Download Sample, Increased Penetration of Internet and Smartphones Driving the Market
The widespread availability and adoption of smartphones are anticipated to augment the growth of the online food delivery market. Mobile applications provided by food delivery platforms make it extremely easy for users to browse menus, place orders, track deliveries, and make payments, all from the convenience of their smartphones. Additionally, these platforms have invested heavily in expanding their delivery services by partnering with restaurants, hiring more delivery drivers, and improving their logistics systems to ensure fast and reliable deliveries. These efforts have helped them reach more customers and deliver food more quickly, leading to the online food delivery market growth.
According to the GSMA’s annual State of Mobile Internet Connectivity Report 2023 (SOMIC), over half of the global population, approximately 4.3 billion individuals, currently possesses a smartphone. among the 4.6 billion individuals using mobile internet, nearly 4.3 billion utilize smartphones, accounting for nearly half of the world's population. Concurrently, 600 million individuals, constituting 8% of the global population, access the internet via feature phones. this widespread ownership and usage of smartphones underscore the driving force behind the Online Food Delivery Market, as smartphones serve as primary conduits for accessing these platforms and placing orders.
According to the GSMA’s annual State of Mobile Internet Connectivity Report 2023 (SOMIC), over half of the global population, approximately 4.3 billion individuals, currently possesses a smartphone. among the 4.6 billion individuals using mobile internet, nearly 4.3 billion utilize smartphones, accounting for nearly half of the world's population. Concurrently, 600 million individuals, constituting 8% of the global population, access the internet via feature phones. this widespread ownership and usage of smartphones underscore the driving force behind the Online Food Delivery Market, as smartphones serve as primary conduits for accessing these platforms and placing orders.
Attractive Offers and Memberships Along with Advertisements and Marketing by Players is Propelling Market Expansion.
Attractive offers and memberships, coupled with strategic advertising and marketing efforts by industry players, serve as significant drivers of the food delivery market's growth. These incentives entice customers with discounts, cashback rewards, and exclusive deals, fostering customer loyalty and retention. Moreover, memberships often provide additional benefits such as free delivery or priority service, further enhancing the value proposition for consumers. Aggressive marketing campaigns effectively raise brand awareness and attract new users to these platforms, expanding their customer base. By continuously innovating and promoting their services, food delivery companies maintain a competitive edge in the market, driving sustained growth and revenue generation.
For instance, Attractive Offers and Memberships offered by Zomato's target audience, comprised of smartphone users aged 18 to 35, is enticed by attractive offers and memberships. Zomato Gold program, for instance, provides incentives for both dining out and food delivery, catering to the preferences of its diverse customer base. These incentives foster customer loyalty and retention, driving the market for online food delivery.
Zomato employs a comprehensive digital marketing strategy to reach its target audience. Utilizing platforms like Google Adwords, it strategically targets keywords related to food, online ordering, and restaurant names, attracting individuals seeking food delivery services. Additionally, Zomato runs Google Display advertisements on third-party apps and websites to further expand its reach and engage potential customers.
Zomato leverages Twitter to engage its audience during events like the 2016 Olympics, creatively integrating current trends like the "Pokemon Go" craze to promote its brand. By posting on popular themes and focusing on humor and entertainment, Zomato ensures its content resonates with users, driving engagement and shares. Moreover, the company adapts its digital marketing strategy to capitalize on emerging trends, demonstrating agility and responsiveness to evolving customer interests. Through effective email marketing campaigns, such as those themed around popular series like Mirzapur or creative concepts like a "CV for Biryani," Zomato maintains customer loyalty and drives action, showcasing its prowess in digital marketing. This aggressive marketing approach enhances brand visibility and attracts new users to the platform, contributing to the growth of the online food delivery market.
For instance, Attractive Offers and Memberships offered by Zomato's target audience, comprised of smartphone users aged 18 to 35, is enticed by attractive offers and memberships. Zomato Gold program, for instance, provides incentives for both dining out and food delivery, catering to the preferences of its diverse customer base. These incentives foster customer loyalty and retention, driving the market for online food delivery.
