Pizzas + Burgers + Fast Food Grows 25% YoY in India
We have already seen that Indian Organized Food Industry occupies a 15% market-share within the overall food services industry. The quick service restaurants (QSR) / Fast Food format has been one of the fastest growing ir-respective of the economy and global environment with a CAGR of 20%-22% over FY06-FY11 (around 25% more recently). The key factors driving growth of the QSR segment are as highlighted,
What is Contributing to the Rapid Growth of Quick Service Restaurants / Fast Food Chains in India?
Demand Side analysis
- Growing working population – The share of population between 15-59 years of age has increased from 55% in 1991 to 63% in 2011.
- Growing Disposable Income – Disposable income for over two-thirds of Indian households has shifted from US$1000-US$5000 in 2000 to US$2500-US$10000 in 2010, (in current value terms).
- Increasing number of working women 51% of those who eat out at least once in a month are females.
- Increase in nuclear families 1.5%-2.0% of joint families give rise to nuclear families in India each year.
Supply in QSR / Fast Food Remains Robust – Encouraging Market
- Diversification of cuisines – Restaurants have started serving multiple cuisines amidst the growing popularity of international food and styles.
- Improved restaurants experience – Focus of eating out is shifting from food being a necessity to entertainment including live performances, music and other entertainment activities.
- Entry of international players Global players are entering India and food franchising is gaining popularity.
- Improving retail infrastructure Development of malls and multiplexes has popularized kiosks and food courts as food centres
You can see How Various Branded Fast Foods Stack Against Each Other in Number of Stores, Sales and Growth Rate here.
What say ? Don’t you think Fast Food has a Long Way to go ?