QSR market in India to touch Rs 25,000 Cr by 2020
Updated: Oct 24, 2015 01:27:18pm
New Delhi, Oct 21 (KNN) The quick service restaurants (QSR) sector in India is currently growing at a compounded annual growth rate (CAGR) of 25 per cent and is likely to touch Rs 25,000 crore mark by 2020 from the current level of Rs 8,500, according to an analysis.
"Entry of various national and international players in the QSR space has significantly widened the chain market due to fast expanding middle class, urbanisation, youth spending, nuclear families and better logistics," said the sector-specific analysis conducted by ASSOCHAM.
The chamber secretary general DS Rawat said about 50 per cent of India's population eats out at least once in every three months and eight times in every month in bustling metros as compared to the US (14 times), Brazil (11 times), Thailand (10 times) and China (9 times).
"The QSR segment is expected to witness increased activity via market expansion and entry by various players," he said.
According to the paper, at the city level, a large share of the QSR market rests in metros and mini metros due to higher consumption, heightened consumer awareness, and exposure in key cities such as Delhi, Mumbai, Bangalore, and Hyderabad.
The fast food or QSR, format took off in India about 19 years ago with the arrival of McDonald’s in 1996. Many global brands followed the suit since then, either through company-owned stores or the franchisee model, or a mix of both.
The chain space is marked by the presence of more than 120 brands with more than 4000 outlets spread across various cities in India, it said.
To withstand the competition, most of the players are tailoring their offerings in terms of flavours, pricing and services to meet Indian consumers’ inclinations.
With the entry of Indian and International brands into the space encouraging affordable eating and enabling the indulgence of even customers with smaller pockets.
By 2020 it is expected that 35 per cent of India’s population will be in urban areas by 2020 totalling to 52 crores compared to the current urban population of 34 crores, added the paper. (KNN Bureau)
"Entry of various national and international players in the QSR space has significantly widened the chain market due to fast expanding middle class, urbanisation, youth spending, nuclear families and better logistics," said the sector-specific analysis conducted by ASSOCHAM.
The chamber secretary general DS Rawat said about 50 per cent of India's population eats out at least once in every three months and eight times in every month in bustling metros as compared to the US (14 times), Brazil (11 times), Thailand (10 times) and China (9 times).
"The QSR segment is expected to witness increased activity via market expansion and entry by various players," he said.
According to the paper, at the city level, a large share of the QSR market rests in metros and mini metros due to higher consumption, heightened consumer awareness, and exposure in key cities such as Delhi, Mumbai, Bangalore, and Hyderabad.
The fast food or QSR, format took off in India about 19 years ago with the arrival of McDonald’s in 1996. Many global brands followed the suit since then, either through company-owned stores or the franchisee model, or a mix of both.
The chain space is marked by the presence of more than 120 brands with more than 4000 outlets spread across various cities in India, it said.
To withstand the competition, most of the players are tailoring their offerings in terms of flavours, pricing and services to meet Indian consumers’ inclinations.
With the entry of Indian and International brands into the space encouraging affordable eating and enabling the indulgence of even customers with smaller pockets.
By 2020 it is expected that 35 per cent of India’s population will be in urban areas by 2020 totalling to 52 crores compared to the current urban population of 34 crores, added the paper. (KNN Bureau)
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