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Online Food Delivery Services Market Share, 2025 | Industry Report

Online Food Delivery Services Market Analysis Report By Type, By Channel Type, By Payment Method, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619984  |  Published: August 2020  |  No of Pages: 80
Format: Electronic (PDF)  |  Industry: Technology  |  Publisher: Grand View Research

Industry Insights

The global online food delivery services market size was accounted for USD 23,539.40 million in 2018. It is projected to grow at the CAGR of 15.4% from 2019 to 2025. The growing penetration of digital media and the internet along with smartphone users is expected to be a key factor responsible for the market growth. Moreover, online food services offer various choices of restaurants to choose food from, which is projected to support the market growth. Furthermore, a growing chain of delivery aggregators like Swiggy, and Zomato is boosting the online food services.

Changing consumer food habits, and dieting patterns are influencing consumers to seek for online food. A busy and hectic schedule is attracting consumers to buy food quick service provider, this factor is also expected to contribute to market growth. in addition, online food providers offer different discounts, cashback, payment options, gifts & rewards, and doorstep delivery service to gain traction among consumers.

Asia Pacific online food delivery services market

The companies are investing heavily in enhancing their food shipment network to expand their business. This expansion has led to huge demand for quick service, and fresh food is in turn increasing the demand for online food services.

Rising construction, and infrastructural growth in developing countries is projected to create ample opportunities for the market in the coming few years. Additionally, the growing application of IoT devices is enabling the operators in online services to ease their delivery process. These technological developments are supporting the growth of the online food industry.

The market is in a growing phase; thus, the market is facing stiff competition from players owing to changing prices, and availability. These factors are causing food quality to deteriorate when the food is ordered in high quantities. The failure of food retailers to cater to the demand of consumers is restricting the growth of the market. However, the growing trend of delivery only kitchen, and virtual restaurants is supporting the market growth.

Type Insights

The online food delivery service market is divided into the platform to consumer, and restaurant to consumer depending on the type of service. Platform to consumer type is anticipated to grow at the CAGR of over 15.0% from 2019 to 2025. This service involves resource and logistics management of food delivery. It also provides direct food delivery to restaurants that do not have in house food resources. Growing investment in this service especially in the metro cities is proliferating the segmental growth.

In 2018, the restaurant to consumer service segment contributed to a share of over 40.0% in the overall market. This type of service involves shipment and management of orders received by the online delivery service provider. In this service the restaurants provide a subscription, and loyalty program to its consumers. Restaurants tie-up with food delivery operators to increase their sales.

Channel Type Insights

Mobile application type is projected to grow at the CAGR 0f over 14.0% during the forecasted period. Growing internet penetration and increasing number of smartphone users is expected to proliferate the market growth. Furthermore, cashback, discount offers for mobile users is also gaining tractions among consumers.

In 2018, the website/desktop channel held a market share of over 40.0% in the overall market. Restaurants are now focusing on expanding their online business through the website. Moreover, the rising trend of e-commerce is expected to surge the growth of online food delivery. In addition, the integration of the VR/AI system is projected to foster the online food services industry in the next few years.

Payment Method Insights

Payment method include online, and cash on delivery services. Online segment is anticipated to propel at the CAGR of over 13.0% from 2019 to 2025. Online payments involve transactions through net banking, debit/credit cards and payment portals. Online food providers partner with banks, and growing trend of digital payment are expected to continue its growth in the next few years.

Global online food delivery services market

In 2018, cash on delivery payment method constituted for share of more than 30.0% in the overall market. Several consumers are skeptical regarding the security concerns of online services. Thus, they prefer to buy through cash payments. Major banks now focus on improving online security towards the consumers. However, in many African countries and Asian countries cash on delivery is highly preferred.

Regional Insights

Asia Pacific is estimated to grow at the highest CAGR of more than 15.0% during the forecasted period.  Rapid growth of advanced technology like voice command and high number of smartphones is mainly supporting the growth of the industry. Moreover, a growing network of e-commerce across China, Japan, and India is expected to surge the demand for online food services.

In 2018, the North America market is accounted for a share of over 20.0% in the overall market. A significant rise in consumer preference towards buying fast foods online is contributing to market growth. Major online food providers include Postmates Inc., Just Eat holding limited. Furthermore, the players in the market offer live service to customers and additional services. All these key factors are anticipated to propel the market growth.

Impact of COVID-19

Rising spread of coronavirus has impacted online food delivery industry negatively. Although, restaurants where had delivery options opened during lockdown, however people were too scared to have food from outside fearing spread of the virus.

During the coronavirus pandemic, online orders on Zomato, and Swiggy have fallen by 60.0% owing to shutdown of restaurant & hotel operation. The online food delivery platforms are putting added effort to gain the trust of customers. Domino’s Pizza, and McDonalds are taking up various safety measures such as contact-free delivery due to social distancing norms. Further, the restaurants are trying to bring awareness with the customers on social networking sites as to how they maintain hygiene to prevent the spread of the virus to their customers.

Online Food Delivery Services Market Share Insights

The online food services market is heavily competitive in nature due to the high number of local and global players. Leading players in the market include, DoorDash; Takeaway.com; Just Eat Holding Limited; Uber Technologies Inc.; and Swiggy.

Companies are focusing on enhancing the consumer experience and lowering operational costs. For example, in 2018, Project Wing has used drones to deliver its burritos in the Australian market. Some of the players focus on strategic acquisitions as a part of their business expansion. For example, in 2017, Zomato acquired a logistic service company called Runnr to increase its sales across UAE and India.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America & Middle East & Africa

Country scope

U.S., Canada, U.K., Germany, France, China, India, Japan, Brazil and Mexico.

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global online food delivery services market report on the basis of type, channel type, payment method, and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Restaurant-to-Consumer
    • Platform-to-Consumer

• Channel Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Website/Desktop
    • Mobile Applications

• Payment Method Outlook (Revenue, USD Million, 2014 - 2025)
    • Cash on Delivery
    • Online

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • France
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa (MEA)

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