Riding on the wave of higher consumption in a growing market and maturing dynamics on the supply side, the food tech space industry is set to grow from USD 4 billion to USD 8 billion in next three years, according to a report http://image-src.bcg.com/Images/Demystifying-the-Online-Food-Consumer_tcm21-238295.pdf by Google and Boston Consulting Group (BCG).
Funding in the food tech space has grown by 35x in the last five years. Macro trends such as rising internet penetration, increasing ordering frequency, favorable consumer disposition, expanding reach in smaller tiers and expanding network of restaurants on Food Tech platforms pan India, continue to drive momentum in the industry. As a consequence, reach of food tech aggregators has grown six times from 2017 to 2019, said the report.
Learning from global examples, Food Tech players can diversify into relevant new offerings by leveraging customer base, delivery and service expertise.
Alternatives to explore multiple cuisines is the most important trigger for continued usage, though omnipresent discounts and convenience closely follow. Consumers are deeply engaged and have high expectations from Food Tech players.
Evolution of multiple business models enables differentiated offerings and services to consumers. Diversification is a common theme across global players, making inroads into non perishable delivery (Grocery, Medicine), Cloud Kitchen, Ride sharing, Payment Gateway, OTT Streaming and Hospitality.
Established global operators have invested in advanced deep personalization, data analytics, and targeted marketing initiatives. The objective is to increase user adoption, alleviate associated barriers and forge deeper relationships with supply networks.
As deep personalization becomes imperative for consumers, Food Tech players would need to explore further the potential of advanced digital analytics and machine learning to provide personalized subscriptions, rewards, marketing channels and innovative recommendations, the report noted.
The potential for Food tech players to increase usage frequency is immense. This encompasses addressing consumer expectations of customization, quality assurance, environmental friendly packaging, ordering flexibility and value for money etc. (promotions, discounts and offers), said the report.