Online Takeaway Food Market is Estimated to Witness High Growth Owing to Evolving Consumer Preferences and Rising Smartphone Penetration
The Online Takeaway Food Market is estimated to be valued at USD 20.32 Bn in 2024, exhibiting a CAGR of 14.1% over the forecast period between 2024 and 2031. Factors, such as changing work culture and increasing number of working professionals, are driving the demand for easy and ready-to-eat food products. Furthermore, high dependence on online channels for convenience and transparency in ordering are expected to support the market growth during the forecast period.
The growth of the online takeaway food market is driven by evolving consumer preferences towards convenient food options and rising smartphone penetration. With increasing preference for fast-casual food over home-cooked or restaurant meals, especially among busy urban professionals and millennials, the demand for online takeaway food channels has increased significantly. Additionally, high smartphone ownership complemented by reliable high-speed internet connectivity has enabled consumers to conveniently browse through a variety of food options online and place orders with just a few clicks. This has attracted many food aggregators and delivery restaurants to establish a strong online presence and cater to the growing demand. Moreover, features such as live order tracking, flexible payment methods, and loyalty programs offered by various online takeaway platforms have further enhanced consumer retention on these channels.
Increased Adoption of Smartphones and Internet Usage
The adoption of smartphones and easy availability of high-speed internet have enabled the growth of online food delivery platforms. People are increasingly preferring to order food online through their mobile apps instead of calling restaurants or visiting them physically. This convenience and ease of using online platforms has become one of the key drivers for the online takeaway food market.
Variety of Food Options Available on Online Platforms
Online food delivery platforms offer customers a wide variety of cuisine options from multiple restaurants on a single platform. Customers can easily browse through menus, check reviews and compare prices to choose from a diverse selection of local restaurants without having to individually visit each one. This variety and ability to compare options is another major attraction for customers and helps drive higher orders for the online takeaway food market.
High Delivery Charges and Service Fees
While online platforms provide convenience, they often charge significant delivery fees and service charges to customers. These additional costs make online ordering more expensive compared to direct takeaway or dine-in at some restaurants. High delivery prices can act as a restraint for some customers who are value-conscious.
Reliability and Delay Issues
Sometimes, orders via online platforms may get delayed or even go missing during delivery. Customers also have to rely on the delivery personnel being able to accurately locate the address. Issues with reliability and delays in deliveries pose a restraint as it affects the overall customer experience negatively.
Expanding to Lower-tier Cities
Most online food delivery platforms currently have an established presence only in top-tier metro cities. However, smartphone and internet penetration are steadily growing even in lower-tier cities and towns. Platforms can leverage this by expanding their operations and partnering with local restaurants in smaller cities as well for potential new customer acquisition.
Targeting Office Deliveries
Workspace deliveries have emerged as a new opportunity area. By collaborating with large corporate parks/offices, platforms can target bulk lunch orders for office-goers directly to their workplace addresses on specific weekdays. This provides an untapped customer segment and avenue for higher order volumes.
Link - https://www.coherentmarketinsights.com/market-insight/online-takeaway-food-market-2639
Key Developments
- Tata Neu super app launched online food ordering via Open Network for Digital Commerce (ONDC) in February 2024.
- In April 2024, food delivery unicorn, Swiggy, launched a new tool to help restaurants improve their online visibility
- Grubhub announced a partnership with Kiwibot, a food delivery company, in December 2022 to deliver meals through robots on college campuses across the United States.
- Zomato introduced its latest feature, 10-minute food delivery, in March 2022. This feature was available in prime cities and aimed to attract more customers and solidify Zomato's position in the Indian market.
Key Players
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, and Papa John's International, Inc.
