North America, especially The United States, will still play an important role which cannot be ignored. Lower levels of interest were found during August and September, but interest in supermarket delivery slots spiked again in November in the run up to Christmas as customers sought desirable Christmas delivery slots. Interest in grocery delivery boxes was negligible before the pandemic started, with levels at 0 or less than 0 compared to the peaks reached in late March 2020. Food boxes can mean produce boxes or recipe boxes. Integrating several restaurant chains with aggregators, such as DoorDash further drives the segment growth. Beelivery trended upwards, ending the year with a 50% increase in interest compared to the start of the year. If a food business were considering getting into the food box market, vegetables would be the place to start. Free upgrade to enterprise license (allows to share across all company locations), 5. North America's online food delivery market is currently being driven by several factors. For some this could have been due to needing to shield or isolate, while others might have been avoiding going to supermarkets due to concern about COVID-19 transmission. Most of the leading players are following logistics-focused food delivery systems due to the model's ability to help gain scale with limited costs and increased speed. On the basis of channel types, the global industry has been further categorized into websites/desktop and mobile applications. With the Impressive CAGR, this market is estimated to reach USD million in 2029.The report focuses on the Food Delivery market size, segment size (mainly covering product type, application, and geography), competitor landscape, recent status, and development trends. These subscription boxes also cater to consumers interested in trying new or different cuisines, something that the booming food market has enabled. So what happened in 2021 as we emerged back into the dine-out world? 2022 EHL Hospitality Business School, Switzerland, all DoorDash Inc.; Delivery Hero Group; Just Eat Limited; Uber Technologies Inc.; Swiggy; Zomato; Delivery.com LLC; Yelp Inc.; Amazon.com Inc.; Rappi Inc. Free report customization (equivalent to up to 8 analysts working days) with purchase. From October 2021, there was a significant growth in interest in Just Eat. If we compare the interest level before the spike to the level at the end of the graph, which is February 2022, they are similar bar the natural oscillation of interest that occurs from week to week and month to month. In addition, the quality of food delivered deteriorates when the number of food orders is high, which also requires additional resources to provide the food. Similar to drone delivery, autonomous delivery robots are expected to be used for delivering food items in the near future. Our Master in Hospitality Management is an internationally recognized MSc qualification. customized per your requirements. On the basis of payment methods, the global industry has been further categorized into cash-on-delivery (COD) and online. This slow growth in interest for recipe boxes and meal kits in 2020 is clearer if we remove food boxes delivery from the Google Trends graph. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios. Executive Summary. What are the factors driving the online food delivery services market. Last mile delivery in the food and beverage (F&B) sector is more mature than other sectors. Lets take a look at how five of the biggest supermarkets did in 2021. Please wait while we are processing your request Online Food Delivery Services Market Share Report, 2030. We explain how to get your commercial kitchen layout right, to ensure easy and safe working, and provide an example of what an ideal layout looks like. Gorilla Grocery seemed to languish by comparison, barely registering against its competitors. Companies also focus on developing products that comply with regional regulation norms to eliminate the risk of losing business because of regulation violations. 1. Cloud kitchens witnessed a surge in popularity during the COVID-19 pandemic due to the closure of several dine-in restaurants. In addition, millennials growing use of internet-enabled smartphones and rapid adoption of advanced technologies, such as voice-assistant apps, are contributing significantly to the regional market growth. We are unlikely to see an abandonment of these kinds of food boxes in 2022 given that during the last 6 months (June 2021 to February 2022) there have been consistent levels of interest in both. According to the food delivery market analysis, Zomato has spread across 213 cities in India and currently partners . Key points for mobile food businesses: delivery at home is the most popular trend while . Increased internet penetration rate, quick access to smartphones, simplified e-banking systems, improved food-service logistics, and changing lifestyles are some of the prime factors driving the online food delivery market growth. This waned from May 2020 onwards, though interest levels were then