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Online Food Delivery Market- Opportunity & Forecast, 2027

Global Online Food Delivery Market- Analysis by Delivery Models (Traditional Delivery Model, Aggregators and New Delivery Model), By Regions (North America, Europe, Asia Pacific, Middle East & Africa and Latin America), Competitive Analysis, Opportunity and Forecast, 2027

The global online food delivery market was valued at USD 65 billion in 2017 and it is expected to grow over USD 150 bn by 2027.

In the digitized world, ordering food from online has become a trend. Particularly millennials are more attracted to order food from online. The online food delivery market offers the consumers to order their favorite dishes from favorite restaurants by comfortably staying at home or office. The growth of internet users, availability of labour for gig economy, change in lifestyles and increasing disposable incomes are some of the drivers of growth for the online food delivery market. The emergence of many food delivery apps has drastically reduced the long queues in restaurants and also the waiting time for receiving an order.The online food delivery market makes the order processing much easier and reduces human error. Consumers can monitor their expenses real time. Rising user acceptance of cloud kitchen has made the traditional kitchen or restaurant model has less profitable.The online food delivery apps are now in average the top 40 most downloaded apps in the market.

The top five players in the sector combined has valuation above USD10 Bn. Customer retention the key factor in generating profitable business in this sector. As the loyalty of the customers are changing frequently due to emergence of new entrants offering variety deals and offers. High logistical complexities, development and implementation of system are the major challenges in this industry. While takeovers signifies the latest multi-billion dollar valuation in global online food delivery market, companies faces an increasingly crowded market.As the Industry is rapidly changing with the support of software solutions, there is a huge scope of drones being used in the food delivery market.

Market segmentation

The online food delivery market is segmented on the basis of delivery model and region.

By Delivery Model the online food delivery market can be categorized into traditional delivery model, Aggregators and New Delivery Model. Aggregators and New delivery model dominate the Online food delivery marketplace. The aggregators operate a single website offering access to multiple restaurants. The users can log into the website and check prices, peer reviews before ordering food online. The aggregators collect a fixed margin of order from the restaurants. An interesting fact is that there is no additional cost incurred for consumers.  This has propelled the growth of aggregators in the sector. Companies with basic asset model earn a profit margin upto 40%. Consolidation is aggressively happening although most of them as already occurred in this market as most of them compete to serve a larger user base.  

New delivery category offers logistics for the Restaurants along with their website.This particular segment is expected to reach around USD 21 Bn by 2027. The cost of maintaining delivery drivers and delivery vehicles are the most challenging factors in this segment.

By Regionthe online food delivery market is segmented into North america, Europe, Asia-pacific, LAMEA.

Regional analysis

Regionally Asia-Pacific dominates the Global online food delivery market with a market revenue around USD 35 bn. The growth is driven by increasing young population who demand for easy and quick food delivery services. Asia-Pacific is said to grow highest in the forecasted period of 2020-2027. Food delivery has become a crucial factor for tech players in the South east Asian market. Major leading companies are interested to tap the nascent industry which can offer high margins other than their main business. For example, Uber a ride hailing company has entered into food delivery with Uber eats. According to Euromonitor, Asia Pacific will spend around half the USD221 Bn global expenditure on online food delivery.

Countries like India has a huge market for online food delivery as there is an increased internet users and large number of young people. Increase in disposable income is also a key factor for the growth of online food delivery market in India. With Swiggy, a market leader in online food delivery app is in talks to buy Uber eats, the potential consolidation serves a profitable business condition. The online food delivery in India is expected to grow over 16%.

North America is the next significant market for online food delivery due to large number food delivery companies and a very high consumer interest for online fast foods.

Competitor analysis

The key players in Online food delivery market are Uber Eats, McDonalds, Dominos, Pizza hut, Swiggy, Zomato, Delivery Hero, Just Eat, Food Panda.


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