Global Online Food Delivery Market By Product Type (Grocery Delivery, and Meal Delivery), By Type (Platform To Consumer Delivery, and Restaurant To Consumer Delivery), By Platform, By Business Model, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Online Food Delivery Market size is expected to be worth around USD 483.9 Billion by 2033, from USD 179.5 Billion in 2023, growing at a CAGR of 12% during the forecast period from 2024 to 2033.

Online food delivery has transformed the way people order and enjoy food. With just a few taps on a smartphone or clicks on a computer, customers can conveniently browse menus, select their favorite dishes, and have them delivered right to their doorstep. This modern approach to food delivery has gained immense popularity due to its convenience, time-saving benefits, and wide variety of culinary options available.

The online food delivery market has experienced tremendous growth in recent years, transforming the way people access and enjoy their meals. This market encompasses various online platforms and mobile applications that connect customers with a wide range of restaurants and food providers. With the increasing use of smartphones and the convenience of online ordering, the market has witnessed a significant surge in demand.

The market is highly competitive, with numerous players competing to offer the best user experience, timely deliveries, and a diverse selection of food choices. It has also opened doors for small and local food businesses to reach a broader customer base without the need for physical storefronts. The online food delivery market continues to evolve, driven by technological advancements, changing consumer preferences, and the constant quest for faster, more efficient delivery services.

Key Takeaways

• The online food delivery market is expected to reach USD 483.9 billion by 2032, with a projected CAGR of 12%, driven by technological advancements and changing consumer preferences.
• The average revenue per user (ARPU) in the grocery delivery market is projected to be ~USD 505.11 in 2024.
• China is expected to generate the highest revenue in the online food delivery market, amounting to ~USD 448 billion in 2024.
• The research study predicts delivery revenue growth of 22.2% worldwide, with a notable increase of 29% in the United States.
• In the United States, the ARPU for online grocery deliveries is forecast to reach ~$1,360 in 2023, significantly higher than in China (~$487), Europe (~$448), and the global average (~$449).
• By 2027, approximately 2.5 billion people globally are expected to have meals delivered, with ~1.6 billion of these consumers located in Asia.
• In 2023, the number of online food delivery users worldwide surpassed 1.6 billion, marking a 12% increase from the previous year.
• The adoption of online food delivery services in rural areas saw a 25% increase in 2023, as major industry players expanded their services to previously underserved markets.
• The use of artificial intelligence and machine learning in online food delivery platforms increased by 22% in 2023, enhancing capabilities in personalization, demand forecasting, and route optimization.
• The online food delivery industry’s adoption of sustainable packaging and eco-friendly delivery options is expected to rise by 30% by the end of 2024.
• 68% of customers in the U.S. expressed a preference for ordering from local or independent restaurants through online delivery platforms in 2023.
• Drone deliveries are projected to exceed one million in 2024, although most delivery drones have a carrying capacity between 5 and 25 pounds, potentially limiting larger food orders.

Product Type Analysis

The grocery delivery fragment is the most lucrative in the product type of online food delivery market.

Based on type, the market for online food delivery market is divided into grocery delivery and meal delivery. Among these types, the grocery delivery segment is the most lucrative in the global online food delivery market. The total revenue share of the grocery delivery type is 62% in 2022 for the online food delivery market. This type of delivery service involves the delivery of groceries and household essentials to customers.

Examples of grocery delivery services include Instacart, Shipt, and Amazon Fresh. Meal type of delivery service involves the delivery of pre-measured and prepped ingredients and recipes to customers who then cook the meals themselves. Examples of meal kit delivery services include Blue Apron, HelloFresh, and Home Chef.

Type Analysis

The platform-to-consumer delivery segment accounted for the largest revenue share in the online food delivery market.

Based on type, the market is divided into platform-to-consumer delivery and restaurant-to-consumer delivery. Among these, the platform-to-consumer delivery segment is estimated to be the most lucrative segment in the global online food delivery market, with the largest revenue share of 65% for the forecast period. This type of delivery involves a platform that partners with multiple restaurants to offer their menus for delivery to consumers. The platform handles the ordering, payment processing as well delivery logistics.

Note: Actual Numbers Might Vary In The Final Report

Platform Type Analysis

The mobile applications fragment is the most lucrative in the application type of online food delivery market.

Based on platform type, the market for online food delivery market is divided into mobile applications and websites. Among these types, the mobile applications segment is the most lucrative in the global online food delivery market. The total revenue share of the mobile applications type is 73% in 2022 for the online food delivery market.

Owing to mobile apps are the most popular platform for online food delivery services. Users can download an app from a delivery platform like Uber Eats, DoorDash, or Grubhub to browse restaurants, place orders then track deliveries on their smartphones.

Business Model Analysis

Order-focused food delivery system holds a significant share of the business model fragment in the online food delivery market.

Based on the business model, the market is segmented into logistics-focused food delivery systems, order-focused food delivery systems, and restaurant-specific food delivery systems. Order-focused food delivery systems are dominant in business model fragments in the online food delivery market.

