Global Food Delivery Service Market Overview
Food Delivery Service Market Size was estimated at 207.91 (USD Billion) in 2022. The Food Delivery Service Industry is expected to grow from 255.91(USD Billion) in 2023 to 1,659.28 (USD Billion) by 2032. The Food Delivery Service Market CAGR (growth rate) is expected to be around 23.09% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Food Delivery Service Market Trends Highlighted
The Food Delivery Service Market is witnessing significant growth, driven by the rising popularity of online food ordering and the convenience it offers to consumers. The increasing use of smartphones and the availability of various food delivery apps have further accelerated market expansion. The market is characterized by intense competition among established players and emerging startups, all vying to capture a share of the lucrative market.
Key market drivers include the growing demand for convenience, the availability of a wide range of cuisines, and the increasing disposable income of consumers. The market is expected to continue its upward trajectory, driven by the rapid adoption of digital technologies and the growing preference for home-cooked meals.
Recent trends in the food delivery service market include the rise of subscription-based models, the integration of artificial intelligence and machine learning for personalized recommendations, and the growing popularity of contactless delivery options. The market is also witnessing the emergence of new players focusing on niche segments such as healthy food delivery and organic food delivery.
Food Delivery Service Market Drivers
Rising Penetration of Online Food Ordering Platforms
Several critical factors are encouraging the development of the Food Delivery Service Market Industry. Firstly, the rapid adoption of smartphones and the increased involvement of online food delivery platforms are fueling the following trend. Owing to the convenience and simplicity of having food delivered from any chosen restaurant, more and more clients are inclined to use the services of such organizations. Secondly, the availability and growing popularity of various payment options, including digital wallets and online banking, are also supporting the evolution of food ordering services.These are some of the factors that are likely to contribute to the development of the Food Delivery Service Market Industry. The trend of ordering food using different servers is likely to be popular within the next several years, as there are a growing number of individuals who choose to use smartphones or PCs in their daily lives.
Growing Demand for Convenience and Time-Saving Solutions
As urban consumers get busier in their daily activities, the need for convenience and time-saving solutions keeps growing more and more. There are food delivery services that permit people to enjoy a variety of dishes without cooking or eating in restaurants. This is the case especially for working people, time-pressed parents, and people who want to fritter their leisure on other pursuits than cooking. The busy schedules and the need for time-efficient services is expected to push the Food Delivery Service Market Industry forwards in the coming years.
Expansion of Food Delivery Services into New Markets
Another crucial factor fostering the development of the Food Delivery Service Market Industry is the introduction of such services and solutions in new countries. Developed markets are increasingly gaining access and acceptance of these services and solutions in greater expansion to emerging markets. Demand for food delivery services in these new countries ensures that the Food Delivery Service Market Industry has a vast market due to the increased offering of these services in the future.
Food Delivery Service Market Segment Insights
Food Delivery Service Market Food Type Insights
Based on Food Type, the Food Delivery Service Market is segmented into Restaurant Food, Groceries, Prepared Meals, and Beverages. The Restaurant Food segment holds the largest market share due to the increasing demand for convenience and the availability of a wide range of cuisines. The Food Delivery Service Market for Restaurant Food is expected to grow to USD 1,254.60 billion by 2028, at a CAGR of 22.6%. The Groceries segment is also witnessing significant growth owing to the surge in online grocery shopping and the increasing popularity of meal-kit delivery services.The Food Delivery Service Market for Groceries is projected to reach USD 456.35 billion by 2028, at a CAGR of 19.5%. The Prepared Meals segment is also registering considerable growth as consumers continue to look for convenient and healthy meals. The Food Delivery Service Market for Prepared Meals is estimated to reach USD 234.76 billion by 2028, growing at a CAGR of 17.3%. Finally, the Beverages segment is expected to grow consistently, driven by factors such as the rising inclination towards online beverage ordering and the demand for premium beverages.The Food Delivery Service Market for Beverages is expected to reach USD 167.57 billion by 2028, growing at a CAGR of 15.9%.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Food Delivery Service Market Delivery Model Insights
The Food Delivery Service Market is segmented by delivery model into on-demand delivery, scheduled delivery, and subscription-based delivery. Among these, on-demand delivery accounted for the largest revenue share of around 59% in 2023 and is projected to continue its dominance throughout the forecast period. The popularity of on-demand delivery can be attributed to its convenience and flexibility, allowing customers to order food at their convenience and have it delivered within a short time frame. Scheduled delivery is expected to witness significant growth due to its ability to meet the needs of customers who prefer to plan their meals in advance.Subscription-based delivery is gaining traction as a cost-effective option for regular food delivery, particularly for individuals with specific dietary requirements or preferences.
