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

In 2022, the global online food delivery market accounted for USD 160.3 billion and is expected to reach around USD 483.9 billion by 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 12%.

The online food delivery market is an increasing industry that provides customers with the ease of ordering food online from their favorite restaurants & cafes and having it delivered to their homes. The market has seen tremendous growth in current years owing to the rise in internet penetration, the growing use of mobile devices, and the accessibility of on-requirement delivery services.

Factors driving this growth include the increasing requirement for convenience & time-saving solutions, the rise of digital payments and contactless delivery, and the growing popularity of food delivery services among junior consumers.

Note: Actual Numbers Might Vary In The Final Report

The market faces challenges also, like, tough competition, high customer acquisition costs, and increasing pressure to offer competitive pricing and the fastest delivery times. In addition, concerns over food safety & quality as well as the environmental impact of food delivery services, are also growing in importance.

Key Takeaways

• Market Growth: 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.
• Latest Trends: The market is witnessing an increasing demand for healthy and sustainable food options, integration of advanced technology, and the adoption of contactless delivery options to ensure safety and convenience for customers.
• Drivers: Increased smartphone usage, diverse cuisine options, and attractive discounts are fueling the market growth, while the pandemic has highlighted the importance of safety and convenience.
• Challenges: Intense competition, high costs, complex logistics, and concerns about food safety and environmental impact pose significant challenges for sustained market growth and profitability.
• Segmentation: The market is divided into grocery and meal delivery segments, with platform-to-consumer delivery dominating, especially through mobile applications.
• Regional Impact: Asia Pacific leads the market, followed by Europe and North America, owing to the emphasis on affordability, convenience, and the adoption of mobile payment methods.
• Major Players: Key companies like Doordash, Uber, Zomato, and Grubhub continue to innovate to meet evolving consumer demands and stay competitive in the dynamic market landscape.

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.

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

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 accounted for the largest revenue share in the online food delivery market in 2022.

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:

Listed below are some of the most prominent global online food delivery industry 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

• March 2022, Zomato, an Indian food delivery company, acquires drone startup TechEagle Innovations to develop a drone delivery network.
• In February 2022, Uber Eats announces a partnership with Sainsbury’s, a UK-based supermarket chain, to offer grocery delivery services.

Report Scope