Order-focused food delivery system, where the delivery platform partners with multiple restaurants to offer their menus to customers. The platform handles the ordering and payment processing, and the restaurants handle the food preparation and delivery logistics.

Key Market Segments

Based on Product Type

• Grocery Delivery
• Meal Delivery

Based on Type

• Platform To Consumer Delivery
• Restaurant To Consumer Delivery

Based on the Platform Type

• Mobile Applications
• Websites

Based on the Business Model

• Logistics-focused Food Delivery System
• Order-focused Food Delivery System
• Restaurant-specific Food Delivery System

Driving Factor

Online food delivery market drivers are improved technology, increased smartphone usage, discounts & promotions, and a wide range variety of cuisine options

Online food delivery platforms have invested heavily in technology, including mobile apps, chatbots, as well artificial intelligence, to provide a seamless & use friendly experience for customers. With the universal use of smartphones, consumers can easily operate online food delivery platforms and order food on the go.

Online food delivery platforms frequently offer discounts and promotions to attract & retain customers, which has helped to drive the growth of the market. Online food delivery platforms offer a vast variety of cuisine choices, from local dishes to international cuisine, creating it easier for consumers to explore & try new foods.

Restraining Factor

The online food delivery market is highly competitive, with lots of players competing for market share. This competition can result in minimum profit margins and limited growth opportunities. Online food delivery platforms rely on delivery logistics to get food to customers quickly & efficiently.

Although, delivery logistics can be complex & expensive, which can be a challenge for smaller players in the market. Ensuring food quality & safety during the delivery process can be a challenge, especially for restaurants and delivery platforms with large volumes of orders. Customers may not be loyal to a particular platform or restaurant and may switch to a competitor based on price or convenience, creating it difficult for online food delivery platforms to retain customers.

Government regulations like food safety regulations, labor laws, and taxes, can impact the profitability and growth of online food delivery platforms. In some regions, infrastructure challenges such as poor internet connectivity, traffic congestion, and inadequate transportation systems can make it difficult to provide fast & reliable food delivery services.

Growth Opportunity

The online food delivery market is a repeatedly growing industry that presents a significant opportunity for businesses. With the growing popularity of food delivery apps and the growth of online ordering, this market is expected to continue to grow in the becoming years. By partnering with food delivery apps, restaurants can expand their customer base beyond those who would normally visit their exact location.

This can lead to a rise in revenue & growth for businesses. Although, there are also challenges in the online food delivery market, including competition, high commission fees for restaurants, and the requirement for efficient delivery logistics. Businesses want to carefully consider these factors when entering the online food delivery market.

Latest Trends

Increasing smartphone usage and available advanced application for online food delivery service.

With growing up awareness of the impact of food on health and the environment, there is an increasing demand for healthy & sustainable food options. This trend is driving more restaurants and food delivery companies to offer many plant-based, organic, and locally sourced food options.

Technology is playing a growingly crucial role in the online food delivery market, with the use of AI, machine learning, and data analytics to optimize the delivery process and improve the user experience. This includes the use of chatbots, voice assistants, and mobile apps to create ordering and delivery more seamless. The COVID-19 pandemic has accelerated the adoption of contactless delivery options, including the use of self-driving vehicles and drones for delivery.

Lots of companies are also implementing safety measures like temperature checks, contactless payment, and no-contact delivery to ensure the safety of customers and delivery drivers. With the vast amount of data available, food delivery companies can offer more personalized experiences to their customers. This includes recommendations based on past orders, personalized menus as well customized promotions.

Regional Analysis

Asia Pacific is estimated to be the most lucrative market in the global online food delivery market, with the largest market share of 37%, and is expected to highest CAGR during the forecast period. Owing to there is a focus on affordability and convenience in the market, with many consumers preferring mobile payments.

The food delivery market in Europe is diverse, with different countries having unique characteristics. The market is dominated by companies like Just Eat, Deliveroo, and Uber Eats. There is also a trend towards healthier and more sustainable food options in the European market.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The food delivery market is highly competitive, with the highest number of players operating in different regions of the world. Uber Eats is one of the biggest players in the food delivery industry, with a global market share of around 30%. The company operates in over 6,000 cities worldwide and partners with over 500,000 restaurants.

Market Key Players

• Doordash Inc.
• Roofoods Limited (Deliveroo)
• Grubhub Inc.
• Delivery Hero SE
• Uber Technologies Inc.
• Zomato Limited
• Domino’s Pizza Inc.
• Papa John’s International Inc.
• me (Ali baba)
• Pizza Hut
• McDonald’s Corp.
• Other Key Players

Recent Developments

• Doordash (March 2023): Expanded its grocery delivery service through a partnership with national grocery store chain Albertsons
• Grubhub (May 2023): Merged with Just Eat Takeaway.com to create a global online food delivery leader.
• Delivery Hero (July 2023): Acquired Wolt, a major food delivery player in Europe, for ~$8 billion, strengthening its European presence.
• Zomato (August 2023): Launched a quick commerce grocery delivery service in India, competing with established players like Swiggy.

Report Scope