Global Online Food Delivery Services Market Overview
Online Food Delivery Services Market Size was estimated at 116.78 (USD Billion) in 2022. The Online Food Delivery Services Industry is expected to grow from 131.22(USD Billion) in 2023 to 374.7 (USD Billion) by 2032. The Online Food Delivery Services Market CAGR (growth rate) is expected to be around 12.37% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Online Food Delivery Services Market Trends Highlighted
The online food delivery services market is characterized by several significant trends. Convenience and ease of use have fueled the growth of food delivery platforms, allowing consumers to order meals from a wide range of restaurants without leaving their homes. Technological advancements, such as improved mobile applications and real-time tracking, have further enhanced the user experience.Key market drivers include the increasing popularity of smartphone penetration, the rise of the gig economy, and the growing demand for doorstep dining. Moreover, the COVID-19 pandemic accelerated the adoption of online food delivery services, as restaurants were forced to close or limit their operations.Opportunities for growth lie in the expansion into new markets, the integration of AI and ML technologies to improve delivery efficiency, and the adoption of sustainable practices to address environmental concerns. Additionally, the development of cloud kitchens and dark stores designed specifically for online delivery presents new avenues for revenue generation.
Online Food Delivery Services Market Drivers
Rising Popularity of Convenience and Time-Saving Solutions
Modern lifestyle is becoming busier with each year that passes, and it’s only natural that the growing demand for convenience and task simplification occurs. Online food delivery is a very convenient way of ordering food from virtually every eatery that offers the service and having it brought to one’s house. The solution is the ultimate one; it eliminates the need to cook food, go to the supermarket, or visit the restaurant. Our ready-made food delivery market analysis shows that continuously growing demand for such solutions is expected to drive the further development of the Online Food Delivery Services Market Industry.
Expanding Internet and Smartphone Penetration
One of the main drivers that significantly contributed to the rise of the Online Food Delivery Services Market Industry is the accelerated expansion of the internet and smartphone usage worldwide. To be more precise, in the recent decade, the rising availability of affordable smartphones and new internet connections supported the growing number of citizens that can leverage the advanced opportunities opening up via online food delivery. At the same time, developing countries should be called the primary stakeholders while the adoption of smartphones is speeding up, and internet access is becoming more widespread across the territories.
Growing Adoption of Food Delivery Services by Restaurants
Another factor that is driving market growth is the increasing acceptance of online food delivery services by restaurants. Restaurants are increasingly seeing the value of partnering with online food delivery platforms to enhance their service and increase their sales. They can reach a larger number of customers by selling their food through delivery services and providing their customers with an option of getting their food delivered. Additionally, the need for dine-in restaurants is reduced through these partnerships, which restaurants find to be beneficial.This is a trend that is likely to continue as more restaurants see the advantages of online food delivery services.
Online Food Delivery Services Market Segment Insights
Online Food Delivery Services Market Service Type Insights
The Online Food Delivery Services Market is sub-segmented by service type as Restaurant-to-Consumer R2C, Consumer-to-Consumer C2C, Groceries and Essentials Delivery, and Alcohol Delivery. The R2C segment is the leading segment on the basis of the market and occupies a prominent share in 2023, and the same trend is expected to continue in the forecast period. The factors that are driving the growth of the sub-segment are the growing popularity of ordering food online and, at the same time, the growing number of restaurants that are also teaming up with delivery platforms to provide customers with the utmost satisfaction.On the other hand, the C2C sub-segment is also expected to show good growth in the forecast period. The factors leading to the development of the sub-segment are the rising trend of home cooking by consumers as homes were locked down during the pandemic and the growing popularity of food-sharing apps. The Groceries and Essentials Delivery sub-segment is also expected to show good growth in the forecast period. The factor responsible for the growth is the ever-growing demand for grocery delivery services, which have become the need of the hour as they save a lot of time.The major reasons for the growth of the market are the high penetration of smartphones by people, the growth in the popularity of ordering and delivery of food online, and the improvement in disposable income.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Food Delivery Services Market Business Model Insights
The Online Food Delivery Services Market is segmented based on business model into aggregator model, owned delivery model, and hybrid model. The aggregator model, which connects restaurants with delivery partners, held the largest revenue share in 2023. The owned delivery model, where restaurants have their own delivery fleet, is expected to witness the fastest growth rate during the forecast period. The hybrid model, which combines both aggregator and owned delivery models, is also gaining popularity. In 2024, the aggregator model is projected to generate a revenue of USD 102.5 billion, while the owned delivery model is expected to generate USD 25.7 billion.The hybrid model is anticipated to reach USD 18.6 billion in revenue by 2024. The growth of the online food delivery services market is attributed to the increasing popularity of online food ordering, the growing number of smartphone users, and the rising disposable income of consumers.