Food Delivery Service Market Service Fee Insights
The Food Delivery Service Market segmentation by Service Fee encompasses fee structures employed by food delivery platforms. Flat Fee refers to a fixed charge levied on each order, regardless of distance or order value. Percentage-Based Fee is calculated as a percentage of the total order value, incentivizing platforms to promote higher-priced items. Tiered Fee Structure combines both approaches, charging a base fee plus a percentage-based fee for orders exceeding a certain threshold. In 2023, the Food Delivery Service Market revenue from Service Fee stood at USD 65.78 billion, projected to reach USD 213.97 billion by 2032, exhibiting a CAGR of 14.5%.Flat Fee is anticipated to remain the dominant structure, accounting for over 55% of the market by 2032. Percentage-Based Fee, driven by the rise of premium food delivery services, is expected to witness significant growth, while Tiered Fee Structure is gaining traction due to its flexibility and ability to cater to different order sizes and values.
Food Delivery Service Market Payment Options Insights
The Food Delivery Service Market is segmented based on Payment Options into Cash-on-Delivery, Online Payment, and Third-Party Payment Gateways. Among these, the Online Payment segment held the largest market share in 2023, accounting for nearly half of the Food Delivery Service Market revenue. This can be attributed to the growing popularity of digital payments and the increasing preference for cashless transactions. The Third-Party Payment Gateways segment is expected to register the highest CAGR during the forecast period, owing to the rising adoption of third-party payment platforms such as PayPal, Amazon Pay, and Google Pay. Cash-on-Delivery remains a popular payment method in certain regions, especially in emerging markets where digital payment infrastructure is still developing. However, its market share is declining due to the growing acceptance of digital payments.
Food Delivery Service Market Transportation Mode Insights
The Food Delivery Service Market is segmented by Transportation Mode into Motorcycles, Cars, Scooters, and Bicycles. Among these segments, Motorcycles account for the largest share of the market, owing to their agility and cost-effectiveness in congested urban areas. In 2023, the Motorcycles segment generated a revenue of USD 102.45 billion, and it is projected to reach USD 245.32 billion by 2032, exhibiting a CAGR of 10.2%. The Cars segment is expected to witness a significant growth rate during the forecast period due to the increasing adoption of premium food delivery services.Scooters and Bicycles are also gaining popularity as eco-friendly transportation modes for food delivery, especially in densely populated cities.
Food Delivery Service Market Regional Insights
The regional landscape of the Food Delivery Service Market presents a diverse landscape with varying market dynamics across different regions. North America dominates the market with a significant share driven by factors such as high internet penetration, widespread smartphone adoption, and a large consumer base. Europe follows closely, exhibiting steady growth fueled by increasing disposable income and a growing preference for convenience. The APAC region is projected to witness the fastest growth over the forecast period, attributed to the rising middle class, expanding urbanization, and the proliferation of online food delivery platforms.South America and MEA also offer growth opportunities due to their expanding economies and evolving consumer preferences. These regions collectively contribute to the overall growth of the Food Delivery Service Market, highlighting the diverse opportunities and challenges across different geographic segments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Food Delivery Service Market Key Players and Competitive Insights
Key players in the Food Delivery Service Market industry are continuously trying to gain an advantage over their competitors and for that, they are adopting various strategies. Major companies in the Food Delivery Service Market are also focusing on mergers and acquisitions, product launches and partnerships to strengthen their market position and enhance geographic reach. Moreover, the Food Delivery Service Market is driven by factors such as rising popularity of online food ordering, increasing number of smartphone users and mounting trend of on-demand delivery services. The Food Delivery Service Market Competitive Landscape is dominated by several major players and also consists of newly emerging start-ups.DoorDash is one of the leading companies present in the Food Delivery Service Market Industry. The company provides a wide array of food delivery options which include restaurant delivery, grocery delivery and alcohol delivery. Moreover, the company has a large number of partner restaurants and delivery drivers in its network. DoorDash’s wide restaurant network enables it to deliver the food to its customers and that too in quick time. Another focus area for the company is technology as it is developing software to optimize delivery algorithms and build dasher focused hardware. Moreover, the company is also putting efforts to improve its customer experience as it has tested to-go stores and ghost kitchens.Another company that is a major player in the Food Delivery Service Market is Uber Eats. It is a subsidiary of Uber which is a global ride-hailing player. Uber Eats serves in more than 60 countries across the globe. Uber Eats also provides a wide variety of delivery services, which includes restaurant delivery, grocery delivery and alcohol delivery. Decision to invest in technology to build dasher focused hardware and to improve technology to optimize operation is also taken by Uber Eats.
