Global Digital Food Delivery Market Size By Platform Type (Websites, Mobile Application), By Delivery Model Type (Traditional Delivery, New Delivery, Aggregators), By Geographic Scope And Forecast

Digital Food Delivery Market Size And Forecast

Digital Food Delivery Market size was valued at USD 203,866.18 Million in 2021 and is projected to reach USD 473,069.33 Million by 2030, growing at a CAGR of 10.03% from 2023 to 2030.

The growing penetration of smartphones, especially in emerging countries of the Asia Pacific region is one of the major factors expected to boost demand for Digital Food Delivery. This has resulted in a rise in demand for online food delivery. Urbanization has led to hectic work schedules and thus working professionals are increasingly preferring online delivery of food, further creating demand for Digital Food Delivery in the region. The Global Digital Food Delivery Market report provides a holistic evaluation of the market. The rising number of smartphone and internet clients encourages the demand for digital food delivery platforms that advance and contribute to market development. The developing trend toward digital food delivery portable apps and development within the food industry in the rising economies are other factors that are contributing to the development of the market.

Global Digital Food Delivery Market Definition

Digital or online food delivery is ordering food through a website or app from a nearby restaurant or food cooperative. Many of them allow customers to maintain accounts with them to make regular ordering easier, much like ordering consumer products online. In this process, a consumer will search for their preferred restaurant, typically filtering by cuisine type, choose from the menu items, then select whether they want delivery or pick-up. In addition to accepting cash payments, restaurants accept credit card payments, with a portion of the proceeds returning to the online food merchant. Technology plays an essential role in every industry.

This market has grown significantly in the past years, driven by several factors, including the rising need for convenience, increasing smartphone penetration, and growing high-speed internet usage. Additionally, on-demand meal delivery services have grown, particularly during the COVID-19 pandemic, when more people order food online than go to restaurants. This business has expanded quickly in recent years. Moreover, a busy working schedule and people having no time for food preparation also leads to a surge in digital food delivery. Over the past few decades, technology trends have changed and developed due to the growth of digitalization and user-friendly apps. The development of digital platforms has resulted in a significant transformation in people’s and organizations’ way of life. A digital app is one of the most effective tools customers have today for ordering food that must be delivered on time. Moreover, high competition, high cost, regulatory challenges, consumer behavior changes, dependence on third-party service, food safety are some of the major factors anticipated to restraint the market. Additionally, the adoption of artificial intelligence and machine learning technology creates a lucrative growth opportunity for the market growth.

Global Digital Food Delivery Market Overview

Digital food delivery refers to ordering food online through a digital platform such as a mobile application or website and having it delivered to a specified location. It includes food delivery services provided by restaurants or third-party delivery companies. Digital food delivery has become increasingly popular in recent years due to its convenience to customers who can order food from their favourite restaurants without leaving their homes or offices.

The market for digital food delivery is driven by convenience, increasing penetration of smartphones, high internet usage, and time-saving. More delivery orders are directly related to digital food ordering. Convenience is the primary value that digital offers to your customers. For millennials and the modern, busy world, convenience is more important than food. Maintenance of food, food safety, intense competition, and high cost of restaurant bills are some major restraining factors. For instance, delivery fees, commission fees, and operating costs can be challenging for both delivery platforms and restaurants.

Moreover, concerns regarding the hygiene and safety of food can limit the market, as with any food service. To keep customers’ trust and loyalty, restaurants and delivery services must maintain high food safety and hygiene standards. Furthermore, implementing artificial intelligence and machine learning creates a lucrative growth opportunity in the future. Asia Pacific is anticipated to hold the largest market share owing to the increasing usage of food delivery applications in countries like China and India. Moreover, the COVID-19 pandemic increased the demand for online food delivery owing to transportation restrictions.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the global Digital Food Delivery Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. The porter’s five forces model can be used to assess the competitive landscape in global Digital Food Delivery Market, gauge the attractiveness of a certain sector, and assess investment possibilities.

Global Digital Food Delivery MarketSegmentation Analysis

The Global Digital Food Delivery Market is segmented on the basis of Platform Type, Delivery Model Type, and Geography.

Digital Food Delivery Market, By Platform Type

• Website
• Mobile Application

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On the basis of Platform Type Market is divided into mobile application and website. Mobile Application accounted for the largest market share of 71.31% in 2021, with a market value of USD 145,367.4 Million and is projected to grow at the highest CAGR of 10.48% during the forecast period. Website was the second-largest market in 2021, valued at USD 58,498.8 Million in 2021; it is projected to grow at a CAGR of 8.82%.

