The global online food delivery market value reached around USD 148.07 Billion in 2023 due to the increasing adoption of smartphones and the internet, which have made ordering food more accessible and convenient for consumers. Platforms like DoorDash and Uber Eats have capitalised on this trend by offering user-friendly apps that allow customers to order from a wide variety of restaurants with just a few taps. As a result, the industry is expected to grow at a CAGR of 13.20% during the forecast period of 2024-2032 to attain a value of USD 451.94 Billion by 2032. The rise of ghost kitchens has further fuelled market growth.
Base Year
Historical Year
Forecast Year
Value in USD Billion
2024-2032
Online Food Delivery Market Outlook
*this image is indicative*
Online food delivery service encompasses various types of food delivery, including prepared meals and groceries, and can be categorised into different models. The rapid emergence of major online food delivery service giants across the urban areas is likely to bolster the growth of the online food delivery market. The market is further driven by the convenience of ordering food by these applications, which offer an easy comparison between the menus of several restaurants. The market is also being bolstered by the enormous variety of food items and different cuisines it offers at the customer's doorstep. The food delivery report also interprets the impact of factors such as the hectic lifestyles and rapid urbanisation, which are leading customers to increasingly choose online food delivery services.
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Rise of cloud kitchens, emphasis on sustainability and healthy food options, and favourable regulatory policies regarding commission rates are the key trends propelling the market growth.
During the pandemic, the closure of dine-in restaurants led to a significant increase in the adoption of cloud kitchens, also known as virtual or dark kitchens. As per the online food delivery industry analysis, they enabled restaurant owners to quickly expand their businesses across multiple locations with minimal upfront investment. In India, cloud kitchen startups like Rebel Foods and Freshmenu have rapidly expanded their operations due to the rise in online food delivery. For instance, Rebel Foods, a leading player in the cloud kitchen sector, reported a topline revenue of approximately USD 145 million in FY23. The company operates multiple brands, including Faasos (now EatSure), Oven Story, and Behrouz Biryani. London-based private equity firm Finnest has acquired a majority stake in Kitchens@ with an investment of around USD 160 million. This acquisition positions Finnest as the largest shareholder of Kitchens@, which provides ready-made kitchen setups and supply chain support for cloud kitchens.
Customers are now seeking eco-friendly packaging, plant-based menu items, and delivery options that minimise the carbon footprint. Delivery platforms like Deliveroo and Just Eat Takeaway.com are offering reusable packaging and promoting vegan meal options, which can boost the online food delivery demand. Restaurants are responding to this trend by introducing new menu items. Major brands are innovating their offerings to cater to the increasing interest in plant-based diets. For instance, Unilever has expanded its product lines to include vegan desserts and partnerships with fast-food chains like Burger King, which now features plant-based options prominently on its menu. This reflects a broader trend where over 40% of restaurant menus are expected to include plant-based items by 2025, as consumers seek healthier dining options. Meanwhile, the integration of smart packaging technology is becoming more prevalent as companies aim to enhance sustainability and transparency.
An increasing number of restaurants are opting to handle their own delivery services rather than relying on third-party platforms. This trend allows restaurants to maintain control over customer experience and enhance brand loyalty while avoiding high commission fees associated with third-party services. For example, Chick-fil-A has implemented its own delivery system, enabling it to manage orders directly and improve service quality. Similarly, Domino's has partnered with Flirtey to use drones for deliveries in New Zealand, demonstrating its commitment to innovation in logistics. Other chains like Starbucks are collaborating with drone companies like Flytrex to streamline their delivery processes, ensuring faster service without relying on external drivers. This shift not only fosters direct relationships between restaurants and consumers but also intensifies competition among delivery platforms as they adjust to the changing dynamics of the online food delivery market.
