Online Food Delivery Market Summary
As per MRFR Analysis, the Online Food Delivery Market was valued at 129.82 USD Billion in 2023 and is projected to reach 365 USD Billion by 2035, growing at a CAGR of 8.99% from 2025 to 2035. The market is driven by increasing smartphone penetration, changing consumer preferences towards convenience, and the rise of digital marketing strategies. Major players are leveraging technology and partnerships to enhance service offerings and customer engagement.
Key Market Trends & Highlights
The Online Food Delivery Market is experiencing significant growth due to various trends.
- Market Size in 2024: 141.49 USD Billion; driven by convenience and urbanization.
- Restaurant Delivery segment valued at 60.0 USD Billion in 2024; leading service type.
- Digital wallets gaining traction; preferred payment mode for many users.
- Individual Customers and Families are key segments; reflecting diverse consumer needs.
Market Size & Forecast
2023 Market Size: USD 129.82 Billion
2024 Market Size: USD 141.49 Billion
2035 Market Size: USD 365 Billion
CAGR (2025-2035): 8.99%
Largest Regional Market Share in 2024: North America
Major Players
Grubhub, Caviar, Uber Eats, Just Eat Takeaway, Swiggy, DoorDash, Takeaway.com, Deliveroo, Postmates, Gojek, Foodpanda, Rappi, Zomato, Menulog, SkipTheDishes
Key Online Food Delivery Market Trends Highlighted
The Online Food Delivery Market is witnessing significant trends shaped by several key market drivers. One important driver is the increasing reliance on mobile technology and internet penetration, enabling consumers to order food effortlessly through various apps and websites. This convenience has led to a surge in demand, especially among urban populations who prioritize convenience and speed. Another driver is the shift in consumer preferences towards online shopping and food delivery services, accelerated by the pandemic, which introduced many people to the ease of ordering meals through digital platforms. Opportunities abound in this market, particularly in the realm of expanding service offerings.
Businesses can work with nearby restaurants to add new dishes to their menus that appeal to a wider range of tastes and dietary needs. Also, using advanced technologies like AI and machine learning can make customer experiences better by making recommendations based on past orders and preferences. Ghost kitchens are becoming more popular lately. They are a cheap way for restaurant owners to meet the growing demand for delivery services. Also, worries about the environment are affecting what people buy, which is pushing businesses to use eco-friendly packaging and other practices.
As customers increasingly seek healthier options, there is potential for growth in niche markets like plant-based meal deliveries. The Online Food Delivery Market is evolving rapidly, driven by technological advancements, changing consumer habits, and a focus on sustainability. Companies that remain adaptable and responsive to these trends will be better positioned to capture market share in this dynamic landscape.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Online Food Delivery Market Drivers
Increasing Smartphone Penetration
The Online Food Delivery Market is experiencing significant growth driven by the increasing penetration of smartphones across the globe. According to the Global System for Mobile Communications Association, the number of smartphone users worldwide reached approximately 6.5 billion, representing about 83% of the global population. This proliferation of smartphones not only facilitates easy access to online food delivery platforms but also enhances user convenience through mobile applications.
Established organizations such as Uber Eats and DoorDash have capitalized on this trend, launching user-friendly apps that enable customers to place orders seamlessly. Furthermore, as mobile technology evolves and internet connectivity expands, we can expect a consistent rise in online food orders, further propelling the market's growth. Such technological advancements foster greater engagement and ease of use, resulting in an anticipated surge in demand for online food delivery services.
Shift Towards Online Shopping
The Online Food Delivery Market is also experiencing expansion due to a notable shift towards online shopping, accelerated by changes in consumer behavior during the COVID-19 pandemic. According to data from the United Nations Conference on Trade and Development, global e-commerce sales reached approximately USD 26.7 trillion in 2021, showcasing an upward trajectory. This transition implies that consumers are increasingly comfortable with making purchases online, which extends to food and restaurant services.
Major companies such as Grubhub and Just Eat Takeaway have adjusted their strategies to align with this trend, offering extensive menus and faster delivery options to cater to evolving consumer preferences. This growing acceptance of online shopping reinforces the demand for online food delivery services as more people adopt this convenient method of accessing food and dining experiences.
