Online Food Delivery Market - Trend, Growth, Forecast 2024–2032

Online Food Delivery Market Synopsis:

Online Food Delivery Market Size Was Valued at USD 210.45 Billion in 2023, and is Projected to Reach USD 521.13 Billion by 2032, Growing at a CAGR of 10.6% From 2024-2032.

The Online Food Delivery Market can hence be described as the digital platform services through which consumers access meals from restaurant or other food service firms through an order that is to be delivered at a consumer’s preferred location. Most of these outlets are usually found in the internet as mobile applications or online based whereby customers can order for their meals over the internet through the displayed menus, make bookings and make payments online. The market has gone global as more consumers seek convenience at their fingertips, the trend in the busy lives of many individuals who order uber eats, and the e-tech ordering systems present. The presence of many food options, the number of meals, and flexible delivery options make online food delivery convenient across our lives, especially for city residents. These markets also incorporate subscription meals, grocery delivery services that are separate from restaurants, and third parties. Consequently, the concept of online food delivery has led to a breed of several startups, other players and food delivery aggregators who are always in a quest to come up with strategies that would meet the ever-demanding consumer.

The global Online Food Delivery Market has been a growing market over the recent past and has been fueled by increased smart phone usage, internet usage and especially the need for convenience. Today, the population depends on technologies, and internet food delivery platforms have become an essential part of several countries. With food ordering shifting to the digital platform, firms have come up with new offers to maintain the coverage of the food types, and increased availability of delivery services. This has projected to this sector with investors, both VCs and large food chains that see an opportunity to ride on the growing food delivery business.

Market being regional the business thrives in the areas of North America and Europe primarily because people here have high disposable income, are mostly busy with their work and hence prefer consuming ready food online which are delivered to them through online food delivery services. Nevertheless, Asia-Pacific and Latin America are also considered to be rich in growth pot of Internet users and more localized food delivery start-ups are on the rise. In these areas, these platforms are trying to adapt their business models to fit the specific population’s preferences, tendencies when it comes to ordering food, and thus, the market is growing.

Online Food Delivery Market Trend Analysis:

Rise of Contactless Delivery

• The most discussed trend in OFD market is the increasing popularity of no-contact delivery. Fear of germs and contagion during the COVID-19 pandemic contributed fuel the delivery market, with extensive use of contact-less delivery systems. Gone are the days where customers wanted their food to be handed over to them by delivery personnel, such changes include; delivery box installations, touch-less payment methods and enhanced hygiene measures among food delivery firms. In addition, the increased focus on hygiene will also continue to support increased adoption of contactless services, such as delivery services in the future. Such a trend is not only satisfying the consumer’s need to reduce risks but is also transforming core processes of the food delivery services like delivery and customer services. To enhance the no-contact delivery, many food delivery companies have deployed GPS facilities and real-time status reports.

Expansion in Emerging Markets

• The Online Food Delivery Market is basically emerging and the market has vast opportunity to expand in emerging economies. Since people in regions, such as Latin America, Southeast Asia, and Africa, increasingly gain access to the internet and own smartphones, the opportunities for food delivery services to attract more clients are enormous. It is revolutionizing food service industry in these areas particularly in regions where conventional food delivery systems were either unavailable or quite unadmirable. In addition, based on the global inclination toward localized platforms with offerings that can meet regional tastes and appetites, companies now have the potential the enlarge their shares. Further advancement of digital technologies in these fields coupled with fast-growing middle-age population is also likely to create a market for online food delivery services. Thus, as the mentioned markets expand, the food delivery companies would also be able to forge links with new local restaurants and provide such additional services as the monthly subscriptions with home-delivered meals or the delivery of meals in specific conditions to diversify the demand.

Online Food Delivery Market Segment Analysis:

Online Food Delivery Market Segmented on the basis of Platform Type, Payment Method, and Region.

By Platform Type, Mobile Applications segment is expected to dominate the market during the forecast period

• The above factors have contributed to the Mobile Applications segment emerging as the largest segment of the Online Food Delivery Market during the forecast period. The use of the application has benefits for the customers, for example, using their mobile applications, customers can search for food, order food, track delivery, and pay for food. This aspect of ease use has led to the high uptake of the technology because consumers who are mainly urban consumers rely on their mobile devices throughout the day. Mobile applications also come with other bonus features including customers’ preferences, loyalty, and promotions that drive customers’ patronage. Furthermore, consumers and delivery drivers can be connected through their mobile apps, as well as track delivery occurrences in real-time.
• The rationale behind the Mobile Applications segment’s growth is the expansion of smart phones across the world. The skyrocketing popularity of cheaper smartphones is helping consumers from the developed and developing countries to accept the idea of mobile food delivery services. Moreover, mobile application allows multiple concentrations of payments in form of wallet, credit/debit cards and Cash on Delivery methods making it more attractive. Advantages such as convenience, simplicity in ordering together with time-limited offers have made mobile applications a popular choice for the consumers. Given that the use of mobile technology is still young, the sector is foreseeably going to develop, for instance, via artificial intelligence and augmented reality to better serve the consumer.

By Payment Method, Online Payment segment expected to held the largest share

• Market segmentation analysis states that the Online Payment segment will dictate the Online Food Delivery Market’s share during the forecast period. The integration of technology or going digital is among the biggest changes that have happened to the food delivery sector. Since customers consider online payments to be more convenient than handling cash, multiple payment methods, including digital wallets, bank transfers, credit/debit cards, and mobile payment systems have become popular in platforms. The ability to make payment online enables easy transactions that are secure and fundamental to creating consumer trust and satisfaction.

Online Food Delivery Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• The Online Food Delivery Market is expected to be led by North America in 2023. We see the region’s food delivery ecosystem is very developed, driven by high disposable income, growing demand convenience, and a high internet and smartphone penetration. As stated by market reports, North America took a considerable share of the market around the globe and the USA within this region played a leading role. North America had estimated market share in the year of 2023 around 40-45% because of the leading position of the key players Uber Eats, DoorDash, an Grubhub.
• These are some of the most popular platforms, which are expanded throughout the area, cover a vast number of restaurants and allow choosing between a vast number of cuisines, as well as providing a rather fast delivery service. The existence of strong payment infrastructure facilities and low customer churn are also strengthening factors of this region. Also, the need for fast-food chains and growing trends of valued food delivery subscriptions add to the development that would continue to strengthen North America’s dominance.

Active Key Players in the Online Food Delivery Market:

• Alibaba Group (China)
• Deliveroo (United Kingdom)
• DoorDash (United States)
• Foodpanda (Germany)
• Grubhub (United States)
• Just Eat Takeaway (Netherlands)
• Lyft (United States)
• Meituan Dianping (China)
• Postmates (United States)
• Rappi (Colombia)
• Swiggy (India)
• Talabat (Kuwait)
• Uber Eats (United States)
• Zomato (India)
• Delivery Hero (Germany), and Other Active Players.

Key Industry Development in the Online Food Delivery Market:

• In December 2024, Swiggy Ltd, India’s leading on-demand convenience platform, recently announced the expansion of its revolutionary 10-minute food delivery service, Bolt, to over 400 cities and towns across the country. Bolt redefined quick service by delivering fresh and hot food, requiring minimal or no preparation time, from popular restaurants and QSRs. With a focus on speed, the service ensured uncompromised taste, freshness, and quality. Collaborating with over 40,000 restaurants, Bolt offered a diverse menu of over 10 lakh items, setting new benchmarks in convenience and innovation in food delivery.