Global Online Food Delivery Market Size, Share, Trends, Analysis: By Platform Type: Mobile Applications, Websites; By Business Model: Order Focused, Logistics Based, Restaurant Specific; By Payment Method: Online, Cash on Delivery; Regional Analysis; Market Dynamics: SWOT Analysis, Porter’s Five Forces Analysis; Competitive Landscape; 2024-2032

Global Online Food Delivery Market Size

The global online food delivery market reached a value of around USD 148.07 billion in 2023. During the forecast period of between 2024 and 2032, the market is expected to grow at a CAGR of 13.2% and to reach around USD 451.92 billion by 2032.

Online Food Delivery Market Outlook

• Eighty-six percent of Americans have ordered food delivery at least once a month, with 38% ordering via a food delivery app as of March 2020.

• As per industry reports, DoorDash leads the food delivery market in the US with 67% market share, followed by UberEats and Grubhub.

• French fries are the most popular food to order online in the US, followed by burgers, tacos, salad, and pizza.

• As per industry reports, 70% of consumers prefer to order directly from a restaurant to support the business and avoid third-party fees.

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Online Food Delivery Market Growth Rate

The rapid emergence of major online food delivery service giants across the urban areas is likely to bolster the online food delivery market growth. 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.

Key Trends and Developments

Rise of cloud kitchens, integration of AI and IoT on apps, and availability of healthier food options are boosting the online food delivery market expansion

April 2024

DoorDash has announced new partnerships with several West Coast grocery chains, including Vallarta Supermarkets, New Seasons Market, Haggen, Mother's Market, and Jimbo's. These partnerships allow consumers across the West Coast to access on-demand delivery of essentials from these local and regional grocery stores.

April 2024

DoorDash and Walgreens have collaborated to provide unprecedented access for SNAP customers by offering SNAP/EBT payment at nearly 7,800 Walgreens stores across the country. This partnership allows SNAP customers to make purchases directly from Walgreens using their SNAP/EBT cards, making DoorDash the first platform to enable this service.

April 2024

Swiggy has introduced a new tool called "Smart Links" to enhance the online visibility of restaurants and drive growth. This tool aims to empower restaurants of all sizes to improve their online presence and stimulate business growth by providing customised links for sharing on WhatsApp, Instagram, and Facebook.

April 2023

The first halal-certified delivery fleet launched by Delivery Hero in Malaysia is called *bekal by foodpanda*. This service ensures end-to-end halal deliveries for customers in Malaysia, exclusively providing food from halal-certified vendors on the foodpanda platform.

Rise of cloud kitchens

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. 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.

Technological advancements

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.

Emphasis on sustainability and healthy options

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. Restaurants are responding to this trend by introducing new menu items.

Online Food Delivery Market Trends

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 online food delivery market share.

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.

The online food delivery market analysis also shows 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 Industry Segmentation

The EMR’s report titled “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

• Mobile Applications

• Websites

Market Breakup by Business Model

• Order Focused

• Logistics Based

• Restaurant Specific

Market Breakup by Payment Method

• Online

• Cash on Delivery

Market Breakup by Region

• North America

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Online Food Delivery Market Share

Mobile applications are high in demand due to increasing adoption of smartphones and comfort in ordering via mobile

According to food delivery service market analysis, 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.

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.

Online payment segment holds a significant market share due to increasing awareness of digital currencies and rising focus on digitalisation in emerging economies

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 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.

Leading Companies in the Online Food Delivery Market

Market players are focused on leveraging technological advancements to streamline operations, optimise delivery processes, and provide a seamless ordering experience for customers

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 platform. DoorDash connects customers with a wide range of restaurants and eateries, offering convenient delivery services for a variety of cuisines and dishes.

Just Eat Takeaway.com N.V., founded in 2000, headquartered in Amsterdam, Netherlands, specialises in providing online food delivery and takeaway services, connecting customers with a diverse selection of restaurants and culinary options. Just Eat Takeaway.com N.V. operates in multiple countries.

Zomato Limited was established in 2008 and is based in Gurugram, India. It is a well-known online platform offering food delivery, restaurant discovery, and dining-out services. Zomato has gained popularity for its comprehensive restaurant listings, user reviews, and efficient food delivery services. The company operates in multiple countries.

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.

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Online Food Delivery Market Analysis by Region

Asia Pacific leads the market due to its large base of young working populations seeking ready-to-eat meal options

Asia Pacific emerges as a dominant force in the global online food delivery market, boasting the largest market. The region's growth is fueled 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 also holds a healthy 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 market 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 market share, supported by the increasing number of students and working professionals opting for online food delivery services.

Key Highlights of the Report

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Online Food Delivery Market Report Snapshots

Online Food Delivery Market Size

Online Food Delivery Market Growth

Online Food Delivery Market Trends

Online Food Delivery Market Share

Online Food Delivery Companies

Online Food Delivery Market Regional Analysis

*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.