Increased food consumption from food outlets by the newer generation and the dire need of reducing time intervals are some of the reasons because of which the Online On-Demand Food Delivery Services Market is growing at a rapid pace.
The size of the global market for on-demand food delivery services was estimated at USD 55.2 billion in 2022 and is projected to grow at a CAGR of 15.37% from 2022 to 2028, totaling USD 130.2 billion.
Covid-19 Impact & Market Status
Due to the introduction of Covid-19, the market for online on-demand food delivery services shrank dramatically. This is because of the massive downtrend in the demand for food because lockdowns were imposed, supply chains got disrupted and people had to cook food at their homes now. Times were really tough and people were panicking all around which is why the shops had been shut so that virus couldn’t spread any further.
This Online On-Demand Food Delivery Services Market report explores the current market, regulatory aspects, and potential opportunities, and challenges in individual market segments.
Order Focused food delivery to Emerge as the Most Lucrative Segment
Based on product type, the Order Focused food delivery contributed to the highest market share, accounting for a large share of the global Online On-Demand Food Delivery Services. This is because of the benefits offered by these software solutions. It helps in focusing on the type of food order placed and this is why it is the most lucrative in the type segment of Online On-Demand Food Delivery Services Market.
Office buildings to ensure Highest Sales
Office buildings, in the end user segment, are supposed to have the highest sales and that is because of the large number of people ordering food from these apps in the offices. This is because of parties, birthdays etc. celebrated by employees and they usually like to order food from their favourite restaurants. However, other consumers demand is also growing at a rapid pace.
Asia Pacific Region to Render Ample Investment Avenues
The major contributor to the growth of the worldwide Online On-Demand Food Delivery Services Market is Asia Pacific. In 2020, it had a substantial market share. This is because there is huge demand of food delivery because of the massive population of that region. Presence of established players, appropriate funding and advanced technology are some more factors due to which Asia Pacific comes at top.
The increasing traffic and the hassle of going out to eat and the need to reduce it is driving the growth of the Online On-Demand Food Delivery Services Market.
Owing to the increasing partnership between food joints and online aggregators are notably driving the growth of this market. As more and more people are now staying away from their families primarily in the regions of Asia-Pacific, these young individuals like a well-prepared meal, and working hard all day long doesn’t let them do so, hence these online food delivery apps are growing so fast because they are exactly meeting the needs of these people.
The food & beverage industry and the system associated with it has largely moved to the electronic dependency stage because of the amount of orders and the benefits that the food shops get by onboarding themselves on these online food delivery apps. Ensuring adequate clinical workflows is super necessary in today’s environment because there in an increased need to integrate and streamline patient’s database and reports.
The rise in the adoption of technology and growth in digitization among people to improve efficiency and reduce the complexities in life is one of the reasons due to which this market is gaining importance. The unique feature of this system is that it results in maximized efficiency, minimized manpower, no waiting time. The Online On-Demand Food Delivery Services offer functionalities such as ratings on different food items and restaurants, easy home delivery and time saving.
Improvements in Information technology can play an important role in the development of Online On-Demand Food Delivery Services market because it will provide services like better broadband and network.
However, lack of qualified resources is a major hurdle to implementing IT system installation in hospitals. Low awareness is also one of the reasons which is hampering the market growth. Nevertheless, Online On-Demand Food Delivery Services Market has the growth prospects, because of the increasing need of highly efficient systems to reduce complexities.
The major players of this market are Deliveroo, Delivery Hero SE, DoorDash Inc., ELEME Inc., GrubHub Inc., Hellofood, Just Eat Holding Limited, Munchery, OrderUp Inc., Postmates Inc., Swiggy, TAKEAWAY.COM N.V., Zomato Media Pvt Ltd, and Uber Technologies, Inc. (Uber Eats). By applying technology, the R&D teams of the companies must try to mitigate the problems currently prevailing in the market.
Latest Innovations in the Global Online On-Demand Food Delivery Services Market: A Snapshot
• After forecasting rising losses for 2021, Deliveroo has defined a "road to profitability," which includes a new advertising income stream and ambitions for more effective marketing expenditure.
Online On-Demand Food Delivery Services Market Scope
|Revenue forecast in 2028
|US$ 130.2 Billion
|CAGR of 15.37 % during 2018-2028
|by Delivery Type, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Deliveroo, DoorDash, Foodpanda, GrubHub, Just Eat Holding Limited, Postmates Inc., Swiggy, Takeaway.com, Zomato, Uber Technologies Inc.
Key Segments of the Online On-Demand Food Delivery Services Market
Product Type Overview, (USD Billion)
- Logistics-focused food delivery services
- Order-focused food delivery services
End User Overview, (USD Billion)
- Office buildings
Regional Overview, (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa