Online Takeaway Food Delivery Market By Delivery Model, Type of Cuisine, Order Value and Regional Forecast, 2024-2031

Online Takeaway Food Delivery Market Valuation - 2024-2031

The growing need for ease and the quick adoption of digital technologies. The rise of smartphone usage and internet penetration has made it easier for consumers to purchase food online, resulting in an increase in market activity is surpassing USD 212.1 Billion in 2024 and reachingUSD 466.01 Billion by 2031.

Furthermore, the COVID-19 pandemic has expedited the trend to contactless delivery and online ordering as individuals seek safer, more convenient dining options. Real-time tracking, personalized recommendations, and connection with digital payment systems improve the consumer experience, resulting in increased engagement and repeat usage is expected to grow at aCAGR of about 10.34% from 2024 to 2031.

Online Takeaway Food Delivery Market: Definition/ Overview

Online takeaway food delivery is a service that allows clients to purchase meals from restaurants or food vendors using digital platforms like websites or mobile applications and have it delivered to their location. This service is extremely popular due to its convenience and the growing preference for on-demand, contactless purchases. Applications include a wide range of food options delivered to homes, offices, and other sites to meet a variety of client needs, ranging from fast food to gourmet dinners. The service also includes shopping deliveries and meal kits. The future of online takeaway food delivery seems promising, thanks to technical breakthroughs such as AI and machine learning for personalized recommendations, as well as rising consumer demand for convenience.

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Will Rising Demand for Smartphone Usage and Internet Penetration Drive the Online Takeaway Food Delivery Market?

Rising smartphone usage and internet penetration are important growth factors for the online takeaway food delivery sector. As smartphones become more common and worldwide internet access grows, people are increasingly turning to mobile apps and online platforms for easy food ordering and delivery. In June 2024, According to a report published by the International Telecommunication Union (ITU), global internet penetration has reached 65%, with mobile broadband subscribers exceeding 8.5 billion. This extensive connectivity has created an ideal environment for online meal delivery services to flourish. A study published in the Journal of Business Research in April 2024 discovered that smartphone users are 3.5 times more likely to use online meal delivery services than non-smartphone users highlighting the strong correlation between device ownership and market growth.

In January 2024, The US government's investment in developing 5G networks improved the speed and dependability of online food delivery businesses even more. This expanded connection has enabled these platforms to provide services in previously neglected locations, resulting in further expansion in the sector.

Will High Operational Costs Hinder the Growth of the Online Takeaway Food Delivery Market?

High operational costs definitely present an obstacle to the growth of the online takeaway food delivery sector, but they are unlikely to completely stymie its progress. Labor prices for delivery people, increased fuel and vehicle maintenance costs, and investments required to maintain technology infrastructure such as apps and websites are all significant cost drivers. Furthermore, operational inefficiencies in areas such as logistics, last-mile delivery, and order fulfillment can increase costs even higher. As businesses grow, these costs can rise, reducing profit margins, particularly for smaller or newer market competitors. Larger, more established organizations may be able to withstand these costs due to economies of scale, whereas smaller or regional players may suffer.

Despite these cost pressures, the need for convenience and the fast adoption of online meal delivery platforms are expected to exceed the operational difficulties. Many businesses are implementing ways to counteract these high expenses, such as using AI and automation to simplify operations, using dynamic pricing models, and pursuing cost-sharing agreements with eateries. Furthermore, upcoming technology such as drones or autonomous deliveries have the potential to dramatically lower future delivery costs. While high operational costs are a worry, the industry is projected to expand as companies innovate to remain profitable.

Category-Wise Acumens

Will Rising Demand for Whole Bean Drive the Online Takeaway Food Delivery Market?

The growing demand for whole bean coffee has a significant impact on the online takeaway food delivery sector. Whole bean coffee has grown in popularity as consumers want fresher, higher-quality coffee. Companies are adjusting by increasing their online offers to include whole bean goods. For instance, in May 2024, Peet's Coffee introduced a new online service that allows users to order whole beans directly from their app, which is connected with major delivery companies such as DoorDash. This move caters to the rising market of coffee connoisseurs who value the freshness and flavor that whole beans give, indicating a shift in consumer preferences toward premium and artisanal coffee experiences.

Furthermore, in July 2024, the United States Department of Agriculture announced funding to assist coffee growers that prioritize high-quality beans, which is expected to improve the supply of premium whole beans available through online platforms. These examples demonstrate how market participants and policymakers are driving the expansion of whole bean coffee in the online takeaway food delivery business.

