Delivery And Takeaway Food Market - Forecast(2023 - 2028)
Delivery And Takeaway Food Market Overview
The Delivery And Takeaway Food Market size is estimated to reach $353.4 billion by 2026, growing at a CAGR of 9.43% during the forecast period 2021-2026. Food delivery involves the customer directly or indirectly, places their order with the restaurant, who then delivers the food to the customer by themselves or via a third-party company. Meanwhile, takeaway involves the customer placing an order with restaurants or food chains and then walk into the restaurant to pick up the finished meal at a pre-determined time. Takeaway restaurants and cloud kitchens are where the dine-in option is unavailable and only allow takeaway and offline or online ordering for home delivery. The rapid rise in popularity of fast foods is anticipated to drive the Delivery And Takeaway Food Market during the forecast period. However, the higher price charged for home delivery of food is anticipated to restrict growth opportunities for the Delivery and Takeaway Food industry.
- Geographically, North America accounted for the largest Delivery And Takeaway Food Market share in 2020 owing to significant customer expenditure levels on food and the high penetration of major fast-food restaurant chains.
- An increase in the disposable income and penetration of food delivery companies in developing countries is anticipated to drive the market during the forecast period. However, the low profits being earned by significant food delivery companies are anticipated to restrict demand.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Delivery And Takeaway Food Market Report.
Delivery And Takeaway Food Market Share, By Restaurant Type, 2020(%)
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Delivery And Takeaway Food Market Segment Analysis-By Order Type
Based on Order Type, the Delivery And Takeaway Food Market is segmented into Online, Telephone calls, Face to Face and others. The Face-to-Face order and takeaway segment is anticipated to have the largest market share in 2020 and is poised to dominate the market with a CAGR of 9.7% during the forecast period 2021-2026. This is attributed to the rapid increase in urbanization and the number of nuclear families with two working parents in developing regions. Moreover, the prevalence of drive-thru ordering services in almost all major fast-food chains in North America allows customers to place their orders without needing to exit the vehicle. However, the online delivery and takeaway segment is anticipated to witness the fastest growth owing to their high convenience and the increase in smartphone users in developing regions.
Delivery And Takeaway Food Market Segment Analysis-By Restaurant Type
The Delivery And Takeaway Food Market based on Restaurant Type can be further segmented into Fast Food Chains, Independent restaurants, Cloud Kitchens, Coffee Houses & Cafes, and Others. The Fast Foods segment accounted for the largest share of the market in 2020, owing to their low prices and high popularity among the young population. Moreover, unlike traditional restaurants, fast food joints only require a few minutes to prepare the food. This makes them more convenient and allows the chains to serve more customers daily. Furthermore, the franchise model adopted by major fast-food chains has led to a rapid global expansion, increasing their customer base. The Cloud kitchen segment is anticipated to witness the fastest growth with a CAGR of 10.4% during the forecast period owing to its low set-up cost, low operational costs, and flexible menu.
Delivery and Takeaway Food Market Segment Analysis-By Geography
The Delivery and Takeaway Food Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The North American segment is projected to dominate the Delivery and Takeaway Food Market during the forecast period 2021-2026 with a market share of 31% owing to factors such as an increase in sedentary lifestyle, high penetration of fast-food chains, high disposable income, and large population with access to smartphone technology and internet connection. However, the Asia Pacific region is predicted to record the fastest growth at a CAGR owing to the region’s large population, increase in disposable income, rapid urbanization, and the surge in growth of cloud kitchens and online food delivery services in non-metro cities in countries such as India, China, and Indonesia. The covid-19 pandemic has also caused an increase in the number of food delivery orders being placed owing to travel restrictions and safety concerns.
Delivery and Takeaway Food Market Drivers
Increase in Internet Connectivity and Smartphone Users is Projected to Drive Market Growth.
The rapid surge in smartphone users and internet connectivity in major developing regions drives the delivery and takeaway food services market. Smartphones are used to place delivery or takeaway orders via phone calls, online websites, or mobile apps. For instance, the smartphone users in India increased from 4.7% in 2011 to around 60.6% in 2021 and is projected to reach 96% by 2040. Meanwhile, internet access grew from 7.5% in 2010 to approximately 50% in 2020 in India.
The Covid-19 Pandemic is Anticipated to Boost Service Demand
The covid-19 pandemic and the resulting restrictions placed by various governments regarding public gatherings and social distancing norms have led to the cancellation of dine-in services in restaurants of several countries. This has increased these restaurants' adoption of takeaway and online delivery services to keep their business running. Moreover, operating only the takeaway and delivery services allows these restaurants to cut costs, increase customer base and generate profits during the pandemic. For instance, major luxury restaurants such as Taj Group, Marriot, ITC, and Hyatt have formed tie-ups with food delivery companies such as Zomato and Swiggy to deliver their meals to customers.
Delivery and Takeaway Food Market Challenges
The High Cost and Errors made by Food Delivery Services is Anticipated to Hamper Market Growth
The higher costs associated with using mobile apps to place food delivery or takeaway orders is anticipated to challenge growth. It may discourage low and middle-income customers from placing orders. Orders from the app Deliveroo were found to be 31% more expensive than ordering directly, while Uber Eats was 25% more costly. Moreover, complaints among customers regarding cold food delayed delivery, and missing food items are prevalent. This is anticipated to decrease customer satisfaction which will lead to a reduction in demand. Moreover, around 53% of Deliveroo and 42% of Uber Eats customers found it difficult to raise complaints.
High Losses Incurred by Major Players in the Industry is Predicted to Challenge the Demand.
Major industry players in the Delivery and Takeaway market have been incurring losses which is anticipated to hamper expansion plans. Moreover, it makes the market seem unattractive to new entrants, further hindering the growth during the forecast period. For instance, online food delivery service Zomato reported a 330% increase in losses in the financial year 2020; Swiggy, another major food delivery service, registered a 60% increase in losses despite a rise in overall revenue.
Delivery and Takeaway Food Market Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Delivery and Takeaway Food Market. The top 10 companies of the industry include:
- Uber Eats
- Domino's Pizza Inc
- Pizza Hut Inc.
- Takeaway.com Holding B.V
- MC Donald’s
- Just-Eat Holding Limited
- In May 2020, ITC Hotels announced a partnership with Swiggy to offer contactless deliveries on all pre-paid orders from the hotel chain's takeaway menu available on the food delivery platform.
- In January 2020, Uber announced that it had sold the Indian business of Uber Eats to Zomato for a 9.99% stake in the Indian food delivery startup.
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