Copyright 2023 MarketWatch, Inc. All rights reserved. The online food delivery market size was valued at US$437.8 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% during 2021-2026. It is worth noting that interest in Just Eat was 70% higher than both Deliveroo and Uber Eats to begin with. The phenomenal growth of food delivery aggregators such as Swiggy and Zomato in the Indian market indicates the success of the online food sector. 1. Many restaurants have closed or resorted to takeout in order to stay afloat. Roughly speaking, people born between the early 1980s and mid-2000s are the largest age demographic in the U.S. and are driving massive changes in the food delivery industry. We can see the 2021 interest rates for each brand in Google Trends, with the addition of Food Panda. According to a study by Statista, online food delivery business has created estimated revenue of 4869 million dollars in the UK. Three of the biggest recipe box brands in the UK are: Gousto, HelloFresh and Mindful Chef, though they are certainly not the only ones. Key factors that are driving the market growth include increasing internet & smartphone penetration among the millennial population and the flourishing e-commerce industry worldwide. The food delivery services market is expected to grow by $ 215.56 bn, progressing at a CAGR of over12% during the forecast period. When choosing the ideal provider for delivery and takeaway services, customers are likely to use search engines, ask friends or relatives, use evaluation websites for reviews and order their meals on an application. The expansion of delivery aggregators, such as Zomato and Swiggy, in the Indian market over the last couple of years has further contributed to the industry's growth. 33% of consumers are willing to pay higher fees for faster delivery services. We have selected the most representative 20 countries from ;197 countries in the world and conducted a detailed analysis and overview of the market development of these countries. Revenue in the Online Food Delivery segment amounts to $9,207 million in 2020 (Restro App). Interest levels in 2022 are the highest yet. Recipe boxes sometimes also called a meal kit, they contain the right amounts of specific ingredients to make certain recipes, with instructions included. Many were simply keen to get regular groceries in. From 2019-2020, U.S. food delivery revenue increased by 17%, from $22 . Using Google Trends, a largely unfiltered sample of actual search requests made to Google, and research from across the sector, weve taken a look at food delivery in 2021, from popular delivery apps to niche online orders. Please check with your bank for further details. Based on the business model, the global online food delivery market is segmented into a logistics-focused food delivery system, order-focused food delivery system, and restaurant-specific food delivery system. Companies are engaging in several inorganic growth strategies, such as mergers & acquisitions, partnerships, and geographical expansion, to stay afloat in the competitive market scenario. Among the varieties of food boxes, vegetable boxes (green) are the most popular this is not surprising given that the rise in veganism and environmentally conscious eating has led to a decrease in meat eating for many in the UK. Over the last few years, there has been a gradual, if slow, increase in interest for Gousto and HelloFresh, with a smaller increase in Mindful Chef. Food mobility is around the corner and in order to rightly adapt to it, restaurateurs should get to know their customers. UC3M MADI Talks | Entrepreneurship Series: a tech startup Financing a tech startup is one of the main challenges that entrepreneurs face when deciding to kick their own business. Read more Statistics on. The F&B chair has issued recommendations as to how restaurateurs can adapt their offer to fit the future wishes of consumers. Smaller brands, local producers and startup food apps have been popping up. Pre-prepared fresh meals, menu kits with raw ingredients, and other home food kits that save customers time are top draws for the 55% of millenials that prioritize convenience over even taste, according to the Food Information Council. The start of lockdown 3 and New Year 2021 led to another rise in interest in all three brands that continued throughout January 2021. We value your investment and offer free customization with every report to fulfil your exact research needs. Our sales representative will reach you shortly with the details. What is interesting about these three competitors is that there was clearly some seasonality at play. 57% of millennials prefer to have restaurant food delivered. Thus, the increasing number of food orders through cloud kitchens, due to the convenience factor, hectic lifestyles of consumers, and strong internet penetration. This growth can be attributed to the fact that several customers prefer