Online Food Delivery Services Market Size, Share & Trends Analysis Report By Channel Type (Mobile Application, Websites/Desktop), By Payment Method (COD, Online), By Type, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global online food delivery services market size was valued at USD 50.70 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 18.7% from 2022 to 2030. In 2020, the COVID-19 pandemic negatively impacted the overall industry growth due to supply chain disruption and end-users’ revenue loss. Nevertheless, the increasing use of smartphones and internet penetration contributed to market growth. The development of the overall food delivery industry that allows customers to order food from different restaurants is pivotal in driving the industry's growth. The expansion of delivery aggregators, such as Zomato and Swiggy, in the Indian market over the last couple of years has further contributed to the industry's growth.

The growing number of dual-income families and changing lifestyles & eating patterns are anticipated to favor the industry growth over the forecast period. Furthermore, the growing demand for quick access to food at affordable prices is also driving the growth. Benefits offered by online delivery services include heavy discounts, rewards & cashback offers, doorstep delivery, and multiple payment options. Furthermore, providers of food services are setting up large warehouses to store fresh produce for offering high-quality food, encouraging the adoption of online delivery services. Food delivery apps are reshaping the restaurant industry and how we eat by inspiring digital-only establishments that do not need a dining room or waiters.

As a result, the emergence of virtual restaurants and delivery-only kitchens is expected to provide significant growth opportunities. In addition, increasing infrastructural advancements in emerging economies offer growth opportunities to vendors operating in the industry. They enable companies to expand their restaurant partner network and delivery network in different cities. Furthermore, IoT integration enables users to opt for online food delivery services through voice commands, further easing the delivery process. Such technological advancements are anticipated to drive industry growth further.

Though the industry is currently in its growth phase, several factors, such as fluctuating pricing models and the availability of multiple food delivery service platforms, are anticipated to intensify competition. In addition, the quality of food delivered deteriorates when the number of food orders is high, which also requires additional resources to provide the food. Thus, the failure of restaurants to cater to multiple deliveries and inefficiency in coping with volumes limit the market growth. Due to the COVID-19 pandemic, some leading players like Domino’s Pizza Inc., McDonald’s Corp., and Zomato, introduced contactless delivery services, which are expected to continue over the coming years. Cloud kitchens witnessed a surge in popularity during the COVID-19 pandemic due to the closure of several dine-in restaurants. The trend is expected to remain strong post-pandemic, owing to people getting accustomed to online ordering.

This rapidly rising number of cloud kitchens is expected to boost the online food ordering trend, which bodes well for the industry's growth. Similar to drone delivery, autonomous delivery robots are expected to be used for delivering food items in the near future. Food delivery companies are increasingly investing in such technologies and making them a part of food delivery supply chains, ensuring quick and contactless deliveries. For instance, Postmates, Inc., a food delivery company based in California, U.S., has used delivery robots to help deliver food in Los Angeles since the beginning of the COVID-19 pandemic.

Type Insights

On the basis of types, the global industry has been further categorized into restaurant-to-consumer and platform-to-consumer. The platform-to-consumer type segment dominated the industry in 2021 and accounted for the maximum share of more than 71.75% of the overall revenue. The platform-to-consumer model deals with food delivery’s logistics and resource aspects while simultaneously offering shipment services to restaurants that do not have in-house delivery resources.

An increase in the number of investments in this model is estimated to drive the growth of this segment, mainly in capital cities, during the forecast period. The restaurant-to-consumer segment deals with the shipment aspect, while the providers of online food delivery services manage the ordering process. The players operating with this model offer loyalty and subscription programs to consumers to penetrate the market. Integrating several restaurant chains with aggregators, such as DoorDash further drives the segment growth.

Channel Type Insights

On the basis of channel types, the global industry has been further categorized into websites/desktop and mobile applications. The mobile application segment dominated the industry in 2021 and accounted for the maximum share of more than 75.25% of the overall revenue. The segment is projected to expand further at the fastest growth rate retaining its leading position throughout the forecast period. This rapid growth can be attributed to the growing smartphone penetration, coupled with technological advancements, such as 3G and 4G networks.

