus only on these three things.

100% home delivery/takeaway is expected to post a value CAGR of 6% at constant 2016 prices. This will be driven by the increased number of single consumers moving out of their parents’ homes, and increasingly busy lifestyles, which will make it difficult for consumers to cook every day.

Rising awareness regarding health and wellness may act as a constraint on the growth of the channel, as eating out is still considered to be unhealthy, due to excessive use of oil and spices in the food.

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