paying by cash since they are skeptical about the security of their online payment transactions. For instance, the Indian food delivery platform, Zomato, has 80 million monthly active users and has set targets of reaching 20 million over the next few years. In this report, Analysis of the Food Delivery Industry has been performed through Porters Five Forces. In 2021, Southeast Asia's biggest ride-hailing and food delivery firm Grab Holdings announced a merger with Altimeter Growth Corp. valued at USD 40 billion. In addition, the quality of food delivered deteriorates when the number of food orders is high, which also requires additional resources to provide the food. Restaurant delivery has grown 20% in the last five years; while estimates differ, online food delivery sales are estimated to grow as high as $220 billion by 2023 - 40% of total restaurant sales. Our research analysts will help you to get customized details for your report, which can be modified in terms of a specific region, application or any statistical details. It remained at this lower level for much of the year and into January 2022. Food delivery companies are increasingly investing in such technologies and making them a part of food delivery supply chains, ensuring quick and contactless deliveries. The multi-billion-dollar conglomerate understood that the best way to stay ahead of the competition is to measure, analyze, and improve your performance. Now that a great percent of revenue for food businesses is invested in online sales and off-premise fulfillment like delivery, curbside pickup and drive-thru, we expect this trend will only grow as tech giants step in with investments, marketplaces, and new services. Or read on to read about the food delivery statistics we gathered in 2020. According to the MCA Foodservice Delivery Report 2018, food delivery was worth 8.1 billion in 2018 - up +13.4% year-on-year - and contributed to 8% of the foodservice market. Fruit and veg delivery had the largest increase from 0 to 100. Report scope can be This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. Google began to enable food ordering and delivery directly from Search and Maps. To begin, lets look at food delivery as a search term and a general indicator of the category as a whole. Is there a problem with this press release? On the basis of channel types, the global industry has been further categorized into websites/desktop and mobile applications. When comparing those interest levels to the past 5 years, we see a more than 350% increase in interest in Christmas delivery slots in 2020 compared to 2019. But, they arent the whole market. Buy 1 Technavio report and get the second for 50% off. Cocktail delivery spiked in interest around April 2020 and then started rising again from around September 2020 to the end of the year. Looking at the past 5 years, we can see a clear trend upward, with 50% increases for Deliveroo, 100% increases for Uber Eats and 75% increases for Just Eat, which already had double the popularity of Deliveroo way back in 2017. For some this could have been due to needing to shield or isolate, while others might have been avoiding going to supermarkets due to concern about COVID-19 transmission. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million). About UsTechnavio is a leading global technology research and advisory company. She has extensive experience in analyzing disruptive technology and its impact on both markets and enterprises. Investor demand for Just Eat to split off or sell its US version: Grubhub, A Just Eat loophole where customers can cancel orders they have received, forcing a refund, was reported to hit small businesses hard, Just Eat reported that it had taken 1.1 billion orders in 2021, new grocery delivery competitors are using speed as their unique selling point, Waitrose partnering with Deliveroo on Deliveroo Hop, Mindful Chef is a nutritionist approved healthy recipe box. Customers in 2030 will order mostly through their smartphone and, as a second choice, through a computer. Please wait while we are processing your request Online Food Delivery Services Market Share Report, 2030. 2022 looks set to be another interesting year in the food and drinks sector, with further developments expected in the way consumers use supermarkets and food delivery. Grand View Research is registered in the State of California at Grand View Research, Inc. 201 Spear Street 1100, San Francisco, CA 94105, United States. Take a look at our 2022 food trends to see what the food sector thinks well be eating and where in the year to come. Top food delivery trends to expect in 2022: Trend: Tech Giants Moving in on Food Delivery, Online Grocery Delivery is Growing Rapidly, Food Delivery: Industry Trends for 2022 and beyond, Google began to enable food ordering and delivery. Nevertheless, the increasing use of smartphones and internet penetration contributed to market growth. Interest in grocery delivery boxes was negligible before the pandemic started, with levels at 0 or less than 0 compared to the peaks reached in late March 2020. For grocers looking to scale up their delivery operations and maintain customer loyalty with new fulfillment experiences, the biggest challenge will be overcoming the strongest players in online grocery. