Online On-Demand Food Delivery Services Market Size, Share, Growth, and Industry Analysis, By Types (Order-focused food delivery services, Logistics-focused food delivery services), By Applications (Office Buildings, Family, Others) , and Regional Insights and Forecast to 2034

Online On-Demand Food Delivery Services Market Size

The Global Online On-Demand Food Delivery Services Market size was valued at USD 73.51 billion in 2024 and is projected to reach USD 84.81 billion in 2025, USD 97.85 billion in 2026, and USD 307.11 billion by 2034, expanding at a CAGR of 15.37% during the forecast period (2025–2034). The growth is driven by rising online food consumption habits, digitalization, and increasing adoption of mobile delivery applications, which now account for nearly 73% of total food orders worldwide. Rapid advancements in AI-based delivery platforms and cloud kitchen expansion continue to accelerate global market penetration by over 42% year-on-year.

The US Online On-Demand Food Delivery Services Market is growing rapidly, accounting for approximately 22% of the global share. Around 64% of Americans now prefer ordering food online at least once a week, while 58% rely on subscription-based meal delivery services. The introduction of autonomous delivery systems has improved operational efficiency by 28%. Additionally, 49% of US households favor fast delivery options, boosting overall regional demand and driving the country’s dominance in the digital food ecosystem.

Key Findings

• Market Size: The market stood at USD 73.51 billion in 2024, USD 84.81 billion in 2025, and will reach USD 307.11 billion by 2034, growing at 15.37% annually.
• Growth Drivers: Over 69% of consumers prioritize convenience; 61% prefer mobile app-based orders; and 48% of restaurants gain higher sales through online delivery services.
• Trends: Nearly 54% of consumers choose eco-friendly packaging; 46% opt for AI-powered recommendations; and 57% emphasize quick and contactless delivery experiences.
• Key Players: Meituan Dianping, Delivery Hero SE, Just Eat Plc, Grubhub Inc., Zomato Media Pvt. Ltd., & more.
• Regional Insights: Asia-Pacific leads with 41% market share driven by smartphone adoption and urban demand. North America follows at 27% with strong digital integration. Europe holds 21% focusing on sustainability and app-based orders, while the Middle East & Africa capture 11% propelled by emerging online food platforms and rising disposable incomes.
• Challenges: Around 43% of restaurants cite high commission fees; 34% report rising delivery costs; and 38% face food quality concerns during delivery operations.
• Industry Impact: AI integration has enhanced logistics efficiency by 31%, sustainability adoption increased by 37%, and consumer engagement improved by 26% globally.
• Recent Developments: About 42% of companies adopted carbon-neutral delivery; 36% launched drone delivery pilots; and 28% upgraded real-time order tracking systems.

The Online On-Demand Food Delivery Services Market continues to evolve with transformative technology, enhanced consumer experience, and growing sustainability commitments. Nearly 68% of users now rely on predictive ordering algorithms, while 52% of companies invest in eco-conscious packaging and delivery efficiency. Urban expansion and digital transformation have created new opportunities for regional players, with small restaurants increasingly joining delivery networks. Strategic mergers, AI adoption, and personalized dining experiences are collectively reshaping the global online food ecosystem and reinforcing its position as one of the fastest-growing digital service industries worldwide.

Online On-Demand Food Delivery Services Market Trends

The Online On-Demand Food Delivery Services Market is witnessing significant transformation due to rising digital adoption and consumer convenience preferences. Around 68% of consumers globally now prefer ordering food online compared to dining in, highlighting a major behavioral shift driven by mobile app penetration and time-saving benefits. Approximately 74% of orders are placed through smartphones, supported by the increasing use of digital payment systems and AI-based recommendation features. Cloud kitchens and virtual restaurants are contributing nearly 42% to total online food orders, reflecting the growing preference for low-cost operational models. Furthermore, 57% of customers prioritize delivery speed and tracking accuracy, leading to rapid investment in logistics automation and delivery optimization. The integration of predictive analytics, drone delivery pilots, and sustainable packaging initiatives is also reshaping the market landscape. Additionally, 36% of urban consumers are now opting for eco-friendly packaging and carbon-neutral deliveries. The increasing partnerships between food delivery platforms and local restaurants, accounting for over 60% of total platform collaborations, further strengthen this ecosystem, driving consistent market expansion and consumer engagement.

Online On-Demand Food Delivery Services Market Dynamics

OPPORTUNITY

Expansion of Cloud Kitchens and Local Vendor Collaborations

The increasing expansion of cloud kitchens presents a strong opportunity for the Online On-Demand Food Delivery Services Market. Around 47% of food delivery businesses now partner with cloud kitchen operators to minimize costs and improve menu diversity. Approximately 52% of independent restaurants rely on online delivery platforms to reach wider audiences. Furthermore, 43% of customers prefer trying new local cuisines through delivery apps, encouraging partnerships between local food vendors and delivery service providers. This growing collaboration model strengthens delivery networks and drives consistent order volume growth across urban and suburban regions.

DRIVERS

Increasing Consumer Preference for Convenience and Digital Ordering

Nearly 69% of consumers globally prefer online ordering due to ease of access and time efficiency. Mobile app-based orders account for approximately 73% of all food deliveries, reflecting a deep shift toward digital consumption habits. Additionally, 58% of customers prioritize real-time tracking and flexible payment options when selecting delivery platforms. The demand for personalized food recommendations, driven by AI algorithms, has also risen by 46%, showing strong consumer engagement and digital integration across the Online On-Demand Food Delivery Services Market.