However, the Hybrid Model, which includes elements of both aggregator-based and restaurant-owned delivery models, is the fastest-growing market. In this strategy, restaurants use third-party platforms to place orders but manage the delivery themselves. This method allows for greater control over delivery operations and customer experience while retaining the reach of aggregator platforms. The hybrid model is gaining traction, particularly as more restaurants seek to lessen their reliance on third-party platforms while maintaining better margins.

Will Rising Demand of Fast Food Drive the Online Takeaway Food Delivery Market?

The growing demand for fast food is a significant driver of the online takeaway food delivery sector. Fast food is a popular choice among consumers due to its convenience, low cost, and widespread availability, particularly in metropolitan areas where time is limited. In September 2024, Uber Eats announced a new agreement with McDonald's to streamline the delivery process and improve the user experience through faster delivery times and additional menu options. This indicates fast food restaurants' increased reliance on internet platforms to reach a larger audience and participate in the burgeoning on-demand economy.

Similarly, in June 2024, the Indian government advocated for infrastructure improvements to facilitate digital services, allowing for the spread of online food delivery in tier 2 and tier 3 cities, where fast food demand is increasing. These developments indicate that both private-sector innovation and favorable government legislation are increasing the online meal delivery market, with fast food playing a prominent role.

However, Asian cuisines, particularly Chinese and Indian, are the fastest expanding segment. These cuisines are growing in popularity due to their rich flavors, variety, and availability in a wide range of regions. These cuisines are undergoing tremendous growth, particularly in markets such as North America and Europe, as online food delivery platforms expand and people have more exposure to global culinary experiences.

Country/Region-wise

Will Rising Advanced Technology Infrastructure in North America Propel the Online Takeaway Food Delivery Market?

The growing advanced technological infrastructure in North America is expected to greatly boost the online takeaway meal delivery sector. The region's rich digital environment, which includes high-speed internet connectivity, extensive 5G adoption, and modern logistics networks, serves as a great foundation for the expansion and innovation of food delivery platforms. According to a report released by the Federal Communications Commission (FCC) in May 2024, 95% of North American households now have access to broadband internet speeds of at least 100 Mbps, up 15% from 2022. This increased connectivity allows for faster, more consistent app performance and real-time order tracking. Furthermore, in March 2024, a research article in the Journal of Marketing Technology, published, indicated that places with advanced technology infrastructure experienced a 40% greater adoption rate of online food delivery services compared to areas with less developed digital infrastructure.

Furthermore, in September 2024, the Canadian government set aside funds for technology upgrades in major cities to assist new delivery methods and e-commerce expansion. These investments are intended to strengthen the infrastructure required for efficient online takeaway food delivery, boosting market growth in North America.

Will Growing Preference for Online Food Ordering among Tech-Savvy Populations in Asia Pacific Drive the Online Takeaway Food Delivery Market?

The growing desire for online meal ordering among tech-savvy people in Asia Pacific is propelling the online takeaway food delivery business. In this region, rapid digital technology adoption and strong smartphone penetration are driving up demand for online food services. Companies are actively developing their digital products to appeal to this technologically aware group. For instance, in July 2024, Zomato launched a big platform overhaul, introducing AI-powered tailored suggestions and seamless payment alternatives to improve the user experience for tech-savvy customers. This move is consistent with the growing trend of using digital platforms for meal ordering, reflecting the preference of younger, technologically savvy populations in Asia Pacific.

Furthermore, in April 2024, the Chinese government issued new regulations to streamline e-commerce operations and assure secure online transactions, hence supporting the expansion of online meal delivery services. These government-backed initiatives are intended to build a vibrant digital ecosystem, hence driving the growth of online food ordering in Asia Pacific.

Competitive Landscape

The competitive landscape of the online takeaway food delivery market is characterized by a diverse array of players beyond the key market leaders. It includes a mix of regional and local companies that offer specialized services or cater to niche markets. Many competitors focus on differentiating themselves through unique features like exclusive restaurant partnerships, personalized user experiences, and advanced technology such as AI-driven recommendations. Additionally, there is significant competition from emerging startups leveraging innovative delivery models, such as hyper-local couriers or subscription-based services, aiming to capture specific market segments and enhance customer loyalty.

Some of the prominent players operating in the online takeaway food delivery market include:

DoorDash

Uber Eats

Grubhub

Meituan Dianping

Swiggy

Just Eat Takeaway.com

me

Zomato

Latest Developments

In April 2024 Swiggy launched a new effort in India that focuses on hyper-local delivery, leveraging technology to increase delivery route efficiency and service in highly populated areas.

In March 2024, Postmates launched a new eco-friendly delivery option that uses electric bikes and scooters to cut carbon emissions, in line with rising consumer demand for sustainable food delivery techniques.