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The cloud kitchen industry may double by 2025
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Tuesday, 10 May, 2022, 13 : 00 PM [IST]
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Ishaan Kapoor
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The Indian food industry is humongous, and ranks 6th in the world. It has over 61,400 startups recognised by the Department for Promotion of Industry & Internal Trade (DPIIT), of which 14,000 were recognised during fiscal 2022, (according to Economical Survey 2021-22). "Startups in India have grown remarkably over the last six years. The number of new recognised startups has increased to over 14,000 in 2021-22 from only 733 in 2016-17, supply chain solutions, equipment, storage and logistics, packaging, processing technology, creating innovative products, marketing, e-commerce, and based on B2B/B2C models, distribution and retail are some of the types of solutions these start-ups provide. Food industry in India has been revolutionised by online food portals such as Zomato and Swiggy. The government is playing a crucial role in promoting the food processing industry.
Demand for Convenience Food
Industry analysts estimate that convenience food sales are growing rapidly in India. Busy and working people consider convenience foods to be a lifesaver. Fast-paced and busy lives have also made convenience foods necessary for non-working people. Packaged convenience foods save time and can be easily prepared, especially for children, who consume the majority of packaged food. Increased demand for packaged food is influenced by many factors, including urbanisation.
Investors Interest
Investing in start-ups has been fueled by online food portals like Zomato and Swiggy. Government is actively participating in promoting the food processing industry. Increased sales have attracted investors to invest in food startups. In the wake of the 2020 lockdown people have started eating healthier foods. As a result, companies are now focussed on quality rather than quantity. Companies have tailored their supply chain operations to accommodate this trend. The high potential of the food processing industry and its broad customer base are luring investors to invest more and more money. Investors are attracted to companies in the industry because of their intellectual properties.
Government Initiative
Among the world's major food producers, India moves from scarcity to surplus, where increased production offers a number of opportunities. Every year, India contributes significantly to world food trade due to its high growth rates. By leveraging reforms as 100% Foreign Direct Investment (FDI), the government seeks to boost the food processing industry. Micro Enterprises (MFEs) are being helped by a scheme of Rs 10,000 crore set up by Finance Minister Nirmala Sitharaman. Investments in the food sector have increased as the government has taken the initiative to support the industry.
Conclusion
With the way we eat changing in the last few years, a lot of questions arise for the industry. Most established restaurants used to see a small portion of their business coming from delivery; today, most of them are seeing an increasing share of their business, even the majority share in many cases, coming from in-house deliveries. It is estimated that the cloud kitchen industry will double by 2025. People will continue to choose traditional dining however they will also prefer cloud kitchens as they would rather order food than go to a restaurant. Consumers are more prone to eat comfort food because they are more convenient and mobile.
(The author is founder, Madam Curry)
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