Food Delivery Market Research Report 2023

Food Delivery Market Synopsis

Food Delivery Market Size Was Valued at USD 221.65 Billion in 2022, and is Projected to Reach USD 505.50 Billion by 2030, Growing at a CAGR of 13.4% From 2023-2030.

A Food Delivery Market is about courier service in which a restaurant, store, or independent food-delivery company delivers food to a customer. An order is typically made either through a restaurant or grocer's website or mobile app or through a food ordering company.

• According to the company's point of view, an online ordering and delivery system provides a complete sales channel for the restaurant. This means that the restaurant can use it as a tool for generating more profits and organizing the restaurant better. It also allows restaurant owners to save on labor costs and restaurant space needed to serve such customers.
• According to customers' point of view, Online food ordering gives customers the freedom and choice to place an order at virtually any time, from anywhere, saving the time and resources typically spent on traveling to pick up a meal. It also gives the customers the advantage of reordering their favorite orders in the easiest and hassle-free manner.
• The food delivery market is widely spread and many competitors are facing each other, but this is need of an hour. It is like a blessing for working people. The development of the overall food delivery industry that allows customers to order food from different restaurants is pivotal in driving the industry's growth. Furthermore, providers of food services are setting up large warehouses to store fresh produce for offering high-quality food, encouraging the adoption of online delivery services.

Top Key Players Involved Are:

"Delivery Hero SE (Germany), Uber Technologies Inc (US), Just Eat Holding Limited (UK), Jubilant FoodWorks Ltd (US), Roofoods Ltd (Deliveroo) (UK), Bundl Technologies Pvt. Ltd (Swiggy) (Indian), takeaway.com (Netherlands), delivery.com (US), Blue Apron Inc. (US), Zomato™ Ltd. (India), HelloFresh (Germany), Dahmakan (Malaysia), Yemeksepeti (Turkey), OLO (US), DoorDash.Inc. (US), Amazon.com Inc. (US), Rappi Inc.(US), Lieferando (Germany), Food Panda (Germany), Thuisbezorgd (Netherland), And Other Major Players."

Food Delivery Market Trend Analysis

The Benefit Of Multiple Payment Options

• Food delivery allows both traditional restaurants and take-away-only establishments to continue feeding their customer. Customers would have to dial the number of a restaurant to have food delivered to their doorsteps. Oftentimes, payment is done by Cash on Delivery after the food has been received by the customer.
• While COD payments are still commonplace, customers would like to have the option of paying for their food in a way that is convenient to them. A food delivery service solves exactly just that because it gives customers multiple payment method options that are fast and secure.
• A food delivery service solves exactly just that because it gives customers multiple payment method options that are fast and secure. Customers can, depending on the delivery company, choose to pay online or in person, with cash or a card. A flat rate delivery fee is often charged with what the customer has bought. Sometimes no delivery fees are charged depending upon the situation.
• Nowadays people are following the trend of going cashless and hence people do not carry money with them. Ordering food needs money so the food delivery market has followed the trend and made it easy to order. There is no need of carrying coins along if a card or UPI payment mode is available.

Improved Customer Service

• Neat and clean service is a type of quality that people admire and want in their meals. When you provide them with the same quality food service that you advertise, then it would help to create goodwill. It is one of those characteristics that would make people choose your brand over competitors in the long term.
• To prioritize customers' expectations the companies can gather feedback, and a market research company specializing in the food delivery sector can impartially ask consumers what factors in a list are most important to them. Every aspect needs a keen approach like timely delivery, convenience, Delivery speed, Food quality, Overall price, Reviews and recommendations, Customer service, etc.
• The customers are willing to get retained once they find that the company is offering a kind service. They are much more interested in good delivery than any other thing. The customer's first preference is warm, polite, and harmless delivery of food.
• The most important part of customers looking for on-demand food delivery services is the convenience they provide. Food delivery applications must best match supply and demand because customers expect timely food delivery and quality customer service. Food must be delivered quickly.

                                                                                                                                                                                                 Source: Statista

The Above Mentioned Graph Represents the number of orders from takeaway.com in 2022 worldwide, North America has highest number of orders from takeaway.com followed by North Europe, Western Europe and Southern Europe.