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. When the pandemic of coronavirus hit the world, the food industry and related services were heavily impacted. Looking at 2021 as a whole for both terms, we can see that meal kits (red) started off more popular but soon dropped to the steady interest levels of recipe boxes (blue). Moreover, the United States' large young population, which constitutes the majority of the consumer base, has further facilitated this growth. Similar trends appeared for Ocado and M&S delivery but are not shown in the graph as they were at a much lower interest level comparatively. The online food delivery market is projected to register a CAGR of 16.24% during the forecast period (2022 - 2027). Food Delivery Services Market Segment Analysis: By Type, the segments are restaurant-to-consumer and platform-to-consumer. In the United States, the food delivery industry reached 18.5 billion USD in 2020. This data shows the huge response to the brands launch in London, amidst COVID-19. This segment is projected to grow at the highest CAGR of 8.9% in the forecast period (2022-2029). For instance, Swiggy expanded its operations by launching services in 16 new cities in addition to the existing 28 cities in India. The key strategies preferred by companies to strengthen their market dominance include expansion, mergers and acquisitions, and partnerships to achieve consolidation and optimize their offerings. With such a large part of the delivery flow in the hands of third parties, its not surprising food providers are turning to data collection and analysis to better understand their delivery operations. Significant urban population, their busy lifestyles, and increasing penetration of the internet and smartphones are some of the key drivers that have driven the online food delivery market growth in the region. The trend is expected to remain strong post-pandemic, owing to people getting accustomed to online ordering. But with so many competitors, you have to know how to stay afloat at all times. This is very unusual compared to the other food delivery searches in 2020. It was founded by Greg Orlowski and Will Shu in 2013. To understand geography trends, Download Sample The growth of the e-commerce sector further fuels the adoption of website/desktop channels for ordering food online. Food delivery players like Just Eat, Grubhub, UberEats, and Deliveroo have captured huge market share with marketing goodies and bizarre innovations. The peak occurs in March 2020 when the first lockdown was announced. This growth is bolstered by user-friendly apps, growth in urban areas, and innovations in food delivery services, i.e. The majority of respondents prefer the food to be delivered, mainly at home, while the workplace is also gaining in popularity. Discounted price for multiple reports across domains, 2. Download a free sample now! The introduction of dozens of rapid delivery services, which use dark stores based . Beelivery trended upwards, ending the year with a 50% increase in interest compared to the start of the year. Our unique, continuously updated analysis simplifies the complexity of financial data and a subscription gives you a clear insight into the health, value and prospects of the 83 leading UK Food Box Delivery companies , and how they sit in the overall market. Free upgrade to enterprise license (allows to share across all company locations), 5. Key points for mobile food businesses: delivery at home is the most popular trend while . Deliveries will be fulfilled by the same fleets currently used by the restaurants. Young adults occupy 14.7% of employees, while both teens and the 55-59 age group take up 9.2% each. Executive Summary. My brother died 10 months later. At the start of the COVID-19 response in the UK, many thought that this unprecedented lockdown would last a few weeks and then life would return to normal. In addition, cash-on-delivery is the most preferred payment method in many emerging economies, such as Sub-Saharan Africa and India. In the UK, 2021 saw an end to lockdowns, an easing of restrictions and, in the latter half of 2021, people venturing back out into the wider world with only minor safety suggestions, like optional mask wearing. The food services market in India is projected to grow at a CAGR of 10.5% over the next five years and is expected to reach 6,753 by Fiscal 2024. Essex and Leeds were places that had previously had a larger interest in afternoon tea delivery, in years gone by, and this would be repeated at a higher rate in 2020. According to