Market Overview:

According to a new report published by Introspective Market Research, titled, “Online Food Ordering Market by Type (Platform to Consumer Delivery, Restaurant to Consumer Delivery), Payment Mode (Online Banking, Net Banking, Cash on Delivery), and Region: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the global Online Food Ordering Market size was valued at $ 244.48 billion in 2023, and is projected to reach $ 598.05 billion by 2032, registering a CAGR of 10.45% from 2024 to 2032. Ordering food online is the method that consumers use to place food orders via a website or other mobile application. The product is based on what the customers want. Restaurants offer a wide range of food and beverages and deliver culinary products for breakfast, lunch, and dinner. Customers can order ready-to-eat food straight from a restaurant, independent eateries, or their kitchens. These online applications can also be used to order groceries or food that hasn't been specially prepared for consumption, such as frozen goods, fresh produce straight from the farm, fruits, and snacks. In 1994, Pizza Hut started offering online food delivery services for pizza.   

Also, the primary cause of the rise in online meal ordering is the global increase in the use of mobile phones. The need for online meal delivery platforms is fueled by the growing number of smartphone and internet users, which eventually helps the market expand.  

Cloud kitchens are becoming more and more popular in the food delivery industry as more customers buy their meals online. Thus, convenience, busy lifestyles, and widespread internet usage are the main causes of the rise in food orders placed through cloud kitchens. For those looking to start a food business, both seasoned and novice restaurateurs are choosing to invest in cloud kitchens. Notable cloud kitchen chains in this market include Fresh menu, Rebel Foods' Faasos, and Kilo's Biryani.

In response to increased demand for food delivery, well-known restaurant brands are increasingly opening cloud kitchen locations rather than dine-in locations. Online orders have surged since it's so easy to get meals delivered on time at a fair price. Individuals would rather order in than go out to eat. Not only are traditional dine-in restaurants losing market share to online food delivery, but home cooking is also being replaced by this trend. The home delivery option has gained popularity due to a shift in consumer preferences and an increased sense of bother when dining out. This has changed the restaurant sector since food now dominates the dining experience.

Food suppliers are moving their operations online as the number of people ordering food online grows daily. In order to accommodate the growing customer demand for food delivery via both online and offline channels, businesses should consider establishing cloud kitchens or ghost kitchens. This idea can meet the demand for affordable cooking space to accommodate the rise in online meal orders. A ghost kitchen features distinct spaces for refrigerators, stoves, and storage because it is designed specifically for delivery-only use. The market for online meal ordering is expanding, providing potential for expanding its customer base and service offerings. These kitchens have spaces for cars to park and are frequently found in less crowded parts of cities.  

Global Online Food Ordering Market, Segmentation

The Online Food Ordering Market is segmented based on type, payment mode, and region.

By Type:

The online food ordering industry has grown significantly in recent years, with the platform-to-consumer delivery sector leading the way. This trend is anticipated to persist during the forecast period. Online meal ordering is a rising market due in part to the increasing popularity and use of several food delivery platform apps like Deliveroo, Uber Eats, Zomato, and Grub hub worldwide. These platforms are used by the majority of consumers who need fast and high-quality services. Additionally, a variety of restaurants offering a wide range of food items are included on this platform, giving customers more alternatives and choices when placing meal orders.

Payment Mode:

The online banking sector anticipates capturing the largest portion of the online meal-ordering business over the estimated time frame. Using online payment services like Google Pay, Phone Pay, and others is part of the online banking experience. Due to the widespread usage of mobile phones and the internet, this payment method has become increasingly popular in recent years. it is a quick, simple, and downloadable method of making payments. Online baking offers payment security as well. It is the most widely used and practical method of transitioning that offers security services. Because of this, it is anticipated that the online banking market will expand quickly over the analysis period and significantly aid in the expansion of the online meal-ordering industry.

Region:

The primary dominating region for online food ordering is Asia-Pacific. Growing customer interest and improved technological knowledge are fueling the market's expansion. In addition, people's hectic lives and heavy workloads are creating an increasing need for quick and simple services. As a result, they are less able to spend time cleaning and cooking, and as a result, they are more inclined to use online meal delivery services to order food from various restaurants. Also, the Asia Pacific region has a sizable population, which offers a sizable customer base for this meal delivery industry. This region includes nations like China, Japan, and India. Because these are developing nations with large populations, there is a high rate of smartphone and technology adoption in this area.

Some of The Leading/Active Market Players Are-

• McDonalds (US)
• KFC (US)
• Grub Hub (US)
• Swiggy (India)
• MEITUAN (China)
• Uber Eats (US)
• Door Dash (US)
• Caviar (US)
• Zomato (India)
• Subway (US)
• Pizza Hut (US) and Other Active Players

Key Industry Developments

• In March 2024, Zomato, a platform for ordering and delivering meals, and Simpl, a checkout network, have expanded their partnership. This involves connecting Zomato Gold, Intercity Legends, and Zomato Everyday with its 1-Tap Checkout feature. This is meant to increase conversions while providing millions of customers nationwide with greater convenience. In addition to improving user retention and other aspects of the platform, this is anticipated to raise average order value.
• In July 2023, Domino's Pizza changed its course in response to market forces by collaborating with Uber Eats and Postmates to provide delivery services, thereby reaching a wider audience worldwide. CEO Russell Weiner emphasizes how the move might reach millions of new users while utilizing Uber's data to improve incrementality and delivery efficiency.

Key Findings of the Study 

• A compound annual growth rate (CAGR) of 10.45% is expected to propel the global online food ordering market from $244.48 billion in 2023 to $598.05 billion by 2032.   
• Online banking, especially through mobile payment services like Google Pay and Phone Pay, leads online food ordering payments, offering security and convenience.
• Asia-Pacific, driven by growing customer interest, technological advancement, and a large population, particularly in China, Japan, and India, leads the online food ordering market.