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Food Delivery Service Market: Size, Trends and Forecasts

Karima Islam Mithila

By Karima Islam Mithila

The future of dining is doorstep delivery. Customers want speed, convenience, and choice. With consumer behavior rapidly shifting toward online orders, the food delivery industry stands balanced to lead a market disruption.

This article delves into the various aspects of the online food delivery service market, exploring its size, trends, and future forecasts. The online food delivery industry overview isn’t just about food—it’s about logistics, tech, and customer experience. So, understanding the dynamics of this market is essential for businesses.

If you’re a restaurant or food business owner looking to dive into the world of online food delivery, this blog is your ultimate guide.

Don’t miss out on this chance to stay ahead in the rapidly growing food delivery landscape.

Food Delivery Service

What is the Food Delivery Service Market?

The food delivery service market includes businesses that facilitate the ordering and delivery of food from restaurants to consumers. This market spans a range of services, from traditional delivery methods to modern online food delivery platforms. 

With the advent of technology, consumers can now order food online using delivery apps, making the process more convenient and efficient. 

As the ecosystem surrounding food delivery continues to grow, the market scalability of these services is becoming more evident, catering to the evolving needs of the restaurant industry. 

Consumers now prefer to order food online, opting for delivery options that suit their busy lifestyles.

Online Food Delivery Services Market Size

The online food delivery service market has expanded dramatically, with a substantial increase in both revenue and consumer adoption. According to industry forecasts, the global online food delivery service market size is predicted to generate $1.40 trillion in revenue by 2025. It’s forecasted to grow at a compound annual growth(CAGR) of 7.79% from 2025 to 2029, getting a market value of $1.89 trillion by the year 2029

online food delivery services market size

The food delivery industry analysis has witnessed a significant transformation over the years.  It is driven by technological advancements and changing consumer preferences.

Food Delivery Service Market Business Model

There are different types of food delivery business models available in the food delivery industry. Here’s the organized table for the food delivery business models

Model NameDescription
Order-Only ModelThe platform manages food orders, while delivery is handled by restaurants or third-party aggregators. The platform charges a commission for its services.
Full-Stack ModelHandles everything on-site, often using ghost or cloud kitchens for food preparation. Meals are cooked at lower-cost facilities focused solely on delivery.
Restaurant-Specific ModelRestaurants manage their deliveries to maintain control over their brand and customer relationships, offering personalized experiences and loyalty programs.
Hybrid ModelCombines elements of logistics-focused and restaurant-specific models. Platforms may handle logistics while allowing restaurants to maintain their brand.
Order and Delivery ModelInvolves three entities: restaurant owners, platform admins, and third-party delivery service providers.
Integrated ModelBoth restaurants and the platform admin can handle delivery logistics, offering flexibility in operations.

Online Food Delivery Market Platform Analysis 

Online food delivery has become an essential part of our daily lives. People prefer both mobile apps and websites. Though each offers unique benefits to users, mobile apps grab a key place in this industry. Here’s a closer look at how they contribute:

Mobile apps are the heart of the food delivery market. Their popularity stems from the convenience they offer, with features like GPS tracking to follow deliveries in real-time, personalized recommendations based on preferences, and seamless mobile payment options. The growing use of smartphones and a shift toward mobile-first habits have fueled this trend.

online food delivery market platform analysis

Apps are very popular, and websites are still important. This is especially true for users who like to browse on bigger screens. They’re particularly helpful for first-time users who want detailed information before making a decision. With responsive design, websites are becoming more user-friendly across different devices. As competition grows, websites may also introduce advanced features to keep up with mobile apps.

In summary, mobile apps and websites each have a valuable role in online food delivery, providing flexibility and options to suit different user needs. As technology advances, both are expected to become even more user-friendly and innovative.

Online Food Delivery Regional Insights Analysis

The online food delivery industry varies greatly across different regions, shaped by unique cultural preferences, technological adoption, economic conditions, and local infrastructure. Analyzing regional insights helps us understand how these factors influence customer behavior, market growth, and service demand in specific areas. 

US Online Food Delivery Service Market

The online food delivery industry in the United States is experiencing significant growth, driven by busy lifestyles and the convenience of ordering meals with just a few clicks. By 2025, revenue in this market is projected to reach an impressive $429.90 billion, with a compound annual growth(CAGR) of 6.99% from 2025 to 2029, and a market value of $563.40 billion by the year 2029.

The Grocery Delivery segment is also set to expand rapidly, with revenue expected to grow by 11.0% in 2026 and an estimated market volume of $327.90 billion by 2025.

US Online Food Delivery Service Market

In terms of user metrics, the Meal Delivery segment is anticipated to see substantial growth, Including the user demographic reaching 192.5 million by the end of 2029 and a user penetration rate of 52.6% by 2025. 

Additionally, the revenue per user in the Grocery Delivery Industry is predicted to be $2,210 in 2025. These figures underscore the rising demand for online food delivery services, highlighting the impact of convenience, diverse restaurant options, and evolving consumer habits on market expansion.

Europe Online Food Delivery Service Market

The market of online food delivery in Europe is set for substantial expansion, accompanied by revenue projected to reach $157.40 billion by 2025 and a compound annual growth (CAGR) of 7.18% from 2025 to 2029. Until 2029, the market is projected to reach a value of $207.70 billion. The Grocery Delivery sector is seeing rapid expansion, with a predicted 11.0% revenue increase in 2026, bringing the market size to $108.80 billion in 2025. In Europe, the Grocery Delivery market is expected to be $523.90 for that year.

europe online food delivery service market

By 2029, the Meal Delivery sector is predicted to have 286.5 million users, with a 30.8% user penetration rate predicted for 2025. This highlights the increasing demand for meal delivery services.

