Food & Beverage

Global Online Food Delivery Market

April 19, 2022
ID: SR/FB-20
Format:Pdf
Pages:220

Global Online Food Delivery Market By Business Model (Logistics-Focused, Order-Focuses and Restaurant-Specific), By Platform Type (Mobile/Tablet, Applications and Websites) and By Region (North America, Europe, Asia-Pacific, South America and The Middle East & Africa)-Global Forecast to 2028.

Description

Online Food Delivery Market Overview

The Online Food Delivery Market size was valued at USD 72.13 Billion in 2021, and it is estimated to reach USD 210.5 Billion by 2028, growing at a CAGR of 15.94% from 2022 to 2028. The advancement in smartphone users has increased the popularity of online food delivery businesses worldwide. Customers increasingly select the service due to hectic lifestyles and increased urbanization, driving the worldwide online meal delivery sector. User-friendly applications drive the global online food delivery market. The trend of online food ordering has gained momentum the world over. One of the major factors influencing the industry growth is the increasing penetration of smartphones and internet connections globally, which has led to an upsurge in the opportunities for quick and convenient food delivery.

What is Online Food Delivery?

Online food delivery is a service that authorizes the user to order food from the desired food outlet via the internet. You can either go directly to the website and place an order or use a mobile phone application. Opening an online food delivery system has been a convenient addition, which has declined long queues and decreased the waiting time for ordered food delivery. The online food delivery system has already been adopted worldwide, and its implementation has been relatively good.

All businesses that allocate packages obtained from hospitality places and have an online portal or application for their sales are contained in the online food delivery services market. Food can be either ready-to-eat or food that must prepare especially for immediate consumption. Food commerce has changed dramatically in the last decade, particularly with the introduction of the online delivery model.

Growth Drivers

Changing Lifestyle & Convenience

The amenity of ordering food through mobile apps, which allows for quick comparison of menus from numerous eateries, pushes the global online takeaway food delivery market. Furthermore, these organizations bring food to the selected place at any time, which has a good influence on the market. Consumers increasingly choose virtual payment solutions that also deliver them different discounts on occasion, and the sector is seeing an impetus for its development in the clarity of payment and the opportunity to go cashless through these platforms.

Opportunities

Growing Popularity of Cloud Kitchens

The food delivery market is noticing a rise in the popularity of cloud kitchens due to many consumers buying their food through online platforms. Thus, the growing number of food orders through cloud kitchens is due to consumers’ comfort, hectic lifestyles, and strong internet penetration. Cloud kitchens have appeared as a popular investment choice for opening a food business for established and new restaurateurs. Established restaurant chains also extend cloud kitchen outlets instead of dine-in outlets to cater to high food delivery orders. The comfort of getting food delivered at a suitable price and in record time has led to an increase in the number of orders being placed online. Rather than dining out, people prefer to order online food delivery to eat into the market share of traditional dine-in restaurants and replace home-cooking. Because of the change in customer choice and an increased sense of hassle in dining out, the online delivery option has gained speed and has changed the restaurant industry as food overpowers the dining experience.

Restraints

Technical & Infrastructural Issues

The reluctance of big food outlets to adopt this system and the potential technical and infrastructural issues hinder the growth of this market. Moreover, too much competition and a lack of loyal customers threaten this market. However, Restaurants’ inability to accommodate multiple deliveries and inefficiencies in dealing with volumes limit market expansion. Another aspect that could suffocate the worldwide market is food quality and regulations, which may differ due to long-term storage and refrigeration.

Pre Covid-19 Impact on Global Online Food Delivery Market

Before the covid-19 period, Customers are rapidly heading online, which has fueled fast growth in the e-commerce industry over the last decade. This change in consumer shopping habits has been fueled by different causes, some of which are industry or country-specific, while others are the product of global shifts. It can be attributed to the presence of a grown number of online food delivery businesses, a better understanding by consumers of the effects of online e-commerce, a better easy and secure option for online payments of services, disposable income on the rise, and work from home reducing time for people to invest in making the food themselves.

Covid-19 Impact on Global Online Food Delivery Market

During the covid-19 period, the pandemic has wreaked devastation on most facets of life, including people’s capacity to access products. Due to government-imposed lockdowns, consumers have been held home, stopping regular shopping routines. Many restaurants have closed or resorted to takeout to stay afloat. Home delivery has delivered a solution to some of COVID-19’s challenges for many customers. When the coronavirus pandemic hit the world, it heavily impacted the food industry and related services. This outbreak showed the Indian government to make the food delivery and restaurant business categorized as critical services since more than 20% of the population in India depends on online food and restaurants services daily.

