Foodtech Market by Technology Types (Mobile App and Websites), Service Types (Online Grocery Delivery, OTT & Convenience Services, Online Food Delivery, and Others), Product Types (Dairy, Fruits & Vegetables, Meat, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2022 – 2030

The global foodtech market size was valued at USD 233.6 billion in 2021 and is expected to surpass USD 385.7 billion by 2030, expanding at a CAGR of 5.8% during the forecast period, 2022–2030. The growth of the market is attributed to the rapid growth of online food delivery services and rising number of consumers preferring online buying for healthier food products.
 

Foodtech or food technology refers to the use of advanced technology for food processing and packaging to maintain quality foods and distribute them to consumers. The advancement in food technology helps in the rapid growth of e-commerce food services, which results in the massive expansion of the consumer base for several food chain restaurants. Consumers also easily connect with food service providers through mobile apps or websites on their smart devices and order their favorite food items. A consumer can easily access various online food ordering mobile apps such as Zomato, Swiggy, FoodPanda, DoorDash, Grubhub, and UberEats. Thus, food tech offers several benefits such as saving time and high convenience for ordering foods at consumers’ fingertips. Rapid transformation in the online food delivery systems such as increasing consumers’ preference for buying grocery, meat, and vegetables online is made possible due to the wide development of mobile banking services and other online payment facilities.

The COVID-19 pandemic outbreak had accelerated the expansion of the global foodtech market owing to the surge in demand for online food delivery products. The pandemic had drastically transformed the overall consumer behavior and their lifestyle, which resulted in the rapid growth of online retail platforms worldwide. As a result of the prolonged closure of brick & mortar stores and movement restrictions imposed by the emergency lockdown of governments, consumers preferred online shopping and chose online delivery services to avoid the risk of virus spread. The massive expansion of the online shopping platforms had been largely influenced by the pandemic, which resulted in robust market growth.

Market Trends, Drivers, Restraints, and Opportunities

• High demand for food products due to rising number of the global population and increasing disposable income of a large portion of the population are key factors driving the market.
• Rising number of the health-conscious population push to increase the demand for healthier foods. Strict government policies regarding safety and quality food regulation compliance are likely to propel the market during the forecast period.
• Rapid growth of the e-commerce distribution channels delivering consumers’ demands at the doorstep at affordable prices presents a key driver of the market.
• Increasing use of smart devices such as smartphones and laptops along with the high penetration of the Internet especially in developing economies further fuels the market.
• Issues concerning packaged food quality and lack of brand designs among startups act as major hurdles that can hamper the market growth in the coming years.
• Increasing participation of foodtech startups in the global market, especially in developing regions is expected to offer immense opportunities for market expansion.

Scope of the Report

The report on the global foodtech market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Availability of several food delivery websites drives the websites segment

Based on technology types, the global foodtech market is bifurcated into mobile apps and websites. The websites segment held more than 47% of the market revenue share in 2021 and is expected to expand at a rapid pace during the forecast period owing to the rapid growth of several food delivery websites and increasing food orders through individual websites. On the other hand, the mobile app segment is a fast-growing domain and is anticipated to hold a key share of the market in the coming years owing to rising use of mobile apps for food orders and high penetration of the Internet on smartphones.

Fast-delivery and discounted price offers fuel the online grocery delivery segment

In terms of service types, the market is segmented into online grocery delivery, OTT & convenience services, online food delivery, and others. The online grocery delivery segment accounted for a large market share in 2021 and is projected to register a CAGR of 6.5% during the forecast period owing to the rapid introduction of grocery delivery online platforms, offering fast-delivery services. Moreover, heavy discount offers for grocery products by online retailers present another key driver of the segment.
 

Meat segment dominates the market

On the basis of product types, the global foodtech market is segregated into dairy, fruits & vegetables, meat, and others. The meat segment was worth over USD 76.3 billion in 2021 and is projected to register a considerable CAGR during the forecast period due to rising meat consumption and increasing demand for processed meat products. The rapid expansion of meat delivery online platforms and offering healthy meat products to consumers present another key factor boosting the segment.

North America constitutes a key market share

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America constituted a key share, representing more than 40% of the total market revenue in 2021, and is expected to constitute a key share of the market during the projected period owing to the presence of well-established online payment systems. Moreover, rising consumption of processed and fast-food products along with wide acceptance of online food delivery services among a large population of the region further propel the regional market.
 

Segments

Segments Covered in the Report

The global foodtech market has been segmented on the basis of

Technology Types

• Mobile App
• Websites

Service Types

• Online Grocery Delivery
• OTT & Convenience Services
• Online Food Delivery
• Others

Product Types

• Dairy
• Fruits & Vegetables
• Meat
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Food Panda
• Deliveroo
• Amazon.com, Inc.
• Delivery Hero Holding GmbH
• Zomato
• McDonald's Corporation
• Grub Hub Inc.
• Tesco PLC
• Uber
• Papa John's International
• Domino’s Pizza Inc.
• Eat24
• Panera Bread Company
• Pizza Hut International
• Sainsbury
• DoorDash Inc.

Competitive Landscape

Key players competing in the global foodtech market are Food Panda; Deliveroo; Amazon.com, Inc.; Delivery Hero Holding GmbH; Zomato; McDonald's Corporation; Grub Hub Inc.; Tesco PLC; Uber; Papa John's International; Domino’s Pizza Inc.; Eat24; Panera Bread Company; Pizza Hut International; Sainsbury; and DoorDash Inc. Some of these players have adopted a series of business development strategies such as the expansion of operation in different geographical locations, innovative delivery models, and entering into a partnership for better consumer reach.
For instance,

• In May 2020, Amazon.com Inc. announced to expand its online food delivery service in Bengaluru, India with an aim to strengthen its position and competition with rivals such as Swiggy and Zomato in the online food delivery market.