Online Food Delivery Services Market Order Type Insights
The Online Food Delivery Services Market is segmented by Order Type into Single Restaurant Delivery, Multiple Restaurant Delivery, and Grocery Delivery. Among these segments, Single Restaurant Delivery is expected to hold the largest market share in 2023, owing to the convenience and ease of ordering from a single restaurant. Multiple Restaurant Delivery is projected to grow at the highest CAGR during the forecast period, driven by the increasing popularity of food delivery aggregators and the growing demand for variety. Grocery Delivery is expected to gain significant market share as more consumers opt for online grocery shopping for convenience and time-saving.The growth of the Online Food Delivery Services Market is attributed to the increasing penetration of smartphones, the rise of digital payments, and the growing popularity of food delivery apps. In 2023, the Online Food Delivery Services Market is valued at USD 131.22 Billion and is projected to reach USD 374.7 Billion by 2032, exhibiting a CAGR of 12.37%.
Online Food Delivery Services Market Delivery Type Insights
The delivery type segment of the Online Food Delivery Services Market is categorized into Standard Delivery, Express Delivery, and Scheduled Delivery. Standard Delivery accounted for the largest revenue share in 2023, owing to its cost-effectiveness and wider availability. Express Delivery is gaining popularity due to its convenience and speed and is expected to grow at a significant CAGR during the forecast period. Scheduled Delivery offers flexibility to customers, allowing them to choose a specific time slot for delivery, and is expected to witness steady growth in the coming years.
Online Food Delivery Services Market Regional Insights
The regional segmentation of the Online Food Delivery Services Market offers valuable insights into the industry's geographical presence and growth dynamics. In 2023, North America accounted for a significant share of the market revenue, driven by the presence of established players, high internet penetration, and a growing consumer base. Europe follows closely, with a sizable market size and a competitive landscape. The APAC region is projected to witness substantial growth in the coming years, owing to rising disposable incomes, increasing smartphone adoption, and favorable government initiatives.South America and MEA are emerging markets with growing potential, presenting opportunities for expansion and investment. These regional insights help stakeholders identify key markets, understand competitive dynamics, and develop targeted strategies for growth and success.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Food Delivery Services Market Key Players and Competitive Insights
Major players in the Online Food Delivery Services Market industry are constantly innovating and developing new strategies to gain a competitive edge. Leading Online Food Delivery Services Market players are investing heavily in technology and data analytics to improve their services and customer experience. The Online Food Delivery Services Market industry is expected to witness significant growth in the coming years, driven by increasing demand for convenience and time-saving services. The competitive landscape of the Online Food Delivery Services Market is expected to remain fragmented, with a number of major players and several niche players competing for market share.DoorDash is one of the leading players in the Online Food Delivery Services Market. The company offers a wide range of food delivery options, including restaurant delivery, grocery delivery, and alcohol delivery. DoorDash has a strong presence in the United States, Canada, and Australia. The company has partnered with a number of major restaurant chains, including McDonald's, Chipotle, and Wendy's. DoorDash also offers a subscription service, DashPass, which provides unlimited free delivery on orders over a certain amount.Grubhub is another major player in the Online Food Delivery Services Market. The company offers a wide range of food delivery options, including restaurant delivery, grocery delivery, and alcohol delivery. Grubhub has a strong presence in the United States and the United Kingdom. The company has partnered with a number of major restaurant chains, including Applebee's, Domino's, and IHOP. Grubhub also offers a subscription service, Grubhub+, which provides unlimited free delivery on orders over a certain amount.