Mobile applications play a significant role in the digital food delivery sector and have fueled its expansion. Customers can explore menus, place orders, and follow deliveries in real time via mobile devices. Customers’ ability to place orders more quickly and conveniently due to mobile applications has increased demand for online meal delivery services. Food delivery applications provide several advantages that can improve revenue when combined with third-party delivery services. Customers can get meals more conveniently by using food delivery apps rather than dealing with the trouble of calling a restaurant and placing a phone order. Moreover, grocery delivery is a new service that supermarkets can now provide for customers thanks to partnerships with delivery apps, bringing new degrees of convenience. Meal ordering applications frequently link with various payment options, giving users more ways to spend money and a smooth checkout process.

Digital Food Delivery Market, By Delivery Model Type

• Traditional Delivery
• New Delivery
• Aggregators

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The global digital food delivery market is experiencing a scaled level of attractiveness in the delivery model type. The market is divided into traditional delivery, new delivery, and aggregators. Aggregators accounted for the largest market share of 38.59% in 2021, with a market value of USD 78,664.7 Million and is projected to grow at a CAGR of 10.09% during the forecast period. New Delivery was the second-largest market in 2021, valued at USD 68,939.5 Million in 2021; it is projected to grow at the highest CAGR of 12.10%.

The aggregator segment generated the most significant revenue in 2021. Aggregators are a traditional business model; many restaurants are listed on aggregator sites. Customers can view and compare menus, quotes, and reviews from other customers. When a customer orders something, the server sends the order to the restaurant. The restaurant then manages the delivery to the customer. Aggregators can use digital meal delivery systems to get detailed information about a restaurant’s financial flow. Restaurants can track the costs incurred while preparing an order and compare it with the cost of the order to be delivered to the customer, monitor the results, and ensure that the results change for each order. One of the most important changes in the restaurant business is the increase in third-party delivery. Numerous third-party order aggregators, such as DoorDash, Grubhub, and Uber Eats, have succeeded in gaining and can now work with all restaurants. The services these groups offer, and the negative and positive aspects of such partnerships must be understood by restaurant owners.

Digital Food Delivery Market, By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

The global digital food delivery market by region is divided into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia-Pacific accounted for the largest market share of 43.49% in 2021, with a market value of USD 88,671.5 Million and is projected to grow at the highest CAGR of 11.81% during the forecast period. North America was the second-largest market in 2021, valued at USD 49,572.4 Million in 2021; it is projected to grow at a CAGR of 9.05%.

The Asia Pacific digital food delivery market is overgrowing, including the countries such as China, Japan, India, and the Rest of APAC. The region has the largest population in the world and the middle class’s expansion, fueling demand for digital food delivery in this region. The market for digital food delivery in the Asia Pacific is expanding due to significant trends and factors such as increasing internet and smartphone penetration, urbanization, investments and expansion by delivery platforms, and government initiatives. Over 60% of the world’s population lives in Asia. It implies that there are more people to feed in the APAC region than anywhere else on Earth. The restaurant and food delivery market is sure to become massive. Millions of individuals in this region use a variety of food-ordering apps every day.

Key Players

The major players in the market are Just Eat, Zomato, Swiggy, Dominos, MacDonalds, Delivery Hero, Deliveroo, Rappi, Hellofresh, Delivery.Com, DoorDash, Inc., Yelp, Inc., One Delivery, SUPPER London, Pizza Hut., and Others. This section provides a company overview, ranking analysis, company regional and industry footprint, and ACE Matrix.Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with Platform Type benchmarking and SWOT analysis.

Key Developments

• In May, 2022, McDonalds Corporation has announced a partnership with Deliveroo to support the growth of the McDelivery business. The partnership will help McDonalds to expand the presence of the McDelivery business.
• In November 2022, Just Eat Takeaway.com partnered with Getir, a European grocery delivery platform. As part of the partnership, Getir’s complete product portfolio will be unified into the company’s marketplace and will be distributed through Getir couriers.
• In November 2022, Dominos announced it had extended its partnership with Just Eats in the U.K. and Ireland. The partnership will allow the Just Eats customers to order Domino’s Pizza through the platform.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.