Higher disposable income, improved living standard, along with change in lifestyle and preferences to drive India food services market through 2020
According to a recently published TechSci Research report, "India Food Services Market Forecast & Opportunities, 2020", food services market in India is anticipated to grow at a CAGR of over 12% through 2020, primarily on account of increasing disposable income, changing lifestyle and tastes & preferences of consumers. Another major factor propelling demand for food services in India is the growing youth population, primarily in urban regions of the country. The country has a large base of young consumers who form majority of the workforce and due to time constraints barely get time for cooking.
Although, upper and lower middle income groups, and youngsters are driving substantial growth in India food services market, a large chunk of Indian consumers, residing in tier II and tier III cities, still remains untapped due to price conscious behavior and lack of confidence in foreign brand food services. To offset this challenge, companies are strategizing their entry into these markets, customizing their menus to accommodate local tastes, and offering products at lower price points in these cities. To remain competitive in the market, an increasing number of brands are strategically targeting these markets to increase their footprints in the country.
"Jubilant Food works, McDonald's, and YUM! Brands are the leading players in India food services market. These players are anticipated to maintain their dominance in the market through 2020, predominantly on account of their future expansion plans. Moreover, the dominance of these players can also be attributed to their continuous efforts towards localizing their product offerings to cater to tastes and cultural preferences of Indian consumers. From excluding beef from their products, to introducing toppings incorporating local flavors, these companies have gone all out to build a strong brand image among customers.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
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