Rise of Health-Conscious Consumers
The Online Food Delivery Market is significantly influenced by the rise of health-conscious consumers who prioritize nutrition and well-being in their dietary choices. Research from the World Health Organization indicates a steady increase in health awareness globally, with around 41% of individuals actively seeking healthier food options. This shift has prompted food delivery services to expand their menus to incorporate healthier alternatives, such as plant-based meals and organic offerings.
Companies like Deliveroo and Foodpanda have responded by partnering with local restaurants that focus on health-oriented menus, thus attracting a growing demographic concerned about their dietary habits. The demand for healthier food options within the online delivery sector is expected to further drive market growth as consumers look for convenient ways to maintain their health-focused lifestyles.
Online Food Delivery Market Segment Insights
Online Food Delivery Market Service Type Insights
The Online Food Delivery Market is poised for substantial growth, with a particular emphasis on the Service Type segment. This segment encompasses various key areas, including Restaurant Delivery, Grocery Delivery, Meal Kit Delivery, and Catering Services. As of 2024, the Restaurant Delivery service is the most dominant, valued at 75.0 USD Billion, and is expected to grow significantly to 193.0 USD billion by 2035, highlighting its major role in shaping consumer dining preferences and convenience. This segment's popularity stems from the increasing consumer demand for restaurant-quality meals delivered to their homes, reduced dining out frequency, and the rise of digital ordering platforms.
Grocery Delivery services, valued at 30.0 USD billion in 2024, are also pivotal in meeting modern consumers' needs, expanding to 78.0 USD billion by 2035. The convenience of having groceries delivered directly addresses time constraints faced by many households, thus driving growth in this service type. Meal Kit Delivery, which provides curated ingredients and recipes for easy home cooking, is set to increase from a valuation of 20.0 USD billion in 2024 to 52.0 USD billion in 2035. This segment is gaining traction among consumers looking for fresh, made-at-home meals without the stress of meal planning.
Catering Services, despite being the smallest segment, with a valuation of 16.49 USD Billion in 2024, is projected to grow to 42.0 USD Billion by 2035, playing a significant role in corporate events, parties, and wide-scale gatherings, appealing to both personal and business occasions. Each of these service types holds its significance, contributing unique values and experiences to consumers, showcasing a diverse marketplace within the Online Food Delivery Market. As the market evolves, trends such as sustainability, health-conscious options, and technological innovations will further influence the dynamics within these service types, presenting both challenges and opportunities for growth.
The comprehensive Online Food Delivery Market statistics reveal the interconnectedness of these segments and how they cater to varying consumer preferences, ensuring that the market remains resilient and adaptive in the face of changing consumer behaviors and economic landscapes.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Online Food Delivery Market Order Type Insights
The Online Food Delivery Market is poised for significant growth, with the market expected to reach a valuation of 141.49 USD billion by 2024. An important aspect of this market is its segmentation by Order Type, which includes categories such as Single Order, Bulk Order, and Subscription Order. Each of these order types caters to specific consumer needs and behaviors. Single Orders are often driven by individual meal purchases, appealing to customers seeking convenience. Bulk Orders are gaining traction within corporate sectors and large gatherings, emphasizing the convenience of delivery for multiple individuals at once.
Subscription Orders present a unique opportunity in consumer loyalty, allowing companies to establish a steady revenue stream while fostering repeat business from satisfied customers. The growing trend of online food delivery across various demographics reflects broader shifts in consumer preferences, where digital convenience plays a crucial role. As the market continues to evolve, understanding these order types will be critical for businesses aiming to capture market share and respond to changing customer demands within the Online Food Delivery Market.
Online Food Delivery Market Payment Mode Insights
The Payment Mode segment of the Online Food Delivery Market is a vital aspect, contributing significantly to market dynamics. By 2024, the market is valued at 141.49 USD Billion, showcasing robust growth potential. Within this segment, the use of various payment methods such as Credit Card, Debit Card, Digital Wallet, and Cash on Delivery plays a crucial role. Credit and Debit Cards are widely embraced for their convenience and security, making them a prevailing choice among consumers. Digital Wallets, with their user-friendly platforms, are becoming increasingly popular, especially among younger demographics who value speed and ease of access to funds.
