Dublin, March 27, 2024 (GLOBE NEWSWIRE) -- The "Online Food Delivery Market Report by Platform Type, Business Model, Payment Method, and Region 2024-2032" report has been added to ResearchAndMarkets.com's offering.
The global online food delivery market reached US$ 134.9 billion in 2023. Looking forward, the market is projected to reach US$ 317.7 billion by 2032, exhibiting a growth rate (CAGR) of 10.0% during 2023-2032.
The rising demand for online food delivery owing to the increasing number of dual-income households that are unable to cook regularly is propelling the market growth. Furthermore, the integration of advanced features such as global positioning system (GPS) tracking and secure payment gateways that make the service user-friendly and build trust among consumers is boosting the market growth. Additionally, the introduction of offers, discounts, and loyalty programs to attract more users and increase customer acquisition rates is contributing to the market growth.
Besides this, the easy availability of a wider range of cuisines that cater to varied customer demands is further bolstering the market growth. Moreover, the increasing strategic tie-ups with restaurants, food chains, and even other service providers are acting as another growth-inducing factor.
The growing emphasis on consumer convenience
Consumer convenience is one of the most important factors driving the online food delivery market. Individuals are constantly juggling multiple responsibilities, from work commitments to social engagements, which leaves little time for traditional meal planning, grocery shopping, and cooking. Online food delivery services provide an immediate solution to these challenges by offering a quick and easy way to have meals delivered right to one's doorstep. Furthermore, this convenience not only saves time but also provides a hassle-free experience, as users can browse through a multitude of options, read reviews, and even customize orders according to their dietary needs or preferences. Moreover, most online food delivery services operate around the clock, catering to a range of consumer needs, whether it's a late-night snack, an early breakfast, or a substantial meal for a group of people.
The increasing smartphone usage and internet accessibility
The rapid proliferation of smartphones and easy access to internet services is catalyzing the expansion of the online food delivery industry. Furthermore, high-speed internet connectivity ensures that the user experience is seamless through multiple steps of online food delivery, such as browsing through menus, payment, and tracking the order in real-time. Additionally, smartphone apps often come with user-friendly interfaces, making navigation effortless even for non-tech-savvy individuals. Apart from this, these platforms are integrated with advanced features, such as push notifications, which keep customers engaged by alerting them to new deals, discounts, or menu items.
The rapid urbanization across the globe
The rapid urbanization is a major factor propelling the online food delivery market. Urban areas are typically densely populated, with a mix of residential, commercial, and business districts. This concentration of potential consumers makes cities fertile grounds for the expansion of online food delivery services. Furthermore, individuals in urban settings often lead hectic lives, juggling demanding jobs, social commitments, and familial responsibilities. Additionally, the high cost and limited availability of real estate in cities also mean that homes are generally smaller, making it a less feasible option to cook elaborate meals. Online food delivery services align perfectly with this urban lifestyle, providing quick, convenient, and varied meal options right at the consumer's doorstep.
Online Food Delivery Industry Segmentation
The report provides an analysis of the key trends in each segment of the global online food delivery market report, along with forecasts at the global, and regional levels for 2024-2032. The study has categorized the market based on platform type, business model, payment method, and region.
Breakup by Platform Type:
- Mobile Applications
- Website
Mobile applications dominate the market
Mobile applications are dominating the market due to the proliferation of smartphones, which has made it incredibly convenient for consumers to order food on the go. Furthermore, mobile applications offer a highly user-friendly experience through intuitive interfaces, which allow users to easily browse menus, read reviews, and customize their orders. In addition, they also offer features, such as saved preferences, quick re-order options, and in-app tracking of delivery status to make the whole process seamless for the consumer. Besides this, mobile applications provide a more personalized customer experience as they leverage data analytics to offer customized recommendations, loyalty programs, and targeted promotions, thus enhancing customer engagement and encouraging repeat orders. Moreover, the integration of geolocation features in mobile apps, which help track orders in real-time and optimize delivery routes, is supporting the market growth.