Segmentation Analysis Of The Food Delivery Market

Food Delivery Market segments cover the Type, Application, and Payment Mode. By Payment mode, the Online Payment Mode segment is anticipated to dominate the Market over the Forecast period.

• Before the COVID-19 pandemic, cash and credit/debit cards were the most popular payment modes in the food service industry. However, with the pandemic leading to a rise in contactless payment methods, there has been a shift towards digital payment methods like mobile payments and online ordering. Mobile payment apps like Apple Pay, Google Wallet, and PayPal have become increasingly popular in recent years.
• The online mode of payment is preferred for the food delivery market considering the convenience and go cashless trend. More people are inclined towards the online mode particularly the younger generation due to increasing technologies and innovation.
• In some emerging markets, mobile payments are the dominant mode of payment in the food delivery market. This is because many people in these regions do not have access to traditional banking services but have access to mobile phones. Mobile payments allow them to easily and securely pay for their food deliveries.
• Overall, the trend towards online and mobile payments is expected to continue in the food delivery market as more people adopt digital technologies and the convenience they offer.

Regional Segmentation Of The Food Delivery Market

Asia Pacific is expected to dominate the Market over the Forecast period.

• The Asia Pacific region has a huge population, which means there is a large customer base for food delivery companies to tap into. Moreover, with the growing middle class, more people have disposable income to spend on food delivery services.
• The region is experiencing rapid urbanization, with more people living in cities where they have less time to prepare their meals. This has created a demand for food delivery services that can deliver meals quickly and conveniently.
• The Asia Pacific region is home to some of the world's most technologically advanced countries, such as Japan, South Korea, and Singapore. This has led to the development of sophisticated food delivery platforms that make it easy for customers to order food online.
• The Asia Pacific region is known for its diverse and delicious cuisine. With so many different types of food available, there is a lot of opportunity for food delivery companies to offer a wide range of options to customers.

Covid-19 Impact Analysis On Food Delivery Market

• Before COVID-19, the on-demand economy sparked by Uber, Netflix, and Amazon Prime had already started its spread to the restaurant industry. Consumers wanted convenience in all aspects of their lives, including food.
• During the beginning of the pandemic, restaurants and food establishments only offered options for take-out and delivery. Even as time went on and they were allowed to operate at a limited capacity, they still relied on this mode of generating revenue even during a crisis. Even ramen chains that previously only had available dine-in options for a lot of their menu items eventually understood the benefits of the food delivery service and its value for their business.
• There has been a significant increase in the market for food delivery because most people were home and had no specific work to do. Spending time with family would be more effective if the food would be a companion hence the ordering of food began then. The people would order good food and enjoy their time. The food delivery market was permitted by the government to deliver food and let not anybody be hungry.
• Hence, even in covid pandemic food delivery business was blooming more than any other business.

Top Key Players Covered In The Food Delivery Market

• Delivery Hero SE (Germany)
• Uber Technologies Inc (US)
• Just Eat Holding Limited (UK)
• Jubilant FoodWorks Ltd (US)
• Roofoods Ltd (Deliveroo) (UK)
• Bundl Technologies Pvt. Ltd (Swiggy) (Indian)
• com (Netherlands)
• com (US)
• Blue Apron Inc. (US)
• Zomato™ Ltd. (India)
• HelloFresh (Germany)
• Dahmakan (Malaysia)
• Yemeksepeti (Turkey)
• OLO (US)
• DoorDash, Inc. (US)
• com Inc. (US)
• Rappi Inc.(US)
• Lieferando (Germany)
• Food Panda (Germany)
• Thuisbezorgd (Netherland), And Other Major Players.

Key Industry Developments In The Food Delivery Market

In Nov 2022, DoorDash becomes WeWork’s exclusive on-demand delivery platform for community events in the U.S. and Canada, kicking off the partnership with food drives for local food banks in the holiday season.

In Sept 2022, Domino's Pizza, Dunkin' Donuts, and Popeye's franchiser, Jubilant Foodworks completed the acquisition of a 29.42% stake in Roadcast Tech Solutions.