Time is money, and people are always looking for alternatives which save their time and energy, and are convenient for them so that they can direct their strength in more productive works. Modern lifestyle is fast paced, with technology sweeping across every aspect of life, all across the globe. The food market is not left behind in the technological advancement, and new platforms have sprung up to supply food, which makes it easier for the consumers to save time. Just like online cab services, the online platform of food and FMCG industry offers convenient delivery services for grocery shoppers.
The stalling food and FMCG industry is witnessing a boost with the companies incessantly trying to transform the way of grocery shopping and food delivery system. The online food ordering from a plethora of options of restaurants has gained popularity rapidly among the consumers and is a profitable business model for market players. Similarly, online grocery shopping and grocery apps are gaining momentum and are becoming a viable mode for revenue generation.
The food tech market has a dynamic structure and comprises of online food and grocery ordering and delivery. This ecosystem includes online grocery delivering companies, online food aggregators, and Over the Top (OTT) & convenience service providers. The global food tech market is expected to grow at a single digit CAGR, and is expected to reach over $250.43 billion by 2022. The market is poised to show a significant growth because of the target consumers and their need for convenience.
The internet penetration has increased over time with the escalating numbers of smartphones and internet consumers. This has contributed to the vast adoption of e-commerce platforms across the globe and ease of placing orders has contributed to the growth of the market. In a very short span of time, the competition in the e-commerce platform has intensified, and weak business models and financial pressure to survive are restraining the growth of this market.
Among the different services mentioned above, online food aggregators are currently dominating the market, however, it is the OTT & convenience service providers section which is poised to show the highest growth at a robust CAGR through 2016 to 2022. This growth is attributed to the increasing inclination of consumers towards famous chefs and restaurants which provide online food ordering services.
The food tech market has undergone rapid change with the technological development and the most commonly used platform in the food tech market is websites, which generated the maximum revenue in 2015. However, this mode is being rapidly overtaken by mobile apps and related technology with the emergence of food ordering apps like FoodPanda. Geographically, the food tech market is dominated by North America due to the high internet and smartphone penetration in the country. However, Asia Pacific region is expected to show the highest growth in the coming years because of the rising per capita income. Europe is also expected to show significant growth with the U.K. leading the market.
BIS Research has compiled an extensive market research report on ‘Global Food Tech Market, by Service Type (Online Grocery Delivery, Online Food Aggregator, & Convenience Services), By Technology, by Geography (North America, Asia-Pacific, Europe, & ROW) – Analysis & Forecast 2016 -2022’. The market analysis report provides an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.
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