Dublin, May 21, 2025 (GLOBE NEWSWIRE) -- The "India Online Food Ordering and Delivery Market by Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to ResearchAndMarkets.com's offering.
The India Online Food Ordering and Delivery Market was valued at USD 31.77 Billion in 2024 and is projected to reach USD 140.85 Billion by 2030, rising at a CAGR of 28.17%. This rapid expansion is fueled by increasing urbanization, a fast-paced lifestyle, and widespread smartphone usage.
Consumers are gravitating toward the convenience of online food delivery, supported by platforms such as Swiggy and Zomato, which offer extensive menu options and efficient service. The emergence of cloud kitchens, advancements in AI-based personalization, and integration of digital payment systems have significantly improved the overall user experience. Moreover, the growing internet access in Tier II and Tier III cities is broadening the customer base, making food delivery more accessible across diverse regions. 
Key Market Driver: Rapid Urbanization and Changing Lifestyles
India's accelerating urbanization, with over 461 million people residing in urban areas as of 2024, is driving transformative shifts in lifestyle and food consumption patterns. The urban population, increasing annually by 2.3%, is expected to generate 75% of national income by 2031. This demographic change is fueling demand for convenient meal solutions, especially among young professionals, nuclear families, and the growing female workforce.
The demands of longer work hours and time constraints have led to a decline in home cooking, creating a preference for ready-to-eat meals. Online food delivery platforms fulfill these evolving needs by offering easy access to a wide variety of cuisines. Urban consumers, influenced by global food culture, increasingly seek diverse and high-quality dining experiences at home - needs that online platforms are well-positioned to meet.
Key Market Challenge: Profitability and High Operational Costs
Although the online food delivery sector in India is expanding rapidly, sustaining profitability remains a significant hurdle. Major players like Swiggy and Zomato face high customer acquisition costs and depend on deep discounts and promotional offers to attract users, thereby inflating operational expenditures.
Delivering consistent service also involves considerable investments in logistics, including rider salaries, vehicle maintenance, fuel, and tech support. In Tier II and Tier III cities, lower average order values further strain unit economics. Revenue-sharing models with restaurants, coupled with order cancellations and refund liabilities, compound the challenge. While investment backing has covered short-term losses, the path to long-term viability requires a strategic shift from aggressive growth tactics to more sustainable, profit-focused models - an adjustment still underway for many companies.
Key Market Trend: Rise of Cloud Kitchens and Virtual Brands
A significant trend shaping India's food delivery space is the surge in cloud kitchens - delivery-only setups that eliminate the costs associated with dine-in services. These models optimize operations by minimizing fixed costs such as rent and front-of-house staff. With the support of aggregators like Swiggy and Zomato, and innovators like Rebel Foods, cloud kitchens are becoming a profitable and flexible business model.
They enable the simultaneous operation of multiple brands from a single kitchen, catering to varied tastes and allowing quick adaptation to food trends. Their strategic locations support hyperlocal demand and faster deliveries. Additionally, the emergence of virtual brands - online-only food labels - has empowered both startups and established chains to experiment with new offerings at minimal risk. As space constraints and urban demand rise, cloud kitchens are poised to become a dominant force in the Indian food delivery industry.
Key Players Profiled in this India Online Food Ordering and Delivery Market Report
- Jubilant FoodWorks
- Zomato Limited
- Box8
- Bundl Technologies Private Limited (Swiggy)
- FoodVista India Private Limited
- Rebel Foods Private Limited (Faasos)
- Yum! Brands, Inc.
- Biryani by Kilo
- Eat.Fit
- Fresh Menu
Report Scope
In this report, the India Online Food Ordering and Delivery Market has been segmented into the following categories:
India Online Food Ordering and Delivery Market, by Operation Type:
- Food Aggregators
- Restaurant-based
India Online Food Ordering and Delivery Market, by Platform:
- Mobile Applications
- Websites
India Online Food Ordering and Delivery Market, by Payment:
- Mobile Wallet
- Card Payment
- Cash on Delivery
- Net Banking
India Online Food Ordering and Delivery Market, by Region:
- North
- South
- East
- West
Key Attributes
| Report Attribute | Details |
| No. of Pages | 85 |
| Forecast Period | 2024-2030 |
| Estimated Market Value (USD) in 2024 | $31.77 Billion |
| Forecasted Market Value (USD) by 2030 | $140.85 Billion |
| Compound Annual Growth Rate | 28.1% |
| Regions Covered | India |
For more information about this report visit https://www.researchandmarkets.com/r/etmjl6
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