Cash on Delivery remains significant in regions where digital payment infrastructure is less developed, catering to consumers who prefer traditional payment methods. The Online Food Delivery Market is expected to see a rise in digital payments as technology advances and consumer preferences shift toward seamless and efficient transaction methods. Overall, the segment's versatility caters to diverse customer preferences, driving market growth and reflecting a shift towards a more digital economy.
Online Food Delivery Market Customer Segment Insights
The Online Food Delivery Market is expected to showcase substantial growth driven by the diverse needs of the Customer Segment, which comprises Individual Customers, Families, and Corporate Clients. By 2024, the market is projected to reach a valuation of 141.49 USD Billion, further exemplifying the increasing reliance on online food platforms for convenience. Individual Customers significantly contribute to the growth, opting for seamless access to food delivery at their fingertips, catering to lifestyle changes. Families represent another vital group, requiring solutions that ease meal preparation, often seeking larger orders or meal bundles that accommodate the whole family.
Corporate Clients play an essential role in driving business through catering options and bulk orders during events or meetings, showing a marked increase in demand for such services in recent years. Trends such as the rise of contactless delivery and greater meal customization are reshaping how these segments interact with online food platforms. The Online Food Delivery Market data reflects opportunities for optimizing services, facing challenges like rising delivery costs and competition; however, the trend towards healthier and more sustainable food options remains a potent growth driver.
Online Food Delivery Market Regional Insights
The Online Food Delivery Market is experiencing substantial growth across various regions, driven by changing consumer preferences and increasing urbanization. In 2024, the North America segment holds significant value at 45.0 USD billion, projected to grow to 117.0 USD billion by 2035, indicating its dominance in the market. Europe follows closely with a valuation of 35.0 USD Billion in 2024, rising to 90.0 USD billion by 2035, showcasing a robust demand for food delivery services. The Asia Pacific region is also noteworthy, with a current valuation of 40.0 USD billion set to increase to 105.0 USD billion over the same period, reflecting a massive market growth driven by a large urban population and evolving technology adoption.
The South America segment, valued at 10.0 USD billion in 2024 and expected to reach 25.0 USD billion by 2035, shows potential growth amidst a competitive landscape. Meanwhile, the Middle East and Africa, starting at 11.49 USD Billion and projected to grow to 28.0 USD Billion, indicate burgeoning interest in online food delivery solutions. This diverse regional segmentation reflects the Online Food Delivery Market's revenue potential and statistical trends, revealing opportunities for expansion across different demographics and consumer behaviors.
Each region plays a significant role, but North America and Asia Pacific particularly dominate due to their advanced technological landscapes and high consumer spending power.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Online Food Delivery Market Key Players and Competitive Insights
The Online Food Delivery Market has witnessed significant growth and evolution, driven by changing consumer behavior, technological advancements, and a robust demand for convenience in dining options. Competitive insights reveal a dynamic landscape characterized by various players striving to capture market share through innovative strategies, partnerships, and improved service offerings. The market is marked by the proliferation of mobile applications, enhanced digital platforms, and integrated delivery solutions that cater to diverse consumer preferences. As competition intensifies, factors such as delivery speed, customer experience, and pricing strategies have become crucial differentiators that competitors leverage to attract and retain customers.
Foodpanda has established a solid presence in the Online Food Delivery Market, enabling it to become a formidable competitor in various regions. The brand's strengths lie in its extensive network of restaurant partners, offering a wide array of cuisines to cater to diverse customer preferences. Additionally, Foodpanda excels in user-friendly technology that enhances the customer ordering experience. The company focuses on swift delivery times, which is pivotal in attracting time-conscious consumers. Foodpanda's effective marketing strategies, coupled with its loyalty programs, further strengthen its brand equity in the market, helping it maintain a strong foothold among its competitors.
