USD 50.70 billion
Online Food Delivery Services Market Size, Share, Growth Analysis, By Type(Restaurant-to-Consumer, Platform-to-Consumer), By Channel Type(Websites/Desktop, Mobile Applications), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2185 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
61
|Figures:
75
Online Food Delivery Services Market Insights
Online Food Delivery Services Market size was valued at USD 60.18 billion in 2022 and is poised to grow from USD 71.43 billion in 2023 to USD 281.51 billion by 2031, growing at a CAGR of 18.7% during the forecast period (2024-2031).
The market for online food delivery services has transformed in the digital age, going through a period of significant growth and changing the way consumers avail dining options. The easy access to a diverse range of cuisines and restaurant options browsed on digital platforms and mobile apps has led consumers to support market expansion.
Evolving lifestyles have propelled market growth. Consumers seek the convenience of having restaurant-quality food delivered to their homes. The market demand has risen as smartphone usage has increased and internet accessibility has surged. This has made it easier to order and track food deliveries. The lockdowns and social distancing measures that were established during the COVID-19 pandemic bolstered the adoption of online food delivery services.
There is intense competition in the market. Many firms are fighting for market supremacy, from multinational behemoths to regional and local platforms. Through these platforms, patrons can access a vast array of eateries that cater to different tastes and budgets. In addition, new inventions that capitalize on the trend by specializing in meal delivery, including cloud kitchens, have surfaced.
Food safety, sustainability, and profitability are some of the other issues the industry must deal with. Delivery logistics can be tricky, and fierce competition frequently results in price wars that reduce business margins. The industry is being pushed to look toward eco-friendly solutions by sustainability worries about delivery emissions and packaging. The market for online meal delivery services is predicted to increase despite these obstacles due to changing consumer tastes and continuous technology developments.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Restaurant-to-Consumer
Fastest Growth
Platform-to-Consumer
Growth Rate
18.7% CAGR
Global Online Food Delivery Services Market By Type ($ Bn)
Country Share for North America Region (%)
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Online Food Delivery Services Market Segmental Analysis
The Online Food Delivery Services Market is segmented by Type, Channel Type, Payment Method, and Regional. Based on Type the market is segmented as, Restaurant-to-Consumer, Platform-to-Consumer. Based on Channel Type the market is segmented as, Websites/Desktop, Mobile Applications. Based on Payment Method the market is segmented as, Cash on Delivery, Online Regional the market is segmented as, North America, Asia Pacific, Latin America, and Middle East & Africa (MEA).
Analysis By Type
Restaurant-to-Consumer or R2C has led the online food delivery market. Here, users can directly place orders with restaurants via their own websites. Consumers are drawn to the R2C segment as they prefer the familiarity that comes with ordering directly from well-known and trusted local chains or restaurants.
Platform-to-Consumer or P2C is the market’s quickest developing segment. Here consumers use intermediary third-party platforms to place their orders. This segment includes platforms like UberEats, Swiggy, and DoorDash. These platforms collaborate and communicate with a large number of restaurants. This is so that they can provide users with a diverse range of dining options on a single platform. P2C services have massive appeal due to some advantages they offer. Features like special promotional offers and real-time tracking and the ease of having a range of choice in one place have propelled this segment’s growth.
Analysis By Channel
The mobile application segment has typically led the market. This segment has revolutionized the way consumers deal with food delivery services. The accessibility and ease of ordering food with the use of mobile apps has driven category growth. Smartphone users can conveniently browse restaurant options and menus, place orders, track food deliveries, and even make contactless payments, all from one portal.
Features like personalized recommendations, location-based services, and real-time order tracking improve user experience and propel market growth. Consumers prefer this segment as they can order food on-the-go, anywhere and anytime, via mobile apps.
Global Online Food Delivery Services Market By Type
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Online Food Delivery Services Market Regional Insights
The United States has largely contributed to market growth in North America, which holds the top position in the market. The U.S. has been there since day one in the revolution of online food delivery. The country houses many major market participants. They include DoorDash, UberEats, and Grubhub. Other factors that have cemented the region’s supremacy in the market are busy lifestyles, tech-savvy population, and a flourishing food service industry.
China’s contribution has led the APAC region to follow closely behind North America, making it the second-largest market region. Consumers in China are one of the first adopters of mobile app-based food delivery. The leading regional delivery platforms included Meituan Dianping (Meituan) and Ele.me (now part of Alibaba Group). Asia-Pacific’s growing urbanization and the option to conveniently order several cuisines has pushed the region’s growth in the market.
Global Online Food Delivery Services Market By Geography
- Largest
- Fastest
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Online Food Delivery Services Market Dynamics
Drivers
Digital Transformation:
- The market’s growth has resulted from one major driver. Consumers opt to order food online as digital transformation has made it more convenient. Thanks to smartphones, whose usage has gone up in recent times, and widespread internet access, food delivery has been made much easier.