The integration of drone technology into food delivery services is transforming the landscape by offering faster and more efficient delivery options. Drones can navigate urban environments quickly, bypassing traffic congestion and significantly reducing delivery times. Companies like Manna are making strides in this area, focusing on delivering everyday items such as food and coffee directly to consumers' doorsteps. Manna has successfully expanded its operations to include U.S. cities and has executed over 100,000 drone deliveries. Zipline is another notable player, primarily known for its medical supply deliveries but now partnering with restaurants like Panera Bread and Jet’s Pizza to deliver food items as well. Their Platform 2 drones can carry up to eight pounds over a ten-mile radius. Wing, a subsidiary of Alphabet Inc., has also made headlines by launching a commercial delivery service in the Dallas-Fort Worth area, where it transports food items like ice cream and groceries within a six-mile range. The demand for contactless delivery options, further supports the growth of this trend.
Innovations like integration of IoT (Internet of Things) and voice commands are making the delivery process even more convenient for consumers, as they can now order food through voice commands on devices like Amazon Alexa and Google Home and track their orders in real-time, further increasing online food delivery market value.
Additionally, favourable regulatory policies regarding commission rates charged to restaurants are also contributing to the market's growth. The presence of fewer chains offers greater pricing power, and markets where a small number of food-delivery players carry a significant share are expected to fuel international expansion. Various cities and states have implemented commission caps to protect small and independent restaurants from high fees charged by delivery platforms. For instance, San Francisco capped commission fees at 15% for independent businesses in response to concerns about high costs disproportionately affecting smaller establishments. Similar measures have been adopted in New Jersey and other locations, aiming to create a more equitable environment for restaurants reliant on delivery services.
Food delivery platforms often impose high commission fees on restaurants, which can erode profit margins. A recent report highlighted that many restaurants are struggling with these fees, leading to calls for regulatory changes to cap commission rates. Maintaining food quality during transit remains a critical issue and can impact online food delivery demand growth. Reports indicate that food can sit for extended periods after being picked up by drivers, particularly when multiple orders are batched together for efficiency. This practice can lead to significant delays and negatively affect the integrity of the food being delivered, resulting in customer dissatisfaction.
Companies in the food delivery sector face various regulatory challenges, including compliance with health and safety standards. As regulations evolve, particularly regarding driver classifications and labour laws, companies must navigate these complexities while ensuring their business models remain sustainable. For example, the Food Safety and Standards Authority of India (FSSAI) has established comprehensive guidelines for food delivery platforms to ensure food safety.
To maintain a competitive edge, players are engaging in mergers and acquisitions, such as Zomato's acquisition of Uber Eats' Indian operations and Just Eat's acquisition of Grubhub in the United States. This trend of consolidation is expected to continue as companies seek to expand their reach, improve operational efficiency, and gain a larger market share. Major restaurant chains like Chick-fil-A are further establishing their own delivery fleets instead of relying on third-party platforms. This shift allows them to maintain control over their delivery processes and enhance customer experiences.
The online food delivery market dynamics and trends indicate that online delivery services have fuelled the sale of premium packaged bakery and confectionary, beverage, ready-to-eat meals, and fresh fruits and vegetable products, among others. The emergence of tech-enabled driver networks and user-friendly mobile applications are helping cater to the demands of ready-to-eat food products.
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“Online Food Delivery Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Platform Type
Market Breakup by Business Model
Market Breakup by Payment Method
Market Breakup by Region
Market Insights by Platform Type
The mobile application segment has witnessed significant growth, driven by the increasing adoption of smartphones and the ease of access they provide to food delivery services. Companies like Uber Eats, DoorDash, and Zomato have developed robust mobile applications that offer seamless ordering experiences and real-time order tracking that can increase online food delivery market revenue.
Web applications cater to users who prefer ordering through desktops or laptops. Companies like Grubhub, Just Eat Takeaway.com, and Deliveroo have established strong web application interfaces to ensure a seamless ordering process for users. The web application segment is expected to maintain its relevance in the market, particularly for users who prefer larger screens. These applications also offer several payment options, such as credit card, digital wallet, debit card, net banking or via cash on delivery (COD). The use of these systems reduces labour expenses, errors, long queues, and waiting time. These advantages are likely to expand the online food delivery market size in the forecast period.
