Online Food Delivery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The online food delivery market is segmented by business models as logistics-focused, order-focused, and restaurant-specific; by platform type as mobile/tablet applications and websites; and by geography.

Market Snapshot

online food delivery market overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Europe
Largest Market: Asia Pacific
CAGR: 6.24 %
online food delivery market major players

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Market Overview

The global online food delivery market is forecasted to register a CAGR of 6.24% during the forecast period (2019 - 2024).

  • Increased internet penetration rate, quick access to smartphones, simplified e-banking systems,  improved food-service logistics, coupled with changing lifestyles, are some of the prime factors driving the online food delivery market growth.
  • 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 of the leading players are following logistics-focused food delivery system due to the model’s ability to help gain scale with limited costs and increased speed.

Scope of the Report

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

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
Germany
United Kingdom
Russia
France
Spain
Italy
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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Key Market Trends

Surge in Strategic Marketing Initiatives

For players in the online food delivery market, some of the foremost drivers for future order growth are the continued investment in marketing, which helps drive brand awareness and customer traffic to company’s platforms, and continuous investment in technology, which ensures the platforms are stable, secure, efficient and scalable. As represented by the graph, the market studied is marked by increased marketing investments by some of the key players such as Delivery Hero and Just Eat. These expenses include marketing for both customer and restaurant acquisition. For instance, Delivery Hero’s marketing expenses included expenses for customer acquisition worth EUR 148.6 million, which increased from being EUR 91.7 million in 2017. Such increases in marketing spending reflect the increased competition in certain markets as well as the continuous roll-out of the company’s delivery operations.

online food delivery market trends

Asia-Pacific is the Dominant Market while Europe Registers a Strong Growth

Asia-Pacific market has a high market share in the global market, mainly due to strong user penetration rates in China and Japan. China is one of the largest markets for global online food delivery. In China, ordering food online is highly popular with players such as Alibaba-backed Ele.me and Tencent-backed Meituan. Additionally, Europe also has strong growth rates, with high user penetration in the Netherlands, the UK, France, and Germany. Some of the market leaders in Europe include Delivery Hero, Just Eat and Takeaway.com. In the United States, UberEATS and GrubHub are some of the leading players.

online food delivery market growth

Competitive Landscape

The market studied is highly competitive and some of the leading players offering online food delivery service include Deliveroo, Just Eat, Delivery Hero, Grub Hub, and Uber Eats. The key strategies preferred by companies to strengthen their market dominance. include expansion, mergers and acquisitions, partnerships to achieve consolidation and optimize their offerings. For instance, in November 2018, Swiggy expanded its operations by launching services in 16 new cities in addition to the existing 28 cities in India. Additionally, players are increasingly offering technological innovation, order customization, and increasing the number of partnering restaurants, to improve their offerings.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables 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 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Degree of Competition

  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 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 Russia

        4. 5.3.2.4 France

        5. 5.3.2.5 Spain

        6. 5.3.2.6 Italy

        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 Active Companies

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Delivery Hero SE

      2. 6.4.2 Grab Holdings Inc.

      3. 6.4.3 Just Eat Holding Limited.

      4. 6.4.4 Grubhub Holding Inc

      5. 6.4.5 Uber Technologies Inc.

      6. 6.4.6 Deliveroo

      7. 6.4.7 Pizza Hut International, LLC

      8. 6.4.8 Delivery.com

      9. 6.4.9 Domino's Pizza, Inc.

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

**Subject to Availability

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Frequently Asked Questions

The Online Food Delivery Market market is studied from 2016 - 2026.

The Online Food Delivery Market is growing at a CAGR of 6.24% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Delivery Hero SE, Grab Holdings Inc, Just Eat Holding Limited, Grubhub Holding Inc., Uber Technologies Inc. are the major companies operating in Online Food Delivery Market.

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