Online Food Delivery Market Size

Online Food Delivery Market Insights

Global Online Food Delivery Market size was valued at USD 151.51 billion in 2023 and is poised to grow from USD 165.11 billion in 2024 to USD 351.51 billion by 2032, growing at a CAGR of 10.1% during the forecast period (2025-2032).

High smartphone and internet penetration, evolving consumer preferences, surge in popularity of cloud kitchens, expansion of logistics and payment infrastructure, and advancements in delivery technologies are driving up the demand for online food delivery through 2032.

Widespread smartphone adoption and expanding internet access are emerging as key enablers of online food delivery services. Busy work schedules, urbanization, and evolving family dynamics have led consumers to seek convenience and time-saving meal solutions, which perfectly aligns with online food delivery services. The adoption of AI, machine learning, and data analytics in online food delivery platforms is reshaping user experiences and operational efficiency. Consumer expectations for seamless and contactless delivery options are also driving online food delivery market growth. Improved digital payment systems and logistics networks are facilitating seamless food ordering experiences thereby further expanding the business scope for market players.

On the contrary, high competition, low profit margins, dependence on gig workforce, regulatory and food safety challenges, and consumer retention issues are anticipated to slow down online food delivery market penetration across the study period and beyond.

How are Drones and Robots Changing Online Food Deliveries?

To enhance speed, efficiency, and reduce operational costs, online food delivery companies are exploring futuristic solutions like drone and robot deliveries. Pilot programs in the U.S., China, and parts of Europe have demonstrated the potential of autonomous delivery systems in urban and campus environments. Drones enable rapid air deliveries in congested areas, while ground-based robots navigate sidewalks to drop off meals. These innovations address last-mile delivery challenges and labor shortages. Although regulatory and infrastructure hurdles remain, investment in autonomous delivery is increasing. As technology matures, it promises to revolutionize logistics, lower delivery times, and reshape the customer experience in food delivery.

In February 2024, Uber Eats Japan, a renowned food delivery company joined hands with Mitsubishi Electric Corporation and Cartken to offer new food delivery services using autonomous robots functioning on artificial intelligence. The service was expected to be launched in Tokyo, Japan by the end of March 2024.

FAQs

Online Food Delivery Market size was valued at USD 71.43 Billion in 2023 and is poised to grow from USD 84.79 Billion in 2024 to USD 334.16 Billion by 2032, growing at a CAGR of 18.7% during the forecast period (2025-2032).

Key vendors in Online Food Delivery Market are: 'Uber Eats (United States)', 'DoorDash (United States)', 'Just Eat Limited (Netherlands)', 'Grubhub (United States)', 'Deliveroo (United Kingdom)', 'Meituan Dianping (China)', 'Swiggy (India)', 'Zomato (India)', 'Foodpanda (Germany)', 'Postmates (United States)', 'Ele.me (China)', 'Rappi (Colombia)', 'Glovo (Spain)', 'Wolt (Finland)', 'iFood (Brazil)', 'Deliverect (Belgium)', 'Yandex.Eats (Russia)', 'Tock (United States)', 'Caviar (United States)', 'Seamless (United States)', 'Talabat (Kuwait)', 'Shipt (United States)'

Consumers now have access to a variety of various applications, including online meal delivery services, thanks to improved network connectivity and an increase in smartphone adoption. With the help of a smartphone, people may easily make orders with their favourite restaurants after browsing a list of them. Everywhere in the world, including rural areas, smartphones have made their way to the most isolated locations. The change in attitudes towards online purchasing among the rural people is partly due to the accessibility of e-commerce sites and food delivery services made possible by smartphone applications. A large increase in mobile internet users has also been seen over the past several years on a global scale. Remote access to mobile applications is made possible by the quick development of network infrastructure, which has increased network connectivity across developing economies.

The range of applications for AI and big data analytics has increased due to increased research and breakthroughs. The use of AI and big data analytics in online food delivery platforms will assist develop mobile applications and websites that offer users a customized experience with easy navigation and an attractive user interface. Based on their past preferences, present preferences, location, and reviews of other eateries, these intelligent applications will give customers better selections. The interactive aspect is a bonus because it encourages greater involvement, bringing it closer to parity with the traditional dine-in experience in restaurants. Big data analytics will examine consumer behaviour and process it in real-time to provide the best recommendations to app users.

Early adoption of app-based ordering and high consumer spending potential are helping North America spearhead global demand for online food delivery.