Market Insights by Business Model
The logistics-focused food delivery system has emerged as the largest segment and contributed to the growth of the online food delivery industry. This model is particularly effective as it connects small-scale restaurants with a broader customer base by leveraging third-party logistics networks, allowing restaurants without established delivery systems to expand their reach and increase sales. The platform-to-consumer category is also significant as this model encompasses services that manage logistical components and provide delivery services to restaurants that do not have their own delivery capabilities.
Market Insights by Payment Method
Online payments, including net banking, credit/debit cards, and payment portals dominate the online food delivery market share due to a growing emphasis on digital transactions. Companies in the online food delivery market like Uber Eats and DoorDash have integrated secure online payment options into their platforms. The adoption of online payment services is driven by the increasing awareness of digital currencies among consumers and the collaborative efforts between banks and online food delivery services to enhance payment security. The availability of a wallet option for users further enhances the convenience and marketing opportunities for online food delivery platforms.
Despite the increasing popularity of online payments, the COD method continues to attract customers who prefer paying with cash due to security concerns associated with online transactions. For instance, in countries like India, players like Zomato and Swiggy offer cash on delivery as a preferred payment option to cater to a wide range of customers.
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Asia Pacific Online Food Delivery Market Trends
Asia Pacific emerges as a dominant force in the global online food delivery market share, boasting the largest market. The region's growth is fuelled by a large base of young working populations with busy lifestyles seeking convenient meal options, including meal delivery services. Local companies like Meituan and Ele.me in China have established efficient logistics, extensive restaurant partnerships, and user-friendly interfaces, driving the regional market growth. The growing middle class in Asia Pacific nations is anticipated to have greater disposable incomes, leading to increased expenditure on meal delivery services.
North America Online Food Delivery Market Growth
North America holds a significant share in the market, driven by the tech-friendly consumers residing in well-established economies such as the United States and Canada. The US online food delivery sector is likely to witness a surge in growth, due to the growing expansion of the active market players. Canada is one of the major contributors in the online food delivery industry revenue, supported by the increasing number of students and working professionals opting for online food delivery services.
A survey indicated that over 51% of the U.S. population has used meal delivery services, highlighting the widespread adoption of these platforms. The convenience offered by online food delivery apps has led to nearly 60% of consumers ordering delivery at least once a week.
Europe Online Food Delivery Market Overview
The European market is growing due to the rising popularity of e-commerce and changing consumer habits. A report noted that the UK is one of the largest markets in Europe for online food delivery services, with platforms like Deliveroo and Just Eat dominating the landscape and increasing the online food delivery market opportunities. Deliveroo is currently the most significant player in the UK market, capturing around 50% of the total restaurant base. In contrast, Just Eat and Uber Eats are also key players, with Uber Eats holding a substantial market share in other European countries like France.
Middle East and Africa Online Food Delivery Market Dynamics
The Middle East and Africa are seeing significant growth in online food delivery services due to rising urban populations and changing lifestyles. Countries like the UAE are leading this trend with high smartphone penetration rates that can impact online food delivery demand forecast. A report from Syrve MENA indicated a 10% year-over-year increase in restaurant delivery orders during Q1 2024, following a strong performance in 2023 where residents placed 6% more delivery orders and spent 5% more compared to the previous year. This trend highlights the growing consumer preference for convenient dining solutions.
Latin America Online Food Delivery Market Drivers
The online food delivery sector in Latin America is witnessing growth due to improving internet connectivity and urbanisation. As more consumers gain access to smartphones and reliable internet services, they are increasingly turning to online platforms for meal ordering. Brazil stands as the largest economy in Latin America and is witnessing a significant surge in e-commerce, with a growth rate of 14.3%. Projections indicate that this sector will surpass USD 200 billion by 2026.
