Organised online meat players report jump in GMV in 2020
- Nearly 70% of Indians are non-vegetarians but per-capita meat consumption rests at 3.6 kg, behind several large and small countries.
NEW DELHI: The covid-19 pandemic helped accelerate online purchases of meat products as consumers took to branded packaged items and companies improved their supplies and access to the market.
A report by RedSeer said urban Indian shoppers are increasingly taking to buying meat online. “This was driven by the assurance of safety and hygiene, availability of various products under one umbrella, doorstep service provided by online meat providers," said the report.
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This led to a two-fold jump in gross merchandise value reported by online meat players as mapped by RedSeer during January-December last year. In 2020, online meat players saw a 10-15% jump in average revenue per user and reported a 10-15% improvement in customer retention.
Nearly 70% of Indians are non-vegetarians but per-capita meat consumption rests at 3.6 kg, behind several large and small countries. The domestic meat market is expected to touch $85 billion by 2024, giving branded players a greater share in the market both online as well as offline, the note said.
Young population, especially millennials, have shown increasing inclination towards meat eating, the report said. Moreover, Indian consumers are increasingly focusing on health with protein becoming a key part of their diets. This has led to higher demand for meat and eggs, especially in the metros.
India has various online meat players like Licious, Fresh to Home, and Meatigo, among others. The market is largely unorganised with little adoption to buying fresh cuts online. The market is also dominated by local butcher shops due to high-costs associated with cold-chain infrastructure.
However, much like demand for other e-commerce products have shot up during the past year, covid has also accelerated online demand for non-vegetarian products.
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“With demand surging, the online meat players quickly ramped-up supply capabilities to serve the consumer needs and delight them. As they gained the consumers' trust, sales jumped significantly. This trend is likely to intensify further and that makes India's online meat delivery market a very interesting one," RedSeer said.
With branded players coming in with integrated value chains, wide assortment, quality assurance and convenience, there has been significant change in how meat is perceived, the report said. As a result, consumers increasingly prefer branded meat. With more innovation coming in and significant investment in technology, this sector is ripe for further disruption, it added.
The trend also reflects a jump in at-home consumption of food as covid-related lockdowns struck. Several consumers reported an increase in online meat consumption at home, according to RedSeer’s research. Over 40% of those it surveyed reported an increase in their meat consumption led by purchases from online branded players.
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