Global Online Food Delivery Market - 2022-2029

Global Online Food Delivery Market - 2022-2029

Market Overview

Online food delivery is a process of ordering and delivering food items to the customers at their doorsteps who have ordered their food through various food delivery websites and applications by using their computers or smart phones. Food delivery applications allow the consumer to register and uphold an account in order to make frequent ordering more convenient. Online food delivery is gaining popularity among both consumers and food service providers as it is benefiting both. Consumers are adopting online food delivery because of its ease, speed, and precision, while food service providers see the potential for increased revenue, reduced labor expenses and reduced errors.

The global online food delivery market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 10.54% during the forecast period (2022-2029).

Market Dynamics: Change in consumer buying preferences is driving the growth of global online food delivery market

The changing consumer preferences are contributing to the growth of online ordering and food delivery. The rise of a digital age, people are now customers to doing everything online, including ordering their food. The use of mobile apps to make online orders for food is slowly becoming a norm among restaurant customers.

Customers are intrigued by the idea of online food ordering via their phones and having it delivered to their doorsteps as one no longer needs to go get food from a restaurant, especially when it is raining, cold, or hot outside. The online food delivery market is comprised of a diner demographic that is pressed for time due to their fast-paced schedules. The major segments include the millennials and high-income households. In fact, more than 70% of online orders and at-home delivery services comprise of customers between the ages of 21 and 36 years of age.

Thus, owing to changing customer preferences has forced restaurant to respond and take the necessary actions to meet the changing demand. About 37% of restaurants in the world are more offering online ordering services, while 32% are now accepting mobile payments. The growth of delivery platforms has the option to deliver food easier and more convenient for both customers and restaurants. This indeed is driving the growth of the market.

However, the increasing cyber crimes related to payment method may restraint the growth of the market.

Market Segmentation: Restaurant-to-consumer restaurants stand for the highest share in global online food delivery market

In 2021, the restaurant-to-consumer dominated the market and accounted for YY share of the global revenue. In this type, restaurants deal with the shipment aspect while the providers of online food delivery services manage the ordering process. The players operating with this model offer loyalty and subscription programs to consumers in order to penetrate the market. The integration of several restaurant chains with aggregators such as DoorDash is further driving the segment growth.

In 2021, the website/desktop segment the market and accounted for YY share of the global revenue due to the increasing number of restaurants, who are endeavoring to increase foot traffic by expanding their online presence through websites. In addition, the growth of e-commerce is further fueling the adoption of the website/desktop channel for ordering food online. Additionally, the integration of AI/VR in desktop/laptops is expected to also propel the segment growth.

Geographical Penetration: North America is the dominating region during the forecast period

In 2021, North America had the highest revenue share of YY percent. The region has well-developed food & beverage industry. In addition, different types of fast food have been popular in the U.S., Canada, and Mexico. Furthermore, significant consumer preference for fast food and due to changing lifestyles. Furthermore, the presence of several online food service providers such as Just Eat Holding Limited and Postmates Inc. is further boosting the regional market growth. The market players operating in the region are offering live customer service, delivery execution, and other related services, which is further fueling the regional market growth.

Asia Pacific is the fastest growing regional market with a revenue share of YY percent. The growing use of internet-enabled smart phones by millennials and rapid adoption of advanced technologies such as voice-assistant apps are contributing significantly to the regional market growth. In addition, the growth of the e-commerce sector in developing countries such as India and Japan is further contributing to the adoption of food delivery applications in the region.

Competitive Landscape

The global online food delivery market is competitive and comprises players such as Just Eat, GrubHub, Delivery Hero, Deliveroo, Takeaway.com, Foodpanda, Ele.me, Meituan Waimai, Swiggy and DoorDash among others. The online food delivery market competitiveness is estimated to increase over the forecast period as the key players focus on various strategies such as acquisitions, new product launches, product innovations with healthy alternatives, regional expansion, various discount offers, advertising and marketing through celebrities and others. Moreover, growing busy lifestyle, urbanization and rising disposable income will propel the market growth in coming years.

For instance,
• In 2021, Uber Technologies Inc. completed its acquisition of Drizly, and the two companies will begin integrating their complementary delivery apps and services. The purchase consideration was approximately USD 1.1 billion, consisting of approximately 18.7 million newly issued shares of Uber common stock plus cash.

COVID-19 Impact Positive impact on global online food delivery market:

Consumers have been held at home due to government-imposed lockdowns, preventing regular shopping habits. Many restaurants have closed or resorted to takeout in order to stay afloat. For many customers, home delivery has provided a solution to some of COVID-19's challenges. When the pandemic of coronavirus hit the world, the food industry and related services were heavily impacted. This outbreak led the Indian government to make the food delivery and restaurants business to be categorized as critical services. Since more than 20% of the population in India relies on online food and restaurants services on a daily basis. Customers are rapidly heading online, which has fueled rapid growth in the e-commerce industry over the last decade. This shift in consumer shopping habits has been fueled by a various causes, such as availability of an increased number of online food delivery businesses, a better understanding by consumers of the developments of online e-commerce, a better easy and secure option for online payments of services, disposable income on the rise, work from home decreasing time for people to invest in making the food themselves.

Furthermore, increased internet penetration rate, quick access to smartphones, simplified e-banking systems, improved food-service logistics, and changing lifestyles are some of the prime factors driving the online food delivery market growth. For instance, the Indian food delivery platform, Zomato, has 80 million monthly active users and has set targets of reaching 20 million over the next few years. Hence, an increase in smartphone users and internet penetration is driving growth in online food delivery services.

The global online food delivery market report would provide an access to approximately 61 market data tables, 49 figures and 170 pages.