Food delivery service is gaining immense popularity in metropolitan cities around the world as the market for ordering through online food delivery apps or websites has witnessed a recent surge among millennial consumers. This increasing popularity of food delivery services is mainly attributed to rapid internet penetration, quick access to smartphones, and simplified online payment systems. A growing number of restaurants are using food delivery apps or third-party delivery service providers to enable fast ordering and delivery of their food to the customers. Due to these factors, it is expected that the global food delivery market will experience a strong growth and create promising opportunities to restaurants and online food delivery service providers over the next few years.
Global Food Delivery Market Overview
According the recent market research from Technavio, the global on-demand food delivery market will grow with a rapid pace, registering a CAGR of nearly 32% by 2021. The convenience and easy accessibility of ordering from food delivery apps is one of the major factors driving the global online on-demand food delivery services market. The rising population of millennials is the largest consumer group for food delivery services. These millennial consumers are accustomed to shopping through websites or apps that provide utmost convenience and transparency, and they expect the same experience when it comes to ordering food. Some of the most popular on-demand food delivery apps and online food delivery service providers around the world include Uber Eats, Grubhub, Just Eat, Deliveroo, Meituan Waimai, and Delivery.com.
In terms of regional markets, the Americas currently accounts for the largest food delivery market share. The online on-demand food delivery service market in the Americas is highly fragmented due to the presence of many top food delivery apps and services providers. The high penetration of internet and smartphone in the US is facilitating the growth of the online delivery service market in this region. Meanwhile, the Asia Pacific region is expected to witness the highest growth rate in the global food delivery market, owing to a growing number of start-ups that are taking advantage of the well-connected population and building successful on-demand solutions for food delivery in countries like China, India, and Japan.
Technological Advances to Facilitate the Food Delivery Market Growth
All the services in the global food delivery market are well supported by digital platforms through mobile and smartphone technologies. Many leading online on-demand food delivery companies use mobile apps and social media platforms to promote their food delivery services and run their marketing campaigns. These apps and platforms increase consumer engagement and create brand and service awareness. Such emphasis on mobile apps and digital platforms to increase consumer engagement is one of the key factors that will facilitate the market growth of the online on-demand food delivery services market.
Suggested Read: Top 10 Food Delivery Companies in the World 2019
Moreover, these food delivery companies use GPS and computer software to determine the optimum route to ensure quick delivery of food to the customers. The use of Big Data is also gaining popularity among food delivery service providers. By collecting and analysing information such as purchasing history, road traffic, market trends, and online reviews, the food delivery companies will be able to precisely estimate customer’s food preferences and delivery time. Some of the world’s leading online food delivery companies are currently collaborating with AI technology companies to develop new delivery solutions with robots, drones or self-driving cars. All these technological advances effectively increase the operational efficiency and improve customer experience, therefore are expected to be the major trends to drive the market growth over the near future.
Check Technavio’s Global Online On-Demand Food Delivery Market Report
Check Technavio’s Global Online On-Demand Food Delivery Market Report for more food delivery insights. This market research report provides the latest market size and market development for major market segments in terms of product types and regional market landscape. The report contains detailed market trends, market drivers, market challenges and key opportunities. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report.
