The market for food ordering via online portals will experience humongous growth during the years 2025 to 2035 with greater dependence on online portals for ordering food. The market will grow by approximately USD 48,651 million in 2025 and can reach an apex of USD 125,310 million in 2035 at a compound annual growth rate (CAGR) of 9.9% during the forecast period.
Some of the primary forces behind the change in the market are as follows. The key force is the international trend towards smartphones and food apps, which has enabled food ordering to be easier than anything else. Food delivery sites have revolutionized the restaurant market, enabling people to order a variety of food types by just a few strokes of keys on their gadgets.
Industry giants such as Uber Eats, DoorDash, and Zomato continue to perfect delivery logistics and extend into new geography. But restaurant-shakedowns via exorbitant commission charges and wasteful packaging are a dire issue. The issues are being addressed by businesses by establishing sustainable packaging materials and optimizing routing in an attempt to cut carbon footprints.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 48,651 million |
| Industry Value (2035F) | USD 125,310 million |
| CAGR (2025 to 2035) | 9.9% |
The online channel's food delivery service market is also segmented into submarkets by service types and delivery models. Platform-to-consumer model type services such as Uber Eats and Swiggy are some examples, wherein restaurants and customers are matched with a proprietary app. Restaurant-to-consumer type services such as Domino's and McDonald's is an example wherein businesses have order and delivery logistics at hand.
There are many segments propelling this company's expansion. Quick-service restaurants (QSRs) provide the highest share since they are most sought after for quick food and convenience. Even grocery shopping services, where customers can order fresh fruits and vegetables and pre-cooked meal packs, are gaining momentum. Cloud kitchens-those restaurants with zero dine-in prospects and completely reliant on online orders-also are rapidly gaining speed, keeping operational costs low and efficiency high.
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North America is a great food online ordering market, with the United States and Canada leading the way. The region has a very developed digital ecosystem and strong willingness to pay from consumers for convenience. DoorDash, Uber Eats, and Grubhub dominate the market share with such options as subscription discounts and AI-recommended orders.
Stricter driver and labour shortages are challenges that compel businesses to subsidize increased automation and drone delivery pilots. Green pressures compel innovation as well, with companies introducing biodegradable packaging and e-bike deliveries to be more environmentally friendly.
Europe dominates much of the online food delivery market, fuelled by urban living and time-starved lifestyles in densely populated areas. United Kingdom, Germany, and France are some of the market leaders. Key players include Just Eat, Deliveroo, and Foodora.
The demand for organic food and healthier food has grown leaps and bounds and thus formed niche food delivery businesses that have vegan and gluten-free menus. Stringent data protection regulations like GDPR force companies to spend a great deal of money on secure online payment processing and encryption of data to gain the trust of customers in online payments.
The Asia-Pacific region will be most vulnerable to highest online food ordering service growth, with high urbanization and increasing middle-class populations. Other prominent markets include South Korea, India, China, and Japan, with prominent market leaders like Zomato, Meituan, and Foodpanda ruling the market.
Region-defining super-apps encompassing food delivery, ride-hailing, payments, and commerce are a dominant feature. With tough competition with each other, these players offer razor-thin margins as well as reward points, which compel customers and their margins both. Regulatory matters like food safety policies and rights for the delivery workers are still a formidable challenge for market players.
Challenge
Sustainability and Profitability Issues
The pace at which food delivery business grew online sparked concern about excessive packaging, carbon footprint of delivery vehicles, and restaurant slimmer margins. Platforms are even charging up to 30% commission fees in certain instances, strangling small businesses and triggering ethical concerns. Governments across the globe are planning to impose new regulations to curb this, compelling companies to adopt greener packaging and cleaner vehicles.
Opportunity
Autonomous Delivery Expansion and AI Usage
Artificial intelligence and automation implementation has vast market growth prospects. AI-delivery platforms ensure the most cost-effective route with minimal wait and fuel usage. Domino's and Nuro already test autonomous vans and drone food order delivery in order to decrease labour costs and boost efficiency. AI-suggested locations also personalize food choices to the customer, boosting order frequency and satisfaction.
