Global Online Food Delivery Market Size, Share, Growth Analysis, By Type(Restaurant to Consumer and Platform to Consumer), By Payment Method(Cash On Delivery and Online) - Industry Forecast 2024-2031

Global Online Food Delivery Market size was valued at USD 60.18 billion in 2022 and is poised to grow from USD 71.43 billion in 2023 to USD 281.52 billion by 2031, growing at a CAGR of 18.7% in the forecast period (2024-2031).

Online meal delivery services offer conveniences like easy location-based delivery and options for timely delivery, with the recent announcement of a merger between Grab Holdings, the leading ride-hailing and food delivery company in Southeast Asia, and Altimeter Growth Corp., valued at USD 40 billion. Governments observe a rise in average population due to demanding work schedules and evolving lifestyles, particularly fostering family-based transactions in the online food delivery market. This market encompasses firms utilizing diverse food packages, offering both online and mobile commerce avenues, whether the dish is ready-to-eat or requires additional preparation. Advantages such as heavy discounts, reward programs, doorstep delivery, and diverse payment methods characterize these services. Uber Technologies Inc.'s acquisition of Drizzly further integrates complementary delivery services and apps, marked by 18.7 million freshly issued Uber common stock shares and cash, totaling approximately USD 1.1 billion. Concurrently, food service suppliers are erecting substantial warehouses to maintain fresh produce, bolstering the adoption of online delivery services. Factors like extensive food choices and mobile app ordering contribute to industry growth, spurred by the escalating demand for contactless delivery amid a pursuit of convenience. This landscape witnesses competition among major global and regional players, each striving to enhance user experiences through technological advancements, strategic partnerships, and broadened restaurant networks.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Online Food Delivery Services Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Online Food Delivery Services Market Segmental Analysis

Global Online Food Delivery Market is segmented on the basis of type, payment method and region. By type, the market is segmented into restaurant to consumer, platform to consumer. By payment method, the market is segmented into cash on delivery and online. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Online Food Delivery Services Market

Enhanced network connectivity and widespread smartphone adoption, consumers now have access to a diverse range of applications, including online meal delivery services. Utilizing smartphones, individuals can conveniently place orders from their favorite restaurants by perusing a curated list. This technological shift has penetrated even the most remote corners of the globe, including rural areas, influencing a change in attitudes towards online purchasing. The accessibility of e-commerce platforms and food delivery services through smartphone applications has played a significant role in this transformation. Furthermore, there has been a substantial surge in global mobile internet users, attributable to the rapid expansion of network infrastructure, particularly in developing economies, facilitating remote access to mobile applications.

Restraints in the Global Online Food Delivery Services Market

Food delivery businesses are encountering logistical challenges due to the increasing trend of online food ordering, with numerous restaurants partnering with internet food delivery services to expand their reach. However, these platforms inundate eateries with a significant influx of orders daily, making it challenging for restaurants to efficiently handle the substantial volume of orders spanning multiple platforms.

Market Trends of the Global Online Food Delivery Services Market

Advancements in AI and big data analytics have broadened their scope of applications, particularly evident in the realm of online food delivery platforms. Leveraging these technologies, developers are poised to create mobile apps and websites offering users tailored experiences, streamlined navigation, and visually appealing interfaces. These intelligent platforms will curate selections based on users' historical and current preferences, location data, and peer reviews, enhancing customer satisfaction. The interactive element adds value by fostering greater engagement, bridging the gap between digital ordering and the traditional dine-in experience. Furthermore, real-time processing of consumer behavior by big data analytics ensures prompt and personalized recommendations for app users.