Grubhub is another prominent player within the Online Food Delivery Market, known for its comprehensive product offerings and established market presence. The company provides an online ordering platform that connects customers with local restaurants, ensuring a seamless delivery experience. Grubhub’s strengths include a robust selection of restaurants, ranging from local gems to national chains, which enables it to appeal to a broad audience. The company has engaged in numerous mergers and acquisitions to strengthen its market position and expand its reach. These strategic moves have allowed Grubhub to enhance its service capabilities, improve operational efficiencies, and offer diverse promotional deals, thereby attracting a larger customer base. With its focus on innovation and commitment to customer satisfaction, Grubhub continues to play a significant role in shaping the dynamics of the Online Food Delivery Market.
Key Companies in the Online Food Delivery Market Include
- Foodpanda
- Grubhub
- Postmates
- Zomato
- DoorDash
- Delivery Hero
- Swiggy
- Just Eat Takeaway
- GoPuff
- EatStreet
- Rappi
- Deliveroo
- Uber Eats
- Instacart
- Menulog
Online Food Delivery Market Developments
Recent changes in the Online Food Delivery Market show strong growth and strategic change. DoorDash, which has about 67% of the U.S. market, kept growing its grocery and non-restaurant delivery services into 2024. In April 2022, Uber Eats teamed up with Tesco, and in May 2024, it added Instacart to its list of services. This made it possible for Uber Eats to deliver groceries. Just Eat Takeaway officially bought Grubhub in June 2021, which greatly increased its presence in the U.S.
Delivery Hero hasn't bought any new companies lately, but it has kept making strategic investments in Latin America.
For example, by January 2022, it had cut its stake in Rappi to about 8%. Platforms like Zomato and Swiggy keep pushing for eco-friendly practices and sustainability, which is in line with changing consumer values. The competitive landscape is still changing, with the top providers changing their models to offer faster deliveries, more grocery options, and new convenience services. In general, the sector is still able to quickly adjust to changes in consumer behavior and market expectations.
Online Food Delivery Market Segmentation Insights
Online Food Delivery Market Service Type Outlook
- Restaurant Delivery
- Grocery Delivery
- Meal Kit Delivery
- Catering Services
Online Food Delivery Market Order Type Outlook
- Single Order
- Bulk Order
- Subscription Order
Online Food Delivery Market Payment Mode Outlook
- Credit Card
- Debit Card
- Digital Wallet
- Cash on Delivery
Online Food Delivery Market Customer Segment Outlook
- Individual Customers
- Families
- Corporate Clients
Online Food Delivery Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2023
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129.82 (USD Billion)
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Market Size 2024
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141.49 (USD Billion)
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Market Size 2035
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365.0 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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9.0% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Foodpanda, Grubhub, Postmates, Zomato, DoorDash, Delivery Hero, Swiggy, Just Eat Takeaway, GoPuff, EatStreet, Rappi, Deliveroo, Uber Eats, Instacart, Menulog
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Segments Covered
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Service Type, Order Type, Payment Mode, Customer Segment, Regional
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Key Market Opportunities
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E-commerce integration for groceries, Expansion into rural markets, Health-conscious meal options, AI-driven personalized recommendations, Sustainable packaging solutions
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Key Market Dynamics
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Increasing smartphone penetration, urbanization and lifestyle changes, growing demand for convenience, expansion of food delivery services, partnerships with local restaurants
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Online Food Delivery Market is expected to be valued at 141.49 USD Billion in 2024.
By 2035, the Online Food Delivery Market is projected to reach 365.0 USD billion.
The expected CAGR for the Online Food Delivery Market from 2025 to 2035 is 9.0%.
North America is expected to dominate the Online Food Delivery Market with a value of 45.0 USD Billion in 2024.
The market size of Grocery Delivery within the Online Food Delivery Market is expected to reach 78.0 USD billion by 2035.
Key players in the Online Food Delivery Market include Foodpanda, Grubhub, Zomato, DoorDash, and Uber Eats.
The Restaurant Delivery segment of the Online Food Delivery Market is expected to be valued at 193.0 USD billion in 2035.
The Catering Services segment is expected to be valued at 16.49 USD billion in the Online Food Delivery Market in 2024.
The Asia Pacific region is projected to reach a market size of 105.0 USD billion by 2035 in the Online Food Delivery Market.
The Meal Kit Delivery segment is estimated to have a market size of 20.0 USD billion in the Online Food Delivery Market in 2024.
