Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for online food delivery is driven by the rising internet penetration. The expanding adoption of cloud-based technology, the growing number of restaurants around the globe, and Quick Service Restaurants (QSR) services. Amidst the pandemic, a number of restaurants and packaged food businesses opted for online sales channels in order to cater to customer demands. Therefore, it is anticipated that the installation of POS systems will have the extra benefit of precisely identifying client preferences and sales trends, which will accelerate market growth.
Additionally, restaurants have been able to streamline their order handling with the help of a few recent breakthroughs in order processing systems. For instance, the Kitchen Display System (KDS), a digital menu board for kitchen employees, automatically prioritizes orders and highlights any dietary restrictions. This system monitors food delivery times and has direct communication with the restaurant's point-of-sale system.
Food delivery services like GrubHub, PostMates, and Zomato are giving restaurants a chance to enhance their online visibility, attract new clients, and make additional money. Restaurant review websites also aid in the establishment of eateries' reputations. With better network connectivity and growth in smartphones, consumers may now access a wide range of applications, including online meal delivery services.
An increasing number of people are using online food ordering and delivery services because they save money and time, provide safer and healthier food, foster greater customer loyalty, and offer a wide variety of highly customizable meal alternatives. With innovations like Virtual restaurants and ghost kitchens, the field of digital food innovation is always expanding.
In comparison to dine-in traffic, REVOLVING KITCHEN reports that the number of digital orders and deliveries is rising by as much as 300%. As a result, it is anticipated that throughout the projection period, demand for online food delivery will increase due to the rising internet penetration. Thus driving the Online Food Delivery market revenue.
The Online Food Delivery market segmentation, based on type, includes Platform-To-Consumer And Restaurant-To-Consumer. The platform-to-consumer segment dominated the market, accounting for the maximum market revenue due to the rising Internet Company that serves as a middleman between clients and various restaurants, submitting client orders to participating restaurants and coordinating the delivery of the ordered food from the restaurant to the client. food platform-to-consumer delivery services have benefited from the increasing use of the internet.
On the other hand, restaurant-to-consumer segment is expected to be the fastest-growing segment in the projected [period due to increased internet penetration, faster smartphone access, better food-service logistics, and evolving customer lifestyles. A number of well-known restaurant chains, like Freshmen, Biryani Kilo, and Fassos by Rebel Foods, are heavily investing in cloud kitchens because a large number of their customers buy their meals via these platforms.
Figure 2: Online Food Delivery Market, by Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Online Food Delivery market area will dominate this market, owing to an increasing penetration of the internet. In addition, the busy lifestyles and increasing urbanization will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: ONLINE FOOD DELIVERY MARKET SHARE BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Online Food Delivery market accounts for the second-largest market share due to the tech enabling driver networks, user-friendly applications, and changing consumer expectations. Further, the German Online Food Delivery market held the largest market share, and the UK Online Food Delivery market was the fastest-growing market in the European region.
The Asia-Pacific Online Food Delivery Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the changing lifestyle and food preferences of consumers with rising urbanization. Moreover, China's Online Food Delivery market held the largest market share, and the Indian Online Food Delivery market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Online Food Delivery market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Online Food Delivery industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Online Food Delivery industry to benefit clients and increase the market sector. In recent years, the Online Food Delivery industry has offered some of the most significant advantages to consumers. Major players in the Online Food Delivery market, including Delivery Hero SE, DoorDash, Domino's Pizza Inc., Ele.me, Grubhub, McDonald's Deliveroo, Papa John's International Inc., Pizza Hut, Just Eat Takeaway.com, Uber Technologies Inc., Waiter.com, Inc., Zomato Ltd., and others, are attempting to increase market demand by investing in research and development operations.
The international American chain of pizza restaurants is called Domino's. Russell Weiner serves as CEO of the 1960-founded chain, which is controlled by master franchisor Domino's Pizza, Inc. The corporation's headquarters are located in the Domino's Farms Office Park in Ann Arbour Township, which is close to Ann Arbour, Michigan. It has its domicile in Delaware with 5,649 locations in the US, 1,500 in India, and 1,249 in the UK. Domino's had about 15,000 locations as of 2018. Domino's has locations across 5,701 cities and more than 83 countries. In 1965, the three dots on the corporate emblem stood for the three locations. With each new store, Monaghan intended to add a new dot. Still, this concept was immediately abandoned due to Domino's explosive development.