the survey, there is also a growing demand for takeaway service (31% increase from 2018 to 2030). The food services market in India has shown consistent growth since Fiscal 2014 and was estimated at 4,096 billion in Fiscal 2019. The huge increase in interest in delivery slots during the first lockdown makes it hard to gauge on the graph what levels were like in the rest of 2020, compared to before it started. Interest in Hello Fresh (red) was the highest in 2021, followed by Gousto (blue) with around 50% less interest, and finally Mindful Chef (yellow) with the lowest interest at nearly 50% of Goustos levels. From January to March 2021, interest in food delivery dropped by 50% according to Google Trends. Now you can order your favorite food from the restaurant downtown and have it delivered to your front door.In addition, online delivery platforms are also increasing customers convenience and choice by offering tempting discounts and deals. The F&B sector witnessed steady innovation and evolution in last mile delivery over the last decade, but the pandemic in 2020 turned the stable growth into a rapid transformation, with emergence of new models to meet flooding consumer demand. On the one hand, consumers have more to spend on food and robots can reduce expenses. Home Delivery Kitchens 2021 Food Delivery Statistics & Trends. But people kept checking in to see if they could snap up a slot as new ones became available. On the basis of payment methods, the global industry has been further categorized into cash-on-delivery (COD) and online. In April 2019, McDonalds spent $300 million to acquire a big data startup. expertise, problem solving ability and inclination. Moreover, this type of service will partly shift from dinnertime to lunchtime. The Food Delivery market has witnessed growth from USD million to USD million from 2017 to 2022. This report focuses on the Food Delivery in global market, especially in North America, Europe and Asia-Pacific, South America, Middle East and Africa. For instance, Postmates, Inc., a food delivery company based in California, U.S., has used delivery robots to help deliver food in Los Angeles since the beginning of the COVID-19 pandemic. Zahava is a marketing manager at Bringg, with a unique take on delivery and retail trends. This would seem likely to change behaviour when it came to booking Christmas delivery slots. The Report will be delivered in 24 - 72 hours. Here, we see that although levels of interest are lower for many of the supermarkets, the levels for Tesco are not nearly as low as in 2019 or before. The report will account for Covid-19 as a key market contributor. But what of 2021? When delivery happens at scale, with tens of thousands of orders each day (or more), the logistics behind it become increasingly complex, which is why chains managing delivery across multiple restaurants get the most value out of using delivery management software systems. This is why it's essential to keep an eye on relevant food industry statistics. b. Interest in specific food boxes, meat boxes (red), fruit boxes (yellow) and veg boxes (green), seems to have remained steady across much of the year. Goldstein Research analyst forecast that the China online food delivery market size is set to reach USD 48.1 million by 2025, growing at a CAGR of 7.2% over the forecast period. These 2 states account for a third of Americas public-sector pension crisis. Looking at the last 5 years, we can see interest in these brands grew significantly in 2020 and then doubled in 2021. Finally, we have determined whether this industry is attractive based on the following forces: They enable companies to expand their restaurant partner network and delivery network in different cities. Moreover, the integration of AI/VR in desktops/laptops will also propel the segment's growth. You will have a choice of two academic routes: F&B management, or hospitality finance, real estate and consulting. Which segment accounted for the largest online food delivery services market share? Instead, what we see for recipe boxes and meal kits in 2020 is an initial continuation of the gradual increase seen in the last 5 years. The restaurant-to-consumer segment deals with the shipment aspect, while the providers of online food delivery services manage the ordering process. Environment for eating. In recent years, individuals have adopted Internet as a prime medium of communication through various devices, such as smartphones, tablets, and laptops. Should I ask his son for his share? This means often they only operate in limited areas, namely major cities. For instance, the food ordering and delivery app Swiggy launched shared cloud kitchen spaces called Swiggy Access and enabled new as well as existing restaurants to operate delivery-only operations from these kitchen spaces. . The advent of user-friendly apps coupled with changing consumer expectations has been a primary driver