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India - The Future of Foodservice to 2020

India - The Future of Foodservice to 2020


Indian economy has experienced strong GDP growth since 2010. In 2015, it grew by 7% on a per capita basis. Consumer prices also rose, and at a higher rate than in developed countries. Economic growth has been characterized by rapid urbanization and a growing middle class. Consumer’s growing spending power is driving growth for foodservice operators.

Profit sector in India is set to experience acceleration in sales value growth up to a CAGR of 10.5% to 2020. This will be primarily driven by an increase in transaction numbers (CAGR of 5.3%), with outlet numbers growing by 1.7%. Whilst this is obviously a positive sign for the market and stakeholders in India, operators will face increasing operational pressure to cater for a larger number of consumers with a slower-growing number of outlets.

QSR channel in India grew at a CAGR of 6.2% between 2013 and 2015; this pace of expansion is forecast to increase to a CAGR of 9.0% between 2015 and 2020. Rapid urbanization, increasing levels of disposable income, and the growing influence of Westernization are expected to drive healthy performance for this channel.

FSR channel experienced the second strongest sales value growth in the foodservice profit sector since 2013, with revenue rising at CAGR of 11.5% between 2013 and 2015. This growth is forecast to accelerate to 2020, driven by rapid urbanization and rising levels of disposable incomes.

Coffee and tea shop channel has experienced strong historic sales value growth over recent years, with revenue rising a CAGR of 8.1% from 2013-2015. This growth is expected to accelerate to 2020, with a forecast CAGR of 8.8%, fuelled primarily by an increase in average transaction prices and growing transaction numbers. Outlet growth is however expected to contract marginally.

Looking forward, pubs, clubs and bars will benefit from India’s strong economic growth, rapid urbanization and upwardly mobile urban youth, as rising numbers of consumers find themselves able to afford the channels’ higher transaction prices on a more regular basis. Factors such as ‘exclusivity’ and ‘vibrant atmosphere’ will strongly appeal to India’s young working consumers looking to spend their rising disposable incomes in more experiential channels.

The report India - The Future of Foodservice to 2020 provides extensive insight and analysis of the Indian foodservice market over the next five years (2015-2020) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following -

  • Overview of India's macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on India's foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth Dynamics: In-depth data and forecasts of key channels (QSR, FSR, Coffee & Tea Shops, Pubs, Clubs and Bars) within India's foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer Segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Indian population.
  • Key Players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within India's foodservice market.
Companies mentioned in this report: Barbeque Nation, Barista, the Beer Café, Café Coffee Day, Costa Coffee, Domino's Pizza, Dunkin' Donuts, FoodPanda, Goli Vada Pav, Grofers, Haka, Imly, Irish House, Jumboking, KFC, Mainland China, McDonald's, Oh! Calcutta, Pind Balluchi, the Pint Room, Pizza Hut, Sagar Ratna, Sigree, Starbucks, Subway, Swiggy, Xtreme Sports Bar, Zomato, Zoodles.

  • The trend towards “ultra convenience” among young, tech-savvy and increasingly time-pressed urban consumers, along with advancements in mobile technology and the growing prevalence of online ordering sites (Zomato, Swiggy, FoodPanda, Grofers) will drive exceptionally strong revenue growth in India's takeaway market to 2020, far outpacing growth from dine-in.
  • Indian consumers value the availability of varied flavors and cuisines. The success of home-grown Goli Vada Pav and multinational chains’ ongoing efforts to customize menus to match regional tastes and cuisines however indicate a lasting popularity of local delicacies, especially when made available in a convenient, on-the-go format.
  • The foodservice market in India is highly fragmented, with independents generating the vast majority of revenue. Chains will however grow at a faster rate to 2020, partially through incoporating elements of localism and authenticity that are traditionally perceived as the cornerstone of independents’ offerings.
Reasons to buy
  • Specific forecasts of the foodservice market over the next five years (2015-2020) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shops, Pubs, Clubs and Bars) will allow readers to understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within India's foodservice market.

