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A stir has often been induced by the enigma that is cooking. It has churned millennials’ stomachs for a long time, and now it has also caused a stir in the coffers of investors. The market for food app and technology is hot with funding, and this is what makes this space so sizzling that investors cannot keep themselves from plunging into the food app industry.
Owing to the success in food processing and food app, we can have tasty meals and delicious desserts right at our doorstep within a few clicks or taps on our electronic gadgets. And this convenience has contributed to the surge in startups and investments in the industry, which further enhances the economy.
Startups in the FoodTech space have revolutionized the way food is consumed by Indians. This revolutionary room has changed the way we perceive the food industry, from smartphone laden distribution workers to an interface powered by algorithms. Through the extraordinary use of these innovations, a lot of eccentric startups in the FoodTech area are transforming the industry.
A Rapidly Growing Food App Market
Food is an inseparable part of our daily life. It is omnipresent and omniscient, from catering to the universal necessity of supplying food to being the love of the millennials. Food consumption is no longer a necessity, as the more exotic range of meals is a luxury in high-end restaurants.
At present, $50 billion is invested in the Indian food services sector (restaurants and food delivery). In the US, this amount is significantly lower, at $200 million.
When it comes to investing or developing food technologies, consumers and food entrepreneurs are in a win-win position as a whole. It is likely to create value and profit by building a corporation from a commodity. It includes millennials and is a need in several respects.
The FoodTech Scenario in India
India’s food processing is transforming the way millennials eat food and view it. And in this, technology has a role to play. The convergence of food and technology intrigues investors. At the same time, they see the endless growth possibilities it has to bring and the demanding scope a company possesses. Technology is also a great enabler, and through their business models, people who identify, shape, and convey this force will become harbingers of the future in space.
If India’s food app industry continues to expand as quickly as it is, then it has the capacity to add a substantial chunk to the global food market. According to estimates from Research & Market, the global food technology industry is predicted to explode above USD 250 billion by 2022. The investors are closely monitoring the developments in the FoodTech space, and there is a budding growth opportunity. Furthermore, the evolution in eating habits will lead to accelerated growth in the food industry and various trades.
Food and technology have an important role in daily life, with an average of 100 meals eaten per month. Thus, the number of mobile users rising exponentially. Together, they offer people and the restaurant industry a great opportunity to create actionable strategies. Overall, it enhances comfort, choice, sustainability, consistency, and hygiene around food using technology.
Changing Customer Behavior
Not only has technology changed the way we perceive food as a commodity, but the buyers themselves have moved. Consumers have become mindful of time because of introducing technologies and startups, where monitoring is crucial at any stage; right from where a customer puts an order, the restaurant begins its planning to find the right executive for the delivery.
Users are now expecting high-quality service and are now engaged in customizing their real-life food experiences. Media networks such as Instagram, Facebook, and YouTube have made it easier for users to transform into “food producers,” creating content that user-generated brands can share.
These days, people are increasingly interested in getting a better understanding of the food they eat and where it originates from, rather than simply consuming it.
Statistics Behind the Rise of Food App and Tech
FoodTech has been among the most exciting sectors within the Indian startup ecosystem, with new customer trends rising consistently. Energetic and focused urban-dwelling professionals form a major chunk of the workforce, contributing towards its growth. Food delivery, private chefs, and safely packaged delivery are now a common thing, supported by the extraordinary growth of cash-backed startups.
For five years continuously, India has remained the sixth-largest food industry in the world. It has witnessed exponential growth in regards to scale and revenues. Retail startups account for about 70% of the total revenue. However, food processing firms account for 30% of the total food industry in the region. The food industry of India is a high-growth market and is set to expand even more dramatically by employing technology.
Cloud Kitchen – A New Concept
FoodTech giants are now prioritizing cost-efficiency and delivery of high-quality meals. As a result, there is a shift in the core of the food distribution sector. To catch-up with their success, many restaurants are now welcoming the concept of cloud kitchen to grab the attention of the Indian consumers. Thus, deliver delicious meals within a short time. The idea behind cloud kitchens is to provide service even when an eatery is full. Thereby impacting the reach and success of low-budget eateries that are facing numerous challenges.
Such facilities only exist to prepare and supply food to consumers who put orders online via food apps. While you do not pick up orders directly, ghost restaurants are highly affected by customer demand. Within the Indian market, this idea is new. Although giant food technology firms are massively employing it in foreign countries and increasing their presence in the cloud kitchen forte.
Introduction of Robotics in Food App Industry
Quality and affordability are both ensured by the use of robots in the food app industry. It decreases the expense of keeping food fresh by employing robots and improves efficiency. Surveys reveal that the use of robots is a highlighting factor in the food technology space. There are 30,000 robots in the global food industry, and their population per 10,000 jobs climbed from 62 to 83 between 2013 and 2018.
Where the employees are facing various physical limitations, which are natural, the modern age robots offer a helping hand. Using such machines, the personnel can avoid work mishaps and execute any process efficiently.
3D Printing Applications in FoodTech
3D printing is bringing a whole new revolution in the food industry. It results as delicious, attractive, and effective on both a short and long-term basis. NASA has developed such machines before, but those applications were strictly for astronauts. That convert solid foods into soft chewable. As evident, this technology gives rise to a lot of growth opportunities within the food industry and does not sacrifice the quality of meals for price.
The Application of Drones
In regards to technology playing a major role in the food industry, precision agriculture occupies a major spotlight. The technology uses GPS and satellite images to monitor various factors. Such as crop yields, soil layers, and weather tracking to ensure the efficiency of the farming methods. In addition to monitoring the activities in the fields, they also find substantial test results of the soil regarding the crops’ health.
Drones are one of the most dependable ways of conducting this procedure. These hovering devices are left at identifying damaged or contaminated crops and alerting the relevant authorities for immediate help. This does not render food workers obsolete; however, the drones only contribute to the agricultural output’s efficiency.
With the high demands of crop volumes and the low pricing, the drones ensure better crops without causing environmental harm.
Responsible Packaging Practices
A major concern of the modern consumer is consuming healthy goods that are also sustainable for a longer time. The labels are carefully examined by consumers to find any harmful ingredient. Once detected, the concerned organization is immediately reported. As a result, companies must focus on ethical practices to avoid creating a negative image in the industry.
By the use of technology, food app companies have successfully found a viable alternative to plastics, which include edible, micro, and bacteria-fighting types of packaging. Many consumers are keeping a close eye to find the sources which are providing such packaging to companies and how the whole task is handled.
Food technology transcends the application of science in just smart ovens. When it comes to investing or developing in food technology, investors and food entrepreneurs are usually in a win-win position, contributing to the growth of food app startups in food technology in India.
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