Restaurant or Food Delivery Market Size, Share, Growth, And Industry Analysis by Type (Restaurant-to-Consumer, Platform-to-Consumer, ) by Application (Cash on Delivery, Online, ) Forecast From 2025 To 2033

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RESTAURANT OR FOOD DELIVERY MARKET OVERVIEW

The global Restaurant or Food Delivery Market size was approximately valued at USD 288.84 billion in 2024 and is expected to reach USD 648.356 billion by 2033, growing at a CAGR of about 9.4% from 2024 to 2033.

Increased need among consumers for speed, convenience, and many food options is a main reason why this market is growing rapidly. This industry uses digital solutions to get meals delivered straight from restaurants to customers. Included in its operation are third-party aggregators, cloud kitchens, and in-house delivery services. Increases in smartphone use and accepting digital payments are important factors behind the industry’s growth. The market is evolving as new tools are added to logistics, customer engagement, and real-time tracking.

GLOBAL CRISES IMPACTING RESTAURANT OR FOOD DELIVERY MARKET

COVID-19 IMPACT 

Restaurant or Food Delivery Industry Had a Positive Effect Due to Increasing Demand for Contactless and Home-delivered Meals during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Thanks to social distancing caused by the COVID-19 pandemic, more and more people used restaurant or food delivery markets to order meals online. Having to close dining rooms, restaurants partnered with online ordering apps or offered delivery to customers to stay open. Thanks to this change, companies could keep going and introduced a lot of people to the easy way of ordering and receiving food at home. As more demand appeared, businesses found new ways with ghost kitchens and contactless deliveries. That is why the pandemic made food delivery a main feature of the restaurant industry.

LATEST TREND

Exclusive items, AI automation, and eco-friendly practices drive personalized experiences and market growth

There are many major trends that are having a big impact on the way the restaurant or food delivery market grows. More and more, we are seeing restaurants launch exclusive items that are only available for a short while, for example, through Swiggy's "Drops." This strategy helps platforms engage their users more and also makes them stand out from rivals. Also, blending artificial intelligence with automation is making logistics more efficient and allows companies to better personalize experiences for customers. Environmentally friendly actions like using green packaging and contactless delivery are now gaining interest, as more people become aware and demand these practices.

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RESTAURANT OR FOOD DELIVERY MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Restaurant-to-Consumer & Platform-to-Consumer

Restaurant-to-Consumer: This type of delivery enables restaurants to take orders online and transport items right to their customers. With this model, restaurants have complete authority over what their customers experience, the food options, and how much items cost. It is mainly applied by major restaurant chains and recognized establishments that handle their own shipments. Building branded mobile apps has made it possible for firms to connect more directly with their loyal customers. With a restaurant app, businesses avoid having to give a portion of their profits to third parties.

Platform-to-Consumer: Companies like Uber Eats, DoorDash, and Deliveroo are third-party apps that allow people to pick from a variety of restaurants for home delivery. Thanks to these services, smaller restaurants can easily serve delivery without handling logistics, paying for orders, or managing customer service. With many different cuisines in one location, the model makes it both easy and pleasant for people to choose. Areas with a lot of home delivery are the biggest fans of delivery bikes. At the same time, restaurants deal with paying high transaction fees and only have minor control over how customers interact with them.

BY DOWNSTREAM INDUSTRY

Based on Downstream Industry, the global market can be categorized into Cash on Delivery & Online

Cash on Delivery: People in regions where online trust is lower tend to use Cash on Delivery (COD). Customers who don’t use digital payment methods or want their order before paying have the benefit of using this method. This approach is most often used in countries where many people live and is popular among the aging. As a result, COD can cause issues in delivery or the handling of cash by the delivery service. In spite of these drawbacks, it keeps increasing market growth by welcoming a larger customer base.

Online: People are choosing online payment more and more for restaurant or food delivery because it’s swift, safe, and simple. Transactions via credit/debit cards, e-wallets, UPI, and digital platforms are supported. You can speed up your order by paying online and sometimes receive special offers or points for remaining loyal. Most young, tech-friendly customers tend to rely on this payment method. Improvements in the global digital infrastructure are leading experts to expect that more people will pay for food online.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                          

DRIVING FACTORS

Demand for fast, convenient food delivery drives customer loyalty and market growth consistently

As people today want food fast, easy, and flexible, they are driving the Restaurant or Food Delivery Market Growth. Because many are busy at work, having meals delivered has become a convenient way to avoid dining out. While placing an order through an app or a user-friendly site is simple, it often results in more customers regularly coming back. Many people are delighted that so many types of food are available for them to order. The need for instant results helps the market grow. Many customers continue to be influenced by how convenient a service is.

