Online Food Delivery and Takeaway Market to Hit Valuation of USD 442.0 Billion by 2032: Astute Analytica

The global online food delivery and takeaway market experiences rapid growth driven by convenience, technology, and urbanization. Platform-to-consumer models dominate, with regional giants like Meituan (China), DoorDash (US), and Zomato (India) leading the way, facing challenges of profitability and sustainability.

New Delhi, April 23, 2024 (GLOBE NEWSWIRE) — The global online food delivery and takeaway market is projected to reach US$ 442.0 billion by 2032, up from US$ 164.9 billion in 2023, at a CAGR of nearly 11.58% during the forecast period 2024–2032.

The global online food delivery and takeaway market has undergone significant expansion, becoming a vital part of contemporary urban life. The COVID-19 pandemic accelerated this growth, with consumers turning to contactless delivery for safety. The market consists of two primary segments: platform-to-consumer delivery (dominated by the likes of Uber Eats, DoorDash, Deliveroo, Meituan Dianping, and Ele.me) and restaurant-to-consumer delivery. Platform-to-consumer platforms partner with numerous restaurants while restaurant-to-consumer models focus on individual restaurant deliveries.

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Geographically, China stands as a powerhouse, led by Meituan Dianping. The U.S. market, with DoorDash and Uber Eats, features intense competition and continuous innovation. India, with Zomato and Swiggy, reflects a unique blend of rapid urbanization and technology adoption fueling its food tech sector. Millennials and Gen Z are the primary drivers of this market, drawn to the convenience and tech-centric nature of these services. Aggressive promotions and loyalty programs contribute to customer acquisition and retention. Zomato’s 535 million orders in FY2022 (a 124% year-on-year increase) illustrate the market’s vast potential.

Despite its growth, the online food delivery and takeaway market faces challenges. Profitability is a longstanding issue due to steep discounts in a fiercely competitive environment. Uber Eats, for example, reported a net loss of $9.14 billion against revenues of $31.87 billion in 2022. Environmental concerns about packaging waste are also rising. The market is responding with a focus on sustainability, investments in innovation, and strategic partnerships. These innovations target packaging solutions, enhanced user experiences, and optimized delivery logistics. Partnerships between established food chains and delivery platforms offer exclusivity and improved service to customers.

The Convenience Boom: Consumer Behaviour in Online Food Delivery and Takeaway Market

The online food delivery and takeaway market is booming. A significant 60% of U.S. consumers indulge in delivery or takeout at least once weekly, with a substantial 31% utilizing third-party delivery services twice a week or more. This trend suggests that convenience plays a vital role in consumer choices. Furthermore, 34% of consumers spend upwards of $50 per order when ordering food online, exhibiting a willingness to invest in this service.

Demographically, younger generations dominate the online ordering landscape. The 18-24 age group leads in food delivery orders, closely followed by the 25-34 age group at 30%. This highlights the tech-savviness and preference for convenience among these groups. Interestingly, despite the prevalence of third-party platforms, 70% of consumers express a desire to order directly from restaurants. This indicates a sense of loyalty and a preference for ensuring their money directly supports the establishment.

The choice between delivery and dine-in experiences is also revealing. On average, Americans spend 15% more per year on food delivery than dine-in options. This suggests a premium is placed on the convenience of home delivery. Further underscoring this desire for convenience, nearly 28% of people order food online specifically to save time on cooking and cleaning tasks.’

Key Findings in Online Food Delivery and Takeaway Market

Market Forecast (2032) US$ 442.0 Billion
CAGR 11.58%
Largest Region (2023) Asia Pacific (42.9%)
By Type Monthly Subscription Model (36.6%)
By Application Millennials (57.2%)
Top Trends
  • Ghost kitchens gaining popularity: Delivery-optimized kitchens without dine-in spaces.
  • Subscription models for frequent users: Offering discounts and perks for loyalty.
  • Focus on sustainable packaging and practices: Addressing environmental concerns.
Top Drivers
  • Convenience for consumers: Effortless ordering and doorstep delivery.
  • Urbanization and busy lifestyles: Time-saving solutions in fast-paced environments.
  • Increased tech adoption and smartphone usage: Fueling app-based ordering
Top Challenges
  • Profitability for platforms: Balancing high operational costs and competitive pricing.
  • Labor issues and driver retention: Fair compensation and working conditions.
  • Environmental impact of packaging: Developing sustainable solutions.

Global Delivery Trends: Pickup Dominates, Driver Habits Revealed

Delivery preferences across nations like Canada, Australia, and New Zealand reveal a strong inclination towards pickup or takeout services across the online food delivery and takeaway market, reaching a popularity of 78% in Canada and Australia, and a remarkable 87% in New Zealand. Interestingly, takeout in New Zealand is twice as popular as delivery (87% vs. 43%).  The preferred ordering method in the US, Canada, Australia, and New Zealand is directly through a restaurant’s website or app. However, when choosing third-party apps for delivery, 18% of US consumers cite wider customization options as a key factor.  Shifting to driver insights, food delivery driver statistics expose that nearly 30% of drivers find it hard to resist sampling the food they deliver, while the average food delivery driver in the USA earns an annual income of $29,845.

