ONLINE TAKEAWAY FOOD MARKET ANALYSIS

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.