Global Digital Food Delivery Market Overview
The Digital Food Delivery Market Size was estimated at 197.93 (USD Billion) in 2022. The Digital Food Delivery Industry is expected to grow from 244.87 (USD Billion) in 2023 to 1,662.4 (USD Billion) by 2032. The Digital Food Delivery Market CAGR (growth rate) is expected to be around 23.72% during the forecast period (2024 - 2032)
Key Digital Food Delivery Market Trends Highlighted
The rise in the use of smartphones and its deep penetration has also boosted the growth of digital food ordering and delivery services. People still find these platforms attractive due to the contentment aspect and the multitude of choices available. Furthermore, the introduction of food delivery aggregators has increased the rivalry and innovativeness in the sector. Opportunities for ExplorationAsian countries, in particular, offer the most potential for the companies engaged in the business of food delivery via the Internet. These areas have a great and increasing population of consumers who are always in need of quick meals. In addition, the growth of online payment processing and the emergence of mobile-first applications will also contribute to the development of the market. Recent TrendsHealth-oriented order taking: Health issues have become so important to the point that the consumers are now evoking healthy food which explains the increase of delivery platforms that partner with healthier restaurants. Targeted recommendations: Platforms are utilizing artificial intelligence and machine learning to further develop their recommendation systems and deliver personalized suggestions to users based on their purchase history. Cloud kitchens: The demand for food delivery has catalyzed the upsurge of cloud kitchens, which are kitchens that prepare food exclusively for delivery, making it more efficient and cost-efficient. Subscription models: Delivery companies are adopting subscription models that allow consumers to purchase several meals for a set price while enjoying significant discounts and this helps encourage repeat business.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Digital Food Delivery Market Drivers
Rising Demand for Convenience and Accessibility
One of the primary drivers of the Digital Food Delivery Market industry is the increasing demand for convenience and accessibility. Today, consumers are leading hectic schedules and hardly have time or energy to cook at home. Digital food delivery platforms provide a convenient way to order food from consumer’s favorite restaurants and have it delivered to their doorstep with zero hassles. With the increasing popularity of smartphones and mobile applications, the industry has experienced unmatchable growth.A huge number of restaurant options through the apps and the real-time tracking of delivery add value to the customers. These benefits have set the tone for the increasing demand for digital food delivery services with an increasing preference for comfort and accessibility.
Expansion of Food Delivery Options and Partnerships
Another important driver of the Digital Food Delivery Market Industry is the expansion of food delivery options and partnerships. Indeed, digital food delivery markets are in a stage of rapid growth and development. As evidenced by the recent trends, it can be observed that digital food delivery platforms expand their range of supported restaurants and delivery options. First, there is the expansion to different kinds of food, as a way to target consumers on the basis of their tastes.There will also be more partnerships with delivery service providers to ensure that the food reaches the consumer as soon as possible. Finally, many digital food delivery platforms now partner not only with local restaurants and chains but also with groceries. Overall, this trend is likely to continue driving the growth of the digital food delivery market.
Technological Advancements and Innovation
Notably, technological advances and innovation have emerged as key factors in the growth and development of the Digital Food Delivery Market. Presently, digital food delivery companies continue to invest in new technologies as an initiative to enhance the user experience and improve overall efficiency. For example, companies such as Swiggy have initiated the process of developing artificial intelligence for order prediction as well as route optimization.The companies are also exploring the possibility of developing new and advanced food packaging materials that will ensure the food is fresh and of the best quality. Technologies such as the blockchain integrate have also featured prominently in the search for transparency and secure transactions. Overall, the future of technological advances and innovation will redefine the digital food delivery market.
