Online Food Delivery Market Size, Share and Industry Analysis

Online Food Delivery Market Size, Share and Trends

The global online food delivery market size stood at USD 288.87 billion in 2024 and is forecasted to expand from USD 316.31 billion in 2025 to approximately USD 715.89 billion by 2034, at a compound annual growth rate (CAGR) of 9.50% during the forecast period from 2025 to 2034. Swift urbanization coupled with demand for convenience, rising mobile adoption with internet penetration and technological advancements expanding the market.

Key Highlights

• By region, North America dominated the global market with the largest share in 2024. The rising number of food outlets selling healthy and nutritious foods, increasing preferences for easy access to food at affordable rates, and growing adoption of improved delivery services are some of the major drivers boosting the market.
• By region, Asia Pacific is expected to grow at a notable CAGR during the forecast period. Swift urbanization and increasing net incomes, rising smartphone penetration, initiation with loyalty programs, and wider culinary preferences are projected to drive Asia Pacific online food delivery market.
• By type, platform to consumer segment held the major market share in 2024. The platform-to-consumer segment holds a significant share because it works as marketplace and connects consumer to different range of cuisines and restaurants.
• By type, restaurant to consumer segment is expected to grow at a significant CAGR in between 2025 and 2034. This segment is expanding, especially among major restaurant chains that are building their own delivery systems to maintain control over the customer experience. 
• By product, meal delivery segment contributed the biggest market share in 2024. Driven by elements such as hectic lifestyles, a growing need for convenience, and the incorporation of technology that improves user experience and broadens dining choices. 
• By product, grocery delivery segment is expanding at a significant CAGR in between 2025 and 2034. A simple and convenient experience draws customers in, aiding the swift expansion of the grocery delivery sector. 
• By payment method, online payment segment dominated the market in 2024. The ease and quickness of digital payments have turned them into a favored payment option for consumers, especially among younger demographics. 
• By payment method, cash on delivery segment is expected to grow at a significant CAGR over the projected period. Cash on delivery provides unmatched convenience and flexibility for consumers.

Industry Coverage

Consumer Demand for Convenience: Boosting the Online Food Delivery Market

The increasing number of individuals choosing online delivery is a major factor contributing to market expansion. Online food delivery provides unmatched convenience to customers. Through a couple of taps on their smartphones or clicks on their computers, they can explore various cuisines and receive their favourite dishes at home. In addition, online food delivery services frequently provide promotions, discounts, and loyalty rewards to draw in and keep customers. Such incentives promote repeat purchases and foster customer loyalty, aiding in market expansion. Gen Z has a major impact on online food delivery habits, as 69% prefer delivery, outpacing all other generations. Approximately 70% of customers like to order food online and prefer it to be delivered.

By 2026, the online food delivery sector is forecasted to have 2,656 million users. The COVID-19 pandemic significantly contributed to the rapid growth of this market, as consumers opted for contactless delivery because of safety worries. Collectively, these elements have established a strong ecosystem that persistently draws in investments and fuels online food delivery market expansion. 

What are the Key Trends in Online Food Delivery Market? 

• A cloud kitchen, also referred to as a ghost kitchen, dark kitchen, or virtual restaurant, enables swift expansion of your restaurant across numerous locations with little initial investment. These kitchens function without a dine-in option and concentrate exclusively on takeout or delivery services. Rise in the cloud kitchen fostering the market expansion. 
• Ordering food without contact is another leading trend driven by the pandemic. It started as a method to reduce germ transmission; nowadays, eateries utilize contactless delivery to accommodate patrons seeking greater convenience. Rather than delivering meals directly to customers, drivers for restaurants or online food delivery services just leave the food at the doorstep. 
• The demand for environmentally friendly delivery is increasing as the sustainability trend develops. Eco-friendly food delivery refers to a meal ordering system that emphasizes environmental sustainability and maximizes its efficiency in the best manner possible. Such eco-friendly food delivery boosting the online food delivery market. 
• The utilization of drones and self-driving vehicles for food delivery is growing in popularity. These technologies offer quicker and more efficient deliveries, particularly in city areas with significant congestion. Drones and self-driving cars can manoeuvre through crowded streets and bring meals straight to customers' doorsteps. 
• An expanded agreement with Uber Eats would see up to 2,000 delivery robots from Serve Robotics introduced in various unnamed U.S. markets. Furthermore, Deliveroo has introduced an autonomous drone food delivery service in Dublin in collaboration with Irish company Manna Drones Inc. Through this partnership, Deliveroo customers in select areas of the west Dublin suburbs can choose to receive their orders via drone. 
• In recent years, food delivery platforms have increasingly adopted artificial intelligence in response to the evolving habits of their customers. Through the incorporation of AI and machine learning methods, they can reduce possible mistakes and improve the user experience.