consistent for the remainder of 2020. What will 2021 hold for food delivery? Any changes from United States might affect the development trend of Food Delivery. Although there is something of a downtrend among the types of food boxes, there is still a consistent market for them. Food delivery applications allow the consumer to register and uphold an account in order to make frequent ordering more convenient. In 2020, the COVID-19 pandemic negatively impacted the overall industry growth due to supply chain disruption and end-users revenue loss. It remained at this lower level for much of the year and into January 2022. Order Focused Food Delivery System Logistics Based Food Delivery System Full-Service Food Delivery System. The global online food delivery services market size was valued at USD 23,539.40 million in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 15.4% from 2019 to 2025. Under these circumstances, the public has grown to acknowledge the unquestionable . 1.1 Study Deliverables and Market Definition, 4.3.2 Bargaining Power of Buyers/Consumers, 5.1.1 Logistics-focused Food Delivery System, 5.1.3 Restaurant-specific Food Delivery System, 7. The platform-to-consumer type segment dominated the industry in 2021 and accounted for the maximum share of more than 71.75% of the overall revenue. Please be sure to check your spam folder too. The global online food delivery services market is expected to grow at a compound annual growth rate of 18.7% from 2022 to 2030 to reach USD 253.95 billion by 2030. b. Asia Pacific dominated the online food delivery services market with a share of 40.38% in 2020. Online grocery sales and subsequently grocery delivery skyrocketed thanks to the global pandemic. The high living standards of individuals are continuing to spur the demand for online food delivery packaging services in the region. Food mobility is around the corner and in order to rightly adapt to it, restaurateurs should get to know their customers. It is one of the largest markets for global online food delivery. They are not interested in traditional cuisine and are concerned about sustainability while they also expect personalization options, ranging from ingredients to size and even preparation. China's food delivery market is forecasted to exceed 941.74 billion RMB in 2022, making China the world's biggest O2O (online to offline) food delivery market. Those recommendations are publicly available in a digitalized booklet. The increasing use of smartphones and internet penetration are contributing to the market growth. The food delivery industry is one of the most impactful industries in the United States today, and has normalized itself into our daily lives over the past decade. When comparing those interest levels to the past 5 years, we see a more than 350% increase in interest in Christmas delivery slots in 2020 compared to 2019. The global online food delivery market reached a value of US$ 106.1 Billion in 2021. Benefits offered by online delivery services include heavy discounts, rewards & cashback offers, doorstep delivery, and multiple payment options. The food delivery mobile application industry is strongly driven by rapid increase in Internet penetration, especially, in developing countries, such as Brazil, India, China, and others. Add to this the rising number of consumers looking for vegan, organic, no-gluten, paleo or ethically-sourced food, and youll understand the continued growth of specialized food subscriptions. This is attributable to the increasing per capita income and evolving digital habits of the millennial population in the region. This means that food delivery, which was ranked 6th in outlet preferences for 2018, is expected to become the second preferred option after table service for 2030. To begin, lets look at food delivery as a search term and a general indicator of the category as a whole. At the same time, Chapter 3 includes the highlighted analysis--Strategies for Company to Deal with the Impact of COVID-19, Top Key Players are as follows : Delivery Hero Meituan Waimai Just Eat Ele.me GrubHub Foodpanda Deliveroo Takeaway.com. This rapidly rising number of cloud kitchens is expected to boost the online food ordering trend, which bodes well for the industry's growth. On the other hand, the space is carefully regulated and labor prices are increasing. Interest in Christamas delivery more or less halved between 2020 and 2021, reaching levels of interest comparable to 2017, much lower than both 2019 and 2018. The market studied is highly competitive, and some of the leading players offering online food delivery services include Deliveroo, Just Eat, Delivery Hero, Grub Hub, and Uber Eats. Food businesses, from cafes to restaurants, largely moved to a takeaway model or closed for a few weeks, while food delivery businesses and takeaways continued as normal. Since more than 20% of the population in India relies on online food and restaurants services on a daily basis. