Authored article by Prateek Chaudhary, Managing partner at Diablo Club, Dragonfly Experience & One8 Commune Delhi
The food industry has undergone a dramatic transition in recent years. Fast food outlets are no longer the only choice for quick and simple meals. Instead, we now have a variety of options for eating out or ordering in. The emergence of new technology, changing consumer preferences, and growing sustainability and health concerns have substantially impacted the food industry. The food sector has developed to accommodate the changing needs of consumers, from plant-based options to farm-to-table restaurants and meal delivery applications. The market for food processing in India was valued at INR 25,455 billion in 2022, and IMARC projects that it would increase to INR 45,345 billion by 2028, with a CAGR of 9.5% between 2023 and 2028.
The food sector has changed as a result of numerous factors. Modern technology has made it easier for customers to order food online, and automation and artificial intelligence have made it possible for restaurants to gather data on customer preferences and behaviour. Additionally, shifting consumer preferences have increased the focus on sustainability and health, and growing environmental concerns have increased the emphasis on eliminating food waste and procuring products from sustainable and local sources.
Here is a look at how the food industry has changed dramatically in recent years
Technological Progress
One of the main driving causes for the transformation of the food sector has been the advancement of technology. Because of the prevalence of mobile devices and internet connectivity, customers can now rapidly place online food orders. People may now easily make orders from their favoured eateries thanks to the exploding popularity of meal delivery websites and apps. Restaurants are now competing for consumers based not only on the calibre of their food but also on how quickly and easily they can deliver it. IMARC predicts that between 2023 and 2028, the Indian market for online meal delivery will grow at a CAGR of 28.5%.
Consumer Preferences Are Shifting
Consumer tastes have caused significant changes in the food business. Customers are more worried about their health than ever before; thus they seek healthier and more ecologically friendly solutions. As a result, many restaurants now offer vegan, vegetarian, gluten-free, and low-carb menu options. They now have more options, and the food industry emphasises sustainability and environmental responsibility more. Customers demand distinctive and authentic eating experiences in addition to health and ecological considerations. As a result, food halls and markets that offer a variety of cuisines and dining experiences in one location have grown in popularity.
Direct-to-Consumer (DTC) Food Brand Emergence
Direct-to-consumer (DTC) food brands are now a disruptive force in the food industry. Through social media and online shopping, these companies communicate with customers directly, avoiding the use of traditional retail channels. They can do this and provide new, high-quality items at prices that are cheaper than those of traditional brands. DTC businesses have been successful in niche beverage markets, meal kit markets, and markets for snack items. They have even started to invade the market share of well-known brands in sectors like frozen meals and pantry essentials. As more people change their online shopping habits, this trend is probably going to continue.
Growing Concerns Regarding Sustainability and Health
The food industry has changed significantly as a result of rising sustainability and health concerns. Reducing food waste and using products from sustainable and local sources have received more attention in recent years. The popularity of farm-to-table restaurants, which prioritise locally produced ingredients and sustainable farming methods, has increased as a result of this. Additionally, there has been a stronger emphasis on minimising the negative effects of the food business on the environment. Many restaurants now provide recyclable or biodegradable packaging, and some even have zero-waste programmes in place. This has improved customer loyalty and trust while also reducing the food industry’s negative environmental impact.
The Food Industry’s Changing Terrain
Due to advancements in technology, altering consumer preferences, the growth of DTC food brands, and growing concerns about sustainability and health, the food business has seen a significant transformation in recent years. When it comes to eating out or ordering in, we now have more options. Food delivery services, farm-to-table restaurants, and plant-based foods are just a few of the changes the food industry has made to adapt to changing consumer demands. We may anticipate fresh and imaginative developments in the food sector as technology and consumer preferences develop.
