The food delivery industry has undergone some changes as bigger companies try to reduce competition. However, it's still imperative to give great customer service.
During the COVID-19 pandemic, lots of people ordered food online for the first time because of the lockdown. Instacart did really well during this time and was able to achieve its 2022 goals in just the third week of lockdown, which shows how much they care about its customers. Other delivery services like Uber Eats, Deliveroo, and DoorDash also saw a big increase in orders from March 2020.
These companies reported higher revenue and bookings in recent years, showing that they are still dedicated to providing excellent customer service. It's exciting to see how the food delivery industry is growing and changing to meet the needs of people worldwide!
The online food delivery industry includes both grocery and meal delivery. The COVID-19 pandemic really helped this market grow, which is great news. Now that food aggregators like Just Eat Takeaway and Delivery Hero are established, they are starting to get into the grocery delivery space. While acquisitions are nothing new for meal delivery, these aggregators are taking a big risk with quick commerce, which hasn't yet proven to be profitable.
Although the market saw two years of amazing growth, 2022 is expected to slow down due to uncertain macroeconomic conditions and people looking to save money. We will likely see bigger companies take over smaller ones, which will make the line between grocery and meal delivery even more blurred.
China and the US are leading in Gross Merchandising Value (GMV). Chinese companies have already established themselves and the market is mature.
The global online food delivery market was valued at $189.70 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 10.8% from 2022 to 2028.
This growth is primarily driven by the increasing number of smartphone and internet users worldwide, as well as the growing trend towards food delivery mobile applications.
Online food ordering and restaurant delivery have experienced a staggering growth rate of over 20% in the past five years. The figures vary by location, but projections indicate that online food delivery rates will exceed $220 billion by 2025.
Keeping up with market developments is crucial for restaurants, especially with the changes in the food ordering and delivery sectors. This presents an excellent opportunity to identify new markets and invest in promising industry sectors. The numbers speak for themselves, with approximately 42% of the overall food ordering market now online.
The food industry's collective annual growth rate is around 3.7%, but online ordering and food delivery are growing at an impressive annual rate of approximately 15-20%.
The food delivery market has experienced significant growth year over year since 2017, with an exponential surge from 2019 through 2020.
This is not surprising, given the increasing demand for food delivery services among consumers in recent years. Thanks to the convenience and ease of ordering food online or through a mobile app, people are increasingly opting for food delivery over traditional dining options.
Furthermore, the COVID-19 pandemic has accelerated this trend, as people have been compelled to stay at home and limit their exposure to public spaces. As a result, the food delivery market has seen a surge in demand, resulting in increased revenue for companies in this industry.
With these factors in mind, it is highly likely that the food delivery market will continue to experience growth in the coming years, making it a promising investment opportunity for those interested in the food service sector.
As of 2022, the revenue of the food delivery market amounted to $760 billion.
This number is expected to continue growing as more people rely on food delivery services due to the convenience and safety they provide, especially during times of crisis.
COVID-19 increased demand for food delivery, with many restaurants offering takeout to survive. As a result, competition in the food delivery market has grown, with new and established companies improving their services to stay ahead. Technological advancements also contribute to faster and more efficient delivery options, driving growth in the market.
As of 2022, the food delivery sector has seen remarkable growth over the past few years.
Grocery and meal delivery have generated a staggering $460 billion and $300 billion in revenue, respectively.
Experts anticipate this trend to continue as consumers increasingly opt for the convenience of food delivery services. This change in consumer behavior has also led to industry innovation, with companies making significant investments in technology and logistics to keep pace with demand and stay ahead of the competition.
In 2022, China generated an impressive $309.90 billion in revenue from the food delivery market, outpacing other countries. The United States followed with $185 billion, while South Korea, the United Kingdom, and Japan recorded $34.33 billion, $33.14 billion, and $29.52 billion, respectively. Collectively, the rest of the countries also saw significant growth in this market, generating about $168.11 billion in revenue.
According to the latest market research, the food delivery industry is undeniably one of the fastest-growing sectors, marked by a remarkable surge in revenue per user.
In 2022, the average revenue per user reached an impressive $532.60. This notable accomplishment can be attributed to the proliferation of food delivery services that provide convenience, speed, and quality food, as well as the emergence of digital technology that simplifies the ordering and tracking processes.
One of the most critical metrics for measuring the industry's success is the average revenue per user (ARPU) by segment, which is determined by the type of food being delivered.
There are two primary segments in this industry: Grocery Delivery ARPU and Meal Delivery ARPU, each with its own unique ARPU.
By focusing on both segments, companies in this industry can improve their ARPU by implementing targeted marketing strategies, and loyalty programs, and optimizing delivery processes to ensure customer satisfaction. These efforts can significantly enhance revenue and establish a company's leadership position in the highly competitive food delivery market.
As of 2022, the number of users of food delivery apps has impressively reached 2.5 billion worldwide.
This showcases the remarkable surge in popularity of food delivery services, which have become increasingly convenient and accessible to people from all walks of life.
Thanks to technology and the widespread use of smartphones, ordering food from your favorite restaurants has never been this easy. Your cravings can now be satisfied in a matter of minutes as food delivery apps have truly transformed the way we enjoy our meals, providing access to a wider variety of cuisines without ever having to leave the comfort of our homes.
Whether you're in the mood for sushi, pizza, or Thai food, a food delivery app can cater to your preference and deliver your favorite dishes right to your doorstep with confidence.
China's food delivery market is set to exceed $135.38 billion in 2022, cementing its position as the world's largest online-to-offline (O2O) food delivery market.
Despite its already enormous size and growth potential, the O2O food delivery market is far from being fully saturated, leaving plenty of room for further expansion. As the market continues to grow at a rapid pace, so does the penetration rate of the food delivery industry.
In 2020, the penetration rate among Chinese netizens stood at 42.3%; however, the COVID-19 pandemic has accelerated the adoption of online delivery apps, which reached 52.7% by December 2021. Therefore, it is imperative to understand the current landscape of the O2O food delivery market in China and identify the impacts of lockdown restrictions on the market to stay informed of market trends in the face of COVID-19 uncertainties.
It is worth noting that the food delivery market in China is a duopoly, with Chinese tech giants Alibaba and Tencent dominating the space through their respective subsidiaries, Ele.me and Meituan, which together account for a staggering 95% of China's food delivery market.
The online food delivery market in the United States has grown exponentially, with a market size of $26.1 billion in 2022. It has been projected that the market will continue to expand, reaching a value of $46.5 billion by 2028, with a growth rate (CAGR) of 10% during 2023-2028.
Here are some of the most popular delivery options in the United States:
In 2022, Tesco Groceries was the clear leader among food delivery apps in the United Kingdom (UK), boasting nearly six million downloads. UberEats came in second place with an impressive 3.5 million downloads during that year. Deliveroo, while still a strong contender, trailed behind in third place with over three million downloads.
Ch Daniel is the co-founder of SignHouse and chairman of the CH Group. Daniel is leading the development of SignHouse's product, as well as strategising how else the company can reach its main mission: empowering 100M+ to use the world's most efficient document organisational tools.