Post Covid-19 Impact on Global Online Food Delivery Market

After the covid-19 period, Hence boost in smartphone users and internet penetration is pushing growth in online food delivery services. Some of the recent trends in the market inspected include real-time order tracking and customized food delivery. Thus, companies are growing their investments in research and development (R&D) and marketing and developing their geographical reach to retain their position in the market. Most prominent players follow logistics-focused food delivery systems due to the model’s capacity to help gain scale with limited costs and increased speed.

By Business Model Segmental Analysis

Based on the model, the global online food delivery market is segmented into Logistics-Focused, Order-Focuses and Restaurant-Specific. Restaurant-specific businesses are gaining more attention in the online food delivery market. The comfort of ordering meals through these applications, which allow for fast comparison of menus from many eateries, drives the global Online Food Delivery Platform Market. Similarly, these services bring food to the desired place at any time, which has a good influence on the market. The restaurants provide a subscription and loyalty program to their consumers in this service—restaurants tie up with food delivery operators to increase their sales.

By Platform Type Segmental Analysis

Based on platform type, the global online food delivery market is segmented into Mobile/Tablet, Applications and Websites. The mobile/tablet application type is projected to grow at the highest CAGR during the forecasted period. Increasing internet penetration and an increasing number of smartphone users are predicted to increase market growth. Similarly, cashback discount offers for mobile users are also attaining traction among consumers.

By Regional Segmental Analysis

Based on region, the global online food delivery market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. The North American region has the highest market share in the global market, mainly due to effective user penetration rates in the United States. It is one of the greatest demands for global online food delivery. Several factors currently drive North America’s online food delivery market. Significant urban population, busy lifestyles, and increasing penetration of the internet and smartphones are some of the key drivers that have pushed the region’s online food delivery market growth.

Asia Pacific region is also calculated at the highest CAGR during the forecasted period. The fast growth of advanced technology like voice command and a high number of smartphones mainly supports the industry’s growth. Moreover, a rising network of e-commerce across China, Japan, and India is expected to stream the demand for online food services.

Competitors Analysis

The companies include Delivery Hero SE, Grab Holdings Inc., Just Eat Holding Limited, Grub hub Holdings Inc., Uber Eats, Foodpanda, Takeaway.com, Deliveroo, Ele. Me and other prominent players in the global online food delivery market.

Key Stakeholders

Market research and consulting firms
Industry associations
Global Online Food Delivery and Manufacturing Firms
Local Governments
Regulatory bodies
Suppliers
Retailers

Recent Developments

In 2021-Delivery Hero will receive Hugo’s food and grocery delivery verticals and extends its footprint in Central America and the Caribbean.
In 2021-Southeast Asia’s biggest ride-hailing and food delivery firm, Grab Holdings, declared a merger with Altimeter Growth Corp valued at USD 40 billion.
In 2021- Uber Technologies, Inc. declared that it had concluded its acquisition of Drizly and that the two companies would begin incorporating their complimentary delivery apps and services.

Scope of the Report

Report Attribute	Details
Revenue in 2021	USD 72.13 Billion
The revenue forecast in 2028	USD 210.5 Billion
Growth Rate	CAGR of 15.94 % from 2022 to 2028.
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The companies Delivery Hero SE, Grab Holdings Inc., Just Eat Holding Limited, Grub hub Holdings Inc., Uber Eats, Foodpanda, Takeaway.com, Deliveroo, and Ele. Me are the key player.

Market Modelling

By Business Model

Logistics-Focused
Order-Focuses
Restaurant-Specific

By Platform Type

Mobile/Tablet
Applications
Websites

By Region

North America
Europe
Asia Pacific
South America
The Middle East & Africa

Table Of Contents

Methodology

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Frequently Asked Questions (FAQ):

What is the size of the global online food delivery market?

The Online Food Delivery Market size was valued at USD 72.13 Billion in 2021, and it is estimated to reach USD 210.5 Billion by 2028, growing at a CAGR of 15.94% from 2022 to 2028.

What is the online food delivery market?

Who are the key players in the global online food delivery market?

The companies Delivery Hero SE, Grab Holdings Inc., Just Eat Holding Limited, Grub hub Holdings Inc., Uber Eats, Foodpanda, Takeaway.com, Deliveroo, and Ele. Me are the key players in the global online food delivery market.

What are opportunities in the global online food delivery market?

The growing number of food orders through cloud kitchens is due to consumers’ comfort, hectic lifestyles, and strong internet penetration. Cloud kitchens have appeared as a popular investment choice for opening a food business for established and new restaurateurs.

During the forecast period, which region is expected to have the largest share in the global online food delivery market?

During the forecast period, the North American region has the highest market share in the global online food delivery market.

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Global Online Food Delivery Market