By Nidhi Singh
New Delhi, Jul 14 (IANSlife): Over time, the Food & Beverages industry has grown significantly, shaping the sector for the future. According to an IMARC report, the Indian F&B industry will grow at a CAGR of 12.5 per cent during the fiscal years 2022-2027 accounting for 3 per cent of India's GDP in the retail market.
In India, the industry has always been considered a highly competitive market. Nowadays, as technology advancements are emerging with new trends, the industry is evolving with new products and services. The average cooking time is about 15-20 minutes for quick snacks, brands will not be able to reduce that, since consumers expect fresh food and this will always be the imperative factor for any cloud kitchen or restaurant.
10-min Delivery- A New Concept
Upcoming trends and technological advancements have a significant impact on the, as the number of digital users grows, so does the demand for online ordering. However, with the perks come challenges, such as on-time delivery and quality of food. To overcome the problem, brands are adopting new models and technologies that allow customers to place online orders easily as well as get deliveries swiftly. Hence, the new model of a 10-minute delivery will indeed benefit businesses.
10-minute delivery refers to a hyperlocal model born from the need to innovate in this fiercely competitive world. The model will be a boon to the packaging industry, giving rise to the sale of pre-cooked meals that only need to be heated and served. The new model will undoubtedly change certain aspects of taste-and this will not be a barter for the superfast, but for lightning-fast delivery!
The Indian food and beverage packaging market is expected to reach USD 156.25 billion by 2026, growing at a CAGR of 29.88 percent during the forecast period (2021-2026), according to Mordor Intelligence. India has seen sustainable packaging growth in food and beverages due to increased intake in packaged food consumption, awareness, and demand for quality products.
Concerns for the industry
According to many experts, the model will help to surpass the packaging industry from others, but it will raise many concerns for the food industry, such as: can food be prepared and delivered in under 10 minutes? Do the customers value this? Is food delivery under 10 minutes as urgent as an unmet need? Furthermore, how will the riders track and navigate through the cities, considering traffic and their safety? However, when it comes to food, the problems can multiply, and only time will tell how the expert's predictions for the future will fare in meeting expectations and rising above all with the increasing competition in the F & B industry.
Increasing Competition with the New Trend
As new trends emerge, businesses across industries automatically ramp up their innovations to meet the demands of the moment, thereby outpacing competitors. Digitalization has become an important factor in the F & B industry's ability to innovate in today's competitive environment. With the changing landscape, many food brands have turned to social media to promote and gain sources to increase the reach of their brand. As a result, taking advantage of the growing trend of social media will benefit others.
To compete with a new model, the primary goal of food aggregators is to increase the number of menu items that fall into this category while maintaining taste and freshness.
This new chapter in the food and beverage industry is still being debated by many industry experts. Aside from good food, optimizing good services is also important in gaining market traction. The new model, which shortens delivery times and produces fresh food quickly, is becoming a part of revolutionising the industry while also creating new ways for brands to stand out.
Bottom Line!
With the advent of digitalisation, many industries across sectors, including food and beverage, are leveraging technological advancements. With the shift to the new era, this model will provide a greater reach to market share by serving customers without making them wait longer.
When this journey begins-I am sure the entire F&B industry, delivery aggregators, and the market will have significant learnings. This might just be applicable to short distances and critical items. Is this a demand tailwind-only time will tell?