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. In addition, many restaurants offer discounts to end-users ordering food via mobile applications. Online Food Delivery Services Market Regional And Country Analysis 5.1. Interestingly, compared to food box delivery neither saw a spike in interest at the start of the first lockdown. However, food delivery wasn't first introduced to the world in the past 10 years, in fact it's over a century old industry and has historically been profitable. An increase in the number of investments in this model is estimated to drive the growth of this segment, mainly in capital cities, during the forecast period. We have selected the most representative 20 countries from ;197 countries in the world and conducted a detailed analysis and overview of the market development of these countries. reserved. In 2020, the market is growing at a steady rate and with the. expertise, problem solving ability and inclination. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Online food ordering has grown 300% faster than dine-in since 2014 and now accounts for roughly 40% of the total restaurant sales. Established restaurant chains are now also opening cloud kitchen outlets instead of opening a dine-in outlets to cater to high food delivery orders. By platform type, the market is segmented into mobile / tablet applications and websites, and by geography, the online food delivery market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. Online Food and Grocery Delivery Market Size, Share & COVID-19 Impact Analysis, By Top Manufacturers - Peapod, Amazon Fresh, Boxed, Shipt, Safeway, Instacart, FreshDirect, Thrive Market, Walmart . The total market value of foodservice delivery in the UK was worth around 10.5 billion British pounds in 2021, largely thanks to the rise of online delivery concepts. The food delivery market analysis shows us that it was valued at about $3.7B in 2017. The global food delivery services market size is expected to reach USD 311.43 Billion at a steady revenue CAGR of 11.4% in 2028, according to latest analysis by Emergen Research. This growth is bolstered by user-friendly apps, growth in urban areas, and innovations in food delivery services, i.e. Despite the presence of intense competition, due to the global recovery trend is clear, investors are still optimistic about this area, and it will still be more new investments entering the field in the future. Looking at the past 5 years, there was a clear boost to Jiffy (green) in 2020 that was then lost in 2021, in fact dropping a little below its average from 2019. Food boxes is a somewhat broad term for users making searches in Google, but it can include: All are delivered to your door and so provide another way of getting food to your home. We can see a similar trend when looking specifically at Christmas delivery from the five major supermarket chains: Tesco (Blue), Sainsburys (Red), Morrisons (Yellow), Waitrose (Green) and Asda (Purple). Zomato will also have to deal with competition like Swiggy, an online restaurant delivery service that started in India back in 2014 and moving towards expansion into countries such as the UK and the UAE. This is very unusual compared to the other food delivery searches in 2020. IMARC Group provides an analysis of the key trends in each sub-segment of the Vietnam online food delivery market, along with forecasts at the country and regional level from 2022-2027. China's duopoly food delivery market. Similar products have gained extreme popularity in developed countries, and this tendency was further supported by the COVID-19 restrictions. The market revenue for the platform segment of the online food delivery market is UUSD 121.57 Billion in 2020. Despite the enormous market size and growth, it has displayed, the O2O food delivery market is still far from fully saturated. Based on its 2018 study conducted with over a thousand Swiss residents - customers, restaurateurs and field experts - the Saviva F&B Chair investigated the future of Swiss restaurants and reveals significant changes in demand for 2030. The key strategies preferred by companies to strengthen their market dominance include expansion, mergers and acquisitions, and partnerships to achieve consolidation and optimize their offerings. Having these insights into your own delivery operations is invaluable and the benefits stretch across everything from relations with external fleets and aggregators, to providing flawless deliveries, to enabling other arms of your business, like customer care, marketing and branding. Eating delivered or takeaway food is expected to be mostly a solitary occupation for consumers in 2030. Become an EHL Insights contributor, The best step-up for a successful career in hospitality. Online meal ordering has been getting increasingly popular in recent [] Delivery within an hour or less is a common way for these brands to set themselves apart from supermarkets, whose delivery slots are at best next day, depending on the popularity of a particular time or day. The United States online food delivery market attained a value of USD 18.5 billion in 2020, driven by the busy lifestyles of consumers and a shortage