Global Online Food Ordering Market Overview
Online Food Ordering Market Size was estimated at 152.51 (USD Billion) in 2022.The Online Food Ordering Market Industry is expected to grow from 171.42(USD Billion) in 2023 to 490.6 (USD Billion) by 2032. The Online Food Ordering Market CAGR (growth rate) is expected to be around 12.4% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Online Food Ordering Market Trends Highlighted
The advancement of food services in concurrence with the advancement of the Internet has led to the development of the online food ordering market. To that end, the growing number of food delivery apps and mobile websites is making it easy for people to remain within the confines of their homes or offices and order food. The increasing tendency of users towards subscription-based meal services and the acceptance of AI in food ordering systems is also helping in the growth of the market.
The increasingly hectic pace of life brought on by fast urbanization, growing per capita income, and changes in consumer behaviour are among the main drivers for international market expansion. More opportunities for market development are also created by a greater variety of cuisines offered, more payment methods available and targeted offers.
Emerging trends in online food delivery supplementing most of the order activity include the advent of cloud kitchens, the formation of alliances between restaurants and contractors in food delivery, as well as the implementation of AI support systems. The market is predicted to grow further in the forthcoming years as long as businesses keep meeting the diverse and changing demands of consumers and technological improvements.
Online Food Ordering Market Drivers
Rising Penetration of Smartphones and Internet Connectivity
The proliferation of smartphones and the rapid expansion of internet connectivity have been instrumental in driving the growth of the online food ordering market. The increasing accessibility of high-speed internet and the convenience of mobile ordering platforms have made it easier for consumers to order food from their favorite restaurants with just a few taps on their smartphones. This has significantly expanded the reach of online food ordering services, enabling restaurants to tap into a wider customer base and cater to the growing demand for convenient and personalized food delivery options.The seamless integration of online food ordering platforms with mobile payment gateways has further streamlined the ordering process, enhanced the overall user experience and contributed to the surge in online food ordering.
Growing Popularity of Food Delivery Services
A notable market driver in the online food ordering market is the increasing popularity of food delivery services. The convenience that the service provides to consumers and the time that it saves has made it a popular option among busy professionals, individuals, and families. Moreover, the wide range of restaurants and variety of cuisines that are available on an online food ordering platform makes it a popular option for customers who can see and order from the restaurant that is their favorite without having to visit the restaurant itself.In addition, the number of service providers in the food delivery industry has also been on the rise, and they have been forming strategic partnerships with restaurants to receive orders and delivery service providers, thereby allowing easy access to online food ordering platforms.
Technological Advancements and Innovation
The online food ordering market is witnessing positive growth, it has been positively influenced by the developments and innovations in technology that have been crucial in determining the growth trajectory of the market. Online platforms have introduced user-friendly mobile applications and mobile-friendly websites, encouraging the use of online platforms to order food. In addition, the integration of AI and ML algorithms provides accurate, personalized recommendations.This is in line with the personal tastes, preferences of the consumer and past order history. The technology facilitates the ordering process, streamlining it, improves the efficiency of delivery and thus guarantees the ideal user experience.
Online Food Ordering Market Segment Insights
Online Food Ordering Market Order Type Insights
The Online Food Ordering Market is segmented by order type into delivery and pickup. The delivery segment held the larger market share in 2023 and is expected to continue to grow at a faster rate during the forecast period. The growth of the delivery segment can be attributed to the increasing popularity of food delivery services, the convenience of having food delivered to one's doorstep, and the growing number of people who are ordering food online. The growth of the market can be attributed to the increasing popularity of online food ordering services, the convenience of ordering food online, and the growing number of people who are using online food ordering services.Some of the key factors driving the growth of the online food ordering market include The increasing popularity of online food ordering services. Online food ordering services are becoming increasingly popular as they offer a convenient and easy way to order food from restaurants. Customers can order food online through a variety of platforms, including websites, mobile apps, and social media. The convenience of ordering food online Ordering food online is convenient as it allows customers to order food from the comfort of their own homes or offices.Customers can also track their orders online and receive notifications when their food is ready. The growing number of people who are using online food ordering services The number of people who are using online food ordering services is growing rapidly. This is due to the increasing popularity of online food ordering services and the convenience of ordering food online. The growth of the online food ordering market is expected to continue in the coming years. This growth is expected to be driven by the increasing popularity of online food ordering services, the convenience of ordering food online, and the growing number of people who are using online food ordering services.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Food Ordering Market Cuisine Insights
The Online Food Ordering Market is segmented by cuisine, with American, Chinese, Italian, Indian, and Mexican cuisines being the most popular. The American cuisine segment held the largest market share in 2023, accounting for 32.1% of the market. The market growth for the American cuisine segment is attributed to the increasing popularity of fast food and convenience options. The Chinese cuisine segment is expected to grow at the highest CAGR during the forecast period, owing to the growing popularity of Asian cuisine worldwide. The Italian, Indian, and Mexican cuisine segments are also expected to grow steadily over the forecast period.
