Online Food Ordering Market Size, Share, Growth, and Industry Analysis by Type (Restaurant-controlled, and Independent) By Application (B2B, B2C, and Others) Regional Forecast By 2031

Updated On: 13 November 2023

Online Food Ordering Market Report Overview

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The global online food ordering market size is expected to be worth USD 67300 billion in 2022, as per our research, the market is projected to touch USD 105,567.88 million in 2031, exhibiting a CAGR of 4.2% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden surge in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

It can be said that online food ordering is a response to the desire for delivery of food via the Internet. You can either buy ready-to-eat food or prepared food without special preparation for direct consumption. Third-party online food ordering and delivery have emerged as a global industry, resulting in a delivery revolution. It is possible to order food online from a restaurant in several ways. Online ordering for pick-up or delivery can be easily done by restaurants with their own websites. A third option is to be able to make reservations. People make their orders via the Internet instead of calling the restaurant for delivery.

Several factors contribute to the market growth which is discussed in the report. Despite all the growing factors and uses, the high costs while ordering food online, delivery fee and other extra taxes may restrain the market growth.

COVID-19 Impact: Closure of Dine-in Restaurants Due to Lockdown to Boost Market Growth 

The COVID-19 pandemic has had an effect on almost all sectors in the society, impacting some beneficially and other fields slightly non-beneficial. The COVID-19 pandemic led to the introduction of contactless delivery services by some major players, including Domino's Pizza Inc., McDonald's Corp., and Zomato, which are anticipated to continue in the years to come. Due to the closure of numerous dine-in restaurants during the COVID-19 pandemic, cloud kitchens experienced a rise in popularity. The work-from-home culture imposed due to the lockdown forced the employees to order food from online food ordering services, thereby driving the market growth. COVID-19 and its subsequent impact have made most of restaurants shift their mode online. Due to people becoming accustomed to online ordering, the trend is anticipated to continue after the pandemic.

Latest Trends

"Increasing Popularity of Cloud Kitchens to Drive Market"

Due to the growing number of consumers who buy their food through online platforms, cloud kitchens are becoming more and more popular in the market. Thus, due to consumer busyness, cloud kitchen convenience, and widespread internet use, there are an increasing number of food orders being placed online. For new and experienced restaurateurs alike, cloud kitchens have become a popular investment choice when starting a food business. To meet the high demand for food delivery, well-known restaurant chains are now opening cloud kitchen locations rather than dine-in locations. Online orders have increased as a result of how simple it is to get food delivered for a fair price and in a hurry.

Online Food Ordering Market Segmentations

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• By Type

The market is classified into restaurant-controlled, and independent based on type. The restaurant-controlled segment will lead the online food ordering market share throughout the forecast period.

• By Application

The market is classified into B2B, B2C, and others on the basis of application. The B2B segment will lead the online food ordering market share throughout the forecast period.

Driving Factors

"The Convenience Associated with Ordering Food Online to Drive the Market"

The convenience of customers to get the food right in front of them without going anywhere is a major driving factor of the market. Through online food ordering, one even don't have to step out and it will be delivered to your hand.

"Increasing Significance of B2B to Drive the Market"

B2B eCommerce solutions offer many advantages for businesses, enabling them to boost sales, improve efficiency, and reach new clients and markets in addition to enabling customers to buy the products online. Thereby the growth of B2B across industries is another factor driving the market.

Restraining Factors

"Extra Cost of Ordering Food Online to Restrain the online food ordering Market"

The cost of using online food ordering services is one of their biggest flaws. The price of ordering food for more than one person is typically comparable to dining out every night at a decent restaurant. Numerous food delivery services charge more than $20 per person per day. For some other food ordering services, even more expensive. Online food ordering services are frequently too expensive for people on a tight food budget. The extra taxes and delivery fees while ordering food online can also impact the online food ordering market growth.

Online Food Ordering Market Regional Insights

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"North America to Hold the Largest Market Share Owing to Increasing B2B Sales"

During the forecast period, North America is expected to hold the largest market share. Increasing B2B sales is a major factor driving the online food ordering market growth. Due primarily to high user penetration rates in the United States, the North American market has a sizable market share in the global market. One of the biggest markets for international online food delivery exists here. The largest online food ordering market in the world is currently represented by it. Several factors are currently driving the market for online food ordering in North America. A sizable urban population, their hectic lifestyles, and consequently a sizable consumer preference for fast food are some of the major factors that have fueled the market growth in the area.

After North America, Asia Pacific holds the majority of the online food ordering market share. The rising levels of per capita income and the shifting preferences of millennials are responsible for regional growth. Additionally, millennials' increasing use of internet-connected smartphones and quick uptake of cutting-edge technologies like voice-assistant apps are significantly boosting the growth of the local market. The adoption of food delivery apps in the region is also being aided by the expansion of the e-commerce industry in developing nations like India and Japan.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage  "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• McDonalds (U.S.)
• KFC (U.S.)
• Subway (U.S.)
• Pizzahut (U.S.)
• Starbucks (U.S.)
• Burger King (U.S.)
• Domino’s Pizza (U.S.)
• Dunkin Donuts (U.S.)
• Dairy Queen (U.S.)
• Papa John’s (U.S.)
• Wendy’s (U.S.)
• Just Eat (U.K.)
• Takeaway (Netherlands)
• Alibaba Group(Ele.me) (China)
• GrubHub (U.S.)
• OLO (U.S.)
• Swiggy (India)
• MEITUAN (China)
• Uber Eats (U.S.)
• DoorDash (U.S.)
• Caviar (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.