The first Domino's Pizza franchise was established in 1967, and by 1978, it had grown to 200 locations. Amstar Corporation, the company that makes Domino Sugar, sued Domino's in 1975 on the grounds of unfair competition and trademark infringement. The Fifth Circuit Court of Appeals in New Orleans ruled in favor of Domino's Pizza in May 1980. In December 2022, Domino's Pizza Inc. declared that it would be expanding into Latvia and Uruguay. Franchisee Morgacita Ltd. Latvia would open the first Domino's location at Deglava 100 in Riga. In contrast, franchisee Alsea, Uruguay, would open the second location at 1163 Luis Alberto de Herrera in Montevideo.
Zomato, an Indian multinational restaurant aggregator and food delivery service, is pronounced. In 2008, Deepinder Goyal and Pankaj Chaddah started it. As of 2022-2023, Zomato offers meal delivery choices from partner restaurants in more than 1,000 Indian cities and towns, along with restaurant information, menus, and user ratings.
Zomato companies with Swiggy in the hyperlocal and food delivery markets. Initiated in 2010 in order to meet their various needs, the Zomato technologies platform links customers, delivery partners, and restaurant partners. While dining out, customers utilize its platform to find and search for restaurants, order meal delivery, reserve a table, read and write reviews left by other patrons, and upload and browse images. On the other side, the company provides restaurant partners with last-mile delivery services that are dependable and effective, along with industry-specific marketing tools that help them interact and gain customers to build their business.
Additionally, a company runs Hyperpure, a one-stop shop for procurement that provides restaurant partners with premium foods and kitchenware. Company Laso offers clear and flexible revenue opportunities to its delivery partners. In March 2022, Zomato announced the launch of its newest feature, food delivery, within 10 minutes. The function, which would only be offered in upscale cities, is meant to assist Zomato in growing its clientele and solidifying its place in the Indian Market.
Delivery Hero SE
DoorDash
Domino's Pizza Inc.
Ele.me
Grubhub
Papa John's International, Inc.
Pizza Hut
Just Eat Takeaway.com
Uber Technologies Inc.
Waiter.com, Inc.
Zomato Ltd.
December 2022: Grubhub and Kiwibot, a food delivery business, announced their agreement to distribute meals to college campuses throughout the United States using robots. Through this strategic alliance, students would be able to take advantage of Kiwibot delivery from Grubhub's application through an integrated delivery service.
November 2022: In an effort to draw delivery drivers without personal vehicles, Domino's Pizza Inc. will introduce 100 customized Chevy Bolt electric vehicles to the American market. Additionally, by working with Enterprise Fleet Management, the business would receive finance, telemetry solutions, vehicle procurement, local account management, and maintenance for its fleet of electric delivery vehicles.
Platform-to-Consumer
Restaurant-to-Consumer
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 222.8 Billion |
| Market Size 2023 | USD 246.8 Billion |
| Market Size 2032 | USD 560.75 Billion |
| Compound Annual Growth Rate (CAGR) | 10.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â Delivery Hero SE, DoorDash, Domino's Pizza Inc., Ele.me, Grubhub, McDonald's, Deliveroo, Papa John's International, Inc., Pizza Hut, Just Eat Takeaway.com, Uber Technologies Inc., Waiter.com, Inc., Zomato Ltd. |
| Key Market Opportunities | Rising demand for time-and convenience-saving |
| Key Market Dynamics | Increase in technological advancementDevelopment of cloud kitchens |
Frequently Asked Questions (FAQ) :
The Online Food Delivery market size was valued at USD 222.8 Billion in 2022.
The market is projected to grow at a CAGR of 10.80% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are Delivery Hero SE, DoorDash, Domino's Pizza Inc., Ele.me, Grubhub, McDonald's Deliveroo, Papa John's International, Inc., Pizza Hut, Just Eat Takeaway.com, Uber Technologies Inc., Waiter.com, Inc., Zomato Ltd.
The platform-to-consumer category dominated the market in 2022.
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