Online Food Delivery Market Size, Share & Trends Analysis Report By Type (Platform to Consumer, Restaurant to Consumer), By Region (North America, Europe), And Segment Forecasts, 2023 - 2030

Report Overview

The global online food delivery market size was valued at USD 221.65 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030. The growth is mainly driven by the rising internet penetration coupled with the proliferation of smartphones, growing technology advancement, the and emergence of cloud kitchens. Cloud kitchens facilitate low set-up costs and help cut down on operational expenses such as employment taxes, servicing personnel, furnishing, utilities, and insurance, making them an attractive investment option.This has compelled several restaurants to venture into the cloud kitchen space to stay up to date with the evolving market trends.

Consumers now have access to a variety of applications, including online food delivery services, with improved network connectivity and an increase in the number of smartphones. Online food ordering and delivery service is considered a fast-growing business owing to factors such as cost & time saving, safer and healthier food, increased customer loyalty, and highly customizable food options. Digital food innovation is constantly growing with recent advancements such as virtual restaurants and ghost kitchens. According to REVOLVING KITCHEN, the number of digital ordering and delivery is increasing by up to 300% compared to dine-in traffic.

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. According to data published by CloudKitchens.com, the U.S. had approximately 1,500 cloud kitchens as of 2020, and about 51% of restaurateurs had shifted their business to cloud kitchens in 2020. Cloud kitchens enable owners to quickly expand their business across multiple locations with minimal upfront investment. Such advantages have fueled the rise of cloud kitchens in recent years.

However, managing large delivery volumes is one of the key restraints for the market. The growing popularity of online food ordering has increased order volume, leading to logistical challenges for food delivery companies. Several restaurants tie-up with online food delivery platforms to scale up their business. However, restaurants receive an influx of orders each day from these platforms. As such, managing a large volume of orders across multiple platforms can prove to be an uphill task for restaurants. This can also result in the improper handling of food and lost orders, leading to degradation in food and service quality and wrong order delivery.

Type Insights

The platform-to-consumer delivery segment held the largest revenue share of 69.3% in 2022. The platform-to-consumer delivery segment covers the revenues of an online business that acts as an intermediate between customers and multiple food facilities to submit food orders from a customer to a participating food facility and arrange for the delivery of the order from the food facility to the consumer. The growing internet penetration has boosted the food platform-to-consumer delivery service worldwide.

The restaurant-to-consumer delivery segment is likely to expand at a significant CAGR of 7.4% over the forecast period. The segment growth can be attributed to increased internet penetration, quicker access to smartphones, improved food-service logistics, and changing lifestyles of consumers. Several established restaurant chains, such as Fassos by Rebel Foods, Freshmenu, and Biryani Kilo are aggressively investing in cloud kitchens as many consumers purchase their food through their platforms.

Regional Insights

Asia Pacific held the largest revenue share of over 40.78% in 2022 and is expected to register the highest CAGR from 2022 to 2028. The regional growth can be attributed to the changing lifestyle and food preferences of consumers along with rapid urbanization have led to an increase in the number of online food delivery, thereby driving the demand for various types of food service equipment.

Restaurants in countries such as China, India, and Japan are adopting software technologies that allow customers to order and pay at the table using their smartphones and other devices. Various developments and initiatives are anticipated to contribute to the regional market's growth during the forecast period.

Europe held a significant revenue share in 2021. The outbreak of the COVID-19 pandemic has driven the Europe online food delivery market, as millions of people ordered food online. The source of appealing, user-friendly applications, and tech-enabled driver networks, and changing consumer expectations, has unlocked the Read-to-Eat (RTE) as an essential category in the region. The U.K. is rapidly moving toward a cashless economy. This is expected to increase the usage of multiple payment wallets and budget-friendly POS terminals, favoring the regional market growth.

Key Companies & Market Share Insights

To broaden their product offering, the industry players utilize a variety of inorganic growth tactics, such as partnerships, regular mergers, and acquisitions. In October 2021, Delivery Hero Group announced the acquisition of Hungry.dk ApS, the Danish online food delivery company. With this acquisition, Delivery Hero further strengthens its footprint in the Nordic countries. Some prominent players in the global online food delivery market include:

• Delivery Hero SE

• DoorDash

• Domino's Pizza Inc.

• Ele.me (Alibaba Group Holding Limited)

• Grubhub

• McDonald's

• Deliveroo

• Papa John's International, Inc.

• Pizza Hut

• Just Eat Takeaway.com

• Uber Technologies Inc.

• Waiter.com, Inc.

• Zomato Ltd.

Online Food Delivery Market Report Scope

Global Online Food Delivery Market Report 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 this study, Grand View Research has segmented the global online food delivery market report based on type and region:

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

  • Restaurant to Consumer

  • Platform to Consumer

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • U.A.E

    • Saudi Arabia

    • South Africa