A recent report published by Infinium Global Research on the online food delivery market provides an in-depth analysis of segments and sub-segments in the global as well as regional online food delivery market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional online food delivery market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast, and dollar values of the global online food delivery market. According to the report, the global online food delivery market is projected to grow at a CAGR of 19.6% over the forecast period of 2020-2026.
In recent years, the popularity of online food delivery services has been growing trend tremendously. The market has matured in most countries, with an overall compound annual growth rate of 19.6% over the forecast period of 2020-2026. The changing landscape of the food & beverage industry, rising internet, and smartphone penetration among millennial consumers are some factors intensifying the market expansion. Moreover, in recent years, traditional as well as new food delivery players have attracted significant investment and have stepped up their marketing efforts substantially to build recognition for their brands quickly.
The current spread of COVID-19 is projected to have a significantly positive effect on the global online food delivery market over a short period of time. As the customer traffic on online food delivery apps grew exponentially amid the pandemic, the online food delivery market followed a divergent growth trajectory. In addition, the food delivery businesses gained momentum with many governments prohibited food and beverage outlets from opening their doors to dine-in guests. Companies such as Grubhub and Uber Eats received up to 10 times their usual restaurant leads during the pandemic. These companies also offered contactless delivery, in which food is delivered to customers’ doors and payments are made electronically. Furthermore, various restaurant chains shifted their normal operations and adapted to the needs of consumers with health and safety as a top priority in times of uncertainty.
The growing use of smartphones phones and increasing internet penetration are aiding the growth of the online food delivery market across the world. According to the GSM Association’s State of Mobile Internet Connectivity 2020 report, internet users are growing by an average of more than one million new users every day. Currently, there are 5.11 billion unique mobile users in the world, which increased by 100 million from 2018. In addition, there were 4.39 billion internet users in 2019, with an increase of 366 million or 9 percent from January 2018. Furthermore, the growing use of smartphones is also driving the change in consumers’ eating habits. The transformation from dining out culture to the eating in culture is also playing a major role in the growth of the market. In recent years, online food delivery has witnessed numerous strategic alliances with several fintech companies, major food brands as well as diversified hospitality companies. Several online food delivery apps have also integrated payment gateways, such as digital wallets, into existing platforms to provide a flawless ordering and payment experience. However, multiple factors including highly volatile prices of the food industry, high third-party reliance, and an unstable customer base to restrict the growth of the online food delivery market. Moreover, increasing focus on data-driven user experience optimization is expected to create immense growth opportunities for online food delivery players.
Geographically, Asia Pacific held the largest share in the global online food delivery market and is expected to continue its dominance over the forecast years. China is the key revenue generator in the region due to the presence of a large number of online food service providers. Chinese online food delivery market is a duopoly dominated by Ele. I and Meituan and these two delivery apps control a 90% share of China’s food delivery market. A major factor contributing to the growth of the Chinese market is the intense competition between online food delivery apps in China due to which consumers often receive steep discounts and coupons, making ordering food cheaper than eating it in a house. In addition factors such as a large consumer base and rising smartphone and internet penetration in countries such as China and India further boost the market expansion.
The report on the global online food delivery market covers segments such as service type, channel type, and mode of transaction. On the basis of service type, the sub-markets include restaurant-controlled, independent, food app services, and others. On the basis of channel type, the sub-markets include websites/desktop and mobile applications. On the basis of mode of transaction, the sub-markets include cash on delivery, and online.
The report provides profiles of the companies in the market such as DoorDash, Delivery Hero SE, Zomato™ Pvt Ltd, Uber Eats, Deliveroo, GrubHub, OLO, Inc, Snapfinger, Inc., and Tillster, Inc.
The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the online food delivery market. Moreover, the study highlights current market trends and provides forecast from 2020-2026. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.