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The Global Online On-Demand Food Delivery Services Market size is estimated to grow by USD 266.05 billion accelerating at a CAGR of 24.64% between 2022 and 2027. The rising trend of hassle-free food ordering through food delivery apps acts as a pivotal catalyst propelling the market forward. With the omnipresence of e-commerce and internet-connected devices, consumers increasingly opt for these platforms. The convenience, cost-effectiveness, and extensive meal options online contribute to the shift from traditional dining. Notable advantages include discounts from partnered restaurants, decreased fuel expenses, and reduced taxes/service fees.
These platforms offer real-time order updates, robust order cancellation policies, and contactless delivery options, augmenting consumer satisfaction. Collaborations with various restaurants ensure menu variety, while subscription services and loyalty programs enhance customer engagement. As social media influences online market trends, key players utilize platforms like Grubhub and Delivery Hero for marketing and promotions.
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The market share growth by the order-focused food delivery services segment will be significant during the forecast period. In this segment, market companies act as third-party aggregators between restaurants and customers. Customers can view and compare the food menus, prices, reviews, and ratings of multiple restaurants in the neighborhood by registering on a vendor website or mobile application. After the customer places and confirms an order, the vendor passes the order to the specific restaurant to make a delivery. In this business model, delivery-logistics are completely taken care of by the restaurant.
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The order-focused food delivery services segment has experienced a gradual increase in market share, reaching USD 33.13 billion in 2017 and continuing growth until 2021. This business model primarily emphasizes generating new orders for restaurants and charges a low commission fee from them, as companies do not handle the food delivery themselves. While this model allows for high scalability through software-based order aggregation, drawbacks include limited control over food pricing and quality and minimal influence on delivery speed. Despite these limitations, companies are increasingly investing in their logistics networks and expanding sales through strategic alliances. As a result, the order-focused delivery services segment is expected to see moderate growth in the forecast period.
APAC is estimated to contribute 66% to the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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China and India are pivotal to the 2022 APAC market. Increased logistics efficiency investments and growing consumer spending contribute to market growth. The region is competitive, with companies differentiating through pricing and promotional codes. Small and medium-scale restaurants partner with online services for customer expansion. companies invest in delivery-only kitchens, seen with Deliveroo in Sydney. Despite urban market establishment in cities like Beijing and New Delhi, there's growth potential in rural areas.
Stringent safety regulations, like China's National Medical Product Administration, will raise operational costs for companies. Key players include Zomato, Swiggy, Deliveroo, Uber Eats, GrabFood, Alibaba, and Meituan. The APAC market is poised for substantial growth.
The Omarket thrives on real-time order updates and contactless delivery amid changing consumer preferences. Food delivery-apps witness a surge with features like meal customization and diverse digital payment options. Strategic restaurant partnerships and delivery-tracking enhance efficiency, yet challenges persist with order cancellation policy and maintaining order accuracy. Customer reviews and loyalty programs drive engagement, while delivery time estimation and menu variety influence user satisfaction. Subscription services offer convenience, but firms face hurdles in expanding delivery radius and ensuring seamless operations amidst dynamic market demands.
The burgeoning consumer appetite for hassle-free food ordering is a pivotal catalyst propelling the market forward. With the ubiquitous presence of e-commerce and Internet-connected gadgets, customers increasingly favor utilizing food delivery-apps for placing orders. Convenience, cost-effectiveness, and an extensive array of meal options online contribute to the paradigm shift from conventional dining to digital ordering. Noteworthy advantages encompass discounts from partnered restaurants, reduced fuel expenses, and diminished taxes/service fees.
Digital platforms offer real-time order updates, robust cancellation policies, and contactless delivery options, augmenting consumer satisfaction. Moreover, they facilitate meal customization, seamless delivery-tracking, and diverse digital payment choices. Collaborations with various restaurants ensure menu variety, while subscription services and loyalty programs enhance customer engagement. As consumer reviews play a pivotal role in assessing order accuracy and delivery time estimation, the online food ordering sector is poised for substantial growth in the foreseeable future.
The influence of social media is a major online market trends. Restaurants and online on-demand food delivery service providers are increasingly leveraging social media for marketing and promotions. Key players like Grubhub and Delivery Hero actively utilize social media platforms to promote their services, share food images, and provide promotional codes. This engagement through social media serves as a vital channel for direct interaction with customers.
Collaborations with social media sites to expand customer bases are on the rise, with examples like Zomato and Swiggy partnering with Instagram to support small businesses in India during the COVID-19 pandemic. Instagram introduced the food-order sticker to facilitate connections between food businesses and customers. The growing influence of social media in the global market is expected to continue gaining prominence.
The stringent government norms are a key challenge hindering market growth. Stringent regulations on these services, particularly in the UK, India, and the UAE, pose a significant challenge to market the forecast period. Regulatory bodies like the Food Standards Agency (FSA) in the UK and the Food Safety and Standards Authority of India (FSSAI) enforce safety and hygiene standards for online food services.
For instance, the FSSAI in India issued guidelines, including the necessity for companies to obtain a license, undergo quality checks, sign compliance contracts, and train delivery-personnel. Similar reforms are planned by the FSA in the UK. The implementation of such regulations increases operational costs for companies, negatively impacting the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing exponential growth, driven by the increasing reliance on food-delivery apps for convenient dining experiences. With a heightened focus on safety, contactless delivery has become a standard feature, ensuring peace of mind for customers. Market growth analysis indicates a significant upward trajectory in this sector.
Meal preferences are honored through meal customization, while delivery tracking offers real-time updates on order status. Seamless digital payment options enhance convenience, facilitating transactions without physical contact. This trend is corroborated by market research and growth statistics.
Collaborations with restaurants expand restaurant partnerships, providing customers with a diverse range of culinary options within their delivery radius. Customer reviews contribute to transparency and trust, ensuring order accuracy and reliable delivery time estimation. These insights play a crucial role in market growth and forecasting.
Subscription services and loyalty programs incentivize repeat business, while an extensive menu variety caters to diverse dietary preferences. Special promotions further entice customers, driving engagement and sales. Such strategies are pivotal in market forecasting. Attention to detail extends to food packaging and environmental sustainability, with an emphasis on eco-friendly practices. Efficient delivery fleet management and driver incentives optimize order fulfillment efficiency, ensuring timely deliveries and customer satisfaction.
Enhanced user interface design and customer support chatbots streamline the ordering process, while clear order cancellation policies offer flexibility. Adherence to food safety standards and delivery insurance prioritize customer well-being. Utilizing cloud kitchen services and delivery route optimization, providers maximize efficiency and minimize costs. Stringent meal preparation guidelines uphold quality standards, while customer feedback integration drives continuous improvement in service delivery. Market forecast data suggests sustained growth in this sector.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.64% |
Market growth 2023-2027 |
USD 266.05 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
23.16 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 66% |
Key countries |
US, China, Japan, South Korea, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Bundl Technologies Pvt. Ltd, Curefoods India Pvt. Ltd., Delivery-Hero SE, Dominos Pizza Inc., DoorDash Inc., Dunzo Digital Pvt. Ltd., EatSure, Glovoapp23 SL, Grab Holdings Ltd., Grubhub Inc., HelloFood, HungryPanda Ltd., Just Eat Takeaway.com NV, Meituan Dianping, Movile, Rappi Inc., Talabat.com, Uber Technologies Inc, and Zomato Media Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Business Segment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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