Consumers in Brazil have readily adopted the convenience and exclusive promotions frequently available through e-commerce platforms, which is a crucial trend of online food delivery market, thereby presenting online retailers with opportunities to innovate in customer loyalty and engagement strategies.
Startups are increasingly integrating AI and machine learning to optimise delivery routes, enhance customer experiences, and streamline operations. For instance, companies have developed pre-scheduled meal delivery platforms that allow consumers to order meals at lower prices while helping restaurants manage food waste and optimise delivery routes. Many startups in online food delivery market are further exploring the use of drones and autonomous robots for deliveries. They utilise drones to deliver food quickly across suburban areas, significantly reducing delivery times.
Gojek
Founded in 2010 in Indonesia, Gojek started as a ride-hailing service but has since evolved into a multi-service platform that includes food delivery through its app. Gojek offers a wide range of services, including logistics and on-demand delivery, connecting users with local restaurants and food vendors. The platform has expanded its reach across Southeast Asia, catering to millions of users and partnering with numerous food merchants.
Talabat
Established in Kuwait in 2013, Talabat has become a prominent food delivery service in the Middle East, particularly in the UAE. The platform allows users to order food and groceries online from a diverse selection of local restaurants. Talabat has introduced features like contactless delivery to ensure safety and convenience for its customers. As one of the leading players in the region, Talabat continues to expand its offerings and improve its service quality, catering to the growing demand for online food delivery solutions.
Market players are focused on leveraging technological advancements to streamline operations, optimise delivery processes, and provide a seamless ordering experience for customers. Companies are actively adapting to changing consumer preferences and technological advancements to enhance their services. Many businesses are investing in mobile applications that streamline the ordering process, allowing customers to browse menus, place orders, and track deliveries conveniently from their smartphones. Additionally, there is a notable trend towards direct restaurant delivery services, where major chains like Chick-fil-A and Domino's are establishing their own delivery fleets.
Uber Technologies Inc. was founded in 2009 and is headquartered in California, United States. The company is known for its ride-hailing services and has expanded its offerings to include food delivery through Uber Eats. In addition to transportation services, Uber also provides freight transportation and various other mobility solutions to customers worldwide.
DoorDash, Inc., founded in 2013 and based in California, United States, is a prominent on-demand food delivery...
Just Eat Takeaway.com N.V., founded in 2000, headquartered in Amsterdam, Netherlands, specialises in providing...
Zomato Limited was established in 2008 and is based in Gurugram, India. It is a well-known online platform off...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the global online food delivery market include Delivery Hero SE, Meituan Inc., Domino's Pizza, Inc., Roofoods Ltd, Yum! Brands Inc., Demae-Can Co., Ltd, Bundl Technologies Private Limited, Yandex.Eda, LLC, and Rappi Inc., among others.
Online Food Delivery Market Size
Online Food Delivery Market Growth
Online Food Delivery Market Trends
Online Food Delivery Market Share
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the market reached an approximate value of USD 148.07 Billion.
The market is assessed to grow at a CAGR of 13.20% between 2024 and 2032.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of around USD 451.94 Billion by 2032.
The major drivers of the market are rising disposable incomes, increasing population, rising internet penetrations, growing smartphones sales, and wider choice and convenience offered by online food delivery platforms.
The growing penetration of smart devices and technological advancements in delivery methods like drones are trends that are expected to influence the market positively.
Regions considered in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
Based on platform, the market is divided into mobile and web applications.
Order focused online food delivery model is the leading business model in the market.
Payment via online channels is the most preferred payment method in the market.
Key players in the market are Uber Technologies Inc., DoorDash, Inc., Delivery Hero SE, Meituan Inc., Just Eat Takeaway.com N.V., Domino's Pizza, Inc., Roofoods Ltd, Yum! Brands Inc., Demae-Can Co., Ltd, Bundl Technologies Private Limited, Zomato Limited, Yandex.Eda, LLC, and Rappi Inc., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Platform Type |
|
| Breakup by Business Model |
|
| Breakup by Payment Method |
|
| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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