Zomato employs a comprehensive digital marketing strategy to reach its target audience. Utilizing platforms like Google Adwords, it strategically targets keywords related to food, online ordering, and restaurant names, attracting individuals seeking food delivery services. Additionally, Zomato runs Google Display advertisements on third-party apps and websites to further expand its reach and engage potential customers.
Zomato leverages Twitter to engage its audience during events like the 2016 Olympics, creatively integrating current trends like the "Pokemon Go" craze to promote its brand. By posting on popular themes and focusing on humor and entertainment, Zomato ensures its content resonates with users, driving engagement and shares. Moreover, the company adapts its digital marketing strategy to capitalize on emerging trends, demonstrating agility and responsiveness to evolving customer interests. Through effective email marketing campaigns, such as those themed around popular series like Mirzapur or creative concepts like a "CV for Biryani," Zomato maintains customer loyalty and drives action, showcasing its prowess in digital marketing. This aggressive marketing approach enhances brand visibility and attracts new users to the platform, contributing to the growth of the online food delivery market.
Recent Trends in the Online Food Delivery Market
- Contactless delivery becomes a norm amid safety concerns.
- Rise of virtual kitchens to meet diverse culinary demands.
- Subscription-based meal plans gain momentum among consumers.
- AI-driven platforms offer tailored food suggestions for enhanced user experience.
- Sustainable packaging emerges as a priority for eco-conscious consumers.
- The surge in demand for healthy and organic food options.
- Expansion of cloud kitchens to cater to growing delivery demands.
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New Product Launches & Acquisitions Present Lucrative Growth Potential for the Online Food Delivery Market Development
4 Apr 2024 Uber Eats partnered with Waymo to provide autonomous rides in Phoenix. Uber Eats also launched deliveries via Waymo self-driving vehicles. Additionally, Uber and Waymo are working with select merchants in the area, including local favorites like Princess Pita, Filiberto's, and Bosa Donuts. Ordering is simple through the Uber Eats app, where customers can option for autonomous vehicle delivery or choose a traditional courier. Upon arrival, a notification prompts the customer to unlock the vehicle and collect their order. With standard fees and no tips required, this service could potentially lower overall delivery costs. The partnership aligns with Uber and Waymo's goal of promoting zero-emission trips and fostering innovation for both consumers and merchants. this launch in Phoenix marks Uber's seventh city for autonomous deliveries, showcasing its commitment to pioneering new technology in the online food delivery market.
16 Apr 2024 Zomato Introduced Larger Capacity Electric Bikes for Group Orders and expanded its delivery capabilities with electric bikes that can accommodate larger orders, catering to events or gatherings with up to 50 people. This move represents a significant shift, addressing previous limitations where regular delivery space was insufficient for such orders. By specifically designing an electric fleet for larger gatherings, Zomato aims to enhance customer experience and provide better control over deliveries. The company acknowledges past challenges with fleet delivery partners and seeks to overcome them with this innovative solution. With this new fleet, Zomato aims to streamline the ordering process for events and family gatherings, addressing common issues faced by customers.
16 Apr 2024 Zomato Introduced Larger Capacity Electric Bikes for Group Orders and expanded its delivery capabilities with electric bikes that can accommodate larger orders, catering to events or gatherings with up to 50 people. This move represents a significant shift, addressing previous limitations where regular delivery space was insufficient for such orders. By specifically designing an electric fleet for larger gatherings, Zomato aims to enhance customer experience and provide better control over deliveries. The company acknowledges past challenges with fleet delivery partners and seeks to overcome them with this innovative solution. With this new fleet, Zomato aims to streamline the ordering process for events and family gatherings, addressing common issues faced by customers.
Challenges in the Online Food Delivery Market: Intense Competition and Rising Labour Costs
The online food delivery market faces intense competition among multiple platforms, leading to elevated customer acquisition expenses and diminished profit margins. Established companies and startups alike vie for market dominance, intensifying the competition further. Rising labor costs pose a significant challenge, with minimum wage hikes and increasing living expenses burdening food delivery firms. Maintaining profitability amidst these challenges becomes increasingly difficult, impacting the sustainability of operations. and fluctuating consumer preferences and expectations add complexity to the market landscape. Ensuring efficient delivery logistics and timely service amidst urban congestion and traffic congestion emerges as a critical hurdle. Sustainable packaging and environmentally friendly practices are becoming essential considerations, adding to operational costs and challenges.
