Online Food Delivery Market to Grow at Double Digits and Cross USD 273 Billion by 2028
Published | 15 March 2022
The global online food delivery market's boom is attributed to the changing lifestyle, smartphone penetration, and the internet…
A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the global Online Food Delivery market was worth USD 127.1 Billion in 2021 and is anticipated to reach USD 273.9 billion by 2028 at a CAGR of 11.8%. Due to the exceedingly high rate of urbanization coupled with the changing hectic lifestyle, which has created the demand for easy, time-saving lifestyle solutions, online food delivery is emerging as one of the most prominent trends across the globe. Moreover, the swelling cut-throat competition among the players in the market, rising number of innovative techniques announced by the food providers, and more discounts offered to escalate customer satisfaction and retention are major growth drivers.
Increasing Penetration of Smartphones and Internet Connection and Lifestyle Changes Driving Market Growth
Smartphones and internet connections have become more available to the majority of the population as a result of modern lifestyles, rising incomes, and dual incomes when both spouses work, resulting in an rise in the usage of online food delivery platforms around the world. The convenience that these apps add to modern working consumers' lives, of getting the food delivered to their doorsteps in such a simple and user-friendly manner, is also one of the major reasons for the boom in this market. A recent study reveals that the majority of users of such apps belong to the working-age population. A wide range of different food items belonging to different cuisines has been made available to the customers with just one click on their smartphones. Online food delivery has caused a reduction in long queues and the waiting time for ordered food delivery. Food providers invest in infrastructure like setting up warehouses, cold storage facilities, improved logistics, etc., to provide fresh, healthy, high-quality food. Innovation in digital infrastructures like the development of more user-friendly online food delivery apps and websites is also playing an essential part in the market growth.
The popularity of Food Delivery Systems Confined to Smartphone Users and Low Acceptance by local Food Joints
Lack of awareness and digital literacy, skepticism regarding the safety of online monetary transactions, low technical knowledge about online payment methods have led to inadequate adoption of online food delivery systems by local joints, small food business owners, hotels, and restaurants. Moreover, the majority of the online food delivery transactions are confined to the urban clout having smartphones or connectivity to the internet, so the food delivery systems have a lower reach in underdeveloped regions where these things are not accessible.
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Online Payments Food Delivery Segment Expected to Witness Tremendous Growth In Upcoming Years
Amidst the online payment mode and cash on delivery, the online mode of payment accounts for the larger share in 2021. The cash-on-delivery mode is preferred mainly by the people of emerging economies like India and sub-Saharan Africa. However, banks and other financial institutions are working towards enhancing transaction security and providing additional services. Governments around the globe are working to offer different schemes and incentives to promote digital transactions and cashless economies. The food delivery service providers also incentivize online payments by offering attractive cashbacks, discounts, etc., on using online modes. Such initiatives may further accelerate the share of online payments in the coming years.
Impact of COVID-19 on the Global Online Food Delivery Market
After the initial setback received by the online food delivery market due to the lockdown restrictions. The fear of infection made customers shy away from ordering food as they relied on home-cooked food during the early phases of the COVID 19 pandemic. Gradually the market recovered and acted as the lifeline for the restaurant and food businesses. Due to social distancing norms, the online food delivery platforms are taking up additional safety measures such as contact-free delivery. Further, the restaurants are trying to spread awareness to the customers by collaborating with social networking sites about how they maintain hygiene to stop the spread of the virus to their customers. The pandemic has aided companies to improve unit economics and add more consumers, as the frequency to dine out has dropped.
North America Dominates the Online Food Delivery Market
The Online Food Delivery market is categorized into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. North America dominated the market with the highest shares in 2021. This growth can be due to a significant preference for fast food, fast-moving hectic lifestyles with time shortage, and the presence of key market players. In contrast, the Asia-Pacific region shows the highest growth rate. It can be attributed to the rising per capita income, growing use of smartphones, quick adoption of advanced technologies like voice-assistant apps, etc., the high millennial population in these regions, and their changing preferences. Most of the online food delivery orders in these regions are made by people belonging to the age group of 21-35. The growth of the e-commerce sector in countries like China, India, and Japan has contributed to the adoption of food delivery services in the region.
The Online Food Delivery market is a highly fragmented market with numerous players serving the market. The key players dominating the Online Food Delivery market are Just Eat, GrubHub, Delivery Hero, Deliveroo, Takeaway, Foodpanda, Ele.me, Meituan Waimai, Doordash, Postmates, Uber Eats, Zomato Ltd., Swiggy, Domino’s pizza, Delivery.com, Pizza hut, Dunzo, Faasos, EatFit, and other prominent players. The key marketing strategies adopted by the industry players are providing new complementary services, collaborations, partnerships, and acquisitions to expand their customer reach.
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The report's in-depth analysis provides information about growth potential, upcoming trends, and the global Online Food Delivery market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global Online Food Delivery market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the market's growth drivers, challenges, and competitive dynamics.
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- Online Food Delivery Market- Global Industry Size, Share, Growth, Opportunity and Forecast, 2018-2028, Segmented By Platform Type (Mobile Applications and Website), By Business Model (Order Focused Food Delivery System, Logistics Based Food Delivery System and Full-Service Food Delivery System), By Payment Method (Online Payment and Cash on Delivery), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa);
Publish Date: March 2022
The global online food delivery market's boom is attributed to the changing lifestyle, smartphone penetration, and the internet.
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