In addition, many restaurants offer discounts to end-users ordering food via mobile applications. The growth of the desktop segment can be attributed to the increasing number of restaurants that are endeavoring to increase foot traffic by expanding their online presence through websites. The growth of the e-commerce sector further fuels the adoption of website/desktop channels for ordering food online. Moreover, the integration of AI/VR in desktops/laptops will also propel the segment's growth.

Payment Method Insights

On the basis of payment methods, the global industry has been further categorized into cash-on-delivery (COD) and online. The online segment dominated the global industry in 2021 and accounted for the largest share of more than 78.00% of the overall revenue. Online payment services include payments through payment portals, net banking, or credit/debit cards. The growing awareness about digital money among consumers and the number of partnerships between banks & online food delivery service providers are responsible for augmenting the adoption of the online payment method.

The COD segment is also estimated to register a significant growth rate during the forecast period. This growth can be attributed to the fact that several customers prefer paying by cash since they are skeptical about the security of their online payment transactions. However, banks are focusing on enhancing security and offering additional services to users, which is anticipated to help change the scenario over the coming years. In addition, cash-on-delivery is the most preferred payment method in many emerging economies, such as Sub-Saharan Africa and India.

Regional Insights

Asia Pacific is expected to emerge as the fastest-growing regional market at a CAGR of more than 19.80% during the forecast period. The regional growth can be attributed to the increasing per capita income levels and changing preferences of millennials. In addition, millennials’ growing use of internet-enabled smartphones and rapid adoption of advanced technologies, such as voice-assistant apps, are contributing significantly to the regional market growth. The growth of the e-commerce sector in developing countries, such as India and Japan, is further contributing to the adoption of food delivery applications in the region.

North America emerged as the second-largest regional market in 2021. The regional market is witnessing healthy growth due to significant consumer preference for fast food as a result of changing lifestyles. Furthermore, several online food service providers, such as Just Eat Holding Limited and Postmates Inc., are further boosting the region’s growth. The industry players operating in the region are offering live customer service, delivery execution, and other related services, which, in turn, will fuel regional growth.

Key Companies & Market Share Insights

Companies are engaging in several inorganic growth strategies, such as mergers & acquisitions, partnerships, and geographical expansion, to stay afloat in the competitive market scenario. For instance, in May 2022, Swiggy entered into a partnership with Garuda Aerospace to deliver groceries with the help of drones in the city of Bengaluru in the Indian state of Karnataka and the Delhi-NCR region. Apart from expanding the business size and reach, companies emphasize R&D to develop technologically advanced and differentiated products to gain a competitive edge.

Companies also focus on developing products that comply with regional regulation norms to eliminate the risk of losing business because of regulation violations. For instance, in June 2020, Swiggy, an Indian food delivery company, in collaboration with ICICI, launched its digital wallet, Swiggy Money, to allow a single-click checkout experience on its platform. This allowed customers to store money and use it for ordering food. Some of the prominent players in the global online food delivery services market include:

• Deliveroo PLC

• DoorDash Inc.

• Delivery Hero Group

• Just Eat Limited

• Uber Technologies Inc.

• Swiggy

• Zomato

• Delivery.com LLC

• Yelp Inc.

• Amazon.com Inc.

• Rappi Inc.

Recent Developments

• In October 2021, Delivery Hero SE acquired hugo’s food and grocery delivery verticals for USD 150 million. The acquisition aimed to expand its reach in Caribbean and Central American markets.

• In June 2021, Just Eat Takeaway.com acquired Grubhub to step into the online food delivery services in the U.S. This acquisition aimed to help the enlarged group to access the world's most attractive markets in online food delivery: the U.S., the UK, Netherlands and Germany.

Online Food Delivery Services Market Report Scope

Global Online Food Delivery Services Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global online food delivery services market report on the basis of type, channel type, payment method, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Restaurant-to-Consumer

  • Platform-to-Consumer

• Channel Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Websites/Desktop

  • Mobile Applications

• Payment Method Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cash on Delivery

  • Online

• Region Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (MEA)