ONLINE TAKEAWAY FOOD MARKET ANALYSIS

Online Takeaway Food Market Size and Trends

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.

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The market has been witnessing significant growth over the past few years due to rising dependence on online food delivery systems. Factors such as growing urbanization, increasing youth population, rising disposable incomes, and busy schedules have been driving greater adoption of online takeaway food ordering platforms. Moreover, various players have been offering discounts, deals, and cashbacks to attract more customers, which has also boosted the market growth. However, concerns around increased service costs for food aggregators due to high commission charges may impede the market expansion to some extent going forward.

Busy Lifestyles and Changing Consumer Habits

The fast-paced lives that people lead today have significantly changed consumer habits and behaviors. Long working hours, juggling professional and personal responsibilities leave little time for activities like grocery shopping and cooking. People are increasingly relying on quick, convenient food options that can be ordered and delivered with just a few taps on their smartphone. Online food ordering and delivery services have found appealing for their ability to save time that would otherwise be spent in the kitchen or commuting to pick up food. Hectic schedules leave consumers craving for hot, tasty meals that can easily be enjoyed at home without much effort. Meanwhile, the desire for variety and experimentation with different cuisines has also been on the rise. Online platforms are satisfying this need by offering an immense variety of cuisine options from local restaurants on their panel. The growing preference for convenience coupled with busier lifestyles has made online food delivery an indispensable part of everyday lives.

Market Concentration and Competitive Landscape

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Rise of Internet and Smartphone Penetration

The phenomenal rise of internet connectivity and smartphone usage has transformed how people live, work, and access services. In the past decade alone, internet penetration and mobile data consumption have grown exponentially in both developed as well as developing countries. According to recent reports, over half of the world's population now has an internet connection. Affordable smartphones have found their way into the hands of billions. Mobile apps have made it incredibly simple to browse through restaurant menus, view photos of dishes, read reviews, and place food orders with just a few taps. The convenience of using one's phone from anywhere, anytime for online tasks big and small has made mobile internet an indispensable part of 21st century lives. Foodtech platforms have capitalized on the surge in digital adoption by transitioning their services to mobile-first models. Interactive maps, location tracking, payment integration, and live order status updates have enhanced the overall experience of ordering food online via smartphones. With digital technologies deeply ingrained in everyday activities, online food ordering platforms are certain to benefit from the continued rise of internet and mobile penetration globally.

Key Takeaways from Analyst:

The online takeaway food market is experiencing significant growth due to changing consumer preferences and busy lifestyles. The ability to browse menus and order meals on the go through smartphone apps and websites is a key driver boosting convenience for time-starved customers. While various regional players have come up in the market, international brands are also exploring opportunities for expansion in domestic as well as foreign markets. However, concerns around food quality and safety when ordered online could act as a restraint, if not addressed properly.

The market is dominated by several major players who have strong branding and penetration. The increasing global influence of Western fast-food chains also pose opportunities for new product innovations and customized regional menus. Younger demographic cohorts who are early adopters of technology trends present a solid consumer base. Asia Pacific is emerging as the fastest growing regional market owing to rising incomes, urbanization, and proliferation of online and mobile payment options.

European countries continue gaining traction underpinned by high smartphone and internet usage. In the U.S., the market is at a mature stage but players are exploring untapped suburban and rural areas. The COVID-19 pandemic has been a booster, shifting more dining occasions to delivery/takeaway amid widespread restrictions and fear of virus transmission.

Market Challenges: Delivery charges

One of the major factors hindering the growth of the online takeaway food market worldwide is delivery charges. While the convenience of ordering food online from various restaurants is very appealing to customers, the additional delivery fees make the overall cost of ordering takeaway foods more expensive compared to picking up orders in-person. This is a deterrent for many cost-conscious customers. According to data from the United Nations World Food Programme, as of 2022 approximately 828 million people worldwide were undernourished due to an inability to afford sufficient nutritious foods. With high delivery fees on top of food costs, ordering takeaway online would simply not be feasible for much of the global population struggling with food insecurity and poverty.

Market Opportunities: Expansion to new cities and towns

Expanding to new cities and towns could provide major growth opportunities for the global online takeaway food market. As urbanization increases around the world, more people are migrating to mid-sized cities and towns. According to United Nations data, by 2050 approximately 68% of the world's population will live in urban areas, up from 56% in 2018. This rapid urbanization is driving the development of new infrastructure and raising disposable incomes in smaller metropolitan areas. At the same time, advances in smartphone technology and internet access are enabling digital services to penetrate deeper into developing markets beyond just the largest metro regions.

