The Food and Beverages (F&B) industry in India has grown considerably over the years. It has become one of the most prominent sectors in the country owing to introduction of innovative service features and concepts by various market players in this field.
According to a report published by the Federation of Indian Chambers of Commerce & Industry (FICCI), the unorganised segment will continue to dominate the Indian F&B market, at least for the next 4-5 years, and is expected to enjoy a market share of over 60%. However, with the arrival of new players, this segment is expected to witness steady decline in the future.
The report also suggests that Quick Service Restaurants (QSR) and casual dining chains are the two most popular F&B formats in India that form 45% and 32% of the overall market respectively. The key drivers to this growth are – changing demographic of the country, rise in disposable income, steady growth of retail chains, and urbanisation.
Furthermore, it is estimated that the overall F&B service market is worth more than $29.9 Bn (INR 204,438 Cr), which is further projected to reach $55.6 Mn (INR 380,000 Cr) by 2017 at a CAGR of 23-24%.
Given such encouraging figures, here are a few trends in the Indian F&B sector that are touted to accelerate the growth of this market in 2017:
In the past couple of months, the Indian F&B sector has begun to witness a steady revival of old school nostalgia driven cuisine, a common trend that has been adopted by many market players. With more and more people developing a preference for traditionally cooked dishes, the Indian F&B sector is expected to see this trend catch on among numerous market players during the upcoming year as well.
Modernisation Of Indian Cuisine
While people, in general, have come forward with an appreciation for traditional Indian cuisine, the young millennial population have started to shift towards the Indianised versions of various western cuisines and introduction of innovative cooking methods. These days, several variations of fusion cuisine like desi taste in tacos, burger patties made using Indian spices, and pastas prepared with Indian ingredients, etc. across most QSR chains in India.
Furthermore, modern concepts like molecular gastronomy being introduced into Indian cuisine are playing a key role in changing the face of Indian cuisine. Thanks to such innovative ideas, Indian food is no longer tagged boring by the Indian youth and is expected to generate more aspirational value within the next couple of months.
Native Cuisine From Various Cultures
Over the past couple of years, it has been witnessed that Indian consumers have developed a taste for various dishes like Belgian waffles, Mexican tacos, Italian gelato, etc. and are contributing to the rising demand for similar cuisine across the country. The quick adoption of such cuisine among the Indian population has created opportunities for many international QSR players to enter the Indian market, and explore the vast potential of this market for possible growth in the future.
Concept Spaces And ‘Foodtainment’ – The Next Big Thing
These days, the Indian F&B sector is seeing a growing prevalence for concept-based and ‘Foodtainment’ spaces that are becoming extremely popular among Indian consumers. While single cuisine or specialty restaurants continue to thrive, multi-cuisine restaurants have begun to gain acceptance among many, and are gradually becoming more popular than the former.
The combination of food and entertainment has proven to be an extremely lucrative concept and is expected to be adopted by more market players in 2017.
Growing Prevalence Of Fast Casual-Dining Restaurants
The fast-casual-dining format is quickly catching up with many restaurant chains in the country due to its efficiency and quick service. Such restaurants offer good pricing, great ambience, and quality service that are at par with fine dining restaurants. In the past couple of years, the Indian F&B market has witnessed the arrival of many players that follow this model.
One such example is American heritage Brand – Genuine Broaster Chicken that has managed to gain strong foothold in the QSR format in less than a year since it was launched in India. Known for its patented pressure-frying technology, this brand offers a host of different dishes that suit the tastes and preferences of every Indian customer, and is expected to become one of the most popular QSR restaurant in the country in future.
With the prevalence of aforementioned trends and positive insight into this market’s future, it can be concluded for now that the F&B industry holds immense potential to grow over the next decade, and will be one of the major contributors to the growth of the Indian economy in future.
About The Author
[Karan Tanna is the founder and CEO at Yellow Tie Hospitality Management.]