Breakup by Business Model:
- Order Focused Food Delivery System
- Logistics Based Food Delivery System
- Full-Service Food Delivery System
Order focused food delivery system hold the largest share in the market
The order-focused food delivery system is dominating the market as it allows a wide range of restaurants to participate without the need for an extensive logistics network on the part of the service provider. Furthermore, it minimizes operational complexities for food delivery platforms by reducing the need for extensive investment in delivery personnel and transportation. Additionally, an order-focused food delivery system allows restaurants to maintain greater control over their food quality and delivery service, which is crucial for brand image. Using this system, restaurants can ensure that the food is prepared, packaged, and delivered to meet their quality standards, thus increasing customer satisfaction. Moreover, it is financially less burdensome for participating restaurants, as they do not have to share a significant portion of their revenue with the platform.
Breakup by Payment Method:
- Online Payment
- Cash on Delivery
Online payments hold the largest share in the market
Online payments are dominating the market as they offer unmatched convenience and speed up the entire ordering process, leading to higher customer satisfaction. Furthermore, they enhance operational efficiency for food delivery services. With instant payment confirmation, orders can be processed more quickly, leading to faster delivery times. Additionally, online payment systems are highly secure and reliable, as they come with features such as two-factor authentication, encryption, and secure gateways, which contribute to their widespread acceptance among consumers. Moreover, offering online payments enables businesses to implement dynamic pricing strategies more effectively. Features, such as promo codes, discounts, and loyalty points, can be easily applied during the online payment process, encouraging more orders and repeat business. Along with this, online payments simplify the accounting and money management processes for businesses.
Breakup by Region:
- China
- North America
- Asia-Pacific (excluding China)
- Europe
- Rest of the World
China exhibits a clear dominance, accounting for the largest online food delivery market share
China provides a large and diverse customer base that is increasingly becoming more tech-savvy and comfortable with e-commerce. Furthermore, the rapid urbanization in China, which has led to higher population densities in cities, making it logistically more straightforward and economically viable to deliver food, is propelling the market growth. Additionally, the increasing expenditure capacity, which is enabling consumers to pay for convenient online food delivery, is contributing to the market growth. Besides this, the presence of a robust technology infrastructure in China, which enables seamless online transactions and efficient route planning for delivery personnel, is strengthening the market growth. Moreover, the competitive landscape in China, which has encouraged innovation and investment in the online food delivery industry, is positively influencing the market growth.
Competitive Landscape
Major online food delivery companies are investing in technologies, such as real-time tracking, estimated delivery times, and artificial intelligence (AI)-driven personalized recommendations, to enhance user interface and customer experience. Furthermore, they are using data to understand consumer behavior, optimize delivery routes, and tailor marketing campaigns. Additionally, leading companies are focusing on creating robust and efficient supply chains and delivery networks. In line with this, they are using advanced algorithms for route optimization and inventory management. Besides this, top players are entering into strategic partnerships with restaurants, grocery stores, and even competing delivery services to expand their customer base and offerings. Moreover, they are taking steps to reduce their carbon footprint through eco-friendly packaging, electric delivery vehicles, and food waste reduction programs.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Deliveroo
- Delivery Hero
- Ele.me (Alibaba Group)
- Just Eat Takeaway.com N.V.
- Meituan Waimai
Industry Developments:
- In April 2023, Deliveroo partnered with ASDA to expand its rapid delivery offerings.
- In March 2022, Just Eat Takeaway.com N.V. entered into a partnership with McDonald's to expand its delivery services.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 139 |
| Forecast Period | 2023-2032 |
| Estimated Market Value (USD) in 2023 | $134.9 Billion |
| Forecasted Market Value (USD) by 2032 | $317.7 Billion |
| Compound Annual Growth Rate | 10% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/7blzkk
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