Online Food Delivery Services Market Outlook
The global online food delivery services market size was valued at USD 58.15 Billion in 2022 and is likely to reach USD 199.81 Billion by 2031, expanding at a CAGR of 14.7% during 2023–2031. The growth of the market is attributed to the rising establishment of numerous online delivery platforms as well as increasing use of smartphones and internet penetration across the globe.
Online food delivery refers to a process of delivering foods to the customers’ doorsteps from online platforms. Consumers usually place their food orders through food delivery applications by using their computer and smartphones. To place an order in general, a customer has to search for a restaurant, select food items from the menu, add payment method, and confirm the order.
The applications allow customers to register an account to make food ordering convenient. Consumers are more inclined towards online food delivery as they save their time and efforts to go out of their home and buy food.
These services provide numerous benefits to service providers as well. The services offer to save labor charges, enable simple order processing, and assure accuracy of online orders, which can be processed in a short period of time. Additionally, it provides service providers with information that is useful in making promotional strategies to improve their offerings.
The number of delivery partners are rapidly growing across the globe due to entrance of new domestic companies or startups to compete with the existing big online delivery platforms in the market. Rising trend for the food delivery service and wide expansion of these companies are primarily influenced by the ongoing COVID-19 pandemic.
Moreover, the online services offer benefits such as attractive discounts, rewards & cashback offers, and multiple payment options that help to draw the attention of a large number of consumers globally. Additionally, food service providers are setting up large warehouses that stores fresh food to offer high-quality food, which encourages the adoption of online delivery services.
Food Delivery Services Market Drivers, Restraints, Trends, and Opportunities
- Increasing number of dual income households as well as change in lifestyle and eating patterns are the key factors projected to drive the market growth.
- Easy access to a variety of food items across different food chains quickly and availability of affordable food prices are expected to fuel the market growth.
- Rising demand for fresh food, quick home delivery, and easy accessibility using smartphones are other vital factors fueling the market growth.
- Rising growth of the food industry and opening up numerous fast-food restaurants especially in emerging economies offer various growth opportunities to the market vendors.
- High penetration of Internet of Things (IoT) allow users to opt for online food delivery services through voice commands. These advancement in technology is expected to spur the market growth during the forecast period.
- Introduction of virtual restaurants and delivery-only kitchens are expected to boost the market growth.
- Inefficiency of restaurants to cope with large volume orders and rising incidence of fraudulent transaction are expected to hamper the market growth during the forecast period.
- Owing to the emergence of COVID-19 pandemic, consumers avoid dining out at restaurants. This is likely to boost the growth of online delivery services. However, service providers have to overcome the logistic challenges. The pandemic has positively impacted the market growth.
Scope of Online Food Delivery Services Market Report
The report on the global online food delivery services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Online Food Delivery Services Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Restaurant-to-consumer and Platform-to-consumer), Channel Types (Websites/Desktop and Mobile Applications), and Payment Methods (Cash on Delivery and Online)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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DoorDash, Just Eat Holding Limited, Swiggy, Takeaway.com, Zomato, and Uber Technologies Inc.
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Online Food Delivery Services Market Segment Insights
Types Segment Analysis
On the basis of types, the market is bifurcated into restaurant-to-consumer and platform-to-consumer. The platform-to-consumer segment is expected to account for a market share of more than 12.2% during the forecast period. The platform-to-consumer models offers shipment services to the restaurants that do not have in-house delivery options.
Growing investment in this sector is expected to boost the segment growth during the forecast period. On the other hand, the restaurant-to-consumer segment is projected to expand at a substantial CAGR during the forecast period.
In this segment, the service providers manage the ordering process and the restaurants deal with the shipment aspect. The introduction of various restaurant chains coupled with the expansion of the delivery services is expected to drive the segment growth.
Channel Types Segment Analysis
Based on channel types, the market is segmented into websites/desktop and mobile applications. The mobile applications segment is projected to represent a market share of more than 10.2% during the forecast period. Increasing use of smartphone, high penetration of IoT, and advancement in technology such as introduction of 3G and 4G networks are the factors driving the segment growth.
On the other hand, the website/desktop segment is expected to expand at a healthy CAGR during the forecast period. The growth of the segment can be attributed to wide adoption of website/desktop channel to order food online. Furthermore, the AI/VR integration in desktops/laptops is further driving the segment growth.
Payment Methods Segment Analysis
On the basis of payment methods, the market is bifurcated into cash on delivery and online. The online segment is anticipated to hold a dominant market share during the forecast period owing to easy payment facilities that can be processed through several payment portals including net banking or credit/debit cards.
Growing consumer awareness regarding digital money as well as increasing partnerships between banks and online delivery service providers are the major factors propelling the segment growth.
On the other hand, the cash on delivery segment is expected to expand at a substantial CAGR during the forecast period owing to the prevailing preference for consumers to make cash payment due to security concerns of online transactions. However, banks are focusing on enhancing security to offer additional services to its users, which is expected to propel the segment expansion during the forecast period.
Online Food Delivery Services Market Regional Analysis
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to represent a large market share, in terms of revenue in the coming years.
Increasing disposable income of consumers, change in their lifestyles, and increasing preference for online food services are some of the major factors driving the market growth in this region.
The rapidly growing e-commerce sector in countries such as Japan and India is further propelling the adoption of food delivery services in this region. The growth of delivery partners such as Zomato and Swiggy in the market of India over the recent years have accelerated the market growth. Meanwhile, the market in North America is projected to expand at a healthy CAGR during the forecast period.
The presence of various online food service providers such as Just Eat Holding Limited and Postmates Inc. are further augmenting the regional market growth. Companies in this region offer live customer service and delivery execution, which is expected to drive the market growth in the region.
Segments
Types
- Restaurant-to-consumer
- Platform-to-consumer
Channel Types
- Websites/Desktop
- Mobile Applications
Payment Methods
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key players
- DoorDash
- Just Eat Holding Limited
- Swiggy
- Takeaway.com
- Zomato
- Uber Technologies Inc
Competitive Landscape
Some of the leading players in the global online food delivery services market are DoorDash, Just Eat Holding Limited, Swiggy, Takeaway.com, Zomato and Uber Technologies Inc.Majority of these companies are focusing on enhancing their consumer base by offering attractive discounts.
Additionally, they are focusing on various business strategies such as mergers, collaborations, product launches, and reducing their operational costs using drones and robots to increase their competitive position in the market. For instance,
- In September 2017, Zomato acquired a logistics startup named Runnr to strengthen its logistics services and improve its delivery fleet capacity in India and the UAE.
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