Online Food Delivery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Online Food Delivery Market is Experiencing Significant Growth Due To Changing Consumer Habits Favoring Online Platforms, Driven by Increased Internet Usage, Smartphone Accessibility, Simplified E-Banking, Improved Food Courier Logistics, and Evolving Lifestyles. The Market is Segmented by Business Model, Platform Type, and Geography, With North America Leading. Recent Trends Include Real-Time Meal Delivery Tracking, Personalized Home Food Delivery, and the Rise of Cloud Kitchens. Major Players in the Restaurant Delivery Service Market are Increasing Investments in Research, Development, Marketing, and Geographical Expansion.

Online Food Delivery Market Size

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Online Food Delivery Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 16.24 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Online Food Delivery Market Analysis

The Online Food Delivery Market is expected to register a CAGR of 16.24% during the forecast period.

  • Customers are rapidly heading online, which has fueled drastic growth in the e-commerce industry over the last decade. This shift in consumer shopping habits has been driven by various causes, some of which are industry or country-specific, while others are the product of global shifts.
  • Most of it can be attributed to the availability of an increased number of online food delivery businesses, a better understanding by consumers of the developments of online e-commerce, a better easy and secure option for online payments of services, disposable income on the rise, and work from home decreasing time for people to invest in making the food themselves.
  • Increased internet penetration rate, quick access to smartphones, simplified e-banking systems, improved food-service logistics, and changing lifestyles are some prime factors driving the growth of online food delivery. As per the report published by Zomato, the Indian food delivery platforms will have 80 million monthly active users in 2021 and have set targets of reaching 200 million over the next few years. Hence, an increase in smartphone users and internet penetration is driving growth in online food delivery services.
  • `Some of the recent trends in the market studied include real-time order tracking and customized food delivery. Thus, companies are increasing their investments in research and development (R&D) and marketing and expanding their geographical reach to maintain their position in the market. Most leading players follow logistics-focused food delivery systems due to the model's ability to help gain scale with limited costs and increased speed.

Online Food Delivery Market Trends

Rising Popularity of Cloud Kitchens

The food delivery market is witnessing a rise in the popularity of cloud kitchens due to many consumers purchasing their food through online platforms. Thus, the increasing number of food orders through cloud kitchens is due to convenience, the hectic lifestyles of consumers, and intense internet penetration. Cloud kitchens have become the popular investment choice for established and new restaurateurs to open a food business. Faasos by Rebel Foods, Biryani By Kilo, and Freshmenu are some of the popular cloud kitchen chains operating in this segment.

Established restaurant chains are now also opening cloud kitchen outlets instead of opening dine-in outlets to cater to high food delivery orders. The ease of getting food delivered at a reasonable price and in record time has increased the number of orders placed online. Instead of dining out, people prefer to order in. Online food delivery is not only eating into the market share of traditional dine-in restaurants but is also replacing home cooking. Because of the shift in customer preference and an increased sense of hassle in dining out, the home delivery option has gained momentum and, along with that, has brought a change in the restaurant industry as now food overpowers the dining experience. For instance, in January 2022, Arabic REEF Technologies, a United States-based operator of delivery kitchens, logistics, and proximity hubs, announced plans to launch cloud kitchens for its network of restaurants and brands in the Middle East and North Africa. In November 2021, REEF acquired UAE-based cloud kitchen company iKcon, marking its first venture in the region.

Online Food Delivery Market: Number of Cloud Kitchens, by Selected Countries, Global, 2022

North America Dominates the Market

  • The North American market has a high market share in the global market, mainly due to strong user penetration rates in the United States. It is one of the largest markets for global online food delivery. It currently represents the world's biggest online food delivery market. Several factors drive north America's online food delivery market. The significant urban population, busy lifestyles, and increasing penetration of the internet and smartphones are some of the key drivers that have driven the growth of online food delivery in the region.
  • Moreover, the United States' large young population, which constitutes most of the consumer base, has further facilitated this growth. In October 2021, Delivery Hero acquired Hugo's food and grocery delivery verticals and expanded its footprint in Central America and the Caribbean. Various online food delivery service providers are experimenting with innovative food delivery methods via self-driving cars, drones, and robots, positively influencing market growth. 
  • Moreover, individuals' high living standards continue to spur the region's demand for online food delivery packaging services. Some of the major players in North America, including Doordash, Uber Eats, Postmates, GrubHub -Seamless, and Caviar, are adopting strategies for developing the online food delivery market like new product development, global expansion, acquisitions, and investments.
Online Food Delivery Market: Market CAGR (%) by Region, Global, 2022

Online Food Delivery Industry Overview

The Online Food Delivery Market is highly competitive. Some leading players offering online food delivery services include Delivery Hero SE, Grab Holdings Inc., Eat Holding Limited, Roofoods Ltd (Deliveroo), and Uber Technologies Inc. The key strategies preferred by companies to strengthen their market dominance include expansion, mergers and acquisitions, and partnerships to achieve consolidation and optimize their offerings. For instance, in May 2022, Swiggy entered into a partnership with Garuda Aerospace to deliver groceries with the help of drones in the city of Bengaluru in the Indian state of Karnataka and the Delhi-NCR region. Apart from expanding the business size and reach, companies emphasize R&D to develop technologically advanced and differentiated products to gain a competitive edge.