This confluence of factors presents a significant prospect for online takeaway platforms to onboard new merchant partners and consumers across a broader geographic footprint. Platforms that are fast to reach non-tier 1 cities and cater their service models according to local customer behavior and tastes can gain strong first-mover advantages. They can establish significant supplier networks as these emerging urban nodes still have abundant room for the organized retail sector to grow. By adapting their app interfaces, payment options, and logistics operations for the requirements of lower-tier urban centers and their more diverse demographics, online food companies have an opportunity to gain many new long-term users and participating restaurants.

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Insights by Service Type: Increasing smartphone and internet penetration

In terms of service type, mobile apps is expected to contribute 42.2% share of the market in 2024. The online takeaway food market has been experiencing significant growth in the mobile apps segment over the past few years due to rising smartphone and internet usage. Mobile apps have emerged as the most convenient way for customers to order takeaway food digitally. They provide customers with easy navigation and access to an extensive menu selection from different restaurants on a single platform, without having to visit individual restaurant websites or make phone calls.

High quality mobile apps with user-friendly interfaces have simplified the online ordering process for customers. Features like customized offerings based on location, past orders and preferences; multiple payment options; and quick checkouts have enhanced customer experience and boost order volumes for restaurants. The ability to track live order status has also improved transparency.

Changing lifestyles with increasing time constraints have made ready-to-eat convenient options popular. Mobile apps cater nicely to this demand by allowing customers to browse, order and pay for meals within minutes from anywhere. Cities with heavy traffic conditions especially benefit from the lack of delivery wait time. The growing millennial population is highly prolific in technology adoption and turns to apps for most of their daily tasks including food ordering. Additionally, increased penetration of high-speed internet has enriched the overall digital experience for both customers and restaurants. This has augmented the rise of mobile apps as the key platform for the online takeaway food market.

Regional Insights

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The North America region currently dominates the online takeaway food market. With the presence of major industry players like Doordash, UberEats, and Grubhub, North America is expected to account for over 40.3% of the global online food delivery business in 2024. Ease of use of apps and a highly tech-savvy consumer base have made online food ordering extremely popular. The practice of “delivery-only” kitchens has also boosted the availability of options. Moreover, frequent promotional activities and discounts by aggregators as well as restaurants help maintain affordable pricing and high order volumes throughout the year. While major east coast cities are saturated markets, growth opportunities still remain in the mid-western and southern regions.

The Asia Pacific region is seen as the fastest growing market for online takeaway food. Countries like India and Indonesia are transforming rapidly in terms of internet adoption as well as willingness to order food online. Local apps tailored to regional consumer preferences have found immense success. For instance, Swiggy and Zomato have established strongholds in India, while GoFood dominates the Indonesian market. The young demographic profile, improving digital and payment infrastructure as well as growing numbers of dual income urban households are fueling demand. Diet diversification is also on the rise as regional cuisines get exposure through aggregator platforms. Moreover, Asia Pacific continues to attract major investments by global players looking to enter emerging high potential markets. With growing physical presence of restaurant chains and availability of local and international cuisine options, the Asia Pacific online takeaway market is well positioned for further expansion.

Market Report Scope

Online Takeaway Food Industry News

• In February 2024, Tata Neu super app to launch online food ordering via ONDC
• In April 2024, Food delivery unicorn Swiggy launches new tool to help restaurants improve online visibility
• In December 2022, Grubhub announced the partnership with Kiwibot, a food delivery company, to provide meal through robot on college campuses across the U.S.
• In March 2022, Zomato announced its latest feature, the 10-minute delivery of food. The feature would be available in prime cities only and is aimed at helping Zomato in attracting more customers and strengthening its position in the Indian market.

*Definition: The online takeaway food market connects customers with local takeaway and restaurant businesses for quick and convenient food delivery. Through websites and mobile apps, the market allows customers to easily browse menus, order meals, and have their food delivered directly to their home or office within a short timeframe. By facilitating online ordering and delivery services, the market provides a valuable service for both customers seeking hassle-free takeaway options and restaurants aiming to boost sales and attract new customers beyond their regular dine-in business.

Market Segmentation

• Service Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Restaurant-controlled 
  • Independent 
  • Food Cooperatives 
  • Mobile Apps
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Just Eat plc.
  • GrubHub
  • Delivery Hero SE
  • Takeaway.com
  • Foodpanda
  • Deliveroo
  • Uber Eats
  • Zomato
  • Swiggy
  • LimeTray
  • Delivery Hero SE
  • DoorDash
  • Domino's Pizza Inc.
  • Ele.me (Alibaba Group Holding Limited)
  • Grubhub
  • Papa John's International, Inc.