  • Introduction
    • Report Guide: Main Sections
    • Report Guide: Sub-Sections
    • Executive Summary
    • Executive Summary: Consumer Trends
  • Macroeconomic context
    • Macroeconomic Overview
    • Demographic Overview: Population
    • Demographic Overview: Income Bands
  • Introducing consumer segments
    • Introducing Consumer Segments: Constructing the Segments
    • Introducing Consumer Segments
    • Introducing Consumer Segments: Frugal Convenience-Seekers
    • Introducing Consumer Segments: Time-Poor Experimenters
    • Introducing Consumer Segments: Sporadic Splurgers
    • Introducing Consumer Segments: Regimented Routiners
    • Introducing Consumer Segments: Inbetweeners
    • Introducing Consumer Segments: Key Channel Overview
  • Profit sector
    • Profit Sector Metrics
      • Table Transactions drive growth, while outlet growth will accelerate
    • Profit Sector: Value and Share by Channel
    • Profit Sector: Value Growth by Channel
    • Profit Sector: Outlets and Growth by Channel
    • Profit Sector: Transactions and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Channel Historic Growth Dynamics
    • Profit Sector: Channel Future Growth Dynamics
    • Profit Sector: Restaurant: Outlet-Type Growth Dynamics
      • Table Restaurant outlet types 2015 value (INR million)
    • Profit Sector: Restaurant: Type of Ownership Growth Dynamics
      • Table Restaurant owner types 2015 value (INR million)
  • Quick service restaurants (QSR)
    • QSR: Summary
    • QSR: Metrics: Growth Dynamics
      • Table Strong growth driven by rising transactions numbers and average transaction prices
    • QSR: Key Players
    • QSR: Key Consumers: Segment Overview
    • QSR: Key Consumers: Frugal Convenience Seekers
    • QSR: Key Consumers: Time-Poor Experimenters
    • QSR: Key Consumers: Sporadic Splurgers
    • QSR: Key Consumers: Regimented Routiners
    • QSR: Key Consumers: Inbetweeners
    • QSR: Key Consumers: Opportunity Areas
    • QSR: Why?
    • QSR: What?
    • QSR: What: Goli Vada Pav Case Study
    • QSR: What: Goli Vada Pav: Trends Targeted
    • QSR: What: Goli Vada Pav: How
    • QSR: What: Goli Vada Pav: Results
    • QSR: What?: Food and Drink Splits
      • Table Strong growth in all product categories reflect rapid revenue growth in the channel
    • QSR: Where?
    • QSR: What Next?
  • Full service restaurants (FSR)
    • FSR: Summary
    • FSR: Metrics: Growth Dynamics
      • Table Transactions growth is outpacing growth in average transaction value and outlets
    • FSR: Key Players
    • FSR: Key Consumers: Segment Overview
    • FSR: Key Consumers: Frugal Convenience Seekers
    • FSR: Key Consumers: Time-Poor Experimenters
    • FSR: Key Consumers: Sporadic Splurgers
    • FSR: Key Consumers: Regimented Routiners
    • FSR: Key Consumers: Inbetweeners
    • FSR: Key Consumers: Opportunity Areas
    • FSR: Why?
    • FSR: What?
    • FSR: What?: Food and Drink Splits
      • Table Strong growth in all categories led by alcoholic drinks, as consumer confidence rises
    • FSR: Where?
    • FSR: Where: Online Ordering Case Study
    • FSR: Where: Online Ordering: Trends Targeted
    • FSR: Where: Online Ordering: How
    • FSR: Where: Online Ordering: Results
    • FSR: What Next?
  • Coffee and tea shops
    • Coffee & Tea Shops: Summary
    • Coffee & Tea Shops: Metrics: Growth Dynamics
      • Table Despite strong sales value growth, coffee and tea shops lag behind other key profit sector channels
    • Coffee & Tea Shops: Key Players
    • Coffee & Tea Shops: Rising Operator
    • Coffee & Tea Shops: Key Consumers: Segment Overview
    • Coffee & Tea Shops: Key Consumers: Frugal Convenience Seekers
    • Coffee & Tea Shops: Key Consumers: Time-Poor Experimenters
    • Coffee & Tea Shops: Key Consumers: Sporadic Splurgers
    • Coffee & Tea Shops: Key Consumers: Regimented Routiners
    • Coffee & Tea Shops: Key Consumers: Inbetweeners
    • Coffee & Tea Shops: Key Consumers: Opportunity Areas
    • Coffee & Tea Shops: Why?
    • Coffee & Tea Shops: What?
    • Coffee & Tea Shops: What?: Food and Drink Splits
      • Table Milk-based tea drinks dominate the non-alcoholic drink category
    • Coffee & Tea Shops: Where?
    • Coffee & Tea Shops: What Next?
  • Pubs, clubs and bars
    • Pubs, Clubs & Bars: Summary
    • Pubs, Clubs & Bars: Metrics: Growth Dynamics
      • Table Strong sales value growth in the channel driven by premiumization and rising transaction prices
    • Pubs, Clubs & Bars: Key Players
    • Pubs, Clubs & Bars: Key Consumers: Segment Overview
    • Pubs, Clubs & Bars: Key Consumers: Frugal Convenience Seekers
    • Pubs, Clubs & Bars: Key Consumers: Time-Poor Experimenters
    • Pubs, Clubs & Bars: Key Consumers: Sporadic Splurgers
    • Pubs, Clubs & Bars: Key Consumers: Regimented Routiners
    • Pubs, Clubs & Bars: Key Consumers: Inbetweeners
    • Pubs, Clubs & Bars: Key Consumers: Opportunity Areas
    • Pubs, Clubs & Bars: Why?
    • Pubs, Clubs & Bars: What?
    • Pubs, Clubs & Bars: What?: Food and Drink Splits
      • Table Alcoholic drinks dominate in terms of OBP value, but strongest growth is in non-alcoholic drinks
    • Pubs, Clubs & Bars: Where?
    • Pubs, Clubs & Bars: What Next?
  • Cost sector
    • Cost Operator Trends: Historic Growth
    • Cost Operator Trends: Future Growth
    • Cost Operators: Data Breakdown
      • Table Education will remain the largest channel, though growth will slow down marginally
  • Education
    • Education: Growth Dynamics & Drivers
    • Education: Tender Tracker
    • Education: What Next?
  • Healthcare
    • Healthcare: Growth Dynamics & Drivers
    • Healthcare: Tender Tracker
    • Healthcare: What Next?
      • Table Indian Population
  • Military and civil defense
    • Military and Civil Defense: Growth Dynamics & Drivers
    • Military and Civil Defense: Tender Tracker
    • Military and Civil Defense: What Next?
  • Welfare and services
    • Welfare & Services: Growth Dynamics & Drivers
    • Welfare & Services: Tender Tracker
    • Welfare & Services: What Next?
  • Appendix
    • Trade and Sectors Definitions
    • Channel Definitions
    • Other Definitions
    • Key Components - Market Intelligence

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