Digital Food Delivery Market Segment Insights
Digital Food Delivery Market Delivery Platform Insights
The delivery platform is a crucial segment in the digital food delivery market, encompassing online and mobile application channels that connect customers with food delivery services. Online platforms, accessible through websites, offer a user-friendly interface for customers to browse menus, place orders, and track their deliveries. They often collaborate with a wide range of restaurants, providing customers with diverse dining options. Mobile applications, on the other hand, leverage the convenience of smartphones to streamline the ordering process.With features such as location-based services, personalized recommendations, and real-time order tracking, mobile apps enhance the user experience and drive market growth. In 2023, the online delivery platform segment held a significant market share due to its established presence and ease of access. Mobile applications are rapidly gaining popularity owing to their convenience and accessibility. The segment is expected to witness substantial growth in the coming years, driven by the increasing penetration of smartphones and the adoption of mobile-first strategies by food delivery companies.Key market players in the delivery platform segment are continually innovating to enhance their offerings. They invest in technological advancements, such as artificial intelligence (AI) and machine learning (ML), to optimize delivery routes, improve order accuracy, and personalize customer experiences. Partnerships and collaborations with restaurants and food chains are also prevalent, expanding the reach and visibility of delivery platforms. The delivery platform segment is poised for continued growth, driven by factors such as rising disposable income, changing consumer lifestyles, and the proliferation of online and mobile ordering.As the digital food delivery market evolves, delivery platforms will continue to play a pivotal role in connecting customers with their favorite restaurants and facilitating convenient and efficient food delivery experiences.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Digital Food Delivery Market Service Type Insights
The Digital Food Delivery Market segmentation by Service Type includes Food Delivery, Grocery Delivery, Specialized Delivery (e.g., Alcohol, Pharmacy), and Meal Kits Delivery. Food Delivery is leading the market and is projected to have a substantial market share in the coming years. In 2023, the Food Delivery segment held a market share of 65.4%. The market growth is attributed to the increasing popularity of online food ordering and delivery services, growing smartphone penetration, and the convenience offered by these services. Meal Kits Delivery is expected to witness significant growth in the coming years due to the rising demand for convenience and healthy meal options.Grocery Delivery is also expected to grow steadily as consumers opt for online grocery shopping for its convenience and time-saving benefits. Specialized Delivery is expected to have a niche market share, catering to specific consumer needs such as alcohol and pharmacy delivery.
Digital Food Delivery Market Revenue Model Insights
The Digital Food Delivery Market segmentation by Revenue Model comprises Commission-Based, Subscription-Based, Delivery Fee, and Advertising Revenue. The Commission-Based model is prevalent, accounting for a significant share of the market revenue. Under this model, delivery platforms charge a commission on each order processed, typically ranging from 15% to 30%. Subscription-Based models, on the other hand, offer unlimited deliveries for a fixed monthly or annual fee. Delivery Fee models involve a flat fee charged per delivery, regardless of the order value.Advertising Revenue is another revenue stream where platforms display targeted ads to users within their apps or websites. As the Digital Food Delivery Market expands, these revenue models are expected to witness significant growth, driven by increasing consumer adoption and the proliferation of online food ordering services.
Digital Food Delivery Market Target Audience Insights
The target audience for the Digital Food Delivery Market consists of various segments, each with unique characteristics and needs. Individuals/Consumers: This segment represents the largest portion of the market, accounting for a significant share of the Digital Food Delivery Market revenue. Individuals primarily use digital food delivery services for convenience, time-saving, and access to a wide variety of cuisines. Market data indicates that individuals are increasingly relying on digital food delivery platforms, contributing to the industry's growth.Businesses (e.g., Restaurants, Hotels): Many businesses, including restaurants and hotels, partner with digital food delivery platforms to expand their reach and offer delivery options to their customers. This segment is expected to grow steadily as businesses recognize the benefits of partnering with digital food delivery providers. Schools/Universities: Educational institutions are emerging as a promising segment in the Digital Food Delivery Market. Schools and universities often partner with digital food delivery companies to provide convenient meal options for students and staff.This segment is expected to witness significant growth in the coming years due to the increasing demand for food delivery services on campuses. Event Planners: Digital food delivery services are gaining popularity among event planners who need to cater to large gatherings. Event planners leverage digital food delivery platforms to provide a convenient and efficient way to serve food to attendees. This segment is expected to contribute to the overall market growth as the demand for digital food delivery services at events continues to rise.
Digital Food Delivery Market Regional Insights
The Digital Food Delivery Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the high adoption of digital food delivery services in the region. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness the highest growth rate during the forecast period due to the increasing popularity of digital food delivery services in developing countries such as China and India.South America and MEA are expected to have a relatively smaller market share, but they are expected to grow at a steady pace during the forecast period. The growth of the Digital Food Delivery Market is being driven by factors such as the increasing number of smartphone users, the growing popularity of online food ordering, and the rising disposable income of consumers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Digital Food Delivery Market Key Players And Competitive Insights:
Digital Food Delivery Market industry major players are adopting various growth strategies such as expansion, innovation, and acquisition of smaller players in order to gain a competitive edge. Key Digital Food Delivery Market players are expanding their geographical presence, launching new services and features, and acquiring smaller players to gain a leading position in the market. The Digital Food Delivery Market is highly competitive, with players competing for market share through strategic alliances, acquisitions, and exclusive tie-ups with restaurants. The adoption of new technologies and the increasing popularity of online food ordering are driving the growth of the Digital Food Delivery Market, creating new opportunities for new entrants and challenging existing players to adapt and evolve.One of the major players in the Digital Food Delivery Market is Uber Eats, a subsidiary of Uber Technologies Inc. Uber Eats is present in more than 45 countries and has around 800,000 restaurants in its partner ecosystem across the globe. The company offers a wide range of food delivery services, including scheduled deliveries, group orders, and meal kits. In addition, the company has a focus on technology and innovation and offers features such as real-time order tracking, personalized recommendations, and loyalty programs.A competitor of Uber Eats in the Digital Food Delivery Market is DoorDash, Inc. DoorDash is headquartered in San Francisco, California and has a presence in more than 27 countries and around 450,000 restaurants in its partner ecosystem. Similar to Uber Eats, DoorDash also offers a diverse range of delivery options, including scheduled deliveries, express delivery, and catering services. Moreover, DoorDash also has a focus on customer satisfaction, and services such as real-time order status updates, customer support, and loyalty programs are available.
