Food Service – Trends and Opportunities

Agenda

Market Outlook

Key Growth Challenges & Way Forward

Changing landscape of food service

Trends and Insights

GDP Growth (%)

02

46

810

12

0

2

4

6

8

10

12

USD

Tn

Sources: GOI Website, Industry News NRAI Techopak food service report

Demographic Dividend

• 2002 • 2026FemaleMale

60 40 20 0 20 40 60

60 40 20 0 20 40 60Mn People Mn People

One of the Youngest Population Country, leading to a large & growing earning middle class.

• Age • Age

0200

400600

Mn

Urban Population

Urbanization is leading to lifestyle related changes driving consumerism

India Outlook

Industry Outlook Per Capita Spend Vs Population

02

46

810

12

02

46

810

12

Sources:NRAI Techopak food service report

0100000

Indian Food Service Market

Key Takeaways• The Organized Sector is expanding at a breakneck speed of 19%. • Organized Vs Unorganized Contribution to sector is expected to go to 41:59 ratio from the current 33:67.• Presence of 1.2 Billion people, changing consumption patterns ensures constant growth of the sector and

industry overall.• Food Service is expected to be at 2.1% of the country GDP by 2021.

All Values are in INR Crores. Data Source: Technopak NRAI Report 2016

Increasing Investments in Food

Service

All Values are in USDSource – DIPP, Industry news,

35 Mn

Swiggy

16.5 Mn

Freshmenu

3.23 Mn

BOX 85 Mn

Chayos

100 Mn

Food Panda

29 Mn

Indigo Rest.

3.1 Mn

Hola Chef

31 Mn

Pizza Hut

110 Mn

Zomato

India Witnessed 6.82 Bn in FDI in the Food Sector between Apr’00 to Mar’16

Agenda

Market Outlook

Key Growth Challenges & Way Forward

Changing landscape of food service

Trends and Insights

Key Growth Challenges & Way ForwardSkilled Manpower

Shortage

Inconvenience of all in-house processing

Technological Disruptions

Changing Consumer Preferences

Innovation

Access to Trends and Insights

Reliable Partners

Rising Inflation / Changes in the prices

of Raw Materials

Quality and Consistency

Standardization

Regulatory & Legal Framework

Agenda

Market Outlook

Key Growth Challenges & Way Forward

Changing landscape of food service

Trends and Insights

Consumption Eating outside as a social event

Food trendsFew branded food outlets,

Local food

DemographicsLess working women

Necessity, Brand awareness

Change in consumer lifestyle,Disruptive changes

Young India (below 30) - 45% Female workforce – 32%

BE

FOR

E NO

W

Consumer lifestyle: Outside food as occasional,

indulgent food.Experimental mindset,

Convenience and Social media penetration

Changing Consumer Preferences

• Innovation with new Ingredients

• Quality • Consistency• Access to global

ingredient Database• Local Sourcing

Ingredients are the new

hero• International Cuisines –

Italian, Mexican• Fusion – International

with a desi touch• Changing culinary trends• Experimental Consumer• Health and wellness

focus.

Food Evolution

• Takeaways• Online Ordering

Platforms• Food Home Delivery• Use of Technology

Convenience & Speed

• Chefs becoming multi dimensional.

• Food Consultants• Food Bloggers

influencing consumers• Social Connect through

Social Media• Dieticians/ Nutritionists• Regulatory Experts

Rise of Specialists

Changing Landscape

Chef’s / F&B Manager’s Role are Becoming Multi-

DimensionalDecision

Maker / DriverInnovation

Cost Controller

Leader & Mentor

Quality

Agenda

Market Outlook

Key Growth Challenges & Way Forward

Changing landscape of food service

Trends and Insights

Rise of Indian Ethnic

From Beverages to Food, the ethnic products have paved way into all saleable food formats

- Dosa Burger of McDonalds

- Paperboat product Range

- Pan Shots instead of aftermint

- Tikka Flavored Chips/Nachos

- Mint Mayonnaise

International Flavors

International Flavors have found their acceptance with Indian consumers off late.

- Piri Piri- Wasabi- Chipotle- Srirarcha- Habanero- Bakery Boom- Miniature concepts- Cocktail Flavors- Artisanal Tea/Coffee

Snacking / Light Meals

Macro snacking is the new trend of eating multiple small meals/snacks throughout the day.

- 75% Indian adults snack once a day

- The traditional “three meals a day” has changed.

- 27% of Indian consumers snack to satisfy a craving.

Health & Wellness

52% of Indian consumers say that they regularly eat a healthy diet as part of living a healthy lifestyle.

- Salads make a comeback

- Turmeric across beverages, Snacks,

- Vegetable Chips- Smoothies- Indian Millets - Probiotic Drinks

Food and Beverage Trends

Established/ Evolving Formats

• Home Delivery• Online Ordering

Convenience• Food Trucks.• Take-away joints.• Drive Thru

On the Go• Fine Dine Models• Molecular

Gastronomy• Food Festivals

Experience• Food Courts• Food Aggregators

Consolidation

How is Technology Disrupting the Industry?

>2%

Market on Apps

1 Mn

Daily Phone Orders

$ 30 Mn

Online Food Orders

Source – CMR Report, Statista.com

India Global

Data Analytics to drive decisions

Digital Payments

Drone Delivery

Self Ordering

Big Mac Dispenser

39% by 2019

Smartphone Users

200 Mn

Active Internet Users

HoReCa Evolution

HoReCa 1.0

HoReCa 2.0

HoReCa 3.0

• Food outlets were serving what they were good at. • No experiments, no innovation. • No mass marketing, relying on Word of Mouth for new

customers.

• Food outlets started brand-building and becoming customer-centric.

• Rise in specialty restaurants with innovation and improvisation. • Aspiring to grow, they started to rely on mass marketing.

• Adaptation to rapidly changing consumer preferences, convenience, technology.

• Innovation to keep afloat for tapping and attracting consumers.• Working with Reliable Partners.

HoReCa is not just a channel but a full - fledged rapidly growing Industry

Thank you