Online Food Ordering Market Price Range Insights
The Online Food Ordering Market segmentation by price range offers valuable insights into the market dynamics. The market is broadly classified into three segments Budget, Mid-range, and Luxury. The Budget segment caters to consumers seeking affordable and convenient meal options. It holds a significant market share due to its widespread appeal, particularly among students, young professionals, and budget-conscious individuals. The segment is characterized by low-priced meals and limited delivery options. The Mid-range segment targets consumers who prioritize value for money.It offers a balance between affordability and quality, appealing to a broader customer base. This segment includes restaurants that provide mid-tier pricing and a wider selection of dishes. The Luxury segment caters to affluent consumers seeking premium dining experiences. It comprises high-end restaurants that offer gourmet meals, exclusive ingredients, and exceptional service. This segment holds a smaller market share but generates higher revenue due to the premium pricing of its offerings.
Online Food Ordering Market Payment Method Insights
The Online Food Ordering Market is segmented by payment method into credit card, debit card, cash, and digital wallet. Of these, a credit card is expected to hold the largest market share in 2023, accounting for over 40% of the Online Food Ordering Market revenue. Debit card is expected to be the second largest segment, with a market share of over 30%. Cash is expected to account for a significant share of the market in developing countries, while digital wallet is expected to grow rapidly in the coming years. The growth of digital wallets is being driven by the increasing popularity of mobile payments and the convenience of using a single platform for multiple payments.
Online Food Ordering Market Delivery Speed Insights
The delivery speed segment is a key factor in the growth of the Online Food Ordering Market. The market is segmented into three main categories Standard Delivery, Express Delivery, and Ultra-Fast Delivery. Standard Delivery is the most common type of delivery, with an average delivery time of 30-60 minutes. Express Delivery is a faster option, with an average delivery time of 15-30 minutes. Ultra-Fast Delivery is the fastest option, with an average delivery time of less than 15 minutes. The Standard Delivery segment is expected to account for the largest share of the Online Food Ordering Market in 2024 due to its convenience and affordability.The Express Delivery segment is expected to grow at a faster rate than the Standard Delivery segment due to the increasing demand for faster delivery times. The Ultra-Fast Delivery segment is expected to grow at the fastest rate due to the increasing popularity of on-demand food delivery services. In 2024, the Online Food Ordering Market is expected to be valued at USD 186.7 billion. The market is expected to grow at a CAGR of 11.6% from 2024 to 2032, reaching a value of USD 390.6 billion by 2032.
Online Food Ordering Market Regional Insights
The Online Food Ordering Market is expected to reach a valuation of USD 490.6 billion by 2032, exhibiting a CAGR of 12.4% during the forecast period. Regionally, North America held the dominant position in 2023 and is projected to maintain its lead throughout the forecast period. The region's well-established infrastructure, high disposable income, and growing popularity of online food delivery services are key factors driving its dominance. Europe is another significant market, with a large consumer base and a growing number of food delivery platforms.The APAC region is expected to witness the fastest growth over the forecast period, driven by the increasing adoption of smartphones, expanding internet penetration, and rising disposable incomes. South America and MEA are also expected to experience steady growth due to the growing popularity of online food ordering services.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Online Food Ordering Market Key Players And Competitive Insights
Major players in the Online Food Ordering Market are constantly evolving their strategies to gain a competitive edge. Leading Online Food Ordering Market players are investing heavily in research and development to introduce innovative features and services. The Online Food Ordering Market industry is highly competitive, with a number of well-established players. These players are constantly vying for market share, and they are doing so through a variety of means, including product development, marketing, and acquisitions. The competitive landscape of the Online Food Ordering Market is expected to remain fragmented in the coming years, with a number of players competing for market share.Delivery Hero is a leading online food ordering and delivery marketplace. The company was founded in 2011 and is headquartered in Berlin, Germany. Delivery Hero operates in over 50 countries and partners with over 500,000 restaurants. The company's platform allows users to order food online or via a mobile app and have it delivered to their doorstep. Delivery Hero also offers a subscription service called Delivery Hero Plus, which provides unlimited free delivery for a monthly fee.Uber Eats is another leading player in the Online Food Ordering Market. The company was founded in 2014 and is headquartered in San Francisco, California. Uber Eats operates in over 60 countries and partners with over 400,000 restaurants. The company's platform allows users to order food online or via a mobile app and have it delivered to their doorstep. Uber Eats also offers a subscription service called Uber Eats Pass, which provides unlimited free delivery for a monthly fee.