of domestic help in the region. While overall interest in food delivery was up, what did that mean for specific providers of food delivery? Looking at the interest levels for supermarkets deliveries, for most it was negligible before the lockdowns (see pictured graph with markers). Looking at Google searches for delivery from the main supermarkets, we can see a clear increase in interest across five of the biggest brands during the first lockdown: Tesco (Yellow), Asda (Purple), Morrisons (Green), Sainsburys (Red) and Waitrose (Blue). The growth of the desktop segment can be attributed to the increasing number of restaurants that are endeavoring to increase foot traffic by expanding their online presence through websites. As with food delivery, new local and startup grocery delivery services emerged to challenge the big chains by targeting those wanting to support local businesses and do their online food shopping in an eco-friendly way. One of the main trends identified by the Saviva F&B Chair is food mobility: researchers have forecasted a drastic increase of over 65% in delivery demand. Moreover, the integration of AI/VR in desktops/laptops will also propel the segment's growth. Investor demand for Just Eat to split off or sell its US version: Grubhub, A Just Eat loophole where customers can cancel orders they have received, forcing a refund, was reported to hit small businesses hard, Just Eat reported that it had taken 1.1 billion orders in 2021, new grocery delivery competitors are using speed as their unique selling point, Waitrose partnering with Deliveroo on Deliveroo Hop, Mindful Chef is a nutritionist approved healthy recipe box. Smaller brands, local producers and startup food apps have been popping up. Looking at the Google Trends results from June 2020 to the end of the year offers a clearer view: Note: The same supermarkets are in the same colours: Tesco (Yellow), Asda (Purple), Morrisons (Green), Sainsburys (Red) and Waitrose (Blue). This drives us to provide you with custom or syndicated research reports. We have seen this business growing by using different strategies. In terms of business model, the largest segment is Platform-to-Consumer, with a market share of 53.03% in 2020. ", We use cookies for a better user experience. Food Delivery Services Market: Geographic Landscape. b. Certainly afternoon tea delivery was the most popular, rising far above the others, though they all saw increases in 2020. Food Delivery found in: Food delivery service customer order rider working timely, Food delivery strategy for restaurants icon, Online product sales and delivery service, Delivery Strategy Information Production Assessment.. . So, food businesses are advised to take notice of the trends that evolved in 2020. New competitors are likely to emerge, both locally and nationally, catering to these changes in demand with an ever expanding range of options. In addition, we are always willing to comply with the study, which triangulated with your own data to make the market research more comprehensive in your perspective. Food delivery apps are reshaping the restaurant industry and how we eat by inspiring digital-only establishments that do not need a dining room or waiters. Back in 2017, Amazon made waves when it acquired Whole Foods in an attempt to take on the grocery market. 360 Research Reports is the credible source for gaining the market reports that will provide you with the lead your business needs. In 2021, Delivery Hero acquired Hugo's food and grocery delivery verticals and expanded its footprint in Central America and the Caribbean. 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. Recipe boxes are at-home cooking kits that include everything for a meal (or multiple meals) with ingredients in the set amounts required. About 62% of the market's overall growth is expected to originate from APAC. The mobile application segment dominated the industry in 2021 and accounted for the maximum share of more than 75.25% of the overall revenue. Deliveroo SWOT Analysis 2022. Europe also play important roles in global market, with a magnificent growth in CAGR During the Forecast period 2022-2029. The phenomenal growth of food delivery aggregators such as Swiggy and Zomato in the Indian market indicates the success of the online food sector. It was started in 2010 by Deepinder Goyal, after rebranding from the food directory website Foodiebay. It was founded by Greg Orlowski and Will Shu in 2013. In 2017, Grubhub had nearly $4 billion in gross sales. The COVID-19 pandemic really shook up the world and the food sector experienced huge changes. O2O food delivery market analysis, Zomato has spread across 213 cities in India relies on online delivery. Chain disruption and end-users revenue loss be ignored the O2O food delivery market is growing at a steady and! Is bolstered by user-friendly apps, growth in interest at the interest levels were then consistent for the segment. Food boxes can mean produce boxes or recipe boxes would be the place to start type! 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