Market Opportunity 

Technological Advancements: Expanding the Market

Technological progress has transformed how food delivery services function, enhancing the efficiency, reliability, and scalability of the process. From digital ordering services to mobile applications and automated solutions, technology has significantly transformed the food delivery industry. Restaurant proprietors who adopt these technological advancements can elevate their service quality, increase operational effectiveness, and ultimately drive their profits. Adopting these advancements not only satisfies the changing demands of consumers but also places your brand at the leading edge of the sector. As the environment keeps changing, maintaining an edge with advanced technology and a focus on customer needs will be crucial for enduring success in the ever-changing realm of food delivery.

Market Challenge

Managing Pricing Strategy: Challenging the Market

The need to provide competitive pricing create high pressure on industries dealing in delivery. Food prices shift which makes developing the correct pricing strategy burdensome. The online food delivery market is becoming fiercely competitive, with various new startups joining in. And this, in turn, has made it tough for competing industries to identify the right pricing strategy. 

Regional Insights 

North America dominated the online food delivery market in 2024.

The rising number of food outlets selling healthy and nutritious foods, increasing preferences for easy access to food at affordable rates, and growing adoption of improved delivery services are some of the major drivers boosting the market. With the rise in the purchases of smartphones, surging internet penetration, and the spurring food sector, a significant number of consumers are depending on various food delivery apps for trying out different cuisines. The continuous growth of this industry will likely look further technological advancements such as enhanced delivery logistics, AI-powered recommendation systems, and the incorporation of contactless delivery options to combat emerging customer demands and preferences. 

Individuals in the United States are progressively systemizing different culinary experiences and healthier food choices in the online food delivery market. due to increased demand for the plant-based food and sustainability food delivery platforms are offering vegetarian and eco-friendly choices. Moreover, younger generations are attracted to platforms that offer clarity on sourcing and nutrition, indicating a cultural change towards conscious eating. McKinsey & Company states that the food delivery sector in the U.S. more than tripled during the pandemic, building on an already notable 8% yearly growth rate. In the meantime, delivery services expand into grocery and retail, creating fresh partnership possibilities.

As QSRs collaborate with retail brands for joint promotion, consumers can now find a variety of products and services on one platform. AI-powered logistics and self-driving delivery vehicles are improving operational efficiency and customer satisfaction while boosting the market share in the United States.

• In February 2025, DoorDash increased revenue by 24% year-over-year, achieved their first complete year of positive GAAP net income, and facilitated nearly $60 billion in sales for local vendors across more than 30 countries and over $18 billion in earnings for Dashers. (Source: DoorDash)

Asia Pacific expects the fastest growth in the market during the forecast period.

Swift urbanization and increasing net incomes, rising smartphone penetration, initiation with loyalty programs, and wider culinary preferences are projected to drive Asia Pacific online food delivery market. significant drivers such as increasing use of smartphones and the rising preference for convenience food boosting the market. improved network connectivity and innovation in online food delivery software further support this expansion. The rise of cloud or dark kitchens, which are developed solely for online orders and abolish the need for physical dining spaces, lowers operational costs and enhances efficiency, permitting industries to reach a wider consumer without conventional restaurant setups. 

The swift spread of digital technologies, along with the rise in smartphone usage and the availability of high-speed internet, has transformed how Indians obtain their food. Aside from technology, sociocultural shifts, like an increasing number of dual-income families and hectic city living, have heightened the need for convenient food delivery services. Cloud kitchen platforms such as EatClub and EatSure offer a distinctive method by delivering a variety of menus and cuisines to customers from one location. As consumer awareness of health and sustainability grows, food delivery services in India are expanding their menus to include healthy, organic, and plant-based options. Zomato established bold targets for 2030, aiming for complete EV deliveries and 100 million orders without plastic by 2025. Additionally, it aims to cut down on food waste, aid 300,000 small enterprises, enable one million gig workers, and reach 50% diversity representation, fostering inclusive growth and sustainability in the industry. 

• India's food delivery giants, Swiggy and Zomato (Eternal), have recently announced their FY25 results. Despite Swiggy achieving a robust 34.3% increase in revenue. In contrast, Zomato’s parent Eternal experienced a 64.5% revenue increase and a notable rise in net profits. (Source: INDmoney)

Segmental Insights

Type Insights 

How platform to consumer segment dominated the online food delivery market in 2024

The platform to consumer segment dominated the online food delivery market with the largest share in 2024. The platform-to-consumer segment holds a significant share because it works as marketplace and connects consumer to different range of cuisines and restaurants. With platform-to-consumer services such as DoorDash and Uber Eats, food delivery has grown beyond takeaways to encompass a wide range of items, including groceries, tools, and various products delivered in less than an hour. The strong expansion of this sector can also be associated with the rising number of collaborations between delivery services and popular restaurants, which broadens the options accessible to customers. 

