Page 55 - Edelweiss India Conference 2022 FLIPBOOK

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Food Delivery

Food delivery platforms have made online food ordering experience incredibly convenient
and cater to much larger catchment areas. This cocktail of convenience and wider catchment

is no exception.

India’s online food delivery industry logged a staggering 143% CAGR over 2015–19,
expanding to USD4.2bn. India’s food delivery GMV is expected to expand at a 35% CAGR
over 2020–25 to USD13bn by 2025, from USD2.9bn in 2020. Furthermore, by 2030, the
online food delivery industry is expected to reach USD30bn, implying an 18% CAGR over
2025–30.

India Food Delivery GMV and growth

40 160

32 120

24 80
(USD bn) 16 40 (%)

8 0

0 -40
FY16 FY17 FY18 FY19 FY20 FY25E FY30E
Foodtech GMV (USD bn) YoY Growth Rate (%)

In India, contribution of food delivery to restaurants rose to 8.7% in 2020 from 6.5% in 2019.
In the US, China and South East Asia, it increased from 2.2% to 6%, 10.2% to 15.6% and 3.7%
to 10.2%, respectively.

According to Industry forecasts, the proportion of food delivery in India would increase to
11.8% by 2025 and 16.2% by 2030. In China, a mature market that has among the highest
proportions of food delivery, the ratio increased to 15.6% in 2020.

We note that the proportion of food delivery also depends on GDP per capita. On this
count, India ranks much lower than peers and, to that extent, a 16.2% proportion of food
delivery by 2030 factors in many industry tailwinds.

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