Food delivery expansion during 2020 to 2024 witnessed aggressive development fuelled by change in behaviour catalysed during the pandemic period, growth of remote work and restaurant shutdown. Contactless appetite grew and snowballed further with subscription-model offerings like Uber One and Zomato Pro gaining traction. But as there was post-pandemic return to normal in the market place, businesses needed to drive profitability as well as new operating cost and the burden incurred due to regulation.
Prior to 2025 to 2035, the industry will see emerging trends shaping the business future. Sustainable packaging, artificial intelligence-based logistics, drone delivery, and merging food delivery into wider digital ecosystems will propel the market transformation. Those companies that can reorganize themselves in conjunction with shifting regulation and consumer behaviour will solidify their competitive standing, ensuring long-term viability in the expanding online food delivery industry.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 |
|---|---|
| Regulatory Landscape | Governments placed stricter food safety and hygiene standards on delivery companies. Countries made laws regulating fair pay and benefits for workers in the gig economy. |
| Technological Advancements | Artificial intelligence route optimization and predictive analytics enhanced delivery effectiveness. Ghost kitchens became popular to simplify operations and lower overhead costs. |
| Market Penetration | Online food delivery applications grew exponentially, driven by altered consumer behaviour and pandemic-motivated demand. Subscriptions and loyalty schemes became popular to win back customers. |
| Consumer Preferences | Customers valued convenience and price. Discounts, offers, and free delivery were key to retaining customers. |
| Restaurant & Vendor Adoption | Independent restaurants more and more collaborated with third-party aggregators to increase visibility. Cloud kitchens became a dominant format to lower operational expenses. |
| Environmental Sustainability | Single-use plastics and over-packaging in food delivery created environmental issues. A few platforms launched compostable and recyclable packaging options. |
| Business Model Evolution | Commission-based aggregator platforms were the norm, while restaurant-owned delivery services faltered. |
| Revenue Growth Drivers | Market growth was fuelled by convenience, heightened smartphone penetration, and aggressive marketing campaigns. Cloud kitchen investments skyrocketed. |
| Market Shift | 2025 to 2035 |
|---|---|
| Regulatory Landscape | Regulations also become stricter, implementing sustainability practices like green packaging requirements. Labour regulations change to give more protection to gig economy workers, prompting a move toward hybrid labour models in food delivery apps. |
| Technological Advancements | Personalization powered by AI improves the user experience, making predictions about meal choice and ordering habits more accurate. Autonomous delivery drones and robots become the norm, lowering cost of operations and delivery times. |
| Market Penetration | Market saturation in metros calls for a strategic thrust in tier-2 and tier-3 cities. Meal plans based on subscription and individualized diet programs become top differentiators. |
| Consumer Preferences | Market trends are shaped by health-driven and sustainability-based decisions. Buyers prefer organic, locally sourced, and plant-based meal options increasingly from delivery channels. |
| Restaurant & Vendor Adoption | Restaurants target in-house delivery models to avoid third-party aggregator dependence. AI-driven kitchen automation and block chain food traceability enhance efficiency and transparency in operations. |
| Environmental Sustainability | Green packaging becomes the new norm, spurred on by increasingly stringent green regulations. Carbon footprint reduction programs, including electric car deliveries and AI-managed food waste, become more mainstream. |
| Business Model Evolution | Hybrid models are born, with restaurants taking advantage of a blend of in-house delivery and third-party collaborations. Subscription-based food delivery models take off, offering customized meal plans. |
| Revenue Growth Drivers | Growth is powered by automation through AI, strategic collaborations with health and wellness brands, and the development of drone-based and robotic deliveries. |
USA market for online ordering of food has seen exponential growth, fuelled by convenience of ordering through apps and home delivery. More than 60% of consumer’s order with regularity online, and brands like Uber Eats, DoorDash, and Grubhub remain at the top. Ghost kitchens and AI-based predictive insights have revolutionized delivery efficiency.
Regulatory reforms towards payments to gig workers and sustainability for the coming decade will revolutionize the industry. Zero-carbon operations, environmentally friendly packaging, electric delivery fleets, and carbon-friendly operations will be the new norm. Moreover, big business will create self-driving delivery businesses such as robot couriers and drones that limit operating expenses.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 9.5% |
UK online food ordering industry has experienced aggressive growth with increasing urbanization and shifting consumer trends. Players such as Deliveroo and Just Eat have enabled aggressive growth by embracing AI-based order management technology. Regulation by the government in the form of minimum wages for gig economy workers and green packaging has contributed to increased operating expenses.
