Online Food Delivery Market Size, Share, Trends, Analysis and Forecasts By Region and Outlet Type (Restaurant, Retail, Mobile Operator, Pub, Club and Bar), 2021-2026
Online Food Delivery Market Overview
The online food delivery market size was valued at US$437.8 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% during 2021-2026. The advent of user-friendly apps coupled with changing consumer expectations has been a primary driver favoring growth. Post-pandemic lockdown and social distancing norms fostered the demand, providing some respite to the otherwise dwindling restaurant business worldwide. Soon after, food delivery due to its convenience continued its upward trajectory and captured a permanent space in the dining landscape.
Besides the pandemic, the online food delivery market growth witnessed a rapid uptake due to the proliferation of varied delivery models including one-hour, next-day, or even two-day delivery. To meet the surging demand, key trends such as increased reliance on third-party delivery partners and in-house restaurant delivery fleets are on the rise. Also, tech support from big tech firms entering this sector and food delivery subscriptions have witnessed accelerated growth over the last year and will continue during the forecast period.
Online Food Delivery Market Size by Outlet Type, 2019 – 2026 ($Bn)
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The online food delivery market research report provides an executive-level overview of the current state of the online-based food delivery industry by type worldwide. The report includes detailed forecasts of key indicators up to 2026. Published annually, the report provides a detailed analysis of the near-term opportunities, competitive dynamics, and evolution of demand by outlet types including, restaurant, retail, pub club & bar, and mobile operators, across key regional and country markets. The study also captures a detailed overview of key dynamics including technology, and regulatory trends, among others, with their current as well as the expected impact on the overall demand.
Although the growth prospects are favorable, minor impediments such as real estate, breadth of offerings, operational efficiency and ever-changing consumer habits could pose short-term challenges to stakeholders in this space. Additionally, potential regulatory changes on driver compensation could also hamper growth. The industry due to the pandemic witnessed unprecedented growth over the last two years, however, this remains a cost-intensive business model with low margins that could hurt future growth.
Despite the short-term challenges, GlobalData estimates, the global online food delivery market will grow from US$437.8 billion in 2021 to US$679.5 billion in 2026 at a CAGR of 9.2% from 2021 to 2026. Online food delivery investments including several fundraisers over the recent past demonstrate the excitement and opportunity the sector has to offer. The industry offers massive avenues for growth, with tech enablers making inroads in online food delivery. This can be evidenced by DoorDash’s recent collaboration with Cobalt Robotics to automate repetitive manual security tasks.
Online Food Delivery Outlet Type Insights
The global online food delivery market is broadly categorized into retail, restaurant, club, pub & bar, and mobile operators (food vans, trucks, etc.). In 2021, the restaurant or restaurant-to-consumer delivery segment captured a sizeable market of the overall online food delivery industry accounting for 98.4%.
Convenience, choice of cuisine from consumer favorites, schedules with little or no time to cook, and discount offers are some key drivers impacting the restaurant delivery segment growth positively. Further, during COVID-19 lockdowns, restaurants used online services to help consumers enjoy food at home, creating avenues for segment growth. ‘Cocooning’ is another buzzword that has caught up with the restaurant business and refers to consumer preference to spend time at home to going out. This has created a need for restaurant businesses to meet the online food delivery demands of such consumers.
Online Food Delivery Market Share by Outlet Type, 2021 (%)
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The retail outlet type captured the second highest share of the online food delivery market driven largely by millennials. The growth has been likely fueled by the pandemic, which further ignited awareness around the online grocery delivery market. Driven by convenience at heart, the segment is set to witness rapid growth over the forecast period. The next step for vendors to gain market share is to introduce subscription services, which is more or less already been rolled out to millions of customers globally. The retail online food delivery segment was valued at US$5.2 billion in 2021 and is anticipated to register a healthy CAGR exceeding 12% from 2021 to 2026.
Online Food Delivery Regional Insights
In terms of market growth, South & Central America will be the fastest growing region for online food delivery with a CAGR of 13% from 2021 to 2026. By 2026, South & Central America will have a 4.8% share of the global online delivery market.
A growing reliance on smartphones after the onset of the pandemic favored regional growth. Although a strong historic performance, consumers, who stayed away from food service outlets in 2020, are projected to return to restaurants and cafes as vaccination picks up pace and consumers gain back their confidence for out-of-home visits, which may hamper online food delivery sales in the region.
