Online Food Ordering System Market | Current Analysis by Market Share

Global Online Food Ordering System Market Overview

The Global Online Food Ordering System Market size is expected to grow from USD 41.95 billion in 2024 to USD 158.42 billion by 2032, at a CAGR of 15.91% during the forecast period (2024-2032).

Online food ordering is the procedure carried out by people for ordering food, from a different website or other mobile application. An online food ordering system allows businesses to manage orders that are placed by the customer using the internet for delivery or takeaway. Customers search, find a digital menu, on an app or website, and place and pay for their order online. After placing order venues receive the order details via their chosen online food ordering system and then produce the order ready for delivery or customer pickup. An online ordering and delivery system provides a complete sales channel for the restaurant. The restaurant gets the most benefit from this online ordering system they can use it as a tool for generating more profits and managing their restaurant in a better way. It also allows owners of the restaurant to save the cost of labor and restaurant space needed for sitting and serving customers. Moreover, increasing mobile phone and internet penetration in the world is the factor that helps to enhance the rate of online food ordering. The rising number of smartphone and internet users supports the increasing demand for online food ordering and helps to increase the market for online food ordering systems.

Market Dynamics Of Online Food Ordering System Market

Drivers:

Fast, Easy, and Comfortable Mode of Getting Food

Customers are choosing to order food through an online ordering system because it’s an easy way all the things are at their fingertips. Most people use mobile phones or desktops for ordering food. Anyone with a smartphone can order food online from the restaurant. Additionally, Millennials are most likely to use this system; they are the most important target audience for this market. Over 97% of Millennials use their phones for just surfing and ordering food online falls right into the same broad category. Moreover, according to Statista, 43% of people order food online through the system mainly due to they don’t feel like cooking the meal. This large population is actively searching for restaurants online to order food by using an online food ordering system. The fast, easy and comfortable service provided by the system and vendors to the customer is expected to provide large growth to the online food ordering system market during the projected period.

Restraints:

Online Food Ordering Creating Lot of Waste

The online food ordering system market is continuously witnessing growth due to the tremendous popularity of this service. Several people are ordering food for convenience daily. Due to this, the use of plastic packaging is increased and it resulted in large plastic waste creation which is showing an adverse effect on the environment. Food is delivered in good quality packages, boxes, plastic plates, spoons, and plastic paper raping by vendors which creates a lot of waste. For instance, in China, the food delivery industry received more than 16 billion orders in a year, and more than 80 percent of the food delivery restaurants in China offered only plastic packaging which contributes to a lot of waste formation.

Opportunities:

Advancement in Menu Engineering 

Menu Engineering refers to combining restaurant menu design tips with menu psychology to stimulate and encourage clients the customer to spend more on food. In online food ordering customers buy products according to their hunger and most of the time customers buy a product that does not satisfy their hunger but because of just their convincing visual appearance customers buy those products. Menu Engineering gives design tips to craft a deeply persuasive menu that will stimulate the customer into ordering more food. Additionally, the first bite is with the eye, so encouraging customers to go online and go through the entire menu when they’re hungry contributes to ordering more food than they normally order on the phone or food ordering system. Hungry customers order much more food online and bigger and higher orders give a significantly larger stream of revenue to the ventures. The more concentrated menu and visually appealing products provide an opportunity to enhance the online food ordering system market.

Market Segmentation Of Online Food Ordering System Market

By Type, the delivery platforms segment dominates the overall market growth of the online food ordering system market in the past few years and is expected to continue its dominance over the forecast period. The growing adoption of different food delivery platform apps such as Zomato, UberEats, Deliveroo, and Grubhub across the globe is contributing to the growth of the online food ordering system market. These apps are like Uber Eats or Deliveroo gives more exposure to restaurants. The people who don’t know the location of the restaurant and facilities provided by them like takeaway services are displayed on this delivery platform which helps to enhance the customer's purchasing rate. Additionally, the large population on this platform provides a broad audience of potential customers directly to the restaurant.  It’s a quick and easy way to start the business with this delivery platform and people are taking this opportunity to expand their business which also boosts the growth of the online food ordering system market during the projected period.

