Online Food Delivery Services Market Report 2025

The online food delivery services market size has grown rapidly in recent years. It will grow from $156.75 billion in 2024 to $173.57 billion in 2025 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to increase in strong economic growth in emerging markets, increased internet penetration and increased availability of mobile devices.

The online food delivery services market size is expected to see rapid growth in the next few years. It will grow to $277.1 billion in 2029 at a compound annual growth rate (CAGR) of 12.4%. The growth in the forecast period can be attributed to the internet of things (iot), artificial intelligence, increasing smartphone users, COVID-19, growing workforce and government initiatives. Major trends in the forecast period include collaborating with tech giants, invest in expanding, investing in robot and drone technologies, investing in launching contactless delivery features, investing in virtual kitchens, adopting self-driven cars for fast and low-cost delivery and adopting green transport solution.

The global surge in smartphone users has significantly bolstered online food delivery services. With smartphone users being the primary demographic for online shopping in the Food and Beverage (F&B) industry, the growth in smartphone users indicates a potential uptick in online food and beverage purchases. As of July 2023, data from DemandSage, a US-based data reporting and analytics solutions provider, reveals that 86% of the global population owns a smartphone, amounting to 6.8 billion smartphone users worldwide. In the United States, 94.4% of millennials own smartphones, with nearly half of the U.S. population dedicating 5 to 6 hours per day to smartphone usage. Consequently, the rise in smartphone users and internet penetration is a driving force behind the growth of the online food delivery services market.

The rise in digital payment options is anticipated to drive the growth of online food delivery services in the future. This increase is fueled by factors such as convenience, security, and the widespread adoption of smartphones and internet connectivity, making cashless transactions more accessible and efficient for consumers. Digital payment solutions enhance the payment process for online food delivery services, promoting convenience and encouraging more orders through efficient, contactless, and hassle-free transactions. For example, in July 2024, UK Finance Limited, a trade association in the UK, reported that in 2023, the country recorded 18.3 billion contactless payments, a seven percent increase from 17 billion in 2022. Overall, contactless transactions represented 38 percent of all payments made in the UK. Thus, the growing availability of digital payment options is expected to significantly contribute to the expansion of online food delivery services in the forecast period.

The food delivery services market is witnessing a trend toward upgrading distribution networks to a more decentralized system known as Distribution 4.0. In this model, suppliers collaborate with multiple players to achieve optimal market coverage across urban and rural areas. The focus is on marketing, branding, and in-store merchandising to enhance the overall shopper experience. This involves partnerships with aggregators, e-commerce delivery companies, rural distribution firms, and distribution arms of modern trade to maximize coverage. E-commerce giant Amazon has announced plans to partner with numerous small-scale businesses, retail outlets, and rural supermarkets to enhance last-mile connectivity. The emergence of Distribution 4 is anticipated to have positive effects on online food delivery services.

Major companies in the online food delivery services market are incorporating innovative technologies such as robot food delivery to gain a competitive edge. Robot food delivery entails the use of autonomous robots for last-mile delivery of food and packages. For example, in February 2023, the University of Notre Dame, in collaboration with Grubhub and Starship Technologies, launched robot delivery on its campus, serving 17,000 students, faculty, and staff. Users can utilize the Grubhub app to browse designated restaurants offering robot delivery, choose their preferred delivery point, track the robot's route on an interactive map, and receive notifications upon its arrival. Each robot is capable of transporting approximately the contents of three shopping bags.

In May 2024, Uber Eats, a US-based online food ordering service, acquired FoodPanda for $950 million. This acquisition is part of Uber Eats' strategy to bolster its market presence in the competitive food delivery industry by integrating FoodPanda's operations. The move aims to enhance consumer options, improve service quality, and create more opportunities for delivery partners while expanding Uber Eats' footprint in Asia. FoodPanda is a Germany-based platform specializing in online food and grocery delivery.

Major companies operating in the online food delivery services market include Uber Technologies, Inc. (Uber Eats), Meituan Dianping, Just Eat Takeaway.com N.V., Delivery Hero SE, Domino's Pizza, Inc., DoorDash Inc., Deliveroo, Swiggy, Zomato, Foodpanda, Ele.me, Baedal Minjok, Yogiyo, TESCO (UK), Morrisons (UK), Glovo, Tazz, Gurmandio, Yandex, LifeBox, Fit4you Delivery, Seamless, Gopuff, Instacart, SkipTheDishes, TimHortons, iFood, 99Food, Quero Delivery, Rappi, Menulog, Sampa Food Dublin, Foodak, Talabat, Crave App, Wishbox, Rafeeq, Carriage, Akly, Eateasy, Careem Now, Fingertips, SoFresh, Mr D Food, UCook, Orderin, Jumia Food, Yum Deliveries, Areachops, Homechow, The Flying Pan.

Western Europe was the largest region in the online food delivery services market in 2024. Asia-Pacific was the second largest region in the global online food delivery services market report. The regions covered in the online food delivery services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the online food delivery services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Online food delivery services involve the transportation of food packages from hospitality establishments, with companies utilizing online portals or applications for sales. These services cater to the delivery of both ready-to-eat food and dishes that are specially prepared for immediate consumption.

The online food delivery services market, as addressed in this report, is categorized by type into platform-to-customer and restaurant-to-customer. Platform-to-Customer denotes the creation of an online tool or forum that facilitates two-way communication between businesses and their customers. Various channel types, including websites and mobile applications, are utilized in this process, offering diverse payment methods such as cash on delivery and online payment.

The online food delivery services market research report is one of a series of new reports that provides online food delivery services market statistics, including online food delivery services industry global market size, regional shares, competitors with an online food delivery services market share, detailed online food delivery services market segments, market trends and opportunities, and any further data you may need to thrive in the online food delivery services industry. This online food delivery services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market for online food delivery services includes revenues earned by entities by providing shipping services for food and related products to customers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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