Online Food Delivery Market – Competitive Landscape
Online food delivery is a global norm with key players marking their presence across regions. The leading players in this space include McDonald’s Corp., Yum! Brands, Inc., and Starbucks Corporation. Vendors amidst changing consumer changes are redefining their offerings. For instance, although local food remains popular, experience-seeking consumers are increasingly looking to try out different cuisines such as Italian, Chinese, and Indian, providing operators the opportunity to introduce new menu offerings. Additionally, plant-based or vegan alternatives are also making inroads creating opportunities for vendors in this space to expand their offerings.
Although, the restaurant-to-consumer model is gaining prominence. Recent vendor strategies are based on expanding services into other retail aspects and offering grocery and raw food delivery services directly to consumers. Drone delivery and robots are just other technologies that could potentially revolutionize the market.
Leading Players in the Online Delivery Market
- McDonald’s Corp.
- Yum! Brands, Inc.
- Starbucks Corporation
- Restaurant Brands International
- Domino’s Pizza Inc.
- Doctor’s Associates Inc.
- Roark Capital Group
- CFA Properties, Inc.
- Dunkin’ Brands Group, Inc.
- The Wendy’s Company
- Darden Restaurants Inc.
Other Online Food Delivery Market Vendors Mentioned
Zensho Holdings Co., Ltd., Shenzhen Meixixi Catering Management Co. Ltd., Lawson Inc., Ei Group LLC, Accor Hotels, Gregg’s PLC, Alsea Sab De CV, Fomento Economico Mexicano, Little Ceaser Enterprises, Inc., Walmart Stores, Inc., Spur Corporation Ltd., The Savola Group, Famous Brands Ltd., Kudu Restaurant.
Online Food Delivery Market Research Scope
| Market Size 2021 | US$437.8 billion |
| Market Size 2026 | US$679.5 billion |
| CAGR | 9.2% from 2021 to 2026 |
| Forecast period | 2021-2026 |
| Historic data | 2019-2021 |
| Report scope & coverage | Revenue Forecast, Competitive Index, Company Market Share, Growth Trends |
| Outlet Type | Restaurants, Retail, Club, Pub & Bars, Mobile Operators |
| Leading Companies | McDonald’s Corp., Yum! Brands, Inc., Starbucks Corporation, Restaurant Brands International, Domino’s Pizza Inc., among others |
Online Food Delivery Market Segments and Scope
GlobalData Plc has segmented the online food delivery market report by outlet type and region:
Global Online Food Delivery Outlet Type Outlook (Revenue, USD Million, and Volume, Transaction Million 2019-2026)
- Restaurant
- Retail
- Club, Pub & Bars
- Mobile Operators
Online Food Delivery Regional Outlook (Revenue, USD Million, and Volume, Transaction Million 2019-2026)
- North America
- U.S.
- Canada
- Europe
- Germany
- U.K.
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- Rest of Asia Pacific
- South & Central America
- Brazil
- Mexico
- Rest of South & Central America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
The market intelligence report provides an in-depth analysis of the following –
- Online food delivery market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the restaurant, retail, club, pub & bars, and mobile operator markets.
- The competitive landscape: an examination of the positioning of leading players in the Online food delivery market.
- Company snapshots: analysis of the market position of leading service providers in the online food delivery market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Key Highlights
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. Online food delivery refers to the process of ordering food from a website, a mobile application, or other devices. Food delivery can either be ready-to-eat meals from a restaurant, a ghost kitchen (a food preparation and cooking facility created for making delivery-only meals), a home kitchen, or ingredients to use for preparing food later, such as groceries from a store, or in the form of meal kits. The food delivery platform can be built by companies in-house or they can use a third-party service.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global Online food delivery market, outlet type, key vendor outlook, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in online food delivery markets.
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in online food delivery markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help online food delivery players, investors, and other stakeholders succeed in the growing online food delivery market globally.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The online food delivery market size was valued at US$437.8 billion in 2021.
The online food delivery market is expected to grow at a CAGR of 9.2% during the forecast period (2021-2026).
The COVID-19 pandemic forced the global population to stay inside homes which led to a huge surge in demand for online food delivery services. Also, increasing penetration of the internet and smartphones coupled with the busy lifestyles of consumers who are seeking convenient food options are also aiding the growth of the market.
Outlet types: Restaurant, Retail, Mobile Operator and Pub, Club & Bar.
The leading online food delivery vendors are McDonald’s Corp., Yum! Brands Inc., Starbucks Corporation, Restaurant Brands International, etc.
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