Key Companies in the Food Delivery Service Market Include
- Meituan
- Grubhub
- Didi Chuxing
- Just Eat Takeaway.com
- DoorDash
- Swiggy
- Gojek
- Zomato Ltd
- Baedal Minjok
- Glovoapp23
- Rappi
- Deliveroo Holdings PLC
- Uber Eats
- Grab
- Yandex
Food Delivery Service Market Industry Developments
The Food Delivery Service Market is projected to reach USD 1,659.28 billion by 2032, exhibiting a CAGR of 23.09% during the forecast period (2024-2032). The market growth can be attributed to the increasing popularity of online food ordering, rising disposable income, and growing urbanization. Furthermore, the COVID-19 pandemic has accelerated the adoption of food delivery services due to lockdowns and social distancing measures. Recent developments in the market include the acquisition of Grubhub by Just Eat Takeaway.com, the launch of new delivery-only restaurants, and partnerships between food delivery companies and grocery stores. Key players in the market include DoorDash, Uber Eats, Grubhub, and Deliveroo.
Food Delivery Service Market Segmentation Insights
- Food Delivery Service Market Food Type Outlook
- Restaurant Food
- Groceries
- Prepared Meals
- Beverages
- Food Delivery Service Market Delivery Model Outlook
- On-Demand Delivery
- Scheduled Delivery
- Subscription-Based Delivery
- Food Delivery Service Market Service Fee Outlook
- Flat Fee
- Percentage-Based Fee
- Tiered Fee Structure
- Food Delivery Service Market Payment Options Outlook
- Cash-on-Delivery
- Online Payment
- Third-Party Payment Gateways
- Food Delivery Service Market Transportation Mode Outlook
- Motorcycles
- Cars
- Scooters
- Bicycles
- Food Delivery Service Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
207.91(USD Billion) |
| Market Size 2023 |
255.91(USD Billion) |
| Market Size 2032 |
1659.28(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
23.09% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Meituan, Grubhub, Didi Chuxing, Just Eat Takeaway.com, DoorDash ,Swiggy ,Gojek ,Zomato Ltd ,Baedal Minjok ,Glovoapp23 ,Rappi ,Deliveroo Holdings PLC ,Uber Eats ,Grab ,Yandex |
| Segments Covered |
Food Type, Delivery Model, Service Fee, Payment Options, Transportation Mode ,Regional |
| Key Market Opportunities |
1 Expansion into new markets2 Growing popularity of online ordering3 Increasing demand for convenience4 Integration with food preparation services |
| Key Market Dynamics |
1 Rising consumer preference for convenience2 Growing smartphone penetration3 Expansion of food delivery services into new markets4 Increasing competition from new entrants5 Integration of advanced technologies |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Food Delivery Service Market size was valued at USD 255.91 billion in 2023 and is projected to grow at a CAGR of 23.09% from 2024 to 2032, reaching USD 1659.28 billion by 2032.
North America is expected to dominate the Food Delivery Service Market, accounting for a market share of 45.3% in 2023. The region is home to many established food delivery service providers and has a high adoption rate of online food ordering services.
The key growth drivers of the Food Delivery Service Market include the increasing popularity of online food ordering, the rising disposable income of consumers, the growing urbanization, and the increasing number of working women.
The key competitors in the Food Delivery Service Market include DoorDash, Uber Eats, Grubhub, Deliveroo, and Just Eat. These companies account for a significant share of the market and are constantly innovating to gain a competitive advantage.
The major applications of the Food Delivery Service Market include home delivery, office delivery, and restaurant dine-in. Home delivery is the most popular application, accounting for a majority of the market share.
The Food Delivery Service Market faces a number of challenges, including high competition, rising delivery costs, and regulatory compliance. The market is also highly fragmented, with a large number of small and medium-sized players.
The future trends of the Food Delivery Service Market include the increasing adoption of artificial intelligence (AI), the use of drones for food delivery, and the growing popularity of subscription-based food delivery services.
The COVID-19 pandemic had a positive impact on the Food Delivery Service Market, as more people ordered food online due to lockdowns and social distancing measures. The market is expected to continue to grow in the post-pandemic period.
The key opportunities for the Food Delivery Service Market include the expansion into new markets, the development of new technologies, and the partnerships with restaurants and other food businesses.
The key challenges for the Food Delivery Service Market include the increasing competition, the rising delivery costs, and the regulatory compliance. The market is also highly fragmented, with a large number of small and medium-sized players.
