Online Food Delivery Market (By Type: Platform to Consumer, Restaurant to Consumer) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global online food delivery market was estimated at USD 221.66 billion in 2022 and it is expected to surpass around USD 594.56 billion by 2032, poised to grow at a CAGR of 10.37% from 2023 to 2032.

Key Pointers

• The platform-to-consumer delivery segment held the largest revenue share of 69.34% in 2022. 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 7.41% 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.
• Asia Pacific held the largest revenue share of over 40.79% in 2022 and is expected to register the highest CAGR from 2022 to 2032. 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.
• Europe held a significant revenue share in 2022. The outbreak of the COVID-19 pandemic has driven the Europe online food delivery market, as millions of people ordered food online.

Report Scope of the Online Food Delivery Market

Smartphones allow users to easily browse a list of restaurants and place orders with their chosen restaurants. Improved connectivity and smartphone access are expected to enable market players to expand their presence in untapped markets, thereby increasing their customer base. Online food ordering through mobile applications allows users to connect with restaurants and provide relevant feedback essential to enhancing the food and delivery quality.

The soaring rate of smartphone adoption is driving new users to adopt online food ordering services, thereby contributing to market growth. The growth can be attributed to the increasing number of restaurants worldwide along with the widening usage of cloud-based technology and growing acceptance of Quick Service Restaurant (QSR) services. Owing to the pandemic, many packaged food services and restaurants chose online sales channels to meet consumer needs. As a result, the added benefit of installing POS systems to precisely identify customer preferences and sales trends is expected to augment the market’s growth.

However, unstable market prices are one of the key restraints of the market. Food prices in the online food delivery services market are highly volatile and are subject to several factors in the food industry. Online food delivery service businesses may find it difficult to keep track of market prices and develop a suitable pricing model.

Most delivery platforms make money through revenue streams such as customer delivery fees per order, in-app advertising, customer service fees, restaurant commission fees, and tips to drivers. Among these factors, restaurant commission fees are the most contentious as restaurants may increase the rate of their food due to higher commissions charged by online delivery platforms. These costs are further passed on to customers in terms of service charges, which are expected to drive the customer away from a particular restaurant due to high food prices.

Type Insights

The platform-to-consumer delivery segment held the largest revenue share of 69.34% 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 7.41% 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 40.79% in 2022 and is expected to register the highest CAGR from 2023 to 2032. 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 2022. 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.

Online Food Delivery Market Segmentations:

By Type

• Restaurant to Consumer
• Platform to Consumer