The online takeaway food market enables customers to order food from local restaurants through websites and mobile applications for home delivery. The increasing youth population, busy lifestyle, and rapid urbanization have boosted the growth of the online food delivery industry. Key benefits of online food ordering include convenience, vast options of cuisines from different restaurants, and easy payment procedures.
The online takeaway food market is estimated to be valued at USD 20.32 Bn in 2024 and is expected to reach USD 51.17 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 14.1% from 2024 to 2031.
Key Takeaways
Key players operating in the online takeaway food market are Zomato, Swiggy, Delivery Hero, Takeaway.com, GrubHub, MEITUAN, DoorDash, and Uber Eats. These players are focusing on expanding their delivery fleet and partnering with more restaurants to cater to the growing demand for online food orders. Secondly, hectic work schedules, traffic congestion in cities, and growing preference for comfort food are propelling the demand for online takeaway food services. Moreover, online food aggregators are leveraging technologies such as cloud kitchens, AI, and IoT to enhance customer experience through features like live order tracking and customized recommendations.
Market Trends
The rising penetration of Online Takeaway Food Market Demand and internet has enhanced the accessibility of online food delivery platforms. Fast internet and wide network coverage are enabling customers to conveniently browse menus and track orders online. Moreover, the introduction of user-friendly interfaces and payment gateways integrated with popular e-wallets and credit cards are encouraging the adoption of food tech platforms. Another emerging trend is the growing popularity of cloud kitchens which are delivery-only facilities that help restaurants expand their reach and cater to more customers. This reducing overhead costs for restaurants is boosting their association with online platforms.
Market Opportunities
Tier 2 and Tier 3 cities across developing nations still offer untapped opportunities for online food delivery players due to increasing internet connectivity and adoption of online services in semi-urban & rural regions. Online food companies can further penetrate such emerging markets through partnerships, marketing campaigns, and localized offerings. Secondly, integration of augmented reality, virtual reality, and geo-location services can enhance the online food ordering experience through features like virtual menus and digital storefronts. This represents a potential opportunity for companies to engage customers through innovative technologies.
Impact of COVID-19 on Online Takeaway Food Market Growth
The COVID-19 pandemic had a significant impact on the online takeaway food market. During the peak of lockdowns in 2020 and early 2021, dine-in services were halted completely in most regions of the world. This led to a monumental surge in demand for online takeaway options as consumers sought restaurant-style meals from the safety of their homes. Delivery orders skyrocketed for food chains and independent restaurants alike. Many restaurants that did not previously offer online ordering and delivery services were compelled to introduce digital platforms and partnerships with food aggregators at a rapid pace to capitalize on the opportunity. Contactless delivery also became an important differentiator to assure safety. The pandemic fast-tracked the shift towards online channels and app-based food ordering is now much more mainstream. However, many restaurants faced initial operational challenges and costs associated with setting up delivery fleets and digital infrastructure almost overnight. Social distancing guidelines also constrained the pool of available delivery workers. For a few months, delivery times were extended and customers faced limited menu options. As restrictions eased in late 2021, digital orders stabilized at a much higher baseline than pre-pandemic levels. The pandemic profoundly altered consumer preferences and behaviors, accelerating the already growing online takeaway market. It is expected that even after the pandemic threat recedes, online ordering will continue to account for a major share of total takeaway food sales globally.
Geographical Regions where Online Takeaway Food Market is Concentrated in Terms of Value
In terms of value, the online takeaway food market is primarily concentrated in developed markets of North America and Europe. The United States represents the single largest country market owing to widespread smartphone and Internet penetration along with active lifestyles and busy schedules that drive demand for convenience options. The United Kingdom and major Western European countries such as Germany, France also account for sizeable shares. High disposable incomes allow consumers to spend more freely on online food orders. Urban centers in these regions with their large, young working populations are hubs for the online takeaway business landscape. Tier I and Tier II cities have emerged as strong revenue pools. However, smaller cities and suburbs are witnessing faster growth lately as delivery networks expand coverage. China currently is the largest country market in Asia-Pacific and is rising to become one of the top globally with its growing middle class demanding online food services.
Fastest Growing Geographical Region for Online Takeaway Food Market
The fastest growing geographical region for the online takeaway food market is Asia Pacific excluding Japan. After China, other developing Asian countries like India, Indonesia, Vietnam, Thailand and Philippines are displaying explosive year on year growth rates upwards of 30-40% annually. Rising per capita incomes, rapid urbanization, young demographics most attuned to digital platforms, and infrastructure developments which enhance last mile connectivity are propelling the region to become a global growth hotbed. The region is expected to surpass mature Western markets in terms of total sales figures over the coming years. Higher single-digit compound annual growth rates will be witnessed in the US and Europe as well but Asia will outpace them significantly driven by its enormous untapped potential and faster economic expansion. Among Asian countries, India in particular stands out with strongest prospects owing to its exponentially scaling startup ecosystem and willingness of overseas food brands to enter the market aggressively.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)