Introduction - Food and Beverage Sector

The F&B industry has continuously worked at the changing tastes and preferences of the consumer and it influences the working population with an increase in disposable income and rising urbanization leading to changing lifestyles of people. Increase in consumption of fast-growing F&B segments during special occasions and celebrations is also seen over the year.

Global Market Scenario

The food and beverages industry is evolving rapidly as the global food and beverage industry is growing at around 5 percent a year and global expenditure on food products by consumers is expected to grow from USD 16.3 billion in 2019 to USD 23.4 billion by 2024 at a compound annual growth rate (CAGR) of 7.5 percent for the period of 2019-2024 and is expected to reach USD 20 trillion by 2030 as per the BCC Research Report, May 2019.

Indian Market Aspect

India is expected to become the third-largest consumer market in the world by 2025. The Indian food processing sector has received FDI of an amount equal to USD 7.81 billion that makes it the 13th largest sector receiving FDI in the country as per the Business Standard report. The F&B sector is the largest consumer of agriculture products and agriculture sector is the biggest producer of pulses, and the second-biggest producer of rice, wheat, sugarcane, and fruits and vegetables. The F&B industry in India is estimated to expand along a healthy growth track during the forecast period.

Tech in Food and Beverage Sector

F&B sector has moved from imitation to innovation. The online food ordering business is at its nascent stage and is expected to showcase exponential growth. Online food delivery players like Zomato, Swiggy, UberEats are building scale through partnerships and the food business has a huge potential and a promising future. The online food delivery industry grew at 150 percent in 2016 with an estimated GMV of USD 300 Million as per an Economic Times report.

Cloud Kitchen

A cloud kitchen is any restaurant that operates just from its kitchen and has no dine-in or takeaway and only thrives on home deliveries. It helps brands by being closer to customers and by bringing down the cost of setting up a cooking facility. It is especially helpful for small and upcoming restaurants. The concept of cloud kitchen is expected to widen the horizon of F&B services market and thus contributing to a larger market share.

Swiggy, which help customers to get food at their doorsteps from different restaurants, started two units called pilot project.  Now, Swiggy has 250 units of cloud kitchen known as Swiggy Access’- in eight cities and is expected to add 400 cloud kitchens and has also launched its own private label known as Swiggy-The Bowl Company and Homely which both are currently present in Hyderabad and Bengaluru.

Zomato, Rebel Foods, Kilo by Biryani and many more brands have launched their cloud kitchen. Recently even Oyo also started his own cloud kitchen.

The food-tech industry has a gross merchandise value of USD 1.9 billion in 2018, expected to grow at 60-70 percent CAGR over the next three years in as per an Economic Times report.