Online Food Delivery Market Leaders

  1. Delivery Hero SE

  2. Just Eat Holding Limited

  3. Uber Technologies Inc.

  4. Grab Holdings Inc.

  5. Roofoods Ltd (Deliveroo)

*Disclaimer: Major Players sorted in no particular order

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Online Food Delivery Market News

  • March 2022: Eat Takeaway.com, Europe's largest online food ordering service delivery, entered into a partnership with McDonald's to expand delivery.
  • October 2021: Uber Technologies Inc. acquired Drizly, and the two companies will begin integrating their complementary delivery apps and services. The purchase consideration was approximately USD 1.1 billion, consisting of approximately 18.7 million newly issued shares of Uber common stock plus cash.
  • April 2021: Southeast Asia's biggest ride-hailing and food delivery firm Grab Holdings, announced a merger with Altimeter Growth Corp., valued at USD 40 billion.

Online Food Delivery Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Business Model

      1. 5.1.1 Logistics-focused Food Delivery System

      2. 5.1.2 Order-focused Food Delivery System

      3. 5.1.3 Restaurant-specific Food Delivery System

    2. 5.2 Platform Type

      1. 5.2.1 Mobile/Tablet Applications

      2. 5.2.2 Websites

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Spain

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 Germany

        4. 5.3.2.4 France

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Russia

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Delivery Hero SE

      2. 6.3.2 Grab Holdings Inc.

      3. 6.3.3 Just Eat Holding Limited

      4. 6.3.4 Demae-Can Co., Ltd

      5. 6.3.5 Uber Technologies Inc.

      6. 6.3.6 Roofoods Ltd (Deliveroo)

      7. 6.3.7 Yum! Brands Inc.

      8. 6.3.8 Delivery.com, LLC

      9. 6.3.9 Domino's Pizza, Inc.

      10. 6.3.10 Movile (iFood)

      11. 6.3.11 Bundl Technologies Private Limited (Swiggy)

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Online Food Delivery Industry Segmentation

Online food delivery is a service through which the user orders food or grocery from the desired food outlet via the internet. 

The global online food delivery market is segmented by business model, platform type, and geography. Based on the business model, the market is segmented into a logistics-focused food delivery system, order-focused food delivery system, and restaurant-specific food delivery system. Based on the platform type, the market is segmented into mobile/tablet applications and websites. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. 

The report offers market size and forecast in value terms in USD million for all the above segments.

Business Model
Logistics-focused Food Delivery System
Order-focused Food Delivery System
Restaurant-specific Food Delivery System
Platform Type
Mobile/Tablet Applications
Websites
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Spain
United Kingdom
Germany
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa
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Online Food Delivery Market Research FAQs

The Online Food Delivery Market is projected to register a CAGR of 16.24% during the forecast period (2024-2029)

Delivery Hero SE, Just Eat Holding Limited, Uber Technologies Inc., Grab Holdings Inc. and Roofoods Ltd (Deliveroo) are the major companies operating in the Online Food Delivery Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Online Food Delivery Market.

The report covers the Online Food Delivery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Online Food Delivery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key factors driving the Online Food Delivery Market are a) The rising number of smartphone and internet users b) Growing trends toward food delivery mobile applications across the globe

Online Food Delivery Industry Report

The global online food delivery market is on a trajectory of robust growth, this surge is primarily fueled by increased internet and smartphone penetration, alongside technological advancements. The advent of cloud kitchens, offering cost-effective operational models, plays a pivotal role in this growth, particularly appealing to restaurants aiming to adapt to the changing market dynamics. Dominated by the platform-to-consumer delivery segment, the market benefits from widespread internet access, while the restaurant-to-consumer segment is also expected to witness notable growth due to improved connectivity and logistics. Innovations such as Kitchen Display Systems (KDS) are streamlining order management and enhancing the online presence of restaurants. Despite challenges in managing delivery volumes, the demand for convenience, safety, and customizable options continues to drive market opportunities. Statistics for the Online Food Delivery Market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Online food Delivery analysis includes a market forecast outlook and a historical overview. Get a sample of this industry analysis as a free report PDF download.

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Online Food Delivery Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)