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Online Food Delivery Services Market Expected to Hit US$ 10.1 Bn by 2032 with Convenience and App-Based Ordering on the Rise - Persistence Market Research
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Among delivery models, the platform-to-consumer segment is anticipated to dominate with a projected market share of 53.7% in 2025, thanks to its operational scalability and innovation-driven approach. Regionally, North America is expected to lead the market with a 27.3% share, driven by tech-savvy consumers, widespread digital payment adoption, and the growing popularity of app-based delivery services. The U.S. and Canada, with their mature digital ecosystems and dual-income households, remain key contributors to this growth.
Key Highlights from the Online Food Delivery Services Market Report
➤ The global market is poised to grow from US$ 4.1 Bn in 2025 to US$ 10.1 Bn by 2032, registering a CAGR of 13.8%.
➤ Platform-to-consumer delivery models are expected to capture 53.7% market share in 2025 due to operational innovation.
➤ Mobile applications will account for 67.4% of the market share in 2025, driven by mobile-first infrastructure.
➤ North America is projected to hold 27.3% of the market share in 2025, led by improved app experiences and digital transactions.
➤ Europe is expected to command 21.5% of the market in 2025, with a surge in sustainable delivery practices.
➤ Rise in digital wallets, contactless payments, and AI-powered food recommendation tools is redefining user experience.
Market Segmentation
The online food delivery services market is categorized based on delivery type, channel type, and payment method. By delivery type, the market is divided into restaurant-to-consumer and platform-to-consumer segments. The latter has gained significant traction due to its streamlined operations and broader reach. Restaurant-to-consumer delivery caters primarily to in-house services but lacks the scalability and integration of third-party platforms.
Based on channel type, the mobile application segment is predicted to dominate, with a 67.4% market share in 2025. Consumers increasingly prefer intuitive apps for order customization, real-time tracking, and integrated payment solutions. Web-based platforms still maintain relevance, especially among older demographics and corporate users.
In terms of payment methods, online payments - including digital wallets, net banking, and card payments - are leading, expected to account for 75.3% of total transactions in 2025. The rise of UPI in India and cryptocurrency integrations like PayPal and DoorDash's partnership are key milestones. Cash on delivery continues to be used in regions where digital infrastructure is still developing.
Regional Insights
North America is forecast to retain its dominance in the global market, capturing a 27.3% share in 2025 and growing at an 11.4% CAGR through 2032. The region benefits from a high concentration of dual-income households, a well-developed logistics network, and tech-savvy consumers. Innovations such as DoorDash's premium delivery membership and Grubhub's grocery meal-kits are pushing boundaries.
Europe follows closely, with an anticipated 21.5% market share in 2025. The region's growth is driven by a shift towards eco-friendly packaging, AI-based meal recommendations, and cloud kitchen expansion. Just Eat and Deliveroo are spearheading technological upgrades to meet the growing demand in metropolitan areas.
Asia-Pacific represents a dynamic frontier for future growth, especially in India and Southeast Asia, where companies like Swiggy and Zomato are penetrating tier-II and III cities through initiatives like ultra-fast 15-minute deliveries and gamification strategies.
Market Drivers
The adoption of subscription-based loyalty programs is revolutionizing the market. Services like Zomato Pro Plus and DashPass Rewards offer exclusive benefits such as no-delivery fees, early access to deals, and reward points. These programs are improving customer retention, with a 15% rise in repeat orders reported post-launch.
The introduction of delivery management software is streamlining logistics operations and reducing overhead costs. Companies like DoorDash and Toast have introduced new modules that enable restaurants to manage third-party deliveries, optimize delivery routes, and monitor real-time customer feedback. This tech-enabled transformation is crucial for scaling operations in urban areas with high delivery volumes.
Additionally, consumer demand for contactless, quick, and customizable services is growing. The shift to digital wallets and AI-powered suggestions is enhancing user experience while driving order frequency and app engagement.
Market Restraints
Despite its rapid growth, the market faces several challenges. Managing large volumes of daily orders without compromising food quality and timely delivery remains a logistical burden. Restaurants and delivery platforms often struggle with delays, order mix-ups, and poor customer service when demand surges unexpectedly.
Another challenge lies in last-mile delivery optimization. Densely populated urban centers present complex logistics, and any inefficiency in routing can impact delivery time, food freshness, and customer satisfaction. Regulatory compliance, including health standards, food labeling, and employee rights, also adds complexity, especially in regions with stringent laws.
Market Opportunities
The future holds immense potential in restaurant-platform collaborations that introduce new cuisines and menu items tailored to hyperlocal tastes. Features like AI-driven personalized menus, grocery delivery, and meal kits are expanding the scope of services beyond traditional food orders.
Additionally, the integration of online payment portals with fintech innovations is creating new value propositions. Cryptocurrency payment options, faster transaction processing, and reward-linked digital wallets are expected to drive higher adoption rates. Furthermore, cloud kitchens - operating without physical dining spaces - present a lucrative model for scaling delivery operations at lower costs.
There is also an untapped opportunity in drone and automated delivery. Companies like Foodora in Sweden have already piloted drone-based delivery systems, a trend expected to evolve with improvements in 5G and IoT infrastructure.
Reasons to Buy the Report
✔ Comprehensive analysis of emerging technologies reshaping the online food delivery space
✔ Detailed regional insights highlighting key growth hubs and expansion strategies
✔ In-depth segmentation covering delivery types, payment methods, and platforms
✔ Forecast data through 2032 enabling long-term strategic planning
✔ Company insights and recent developments to benchmark competitive positioning
Company Insights
• Zomato
• Swiggy
• Uber Technologies Inc.
• DoorDash
• Grubhub
• Just Eat Holding Limited
• Deliveroo
• Postmates Inc.
• Takeaway.com
• Foodpanda
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About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 25.92, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.
Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.
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