The global food delivery market accounted for USD 151 Billion in 2020 and expected to reach around USD 361 Billion in 2028 with a considerable CAGR of 12% during the forecast period of 2021 to 2028.

Food delivery is a courier service that delivers food to customers on their requirements by restaurants, café, stores, or third-party applications. Right now,food orders are executed by mobile apps, websites such as (doordash, zomato, deliveroo, swiggy, and others) or via telephone. Food delivery has now become a crucial part of the urban lifestyle post pandemic with people ordering food more than ever. Furthermore, rising demand and preference for home delivery options is further propelling the growth of the food delivery market over the forecast period.

Market Drivers:

• Surge in penetration of internet and user-base
• Productive discounts offered by food delivery apps and services
• Quick shifting to digital technology and expanding options

Market Restrains:

• Huge market competition due to established players making it difficult for new entrants to survive in the market

• Price fluctuation in the market imposing risk to the service providers

Report Coverage: 

Market	Food Delivery Market
Market Size 2020	USD 151 Billion
Market Forecast 2028	USD 361 Billion
CAGR	12 % During 2021 - 2028
Analysis Period	2017 - 2028
Base Year	2020
Forecast Data	2021 - 2028
Segments Covered	By Type, By Platform, By Model, By Payment and By Geography
Regional Scope	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Companies Profiled	Grubhub, Uber Technologies Inc., Foodpanda, Zomato, Deliveroo, Just Eat Takeaway.com., Doordash, Swiggy, Pizza Hut Inc., Mobo Systems, Inc. and among others.
Report Coverage	Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis
Customization Scope	10 hrs of free customization and expert consultation

Market Dynamics

The market is currently showing lucrative growth due the surge in internet penetration with access to high-speed internet facilities inconvergence with the enhanced working population and inflating income levels is fueling the growth of the food delivery market. In addition, rising smartphone users globally and their inclination towards online shopping for food and beverages is further propelling the market for food delivery market. Food & beverages (F&B) e-commerce users reached upto1.5 billion in 2020 and are anticipated to expand by 800 million with a significant CAGR of 25% during the forthcoming years. For instance, according to Forbes, between February and April 2020, 34% of food delivery customers used Uber Eats in the US. Moreover, growing food delivery apps on smartphones and increased number of users of young generation across the emerging regions is fueling the market. Furthermore, the android platform offers a user-friendly approach, flexibility, operation, technological advancements in the design, which in turn drives the substantial growth in the food delivery market throughout the forecast period.

Market Segmentation

Market by Type

• Meal Kit Delivery
• Restaurant Prepared Food Delivery
• Grocery Delivery
• Veggie Box Delivery

Among type, meal kit delivery held the largest share in the food delivery market owing to manufacturers providing ready-to-cook fresh ingredients for recipes that users can be the cook at their homes.

Market by Platform

• Online
• Offline
• Online to Offline (O2O)

Among platform, online food delivery platform showed significant growth due to growing number of online food delivery apps and ease in ordering app through such apps.

Market by Model

• Platform to Customer
• Aggregators
• Full-Stack Model
• Restaurant to Consumer Model

Among model, the Platform to customer segment dominates the food delivery market share in 2020 this is attributed to the third-party applications offered to users by a list of existing restaurants which is nearby the customer location. In addition, food is delivered through the café, restaurant, or delivery agent registered on the platform. 

Market By Payment

• Online Payment
• Cash on Delivery

Among the payment segment, the online payment segment accounted for a lucrative growth owing to the fixed digitalization trend in worldwide countries. Moreover, payments can be made by net banking, debit or credit cards, payment portals, which is a major level of convenience for customers. Furthermore, enhancing use for digital money and rising numerous partnerships among the food delivery service contributors and banks is further propelling the market growth of this segment, and the trend is expected to continue throughout the forthcoming years. 

Regional Overview

Asia Pacificdominated the market share and anticipated to expand with a significant CAGR during the forthcoming years

The food delivery market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific accounted for a substantial revenue share in 2020 due to growing demand from China. In addition, rising urbanization and inclining profitable growth in the past few years have positively impacted the country’s food industry and food delivery services. However, online food delivery services are showing increased growth due to the enhanced convenience and user-friendly options as compared to offline platforms. Moreover, online food delivery services are also improving the availability and accessibility of the food for the user, which has provided evidence to be a prominent game-changer for the food delivery market. Furthermore, Asia Pacific held huge potential and exhibit large growth in terms of increasing consumption towards fast foods, enhancing usage of m-Commerce, escalating advanced technology and internet penetration, and high presence of local players.

While, North America is leading the food delivery market due to the superior presence of online food delivery service providers, increase in demand for customization in food offerings, high acceptance of fast foods among consumers, extensive advertisements through the manufacturers for hygienic home delivery services, high presence of restaurant chains that provides home delivery services and rising demand for ready-to-eat products. 

Competitive Landscape

This section of the report pinpoints various key vendors of the market. Some of the key players offered in the report include Grubhub, Uber Technologies Inc., Foodpanda, Zomato, Deliveroo, Just Eat Takeaway.com., Doordash, Swiggy, Pizza Hut Inc., Mobo Systems, Inc. and among others.

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa 

 

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