Key Companies in the Digital Food Delivery Market Include:
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Meituan
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Glovo
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Just Eat Takeaway.com
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Postmates
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Yandex.Eats
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Deliveroo
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Rappi
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Swiggy
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Zomato
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Grubhub
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Ele.me
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Wolt
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Delivery Hero
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Uber Eats
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DoorDash
Digital Food Delivery Market Industry Developments
The digital food delivery market is projected to grow from USD 244.87 billion in 2023 to USD 1662.4 billion by 2032, at a CAGR of 23.72%. The market growth is attributed to the increasing popularity of online food ordering, the growing number of smartphone users, and the rising disposable income of consumers.Recent developments in the market include the launch of new food delivery platforms, the expansion of existing platforms into new markets, and the integration of artificial intelligence (AI) and machine learning (ML) technologies to improve the customer experience. For instance, Uber Eats recently launched a new subscription service that offers unlimited delivery for a monthly fee. Grubhub, another major player in the market, has expanded its services to several new countries in Latin America and Europe.Key players in the market include Uber Eats, Grubhub, DoorDash, Postmates, and Deliveroo. These companies are investing heavily in research and development to improve their services and expand their market share.
Digital Food Delivery Market Segmentation Insights
Digital Food Delivery Market Delivery Platform Outlook
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Online
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Mobile Application
Digital Food Delivery Market Service Type Outlook
Digital Food Delivery Market Revenue Model Outlook
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Commission-Based
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Subscription-Based
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Delivery Fee
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Advertising Revenue
Digital Food Delivery Market Target Audience Outlook
Digital Food Delivery Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
197.93 (USD Billion) |
| Market Size 2023 |
244.87 (USD Billion) |
| Market Size 2032 |
1662.4 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
23.72% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Meituan, Glovo, Just Eat Takeaway.com, Postmates, Yandex.Eats, Deliveroo, Rappi, Swiggy, Zomato, Grubhub, Ele.me, Wolt, Delivery Hero, Uber Eats, DoorDash. |
| Segments Covered |
Delivery Platform, Service Type, Revenue Model, Target Audience, Regional |
| Key Market Opportunities |
Increased online ordering Expansion into new markets Growing popularity of meal kits Integration with smart home devices Subscription-based models |
| Key Market Dynamics |
Growing consumer preference for convenience Proliferation of smartphones and internet penetration Expanding restaurant partnerships and menu offerings Advancements in food delivery technology Rising disposable income and urbanization trends |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Digital Food Delivery Market is projected to reach a valuation of 244.87 billion USD by the end of 2023.
The CAGR of the Digital Food Delivery Market from 2024 to 2032 is estimated to be around 23.72%.
North America is expected to hold the largest market share in the Digital Food Delivery Market in 2023
Increasing urbanization, rising disposable income, and the growing popularity of online food ordering are some of the key factors driving the growth of the Digital Food Delivery Market
Some of the major players in the Digital Food Delivery Market include Uber Eats, DoorDash, Grubhub, and Deliveroo
Some of the key trends shaping the Digital Food Delivery Market include the rise of cloud kitchens, the increasing adoption of AI and machine learning, and the growing popularity of subscription-based meal delivery services.
Some of the challenges faced by the Digital Food Delivery Market include high competition, regulatory hurdles, and the need to maintain food quality and safety
The Digital Food Delivery Market is expected to reach a valuation of 1662.4 billion USD by the end of 2032.
Expansion into new markets, partnerships with restaurants and retailers, and the development of new technologies are some of the key opportunities for growth in the Digital Food Delivery Market.
Technology is playing a major role in shaping the Digital Food Delivery Market, with the rise of online ordering platforms, food delivery apps, and automated food preparation systems
