Online On-Demand Food Delivery Services Market size to record USD 266.05 billion growth from 2023-2027, Growing prominence of technology and IoT devices is one of the key market trends, Technavio

NEW YORK, May 8, 2024 /PRNewswire/ -- The global online on-demand food delivery services market size is estimated to grow by USD 266.05 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of 24.64% during the forecast period.

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Key Trends Fueling Growth

• Growing prominence of technology and IoT devices: 
• Vendors in the global online on-demand food delivery services market are increasingly using technology to enhance their operations. For instance, Zomato Media Pvt. Ltd. partnered with BetterPlace, a tech platform in India, for managing their workforce. Similarly, Dominos Anyware in the US offers cross-platform ordering, allowing customers to order pizza via various IoT devices like smart TVs and smartwatches.
• This trend indicates a shift towards tech-driven solutions to expand customer bases, develop infrastructure, and train personnel. Such partnerships and initiatives highlight the growing importance of technology, particularly IoT, in this market segment. In the forecast period, technology is expected to play a significant role in streamlining processes and improving convenience for customers.

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Major Challenges:

• Growing threat from direct delivery services offered by restaurants 
• Restaurants are increasingly opting to manage delivery of online orders themselves to ensure control over branding, quality, safety, and hygiene. By handling deliveries directly, restaurants can engage with customers and maintain ownership of the process. Typically, customer data is managed by third-party delivery services, potentially weakening the restaurant-customer relationship.
• Additionally, these services often charge commissions, eating into profits, especially for smaller restaurants. Direct delivery can also mean faster delivery times compared to third-party services, enhancing brand engagement and customer loyalty. This trend poses a threat to the global online food delivery market.

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Segmentation Overview

1. Type 
• 1.1 Restaurant-to-consumer
• 1.2 Platform-to-consumer
2. Geography 
• 2.1 APAC
• 2.2 North America
• 2.3 Europe
• 2.4 Middle East and Africa
• 2.5 South America

1.1 Restaurant-to-consumer- The restaurant-to-consumer delivery sector involves restaurants directly delivering meals to customers. This can happen through various platforms like Delivery Her and Just Eat or directly through restaurant websites. These platforms handle searching for restaurants and processing orders. Sometimes, they also manage the delivery. These aspects will boost the segment in the future.

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Analyst Review

The online on-demand food delivery services market is witnessing a significant shift, driven by the increasing demand for ready-to-eat meals delivered directly from restaurants to customers' doorsteps. With a variety of payment methods available, including online transactions and card payments, customers can conveniently order their favorite meals through user-friendly online portals.

Historically, the rise of internet penetration and smartphone users has paved the way for tech giants to enter the market, offering virtual kitchens and innovative platforms like DemandSage to cater to the preferences of millennials. Cardboard boxes facilitate secure delivery in urban markets, while in-store merchandising attracts customers to explore meal options.

Aggregators play a crucial role in e-commerce delivery, ensuring last-mile connectivity for goods and services. Mobile devices enable order processing, with POS systems streamlining transactions. Digital menu boards enhance customer experiences, while meal delivery times are optimized for convenience. Restaurant reviews drive food innovation, fostering the emergence of virtual restaurants and ghost kitchens to meet delivery volumes and food preferences.

Smartphone penetration and internet connectivity enable AI-driven recommendations and order tracking, while offering healthier and sustainable meal options such as plant-based and organic foods. Disposable incomes drive the volume of orders, prompting companies to offer competitive prices, discounts, and customer loyalty programs. 

Market Overview

In the dynamic landscape of Online On-Demand Food Delivery Services Market, aggregators play a pivotal role. These platforms facilitate seamless connections between customers and cloud kitchens, ensuring prompt delivery of robot-prepared meals. Smartphones act as the primary interface, enabling users to place orders effortlessly. Cloud kitchens optimize operations, focusing on efficient food production. Servicing personnel ensure timely delivery and customer satisfaction.

Furnishing services cater to the aesthetic appeal of dining experiences. Insurance coverage mitigates risks associated with online sales. Understanding customer preferences is key, as it drives sales trends. Digital menu boards offer engaging visual representations of available options. Restaurant reviews influence food preferences and customer choices. By integrating these elements cohesively, online on-demand food delivery services providers can enhance market presence and meet evolving consumer demands effectively.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation

• Type 
• Restaurant-to-consumer
• Platform-to-consumer
• Geography 
• APAC
• North America
• Europe
• Middle East And Africa
• South America

 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. 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.

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. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. 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.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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