The restaurant to consumer segment is observed to grow at the fastest rate during the forecast period.

This segment is expanding, especially among major restaurant chains that are building their own delivery systems to maintain control over the customer experience. Consumers can explore menus, compare prices, read reviews, and place orders from different restaurants in their locality via online platforms and mobile apps. Companies like Domino's, McDonald's, Burger King and Pizza Hut have made significant investments in their delivery services, appealing to customers who choose to order directly from their preferred restaurants for a more dependable and consistent experience.

Product Insights

What made meal delivery the dominant segment in the online food delivery market in 2024? 

The meal delivery segment held the largest share of the online food delivery market in 2024. Driven by elements such as hectic lifestyles, a growing need for convenience, and the incorporation of technology that improves user experience and broadens dining choices. meal delivery services offer a time-efficient solution by providing ready-to-eat or simple-to-make meals that seamlessly accommodate a packed schedule. Preparing balanced meals can be challenging and time-consuming. Meal delivery services remove the uncertainty from meal planning by offering customized menus designed by nutrition experts, ensuring that clients receive balanced and healthy meals effortlessly. 

The grocery delivery segment is seen to grow at a notable rate during the predicted timeframe.

A simple and convenient experience draws customers in, aiding the swift expansion of the grocery delivery sector. The demand for grocery delivery in the market has risen due to technological progress. Moreover, elements like ongoing advancements in e-commerce technology, mobile apps, and logistics pave the way for a convenient and effective shopping experience for consumers. Reliable payment gateways and efficient delivery services enhance trust and provide convenience, thereby drawing more customers to online grocery shopping. These elements enhance the demand for the online grocery market. 

Payment Method Insights

Why did the online payment segment dominate the online food delivery market in 2024?

The online payment segment led the online food delivery market in 2024. The ease and quickness of digital payments have turned them into a favored payment option for consumers, especially among younger demographics. Additionally, the rise in business digitization has resulted in an upsurge in demand for digital payment options that facilitate transactions and lower expenses. The pandemic prompted a rise in contactless payments as safety worries led individuals to adopt touch-free transactions. 

Cash on delivery segment is expected to grow at the fastest rate in the market during the forecast period.

Cash on delivery provides unmatched convenience and flexibility for consumers. It enables them to make purchases without requiring immediate payment. It is beneficial for new online buyers who are reluctant to provide sensitive financial details online. Furthermore, it resolves issues related to unsuccessful transactions, card authentication, payment gateway malfunctions, etc. In terms of security, cash on Delivery stands out as a premium payment option. With cash on delivery, purchasers do not need to provide any credit card details to the seller’s site, thereby protecting their financial data.

Recent Developments in the Online Food Delivery Market

Swiggy

• Launch: In May 2025, the top online food delivery service, Swiggy, introduced ‘Drops’, a unique feature that provides exclusive, chef-curated limited-edition dishes solely on its app. Created to instill a feeling of urgency and uniqueness in food delivery, Drops presents ephemeral, limited-quantity meals from beloved restaurants and chefs, offered for a brief period. (Source: TimesOfIndia)

BIGGUYS

• Market Expansion: In February 2025, through an ambitious growth strategy, BIGGUYS, the rapidly expanded domestic chicken QSR chain in India, is making a groundbreaking entry into the cloud kitchen sector. By 2030, the business aims to launch 150 cloud kitchens, highlighting its commitment to rapid growth and extensive accessibility. (Source: Restaurant India.In)

DoorDash and Coco Robotics

• Partnership: In April 2025, DoorDash, a top local commerce platform worldwide, and Coco Robotics, a prominent food delivery robotics firm, announced an enhancement of their partnership to provide sidewalk robot delivery for DoorDash users in certain U.S. markets. This expands on a current pilot initiative with Wolt, DoorDash’s global division, where Coco robots have been delivering orders in Helsinki since the beginning of this year. (Source: DoorDash)

Online Food Delivery Market Leading Companies

• Deliveroo
• DoorDash
• Zomato
• Just Eat Takeaway
• Delivery Hero
• Uber Eats
• Grubhub
• Swiggy
• Domino's
• Foodpanda
• Grab Holdings
• Olo
• HelloFresh
• Jahez International Company for Information and Technology
• Jubilant FoodWorks
• Meituan
• Postmates
• Alibaba Group
• Gopuff

Segments Coveredin the Report

By Type

• Restaurant to Consumer
• Platform to Consumer

By Product

• Grocery Delivery
• Meal Delivery

By Payment Method

• Online Payment
• Cash on Delivery

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)
• Latin America