Sustainability will lead innovation in the future, and minimizing carbon footprints with innovations such as electric bike delivery is going to be two big priorities. Restaurants will try hybrid models, a combination of third-party deals and self-operated delivery. Plant-based and local orders will increase, influencing items on menus.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 10.0% |
Europe's food delivery market is dominated by aggregator platforms and restaurant-owned delivery. Germany, France, and Spain have experienced high growth rates, where customers opt for app-based ordering for convenience. Yet, stringent environmental regulations like the EU single-use plastics ban are driving platforms in the direction of sustainability-driven innovations.
During the next ten years, AI-based automation powered by robots and drone-delivery will be the major market-shaping drivers. Farm-to-table meal delivery and hyperlocal food sourcing demand will rise to fuel the sustainability strategy of the EU. Parallel, the trend for hybrid employment models among delivery personnel will be shaped by regulatory compliance via conformity to labour law.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 9.8% |
The Japanese food delivery market is growing, fuelled by convenience demand and technology advances in logistics. The likes of Uber Eats Japan and Demae-Can have profited from the trends of urban consumers by employing AI-driven recommendations and real-time monitoring of orders to improve the consumer experience.
In the coming decade, market forces will be shaken by drone deliveries and intelligent vending kiosks. Sustainability initiatives will target food waste reduction through AI-driven inventory management. In addition, more installation of automated kitchens and robot delivery staff will bring more efficiency and cost savings to the industry.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 9.9% |
South Korea's food delivery market has grown at a very high rate, and Baedal Minjok (Baemin) and Yogiyo are market leaders. Smartphone penetration and developed consumer base of South Korea have made it possible for food delivery services to be adopted on a large scale. Real-time tracking and AI-driven logistics have streamlined deliveries.
Sustainability drives will be the most popular market trends in the subsequent two years, with augmented uses of electric scooters for deliveries and automation of food wastage based on AI. Cloud kitchens and meal personalization based on data will drive customer satisfaction, and government subsidies on sustainable delivery means will sustain industry growth.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 9.8% |
Restaurant-to-consumer model is an important aspect of the online food delivery services industry, as this gives restaurant chains and independent restaurants full control over the customer interface, price, and brand. Global fast-food chain giants like McDonald's and Domino's have used their in-house delivery networks in an effort to deliver quick and high retention service.
This segment is fond of offering the third-party commission-withdrawing loyalty programs and promotions, which are extremely popular among existing restaurants who would instead change gear in a direct-to-consumer push.
Platform-to-consumer business has experienced widespread usage, courtesy primarily of convenience in availing numerous restaurants within the limits of third-party apps such as Uber Eats, DoorDash, and Zomato. This model is particularly beneficial to small and medium restaurants that do not have the facility to handle delivery logistics.
Cloud kitchens, which are not physical but virtual and only present on third-party platforms, have also spurred demand in this segment. With AI-based suggestions enhancing customer interactions and subscription-based delivery, platform-to-consumer delivery is taking an increasing share of the market.
Mobile application growth due to smartphone penetration and ease of ordering through apps have made mobile apps rule food ordering online. Top food ordering apps provide AI-powered personalization suggestions, live tracking of orders, and easy payments, making the customer experience better.
Swiggy, Just Eat, and others have used push notifications and time-based offers to induce repeat orders. And one-click payments and mobile wallets are adding to the segment's higher growth rate because food ordering has its natural space in mobile apps.
Though mobile apps are the future, web ordering continues, especially for corporate orders and bulk meal delivery. Businesses and organizations use desktop sites to pre-plan meals, order catering, or employee meal plans. A couple of upscale restaurants also use their sites to book tables and pre-orders alongside delivery services. Though growth is sluggish, the channel continues to be important for bulk and high-value transactions.
Online payment methods such as credit/debit cards, mobile wallets, and UPI payments have superseded cash on delivery as the choice mode. Digital payments are convenient, more secure, and quicker, and hence their growing usage. Players in payments such as PayPal, Apple Pay, and Google Pay have partnered with big food ordering websites, another impetus towards cashless transactions. Cash backs and digital coupons also compel individuals to online transactions.