These projections highlight the dynamic growth and evolving consumer preferences shaping the online food delivery landscape in Europe.

Asia Online Food Delivery Service Market

Asia’s food delivery industry is poised for remarkable growth, with revenue expected to reach $717.70 billion by 2025. This market is projected to grow at a compound annual growth (CAGR) of 8.34% from 2025 to 2029, leading to $988.80 billion by the end of 2029.

The Grocery Delivery segment is also expanding rapidly, with revenue anticipated to grow by 13.6% in 2026 and a predicted market worth of $445.30 billion in 2025.

asia online food delivery service market

The delivery scenario in the meal industry in Asia is also experiencing significant growth, based on the user population expected to reach 1.6 billion until 2029 and a user penetration rate of 31.9% by 2025.

In Japan, the food delivery scenario is dominated by leading platforms like Uber Eats and Rakuten, which cater to the diverse culinary preferences of Japanese consumers with an extensive range of cuisine options. 

These figures highlight Asia’s dominant position in the global online food delivery industry, driven by rapid urbanization, technological advancements, and evolving consumer habits. 

Key Companies in the Online Food Delivery Service Market

key companies in the online food delivery service market

Top 8 companies that play a key role in the online food delivery industry worldwide.

  1. DoorDash: A major U.S.-based food delivery platform that connects customers with a wide range of local restaurants and businesses, offering delivery, takeout, and grocery services.
  1. Uber Eats: A branch of Uber, Uber Eats provides food delivery services in cities worldwide, connecting users with restaurants, fast food chains, and local eateries via its mobile app.
  1. Zomato: An Indian multinational that started as a restaurant discovery app, is now a leading food delivery service that also offers restaurant reviews and online ordering across many countries.
  1. Grab: A Southeast Asian super app that includes food delivery through GrabFood, ride-hailing, digital payments, and other services, with a strong presence in countries like Singapore and Indonesia.
  1. Delivery Hero: Headquartered in Germany, Delivery Hero operates in over 40 countries, offering food delivery services and partnering with various local restaurants and food chains globally.
  1. Just Eat: A UK-based food delivery service that operates across multiple countries, enabling customers to order food online from local restaurants and have it delivered to their door.
  1. Food Panda: A global online food delivery service based in Berlin, Food Panda operates primarily in Asia and Eastern Europe, offering a wide range of cuisines from local restaurants to customers.
  1. Hello Fresh: Unlike traditional food delivery, Hello Fresh specializes in meal kit delivery, providing pre-portioned ingredients and recipes for home cooking, serving multiple countries worldwide.

Opportunities for Entrepreneurs in the Food Delivery Industry 

The food delivery industry is offering countless opportunities for entrepreneurs to establish and grow successful businesses. With increasing demand for convenience and digital solutions, this sector is ripe for innovation. Entrepreneurs entering the market can tap into trends like multi-restaurant platforms, delivery optimization, and customized user experiences. To stand out, leveraging ready-to-launch platforms can save time, reduce initial investment, and streamline operations.

For people who are entrepreneurs and want to build their career in this field for them one excellent option is StackFood. It is a comprehensive food ordering and delivery platform solution designed to simplify the entire process at an affordable price.

StackFood connects restaurants, customers, and delivery personnel under one efficient system. It offers robust tools for managing a multi-restaurant business, including responsive website, mobile apps multilingual support, and built-in POS capabilities.

For entrepreneurs looking for a scalable, feature-rich, and flexible solution, StackFood offers a ready-to-launch platform with advanced features like payment gateway integration, live chat, multi-currency support, push notifications, and much more. 

By choosing StackFood, you can quickly establish your food delivery business without spending money and time on development from scratch, focus on scaling operations, and cater to the growing demand in this thriving market.

Final Words

In conclusion, the food delivery service market is a thriving segment of the global economy. The increasing dependence on online food delivery services reflects broader changes in consumer lifestyles and preferences. As delivery companies adapt to these trends and enhance their service offerings, the market is poised for continued expansion.

Entrepreneurs who grasp the complexities of the digital food delivery market can find success. They can do this by offering specialized services or creating innovative business models. 

FAQs

What are the key industry trends influencing the food delivery business?

Key industry trends influencing the food delivery business include the rise of contactless delivery options, the growing preference for cash-on-delivery, and the expansion of the online food delivery marketplace. Additionally, the integration of technology in order management and enhanced delivery times are also notable trends.

How do market dynamics affect food delivery service marketplace growth?

Market dynamics, such as consumer preferences, technological advancements, and competitive strategies, heavily influence food delivery service marketplace growth. The rising trend of consumers ordering food from their favorite restaurants via apps has propelled the market forward.

What role do cash on delivery options play in the food delivery market?

Cash-on-delivery options play a crucial role in the food delivery market, especially in regions where digital payment adoption is slower. This payment method enhances customer trust and convenience, contributing to the overall delivery market size and forecast.

How do food delivery companies utilize market research?

Food delivery companies utilize market research to understand consumer behavior, preferences, and trends within the virtual food delivery industry size. This information helps them tailor their services and marketing strategies to better meet the needs of their customers.

What are the delivery times typically associated with online food delivery services?

Delivery times for online food delivery services generally vary based on the distance to the restaurant and traffic conditions. However, most food delivery apps aim to ensure that orders are delivered within 30 to 45 minutes to enhance customer satisfaction.

Which Country is best for food delivery?

In 2024, China was projected to be the largest market for online food delivery globally, with an estimated revenue of around 450 billion U.S. dollars. The United States was in second place, generating approximately 353 billion U.S. dollars in online food delivery revenue that year.