Digital transformation, better apps, and secure payments drive rapid growth in the market

Better smartphones and secure ways to pay for food have greatly improved the food delivery industry. With real-time tracking, customized suggestions, and subscriptions, apps and platforms improve how users enjoy their media. After COVID, using contactless payment methods has made transactions a lot smoother. Connecting promotions, loyalty points, and simple sharing increases how involved customers get with your business. Restaurants use these platforms to decide matters based on data. The rapid growth of the market is mainly thanks to the digital transformation.

RESTRAINING FACTOR

High delivery costs and platform fees restrain market growth significantly

One main restraining factor to the restaurant or food delivery market is that it costs a lot to manage and run delivery services. Many third-party delivery platforms take out large portions of a restaurant’s profits. Furthermore, firms face significant costs for labour, packaging, and getting orders to the end user. Small restaurants and independent eateries are made to bear the greatest burden by these costs. Because of this, companies must manage to keep their profits and meet what people expect.

Growing internet use in Tier 2 and 3 cities drives market growth

Opportunity

The growth rate in the restaurant or food delivery market is high among Tier 2 and Tier 3 cities. Because more internet and smartphone users live there, these areas now have new groups of customers. As how we live changes, we’re seeing a rise in demand for easy-to-get meals beyond big cities. With the right local plans and lower prices, delivery companies can reach these markets. The move into new geographies increases the chances for ongoing market development.

Ensuring food quality during delivery is crucial for maintaining market growth

Challenge

The restaurant and food delivery market has a major challenge in keeping food fresh, hot, and attractive during the delivery. When delivery is slow, there are many delays on the roads, and packages are not handled properly; the customer could suffer because of it. Because of this, people complain and request refunds, and the company’s reputation may suffer. It is difficult to make speed and accuracy compatible for products that require careful or temperature-controlled handling. Tackling this problem is crucial to keeping our customers trustful and satisfied.

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RESTAURANT OR FOOD DELIVERY MARKET REGIONAL INSIGHTS

●       NORTH AMERICA

North America leads market growth through technology, apps, and innovative services

North America holds the largest Restaurant or Food Delivery Market Share owing to its well-developed digital world, a greater number of phones, and people who opt for easy meals. The region is where many important global delivery brands and new business ideas like ghost kitchens can be found. The use of technology and many online food services makes the United States Restaurant or Food Delivery Market lead the way. Americans regularly count on apps for a variety of dishes and to follow their meals closely. The U.S. is now at the forefront of driving the market success in North America.

●       EUROPE

Europe’s dense cities and tech adoption drive market growth with sustainability

Europe makes a big difference to the restaurant or food delivery market thanks to its dense urban population and reliable internet services. The main cities in the region are now offering app-based food delivery because more consumers are using tech. Dark kitchens and eco-friendly delivery are being widely adopted among popular European countries such as the UK, Germany, and France. European law supports safe and eco-friendly food production, affecting how services are delivered. They are mainly responsible for keeping economic activity up across the continent.

●       ASIA

Asia’s growing middle class and digital use boost market growth rapidly

Because of its large population and fast-growing middle class, Asia is very important to the restaurant or food delivery market. The number of people ordering food from apps has grown rapidly in China, India, and nations in Southeast Asia. As phones get more affordable and more people are online, more join the ranks as gay dating app users. Because there is so much competition among delivery platforms, both regional and global, there is strong motivation to innovate and meet customer needs. Furthermore, more people living in cities and busy lives are driving an increase in demand for meal solutions that are convenient.

KEY INDUSTRY PLAYERS

Leading companies use technology and collaboration to drive market growth globally

Leading participants in the restaurant or food delivery market are influencing its development with advanced technology, strategic collaboration, and by focusing on their customers. Uber Eats, DoorDash, Zomato, and Deliveroo are improving people’s experiences by using real-time monitoring, artificial intelligence for suggestions, and tailored deals. Fast food chains are adopting cloud kitchens and no-contact delivery to enhance how they run their business. Going into new places and offering subscriptions as options, these companies lead the way, increase competition, and stimulate the fast-growing trend around the world.

LIST OF TOP RESTAURANT OR FOOD DELIVERY COMPANIES

DoorDash (U.S.)

Foodpanda (Singapore)

GrabFood Food (Singapore)

Grubhub (U.S.)

Pizza Hut (U.S.)

Postmates (U.S.)

Ele.me (China)

Uber Eats (U.S.)

KEY INDUSTRY DEVELOPMENTS

May, 2025: India’s leading food delivery app, Swiggy, rolled out a new feature, 'Drops', that brings customers limited-edition meals created by famous chefs from India. The initiative is designed to give users gourmet meals delivered to their doors, adding to Swiggy’s premium menu. With 'Drops,' Swiggy is coming up with another innovation, targeting users with interesting and time-limited meals. The intent of this feature is to appeal to fans of unique cooking who look for more than the usual menu items. Working with famous chefs and introducing new dishes are ways Swiggy is trying to be different from other businesses. As a result, more and more attention in the food delivery sector is devoted to personalized and high-quality dishes.

REPORT COVERAGE       

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.