No results found. Please try again.


India’s Growing Online Foodservice Industry

The penetration of e-commerce and online food delivery services has accelerated since the pandemic, and this has also been the case in India. We believe that consumer habits have changed significantly over the last two years, as many were forced to stay home under strict lockdown and quarantine measures. As such, the pandemic encouraged many non-users to experience the convenience of online platforms for the first time, and many are likely to continue using them even after the pandemic is over.

While India’s e-commerce landscape is currently dominated by foreign companies like Amazon and Flipkart (owned by Wal-Mart), online food delivery is a duopoly market between local players, namely Zomato and Swiggy.1 In fact, Zomato’s IPO last year made it one of the first consumer internet companies to be listed in India, riding on the robust growth of the online foodservice industry.

India is expected to be one of the fastest growing online food delivery markets, driven by strong growth in its foodservice industry, as well as opportunities for online delivery providers to gain a share within that industry. Total food consumption is a USD$670 billion market in India, of which less than 10% is food consumed away from home, while 90% of food is consumed at home.2 Accordingly, foodservice is currently a USD$65 billion market in India, and is expected grow 9% each year to reach USD$110 billion by 2025.3

Foodservice industry growth tends to be highly correlated with GDP growth. Additionally, when it comes to experiences, younger generations tend to have a higher willingness to spend. We believe this dynamic could further accelerate India’s foodservice industry growth. In China, for example, foodservice share reached 58% of total food consumption, higher than many other developed countries.4 This may be due to the high female workforce participation rate in China, or also because Chinese consumers have a higher willingness to spend on experiences such as dining in restaurants and watching movies in cinemas. India has an even younger demographic profile than China.5 In fact, we have witnessed many young cohorts of Indian consumers having high willingness to try new experiences and also being very aspirational. In other words, the total addressable market (TAM) is less of an issue in countries like India with a populous consumption-driven economy. There is ample demand as long as companies can provide quality products and services.

In India, food delivery accounts for approximately 25% of the overall foodservices market, while online delivery accounts for about 5-10%.6 Globally, online food delivery has taken significant market share from the offline food delivery market, with the share of online rising from 8% in 2011 to 58% in 2020.7 China has the largest online delivery market of any country. In 2018, China accounted for 45% of the global online food delivery market, while its share of the total global restaurant market was just 24%.8

Rapid growth in China’s online delivery market is thanks to the country’s high urban density and low labor costs. This has allowed the industry to gain scale and created a virtuous cycle to become more efficient, as food delivery by nature is a very thin margin business. Delivery expense is the single biggest cost for the industry, so having a low labor cost structure is critical for the industry to develop. In China, food delivery expense is RMB 7 (approximately USD$1) per order, while Uber Eats and Delivery Hero costs USD$4-5 per order.9

Similar to China, India also has the two key pillars to support growth in its online delivery market. India has the second largest dense urban population after China and even lower labor costs.10 For Zomato, delivery costs is around Rs 45 (approximately USD$0.6) per order.11 Thus, India has a fertile foundation for its online delivery industry to maintain robust growth over the coming years.

The Indian market is much more open compared to that of China but there could be government support to grow local champions in the country. For example, foreign retailers are restricted to conduct only 1P (first party) retail business and the same also applies to online retail. Retail and food delivery is a local business. Thus, we believe that local companies will have a competitive edge in developing not only food delivery services, but also leverage into other retail or local services industries. COVID-19 has accelerated the growth of various online businesses in India. Thus, it will be interesting to see many more innovative Indian internet companies growing and moving to IPO in the next few years.

Staying Ahead with Mirae Asset’s Latest Insights

Mirae Asset Global Investments adheres to a strictPrivacy Policygoverning the handling of your information and subscribers can opt-out per their preference.

1. Bernstein Research, August 2021

2. Jefferies, May 2021

3. Ibid.

4. Ibid.

5. United Nations, 2019

6. NRAI, RedSeer, Bernstein estimates, August 2021

7. Bernstein, August 2021

8. Euromonitor, Bernstein analysis, May 2019

9. Company data, 2021

10. World Bank, Bernstein analysis, May 2019

11. Company data, 2021

Disclaimer & Information for Investors

No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only.  It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.

The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements.  Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.

Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.

The Company’s Prospectus and the KIIDs can be obtained from . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.

A summary of investor rights is available in English from

The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.

Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Copyright 2021. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.


  • Unit 1101, 11/F, Lee Garden Three, 1 Sunning Road, Hong Kong


  • 2295 1500

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this website should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this website is prepared and maintained by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.