By Application, the B2C segment is expecting maximum market share in the online food ordering system market during the projected period. A large population is using this system through different platforms like restaurant-controlled, independent websites, food co-operatives, and delivery platforms. For instance, as of the end of 2021, almost 53% of internet users in China had used online food delivery services. The huge customer base for these platforms due to the advantages provided by platforms helps increase the platform-to-consumer delivery that helps to propel the growth of the business-to-customer segment and ultimately supports the growth of the online food ordering system market.

Regional Analysis Of Online Food Ordering System Market

Asia-Pacific is the dominating region for online food ordering systems during the forecasted period. Rising consumer interest, adoption of new technology, and also better understanding of the technology are propelling the growth of the market. Additionally, with the increasing requirement for quick and easy services due to hectic working hours, people are so busy nowadays that they have no time for cooking and cleaning so most people are ordering food from different restaurants by using online food ordering platforms. Also, there is a huge population in the Asia Pacific region which shows the large consumer base for this food ordering sector which ultimately increases the growth of the online food ordering system market. In addition to this, this region consists of countries like China, Japan, and India, These are densely populated countries and are in the developing phase so the adoption of smartphones and technology is high in this region. Due to this, the online food ordering system market is expanding in the Asia Pacific region.

The North American region is the second dominant and fast-growing region for online food ordering systems during the projected period. The market growth in this region is driven by the rise in consumer demand for home delivery due to their busy lifestyles. Additionally, the rapidly increasing food processing industry in the region, along with the growing business and industrialization has a direct influence on the functional online food ordering in the region. Moreover, the high disposable income of individuals helps in the rise of spending on food delivery. This gives a significant increase in the spending on food and gets higher revenue for food delivery applications. This entire factor is helping in the growth of the online food ordering system during the forecasted period.

Europe is one of the leading regions in the online food ordering system sector during the analysis period. This region includes well-developed countries such as Germany, the U.K., and France. The population in this region is highly educated and employed which indicates the high spending capacity of the individual in the region. So this region is positively contributing to the online food ordering system market. Additionally, this region consists of the strong presence of key players, and the public in this region ordered food online on across all areas like from developing to suburban and urban areas these factors are contributing to the increasing growth of this market in the Europe region.

Covid-19 Impact Analysis On Online Food Ordering System Market

The Covid-19 pandemic shows a positive impact on the online food ordering system market as the adoption of online food delivery platforms increased as millions of people are being restricted to stay home to stop the penetration of the virus. The online food platform became one of the main protagonists during the COVID-19 pandemic. Online food delivery service providers have witnessed a significant increase in revenue and online orders owing to the increased consumer demand for online food delivery due to restrictions. The restaurants, fast food centers, and different food chains used online food delivery platforms to facilitate both delivery and take-out during the outbreak which contributes to the growth of the market.

Top Key Players Covered In Online Food Ordering System Market

• McDonalds (US)
• KFC (US)
• GrubHub (US)
• Swiggy (US)
• MEITUAN (China)
• Uber Eats (California)
• DoorDash (US)
• Caviar (California)
• Zomato (US)
• Subway (US)
• Pizza hut(US)
• Starbucks (US)
• Burger King (US)
• Domino’s Pizza (US)
• Dunkin Donuts (US)
• Dairy Queen (Minnesota)
• Papa John’s (US)
• Wendy’s (US)
• Just Eat (UK)
• Takeaway (Netherlands)
• Alibaba Group (China) and other major players.

Key Industry Development In The Online Food Ordering System Market

• In December 2024, Swiggy announced the successful expansion of its 10-minute food delivery service, Bolt, to tier 2 and 3 cities, including Roorkee, Patna, and Nashik. The initiative aimed to enhance its market share by offering rapid delivery options in smaller urban areas. With this expansion, Swiggy continued to reinforce its commitment to providing fast and convenient food delivery to a wider range of customers.
• In November 2024, Wonder successfully completed its acquisition of Grubhub, a leading U.S.-based food ordering and delivery platform with over 375,000 merchants and 200,000 delivery partners. Valued at USD 650 million, the acquisition integrated Grubhub's extensive network with Wonder's innovative food hall concept. This strategic move enhances customer access to a wide range of dining options, reinforcing Wonder's commitment to transforming the food delivery experience.