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Food Delivery Market Share, Market Size, Analysis, Trends, Regional Outlook, Competitive Strategies, Research, And Forecasts Report, 2015 To 2025

  1. Published: December, 2018
  2. Format: Electronic (PDF)
  3. Number of pages: 70
  4. Industry: Food & Beverages

The global food delivery market is expected to witness significant growth in the coming years owing to increasing popularity of online food delivery services among consumers. Rising number of working women and hectic working schedule is also likely to boost the market growth. High penetration of smartphones has increased accessibility of these services from restaurants through mobile apps or web portal. This has, in turn, allowed the users to compare menus, prices, and reviews from home. Individuals, especially millennials are increasingly using these services as they offer various benefits, such as doorstep delivery, rewards and offers, and convenience of several payment options.

Emerging trends, such as expansion of digital platform and rise in customer engagement on social media platforms are anticipated to drive the market. Online delivery service providers are conducting social media promotional campaigns as a marketing strategy. These platforms help them to increase consumer engagement, branding, and awareness regarding their services.

Technological innovations are expected to have a positive impact on the market growth. Big data analytics plays an important role in improving distribution services by providing analysis of several factors, such as road traffic, customer purchasing history, and reviews on social media. Advancements in artificial intelligence and establishment of delivery drones are likely to drive the market in the years to come. Manufacturers are continuously taking efforts to implement AI solution and automation process in order to streamline processes efficiently. Numerous food delivery service providers are expected to reduce dependency on human delivery staff in future. Companies are increasingly focusing on development of drones and robots in order to speed up the distribution process and reduce operational costs. For instance, Starship Technologies, a prominent company developing self-driving delivery robots in U.S, recently launched autonomous delivery services for corporate and academic campuses across U.S. and Europe. This has, in turn, resulted in robust growth of robotic food, grocery, and parcel delivery in residential areas. These robots provide on-demand supply via an app, offering employees an advantage of convenience and flexibility of having food delivery regardless of place and time. The robots can be deployed in specially-designed pods that can be positioned around campuses, providing automated battery-swapping.

Emergence of blockchain technology is likely to present novel opportunities for companies by creating new platform of crypto food orders. Customers can order any kind of takeaway through cryptocurrencies. This may help companies to avoid fraudulent activities and improve the overall food ordering experience using cryptocurrencies for orders. For instance, PizzaForCoins accept orders over cryptocurrency. Furthermore, increased usage of augmented reality (AR) and virtual reality (VR) by companies is gaining traction among new customers. These platforms have also helped them to spread brand awareness and provide virtual training to staffs. For instance, KFC is using VR technology to teach the staff how to make Original Recipe fried chicken across U.S.

North America is a leading region in the market due to presence of well-organized food service industry, constant development, high disposable income, and rapid urbanization. U.S. is a key contributor to the market growth owing to rising focus of the fast-food chains on expansion of networks and advancements in online ordering systems. Asia Pacific is anticipated to exhibit substantial growth in future on account of rapid urbanization in countries, such as China and India. In addition, increasing disposable income, growing use of smartphones, and rising accessibility to internet are likely to fuel the growth.

Some of the leading companies operating in the food delivery market are Takeaway.com, Uber Eats, OrderUp, Postmates, and Swiggy. The market is marked by presence of numerous international and local service providers. Manufacturers are taking up various strategies, such as partnership and merger and acquisitions in order to gain a competitive edge in the market. Various service providers are likely to take up partnerships with local restaurants. They are also using digital marketing in order to increase customer engagement. Initial investment required to start food delivery business is lower than starting a new restaurant as it involves rent and interior designing expenses. Significant cost reduction of supplies and labour has compelled emerging companies to enter the business.

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