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Evolving Trends in the Global Online Food Delivery Market
North American online food delivery market size that reached $29.8 billion in 2023 could more than double to nearly $65 billion by 2028. Such a lofty prediction would require the industry to grow by nearly 13.7 percent each year. North America for several years. Its latest report comes on the heels of several years of significant delivery expansion, followed by a crushing bout of inflation that uniquely impacted food prices, restaurants, and the total cost of delivery.
Asia Pacific is excelling, driven by immense markets such as China and India, where integration with social media and payment platforms and a mobile app usage surge influence the industry. Thailand’s food delivery market is estimated to be worth over U.S. $2.1 billion, with a 20 percent growth rate for 2023. Food delivery has been growing gradually at around 8-10 percent since 2017, but the outbreak of COVID-19 catalyzed growth by limiting Thais’ ability to dine at restaurants.
Europe has a long history with food delivery, dating back to the mid-19th century in Italy when King Umberto I and Queen Margherita received the first pizza delivery. Today, online food delivery has evolved into a billion-dollar industry. The European food delivery market is projected to grow rapidly, reaching a value of US$66 billion by 2027. Furthermore, the number of users ordering food online is expected to increase significantly, reaching 36.5% by 2027, up from 24.9% in 2022. As online food ordering becomes more widespread, aggregator platforms like Deliveroo, Uber Eats, Just Eat, and Wolt are continuously optimizing their business models and user experiences to stay competitive in the European market.
Asia Pacific is excelling, driven by immense markets such as China and India, where integration with social media and payment platforms and a mobile app usage surge influence the industry. Thailand’s food delivery market is estimated to be worth over U.S. $2.1 billion, with a 20 percent growth rate for 2023. Food delivery has been growing gradually at around 8-10 percent since 2017, but the outbreak of COVID-19 catalyzed growth by limiting Thais’ ability to dine at restaurants.
Europe has a long history with food delivery, dating back to the mid-19th century in Italy when King Umberto I and Queen Margherita received the first pizza delivery. Today, online food delivery has evolved into a billion-dollar industry. The European food delivery market is projected to grow rapidly, reaching a value of US$66 billion by 2027. Furthermore, the number of users ordering food online is expected to increase significantly, reaching 36.5% by 2027, up from 24.9% in 2022. As online food ordering becomes more widespread, aggregator platforms like Deliveroo, Uber Eats, Just Eat, and Wolt are continuously optimizing their business models and user experiences to stay competitive in the European market.
The report provides a detailed overview of the online food delivery market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the online food delivery market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the online food delivery market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which is anticipated to have a substantial impact on the growth of the online food delivery market. Some key countries and regions included in the online food delivery market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Benelux, Nordic Region, Russia, Poland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, ASEAN, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Turkey, North Africa Countries, East Africa Countries, Rest of MEA |
Online Food Delivery Market Research Report Covers In-depth Analysis on:
- Online food delivery market detailed segments and segment-wise market breakdown
- Online food delivery market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in online food delivery industry)
- Current, historical, and forthcoming 10 years market valuation in terms of online food delivery market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Online food delivery market demand analysis
- Online food delivery market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the online food delivery market
- Regulatory landscape by key regions and key countries
- Online food delivery market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on online food delivery market forecast by countries
- Mergers and acquisitions in the online food delivery market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the growth of the online food delivery market?
The growth is driven by increased smartphone usage, demand for convenience,a rise in disposable incomes, technological advancements, and a shift towards online shopping behaviors among consumers.
What are the major challenges facing the online food delivery industry?
Key challenges include intense competition, maintaining food quality during delivery, managing logistics efficiently, ensuring timely delivery, and handling fluctuating consumer demands during peak periods.
What are the key growth opportunities in the online food delivery market?
The rise of health-conscious eating trends, expansion into rural areas, and innovations in drone and robotic delivery systems represent significant growth opportunities for the market players.