Key Companies in the Online Food Delivery Services Market Include
- Meituan Dianping
- Uber Eats
- Foodpanda
- Grubhub
- Swiggy
- Delivery Hero
- Zomato
- me
- Grab
- DoorDash
- Just Eat Takeaway.com
- Gojek
- Baidu Waimai
- Didi Chuxing
Online Food Delivery Services Market Industry Developments
The Online Food Delivery Services Market is anticipated to reach a valuation of USD 374.7 billion by 2032, exhibiting a 12.37% CAGR from 2024 to 2032. Key drivers include rising urbanization, increasing consumer disposable income, and the growing popularity of online food-ordering platforms. Advancements in technology, such as AI and machine learning, are enhancing the customer experience and streamlining delivery processes. Strategic partnerships and acquisitions among market players are shaping the competitive landscape. Recent news developments include Deliveroo's partnership with Carrefour to expand its grocery delivery services, Uber Eats' acquisition of Postmates to strengthen its market position, and Zomato's plans to invest in quick commerce and dark stores.
Online Food Delivery Services Market Segmentation Insights
- Online Food Delivery Services Market Service Type Outlook
- Restaurant-to-Consumer (R2C)
- Consumer-to-Consumer (C2C)
- Groceries and Essentials Delivery
- Alcohol Delivery
- Online Food Delivery Services Market Business Model Outlook
- Aggregator Model (Commission-Based)
- Owned Delivery Model (In-House Fleet)
- Hybrid Model (Combination of Aggregator and Owned Delivery)
- Online Food Delivery Services Market Order Type Outlook
- Single Restaurant Delivery
- Multiple Restaurant Delivery
- Grocery Delivery
- Online Food Delivery Services Market Delivery Type Outlook
- Standard Delivery
- Express Delivery
- Scheduled Delivery
- Online Food Delivery Services Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
116.78(USD Billion) |
| Market Size 2023 |
131.22(USD Billion) |
| Market Size 2032 |
374.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.37% (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 Dianping, Uber Eats, Foodpanda, Grubhub, Swiggy, Delivery Hero, Zomato, Ele.me, Grab, DoorDash, Just Eat Takeaway.com, Gojek, Baidu Waimai, Didi Chuxing |
| Segments Covered |
Service Type, Business Model, Order Type, Delivery Type, Regional |
| Key Market Opportunities |
Growing demand for convenience Expanding internet penetration Innovation in delivery technologies Increasing consumer spending on online food delivery Emergence of cloud kitchens |
| Key Market Dynamics |
Increased smartphone penetration Rising disposable income Growing urbanization Expansion of ecommerce Advancements in food packaging technology |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Online Food Delivery Services Market is expected to reach a valuation of USD 131.22 billion in 2023 and is projected to grow at a CAGR of 12.37% from 2024 to 2032, reaching USD 374.7 billion by 2032.
North America is expected to dominate the Online Food Delivery Services Market in 2023, accounting for a significant share of the overall market revenue. The region's dominance can be attributed to the presence of well-established players, high internet and smartphone penetration, and a growing consumer base.
Key growth drivers of the Online Food Delivery Services Market include increasing smartphone penetration, rising disposable income, growing popularity of convenience foods, and the expansion of food delivery services into new markets.
Major applications of Online Food Delivery Services include home delivery, office delivery, and takeaway services. Home delivery is the most popular application, accounting for a majority of the market share.
Key competitors in the Online Food Delivery Services Market include Uber Eats, Grubhub, DoorDash, Swiggy, Zomato, and Deliveroo. These companies hold a significant market share and are constantly innovating to gain a competitive edge.
Challenges faced by the Online Food Delivery Services Market include high delivery costs, competition from traditional food delivery methods, and regulatory hurdles in some regions.
Opportunities for growth in the Online Food Delivery Services Market include expanding into new markets, offering new services such as meal kits and grocery delivery, and partnering with restaurants to offer exclusive deals and promotions.
Key trends in the Online Food Delivery Services Market include the rise of ghost kitchens, the integration of artificial intelligence, and the growing popularity of subscription-based services.
The future prospects of the Online Food Delivery Services Market are positive, with continued growth expected in the coming years. Factors such as increasing urbanization, rising disposable income, and changing consumer lifestyles are expected to drive market growth.
The COVID-19 pandemic had a significant impact on the Online Food Delivery Services Market, leading to a surge in demand for online food delivery services. This trend is expected to continue in the post-pandemic period as consumers become more accustomed to the convenience of online food delivery.
