New York, April 04, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Online Food Delivery Services Global Market Report 2022” – https://www.reportlinker.com/p06250377/?utm_source=GNW
11 billion in 2021 to $128.32 billion in 2022 at a compound annual growth rate (CAGR) of 11.5%. The market is expected to grow to $159.46 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%.
The online food delivery services market consists of sales of online food delivery services and related services primarily for household consumption. The online food delivery services market includes all companies involved in distributing the packages received from hospitality establishments and have an online portal or an application for their you go out.
The food can be either ready-to-eat food or food that has to be specially prepared for direct consumption.
The online food delivery services market covered in this report is segmented by type into platform-to-customer, restaurant-to-customer. Platform-to-Customer refers to an online tool or a forum being created for businesses to enable them to have two -way communication with their customers.
The different channel types include websites, mobile applications and involve various payment methods such as cash on delivery, online payment.
Western Europe was the largest region in the online food delivery services market in 2021. Asia Pacific was the second largest region in the online food delivery services market.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
An increase in smartphone users has given a boost to online food delivery services worldwide. Smartphone users are the primary online shoppers for the F&B industry and an increase in the number of smartphone users reflects a potential increase in online shopping for food and beverages.
The world F&B e-commerce users reached 1.5 billion in 2019 and are expected to grow by 800 million, with an average of 25% yoy growth, by 2024. Indian food delivery platform, Zomato, has 80 million monthly active users and has set targets of reaching 20 million over the next few years. Hence increase in smartphone users and internet penetration is driving growth in online food delivery services.
The cost of supply chain and logistics will be the key restraint for the online food delivery services market. This cost includes the cost incurred for order fulfillment, delivery cost, adjusting business resources to dynamic market demand, and last-mile connectivity.
Besides, there are costs of cardboard boxes for packaging, gas, mileage, and the cost of hiring a driver. The supply chain and logistics have to be in place in order to avoid the spoilage of products with limited shelf life.
According to the report by Capgemini, in 2019, retailers could lose up to 26% of their profit if they fail to upgrade their logistics system to ensure on-time delivery despite the increased online grocery system. Therefore, the costs incurred by the supplier side may restrain the growth of the online food delivery services market.
Upgrading of the distribution network to a more decentralized system, Distribution 4.0, is trending in the food delivery services market. In Distribution 4.0, suppliers partner with multiple players for the best market coverage between urban and rural markets, focusing their efforts on marketing, branding, and in-store merchandising to create a best-in-class shopper experience. They are likely to partner with aggregators, e-comm delivery companies, rural distribution companies, and distribution arms of modern trade to drive coverage. E-commerce aggregator Amazon, has announced plans to team with many small-scale businesses, retail outlets, and rural supermarkets, to increase their last-mile connectivity. Therefore, the trend of Distribution 4.0 is envisioned to bring in some positive effects on online food delivery services.
In January 2020, Zomato, an Indian food delivery services company, has acquired Indian operations of Uber Eats for $350 million in an all-stock transaction. The combined entity of Zomato and Uber Eats India is expected to corner more than a 50-55% market share in terms of the number and value of orders.
Uber Eats is an online food delivery services vertical of Uber, a US-based ride-hailing company.
The countries covered in the online food delivery services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
Read the full report: https://www.reportlinker.com/p06250377/?utm_source=GNW
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