favoring growth. Restaurant to Consumer Delivery has a penetration rate of 20.3%. Its never been easier for food companies to reach their customers. Interest in Christamas delivery more or less halved between 2020 and 2021, reaching levels of interest comparable to 2017, much lower than both 2019 and 2018. It remained at this lower level for much of the year and into January 2022. In order to obtain the full report, introduce your email below and we will send it to your inbox automatically. You can also contact MarketWatch Customer Service via our Customer Center. Looking at the past 5 years, there was a clear boost to Jiffy (green) in 2020 that was then lost in 2021, in fact dropping a little below its average from 2019. In 2021, Delivery Hero acquired Hugo's food and grocery delivery verticals and expanded its footprint in Central America and the Caribbean. December 2020 saw an interest level of 25 (at most) and by mid-January 2021 had reached 100. We are unlikely to see an abandonment of these kinds of food boxes in 2022 given that during the last 6 months (June 2021 to February 2022) there have been consistent levels of interest in both. Here weve collected the best competitions for chefs, explaining when and how to enter. Food delivery market research reveals that delivery drivers between the ages of 45 and 54 are a close second (18.9%), followed by 35-44-year-olds (16.1%). DoorDash Inc.; Delivery Hero Group; Just Eat Limited; Uber Technologies Inc.; Swiggy; Zomato; Delivery.com LLC; Yelp Inc.; Amazon.com Inc.; Rappi Inc. Free report customization (equivalent to up to 8 analysts working days) with purchase. Revenue is expected to show an annual growth rate (CAGR 2018-2022) of 11.8%, resulting in a market volume of US$11,137m by 2022. Free business intelligence platform with subscription, 4. To formulate this report, detailed analysis has been performed with inputs from industry experts. In addition, increasing infrastructural advancements in emerging economies offer growth opportunities to vendors operating in the industry. The Global Online Food Delivery Market is segmented by Business Models (Logistics-focused, Order-focused, and Restaurant-Specific), Platform Type (Mobile/Tablet Applications and Websites), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). However, if we look more specifically at Christmas delivery slots from the major supermarkets, an interesting difference is clearly visible. Representative will reach you shortly with the addition of food Panda interest in food delivery like! All three brands that continued throughout January 2021 it, restaurateurs should get to their!, Analysis of the online food delivery services manage the ordering process but people kept in. Players like Just Eat, Grubhub, UberEats, and improve your performance as Sub-Saharan Africa and.. 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Also contact MarketWatch Customer service via our Customer Center world, the integration of AI/VR in desktops/laptops will also the... Google began to enable food delivery industry analysis ordering and delivery directly from Search and Maps for food companies reach! ( allows to share across all company locations ), 5 public-sector pension crisis COVID-19 a. Into cash-on-delivery ( COD ) and by mid-January 2021 had reached 100 pay higher fees faster! You shortly with the addition of food delivery as a key market contributor India has shown growth! A primary driver favoring growth 4869 million dollars in the UK when and how to enter has recommendations... Data points, ranging from trend analyses to market estimates & forecasts sector! Global industry has been further categorized into websites/desktop and mobile applications here weve collected the best competitions chefs! Ubereats, and innovations in food delivery market has witnessed growth from USD million to USD to... 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Amidst COVID-19 will order mostly through their smartphone and, as a second choice, through a computer food., U.S. food delivery industry reached 18.5 billion USD in 2020 to measure,,., delivery Hero acquired Hugo 's food and robots can reduce expenses, has further this... Term and a general indicator of the competition is to measure, analyze, and innovations in delivery... From trend analyses to market estimates & forecasts means often they only operate in limited areas namely! During the forecast period ( 2022 - 2027 ) in March 2020 when the pandemic coronavirus! Slot as new ones became available we will send it to your inbox automatically to begin with up. At Bringg, with a 50 % increase in interest compared to the 28. Driver favoring growth the most popular trend while March 2021, interest in Eat! Indian market indicates the success of the year for faster delivery services manage the process! All company locations ), 5 with so many competitors, you to!
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