DoorDash and Uber Eats are Market Giants in America, Becoming Most Profitable Recently

DoorDash firmly dominates the U.S. online food delivery and takeaway market, holding a substantial 66% market share in 2024. In February 2024, a staggering 67% of U.S. consumers’ meal delivery sales went to DoorDash. The company’s strategic moves, such as free memberships through partnerships with Chegg and Roku, have likely contributed to its market leadership. Following DoorDash, Uber Eats holds the second-place position, capturing 23% of observed U.S. meal delivery sales in February 2024.

Uber Eats boasts a global presence, operating in 32 countries. Despite taking a significant cut from each order (ranging from 20-30%), Uber Eats only achieved profitability in 2022. However, Uber as a whole saw a significant rebound in 2023. The company reported $1.9 billion in profit, driven in part by $12.2 billion in revenue from Uber Eats, showcasing a recovery from 2022’s losses and indicating the strength of its food delivery arm. Uber Eats shows impressive growth and market penetration. The platform achieved its highest-ever gross bookings in Q4 of 2022, reaching a total of $14.315 billion.  Furthermore, in 2021, Uber Eats customers placed a staggering 1.7 billion orders, underscoring the immense popularity of food delivery. The platform’s reach is further evident in 2022, when the number of active restaurant partners on Uber Eats surpassed 825,000.

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Asia Pacific is Becoming Most Potent Hub for Online Food Delivery and Takeaways

On-demand apps have taken the lead in the Southeast Asian online food delivery and takeaway market, with major players like GoJek, GrabFood, FoodPanda, and Deliveroo dominating the sector. Among these, FoodPanda has emerged as a particularly strong force, maintaining a firm grip on the Thailand market while also establishing a popular presence in the Philippines, Singapore, Hong Kong, Malaysia, and several other countries in the region. Meanwhile, Deliveroo has strategically positioned itself for success by setting up a new Asia Pacific Performance Hub in Singapore, demonstrating its commitment to growth and expansion in this dynamic and rapidly evolving market.

On the other hand, India has duopoly of Zomato and Swiggy. Wherein, Zomato’s profits saw a significant surge in Q3, jumping 3.8X to USD 17.4 Million, a substantial improvement from the USD 4.4 million recorded in the previous quarter of 2023.  This marks a remarkable turnaround from the same quarter in the previous fiscal year (Q3 FY23) when the company incurred losses of USD 42.3 million.

China stands as a driving force within the Asia Pacific’s online food delivery and takeaway market, a dominant player in the region, experienced a 21.4% year-over-year growth in its food delivery revenue during Q4 2022, reaching a total of 60.13 billion yuan ($8.76 billion). This momentum continued into Q2 2023, where Meituan’s core local commerce revenue, encompassing food delivery and Meituan Instashopping, increased by 39.2% to 51.2 billion yuan. The vast scale of Meituan’s operations is evident with nearly 9.3 million active merchants and 678 million transacting users on its platform as of 2022. Meituan Waimai, the company’s food delivery arm, commands an impressive 65% market share in China. Despite a 3.44 billion yuan fine in October 2021 for monopolistic practices, Meituan remains optimistic, observing that food delivery comprises only 2.5% of urban meals consumed in China, highlighting massive growth potential. The company’s expansionary ambitions are reflected in its plans to add 10,000 employees in 2023 to its existing workforce of 91,932.

Ele.me, powered by Alibaba, serves as Meituan’s primary rival within China’s online food delivery and takeaway market sphere. Established in 2009, Ele.me’s initial focus was college students, steadily broadening its consumer base to include white-collar workers. Alibaba’s full acquisition of Ele.me in 2018, in a transaction worth $9.5 billion, solidified its position in the market. The intense competition between Ele.me and Meituan has resulted in a fierce price war, as they vie for dominance within China’s food delivery industry.

The broader online food delivery and takeaway market context further underscores the significance of the region. China’s food delivery market, valued at approximately $86 billion in 2019, experienced substantial growth in 2020. Meituan’s strategic expansion into adjacent markets like grocery delivery (projected to reach $219 billion by 2026), travel booking ($80 billion by 2020), and movie ticketing (548 million tickets sold in China in 2020) vastly increases its revenue potential and addressable market. The current low penetration of food delivery in China (a mere 2.5% of all urban meals according to Meituan) leaves considerable room for future industry growth.

Key Companies:

  • DoorDash
  • GrubHub
  • Blue Apron
  • HelloFresh
  • Takeaway.com
  • Deliveroo
  • Delivery Hero
  • Zomato
  • Swiggy
  • Domino’s Pizza
  • Just Eat
  • Delivery.com
  • Ele.me
  • Ubereats
  • Foodhub
  • Other major players

Key Segmentation:

By Type

  • Monthly Subscription
  • Others

By Application

  • Generation Z
  • Millennials
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa (MEA)
  • South America

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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