Even with the surge in electronic payments, cash on delivery (COD) is still a dominant mode of payment in areas of low banking penetration and consumer reluctance in online payments. The majority of consumers in India, Indonesia, and Africa are still inclined towards COD because of trust issues and absence of popular digital wallets. Food ordering websites still accept cash payment but push electronic payment with discounts and promotions.
The online food delivery service market is one where regional businesses and international heavyweights compete against each other in catering to segments of consumers. The incumbent players utilize cutting-edge technology, the efficiency of logistics, and alliances to attain highest market share.
The leading players approach customers using subscription plans, AI-based recommendations, and cloud kitchen partnerships. The market is ruled by both multinationals and new-generation startups, both having their impact on the market forces through innovation as well as services differentiation.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Uber Eats | 18-22% |
| DoorDash | 20-25% |
| Grubhub | 10-14% |
| Deliveroo | 8-12% |
| Just Eat Takeaway | 6-10% |
| Other Companies (combined) | 30-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| Uber Eats | Provides AI-driven personalized meal recommendations and delivery from both restaurants and grocery stores. Offers Uber One subscription for discounts and free delivery. |
| DoorDash | Specializes in hyperlocal deliveries, including partnerships with convenience stores and retailers. Expands into DashMart for rapid grocery delivery. |
| Grubhub | Focuses on loyalty programs, corporate meal solutions, and exclusive restaurant partnerships. Integrates with campus dining services. |
| Deliveroo | Operates ghost kitchens to optimize food delivery. Leverages data analytics to predict customer demand and minimize delivery times. |
| Just Eat Takeaway | Expands through acquisitions, such as Grubhub in the USA and partnerships with grocery retailers. Offers real-time order tracking. |
Key Company Insights
Uber Eats (18-22%)
Uber Eats reigns supreme on AI-based meal customization and cross-platform interactions with Uber's ride-hailing offerings. Uber spends a lot on predictive analysis and logistics, enabling it to set the most efficient routes. Through Uber One, it lures customers back with free delivery and discounts, further augmenting its competitive strength.
DoorDash (20-25%)
DoorDash has the largest market share in North America and stands out with DashPass, a highly subscribed feature that lowers delivery fees. The expansion into grocery and convenience store delivery through DashMart further cements its presence beyond restaurant delivery service. DoorDash also invests in hyperlocal promotion and driver incentives to keep last-mile logistics as streamlined as possible.
Grubhub (10-14%)
Grubhub has high penetration in the United States, emphasizing corporate lunch options and promotions on individual restaurants. Its Grubhub+ reward program increases loyalty with discounts and rewards. Its pairing with college dining halls provides its access to additional students with regular demand.
Deliveroo (8-12%)
Deliveroo aggregates food delivery activities using ghost kitchens, or Editions, to enable partner restaurants to expand delivery coverage without physical locations. Its logistics system based on artificial intelligence forecasts peak demand to speed up deliveries and minimize waiting times for consumers. The strategic partnerships with upscale restaurant chains enhance its brand reputation.
Just Eat Takeaway (6-10%)
Just Eat Takeaway grows via acquisition and partnerships with retail supermarket operators, broadening its offerings of products. The firm focuses on hassle-free order processes with live tracking and reward schemes. Its extensive coverage in the European region positions it as the top cross-border ordering of food provider.
Other Key Players (30-40% Combined)
Besides the leading players, certain regional and niche players fuel the market growth through differentiated services like value-added food delivery, eco-friendly packaging, and block chain-enabled food tracking. Some notable companies include:
The overall market size for online food delivery services market was USD 48,651 million in 2025.
The online food delivery services market is expected to reach USD 125,310 million in 2035.
The increasing adoption of digital platforms, growing preference for convenience and doorstep delivery, and rising penetration of smartphones and internet connectivity fuels the online food delivery services market during the forecast period.
The top 5 countries which drive the development of online food delivery services market are USA, UK, China, India, and Germany.
On the basis of business model, platform-to-consumer delivery to command significant share over the forecast period.
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Online Food Delivery Services Market
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