Changing Consumer Lifestyles:
- Online food delivery services have risen in demand as consumer lifestyles evolve. The rapid shifts to urban areas have resulted in hectic schedules. Here, the convenience of online food delivery is more prominent. As consumers seek fast and hassle-free dining alternatives, this market grows.
Restraints
Logistics and Delivery Costs:
- It can be expensive and complicated to maintain an efficient system of last-mile delivery. The logistic challenges that come with this feature are the guarantee of prompt deliveries, impact on food quality in transit, and managing efficient delivery fleets.
Profitability Challenges:
- The market’s fiercely competitive environment can pose a challenge to achieve profitability. This is the case for both parties in food delivery: the online provider and the restaurant. The competition often raises price differences which can lead to a lower profit margin.
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Online Food Delivery Services Market Competitive Landscape
The online food delivery services market’s competitive environment is made up of industry participants striving to gain market share. Market leaders consisted of Grubhub, DoorDash, and UberEats, among others. These companies, along with regionally dominant platforms, were at the top of the market.
UberEats is an extension of Uber. This food delivery platform has put a lot of location pins in its reach. It did so by expanding its logistics network and leveraged its existing user base. Grubhub is another renowned name in the industry and is based in the U.S. The company has spread its restaurant network and advanced its delivery capabilities. DoorDash is headquartered in the US. This company has targeted strong alliances with local restaurants and quick delivery.
Top Player’s Company Profile
- Grubhub (now part of Just Eat Takeaway.com)
- Swiggy
- UberEats (Uber)
- Deliveroo
- Ele.me (Alibaba Group)
- Meituan Dianping
- Foodpanda (Delivery Hero)
- Caviar (Square, Inc.)
- UberEats Pass (Uber)
- Rappi
- Postmates (Uber)
- SkipTheDishes (Just Eat Takeaway.com)
- Seamless (Grubhub)
- GoPuff
- Glovo
- DoorDash Drive
- UberRUSH (Uber)
Recent Developments
- Zomato is an Indian multinational restaurant aggregator and food delivery company. The company reported in February 2023 that it had bought UberEats India. The buyout deal was valued at $3.3 billion. This purchase will make Zomato India’s largest online food delivery provider.
- Swiggy is an Indian online food ordering and delivery platform. The company stated in January 2023 that it had raised $700 million in funding. This program was led by Invesco Asset Management. Swiggy will use the money to expand its operations in India and also spread to other countries in Southeast Asia.
- Wolt is a Finnish technology company known for its delivery platform for food and merchandise. The company was bought by DoorDash in March 2023. The buyout dela was valued at $8 billion. This purchase will make DoorDash Europe’s largest online food delivery service provider.
Online Food Delivery Services Key Market Trends
- Ghost Kitchens and Cloud Kitchens: Cloud kitchens, a.k.a ghost kitchens or virtual kitchens have risen in popularity. This is a notable trend in the online food delivery services market. These facilities only cater to online food orders. These ghost kitchens don’t need maintenance like traditional dine-in areas, thus reducing overhead costs. Restaurants can also diversify their delivery services with the help of this trend.
- Contactless and Safe Delivery: The adoption of contactless deliveries was hastened during the COVID-19 pandemic. These methods had consumers availing zero contact drop offs and touchless payments out of safety concerns. Food delivery platforms incorporated safety measures like tamper-evident packaging and hygiene protocols.
Online Food Delivery Services Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Global Online food delivery services market analysis; the global online food delivery services market, driven by changing consumer preferences and digital transformation, showcases regional nuances and is segmented by various factors. North America and Asia-Pacific were prominent regions in the market. In North America, led by the United States, busy lifestyles and tech-savvy consumers fueled demand for convenient food delivery via mobile applications. Meanwhile, Asia-Pacific, with China as a key player, embraced online food delivery due to urbanization and the adoption of smartphones. The market segments include a wide array of cuisines, catering to diverse tastes. Drivers behind its growth include the rise of digital ordering platforms, accelerated by the COVID-19 pandemic, and consumers' desire for convenience. Moreover, technological advancements, such as AI-driven recommendations and route optimization, enhanced the user experience. However, profitability challenges, intense competition, and regulatory complexities acted as restraints. The dynamic nature of this market continues to evolve, with sustainability and data privacy becoming increasingly significant factors influencing its future trajectory. For the latest insights, consulting recent industry reports is advisable.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 50.70 billion |
| Market size value in 2031 | USD 237.17 billion |
| Growth Rate | 18.7% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Online Food Delivery Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Online Food Delivery Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Online Food Delivery Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Online Food Delivery Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Online Food Delivery Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Online Food Delivery Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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