Key Companies in the Online Food Ordering Market Include
- Rappi
- Just Eat Takeaway.com
- Deliveroo
- Grab
- Boxed
- Gojek
- Meituan
- me
- DoorDash
- Zomato
- Ritual
- Grubhub
- Foodpanda
- Swiggy
- Uber Eats
Online Food Ordering Market Industry Developments
The online food ordering market is projected to reach USD 490.6 billion by 2032, exhibiting a CAGR of 12.4% during the forecast period. The burgeoning smartphone penetration and the proliferation of mobile applications have significantly contributed to the growth of the market.Recent news developments and current affairs in the market include Uber Eats partners with Carrefour to expand grocery delivery in the Middle East. Grubhub launched a new subscription service called Grubhub+. DoorDash acquires Caviar, a premium food delivery service.
Amazon Fresh is expanding its grocery delivery services to new cities in the United States.These developments indicate a highly competitive market with major players actively expanding their operations and innovating to gain market share.
Online Food Ordering Market Segmentation Insights
Online Food Ordering Market Order Type Outlook
Online Food Ordering Market Cuisine Outlook
- American
- Chinese
- Italian
- Indian
- Mexican
Online Food Ordering Market Price Range Outlook
Online Food Ordering Market Payment Method Outlook
- Credit Card
- Debit Card
- Cash
- Digital Wallet
Online Food Ordering Market Delivery Speed Outlook
- Standard Delivery
- Express Delivery
- Ultra-Fast Delivery
Online Food Ordering Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Online Food Ordering Market Report Scope
| Report Attribute/Metric |
Details |
| Market Size 2022 |
152.51(USD Billion) |
| Market Size 2023 |
171.42(USD Billion) |
| Market Size 2032 |
490.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.4% (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 |
Rappi, Just Eat Takeaway.com, Deliveroo, Grab, Boxed, Gojek, Meituan, Ele.me, DoorDash, Zomato, Ritual, Grubhub, Foodpanda, Swiggy, Uber Eats. |
| Segments Covered |
Order Type, Cuisine, Price Range, Payment Method, Delivery Speed, Regional. |
| Key Market Opportunities |
Expansion into Emerging Markets Increasing Demand for Convenience Integration of Artificial Intelligence Health-Conscious Ordering Options Subscription-Based Meal Services |
| Key Market Dynamics |
Increasing smartphone penetration Rising disposable income Growing popularity of convenience food Technological advancements Expanding delivery network |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The online food ordering market size was valued at USD 171.42 billion in 2023 and is projected to reach USD 490.60 billion by 2032, exhibiting a CAGR of 12.4% during the forecast period.
North America held the largest market share in 2023, accounting for over 35% of the revenue. The region's dominance is attributed to the high penetration of smartphones, widespread adoption of digital payment systems, and the presence of major players such as Uber Eats, Grubhub, and DoorDash.
Major growth drivers of the market include the rising popularity of food delivery apps, increasing urbanization, growing disposable income, and changing consumer lifestyles. Additionally, the expansion of food delivery services to smaller cities and towns is creating new growth opportunities.
The restaurant food delivery segment is projected to register the highest CAGR during the forecast period. This growth can be attributed to the increasing number of restaurants partnering with food delivery platforms, offering convenience and a wider selection of dining options to consumers.
Prominent players operating in the online food ordering market include Uber Eats (Uber Technologies), Grubhub (Just Eat Takeaway.com), DoorDash, Swiggy, Zomato, Deliveroo, and Foodpanda.
Notable trends shaping the market include the integration of artificial intelligence (AI) and machine learning (ML) to enhance personalization and optimize delivery routes, the growing popularity of virtual kitchens and cloud kitchens, and the increasing adoption of sustainable packaging solutions.
The COVID-19 pandemic had a significant impact on the market, leading to a surge in online food ordering due to lockdowns and social distancing measures. This trend is expected to continue even after the pandemic subsides as consumers become accustomed to the convenience of food delivery services.
Challenges faced by the market include intense competition, regulatory hurdles, concerns over food safety and quality, and the need for efficient logistics and delivery networks. Additionally, rising fuel costs and labor shortages can impact the profitability of food delivery businesses.
Growth opportunities in the market lie in the expansion to emerging markets, the introduction of new food delivery models such as subscription services and meal kits, and the integration of food delivery with other services such as grocery delivery and ride-hailing.
The online food ordering market is projected to reach USD 490.60 billion by 2032, exhibiting a CAGR of 12.4% during the forecast period. This growth will be driven by the increasing popularity of food delivery apps, changing consumer lifestyles, and the expansion of food delivery services to new regions.
