The Future of Food Industry: Guide for Aspiring Entrepreneurs

The Future of Food Industry: Guide for Aspiring Entrepreneurs

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There are several aspiring entrepreneurs who want to invest their money somewhere but do not know which industry is the best to put their money that would offer them maximum returns. The food industry over the years, has grown remarkably and has been expanding at an astounding speed.

Globally, the food delivery market accounts for €83 billion, which is 1 percent of the total food market and around 4 percent of food sold through restaurants and fast food outlets. The food industry has matured in most countries, with an overall annual growth rate estimated at 3.5 percent for the next five years.

By far, the most common form of delivery is the traditional model, in which the consumer places an order with the local restaurant over the phone and waits for the restaurant to bring the food to the door. This traditional category has a 90 percent market share, and most of those orders—almost three-quarters—are still placed by phone.

However, as in so many other sectors, the rise of digital technology is reshaping the market. Consumers are getting accustomed to shopping online through apps and websites which offer maximum convenience and transparency. The same can be said when it comes to ordering dinner.

In this blog, we are not just preaching that entrepreneurs should invest in an online food delivery marketplace. We are providing facts and figures which will show the huge demand and opportunities for entrepreneurs in the online food delivery sector.

Fact 1: – Growth of online food industry

When every offline business is stepping in the online world, the food-delivery market is in the middle of a huge channel migration. Online delivery is expected to grow by 25 percent every year from 2015 to 2018 across prominent countries.

Fact 2: – The Past and future market scenario

In the year 2015, there was a huge debate on whether hyper local businesses will be able to shift to online businesses. One sector which grabbed maximum attention was the food industry. The reasons were that it is expected to see revenue of $78 billion by 2018, which will subsequently grow 16 percent. This sector has always shown high demand and looks promising for higher returns. Now the sector is overflowed with “Me-too startups” which are lacking both differentiation and innovation, there is a huge demand for out of the box startups that entices the customers with its features.

Online vs Offline Food Ordering

Fact 3: – Global Revenue

  • Global revenue is expected to show an annual growth rate (CAGR 2016-2021) of 23.6 %, resulting in a market volume of US$210,324 m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 915.5m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 353.3m by 2021.

Fact 4: – China Revenue

  • Revenue is expected to show an annual growth rate (CAGR 2016-2021) of 20.9 % resulting in a market volume of US$77,045m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 390.9m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 188.4m by 2021

Fact 5: – US revenue

  • Revenue is expected to show an annual growth rate (CAGR 2016-2021) of 20.2 % resulting in a market volume of US$9,631m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 21.0m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 7.8m by 2021.

Also read: – Business and revenue model of online food delivery marketplace

Fact 6: – Germany revenue

  • Revenue is expected to show an annual growth rate (CAGR 2016-2021) of 20.8 % resulting in a market volume of US$7,255m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 18.6m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 5.4m by 2021.

Fact 7: – Italy revenue

  • Revenue is expected to show an annual growth rate (CAGR 2016-2021) of 24.1 % resulting in a market volume of US$8,258m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 17.4m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 5.8m by 2021.

Fact 8: – India Revenue

  • Revenue is expected to show an annual growth rate (CAGR 2016-2021) of 34.7 % resulting in a market volume of US$4,371m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 112.7m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 39.8m by 2021

Fact 9: – Saudi Arabia Revenue

  • Revenue is expected to show an annual growth rate (CAGR 2016-2021) of 28.3 % resulting in a market volume of US$1,580m in 2021.
  • In the “Online Takeaway” segment, the number of users is expected to amount to 5.6m by 2021.
  • In the “Restaurant Delivery” segment, the number of users is expected to amount to 0.9m by 2021.

The above-mentioned stats make it evident that there is a huge potential in the food industry. While the restaurant delivery segment is expected to see substantial growth in 2021, the online takeaway segment is expected to see a revenue growth of more than 200%. We have defined every major country where the food industry is expected to see a growth. This blog will help an entrepreneur take the final decision which country to invest their revenue.

Are you planning to start food ordering and delivery start-up

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