RESTRAINTS

"High Operational Costs and Delivery Pricing Pressure"

Operational inefficiencies and high commission charges remain major restraints for the Online On-Demand Food Delivery Services Market. Around 41% of small restaurant owners report that platform fees exceed 25% of their total order value, directly impacting profitability. Delivery costs have increased by 37% due to inflation and rider shortages, while 45% of consumers hesitate to place orders due to surge pricing during peak hours. These factors collectively limit affordability and reduce repeat order frequency in price-sensitive markets.

CHALLENGE

"Maintaining Food Quality and Sustainable Packaging Standards"

Ensuring consistent food quality during long-distance deliveries continues to be a major challenge for the Online On-Demand Food Delivery Services Market. About 39% of customers express dissatisfaction related to temperature control and packaging damage upon delivery. Meanwhile, 42% of consumers are increasingly demanding eco-friendly packaging solutions, while only 35% of delivery platforms have implemented fully biodegradable alternatives. Maintaining food integrity and reducing environmental waste are thus critical challenges shaping future innovation in this industry.

Segmentation Analysis

The Global Online On-Demand Food Delivery Services Market was valued at USD 73.51 Billion in 2024 and is projected to reach USD 84.81 Billion in 2025, further expanding to USD 307.11 Billion by 2034, registering a CAGR of 15.37% during the forecast period (2025–2034). Based on segmentation, the market is categorized by type into Order-focused Food Delivery Services and Logistics-focused Food Delivery Services, and by application into Office Buildings, Family, and Others. Among these, order-focused platforms hold a major share due to high app penetration and digital payment adoption, while logistics-focused services are gaining traction with growing partnerships and last-mile efficiency. By application, family-based food orders dominate, accounting for a significant proportion of total market share, driven by convenience and home-based dining trends.

By Type

Order-focused Food Delivery Services

Order-focused food delivery services emphasize customer interface, restaurant listings, and order aggregation, connecting users directly to multiple eateries. About 62% of total global food delivery transactions are processed through order-focused platforms due to user-friendly interfaces and loyalty-driven subscription models. The integration of AI-driven recommendations and app-based personalization further enhances customer engagement across regions.

Order-focused Food Delivery Services held the largest share in the Online On-Demand Food Delivery Services Market, accounting for USD 47.59 Billion in 2025, representing 56.1% of the total market. This segment is projected to grow at a CAGR of 15.9% from 2025 to 2034, driven by the rising popularity of app-based ordering, mobile wallet usage, and rapid technological adoption.

Top 3 Major Dominant Countries in the Order-focused Food Delivery Services Segment

• China led the Order-focused Food Delivery Services segment with a market size of USD 12.41 Billion in 2025, holding a 26.1% share and expected to grow at a CAGR of 16.2% due to large-scale platform integrations and expanding urban delivery coverage.
• United States followed with USD 10.54 Billion in 2025, holding a 22.1% share and forecasted to grow at a CAGR of 15.7% due to increasing digital food ordering and subscription-based loyalty schemes.
• India secured third place with USD 8.12 Billion in 2025, capturing 17.1% of the market share and expected to grow at a CAGR of 17.3% due to rising smartphone penetration and app-based service affordability.

Logistics-focused Food Delivery Services

Logistics-focused services manage both order fulfillment and delivery infrastructure, ensuring faster deliveries and optimized route planning. These services hold 43% of total food delivery transactions and are crucial for maintaining customer satisfaction in high-density regions. About 51% of delivery platforms now incorporate real-time route optimization, enhancing delivery speed by 28%.

Logistics-focused Food Delivery Services accounted for USD 37.22 Billion in 2025, representing 43.9% of the market, and are projected to grow at a CAGR of 14.8% between 2025 and 2034. This growth is fueled by demand for same-hour delivery, fleet automation, and partnerships with local food vendors for on-demand logistics solutions.

Top 3 Major Dominant Countries in the Logistics-focused Food Delivery Services Segment

• United States led the Logistics-focused Food Delivery Services segment with a market size of USD 9.61 Billion in 2025, holding a 25.8% share and expected to grow at a CAGR of 15.2% due to robust infrastructure and high last-mile delivery investments.
• China ranked second with USD 8.89 Billion in 2025, holding a 23.9% share and forecasted to grow at a CAGR of 14.5% supported by large logistics networks and efficient urban coverage.
• United Kingdom followed with USD 6.17 Billion in 2025, representing 16.6% of the market and growing at a CAGR of 14.9% due to increasing collaboration between delivery platforms and restaurants for optimized fleet operations.

By Application

Office Buildings

Food delivery services in office buildings cater to corporate employees and business complexes, providing scheduled and group meal deliveries. Around 48% of employees in metropolitan regions order lunch through online platforms during working hours, with preference for customizable meal packages and corporate discounts.

The Office Buildings segment accounted for USD 22.15 Billion in 2025, representing 26.1% of the total market, and is expected to grow at a CAGR of 14.6% from 2025 to 2034, driven by the increasing adoption of subscription-based meal plans and contactless delivery options in business districts.

Top 3 Major Dominant Countries in the Office Buildings Segment

• United States led the Office Buildings segment with a market size of USD 5.68 Billion in 2025, holding a 25.6% share and expected to grow at a CAGR of 14.4% due to high urban workforce density and digital ordering culture.
• Germany followed with USD 4.19 Billion in 2025, representing 18.9% share and growing at a CAGR of 13.9% owing to strong B2B catering integration.
• Japan ranked third with USD 3.75 Billion in 2025, capturing 16.9% share and projected to expand at a CAGR of 15.1% due to increased tech-driven meal scheduling.

Family

Family-based orders dominate the Online On-Demand Food Delivery Services Market, primarily driven by convenience, variety, and value-based meal options. Approximately 61% of total orders globally originate from family households, supported by promotions, combo meal deals, and app-based offers tailored for families.

The Family segment held the largest share, valued at USD 46.34 Billion in 2025, representing 54.6% of the total market, and is expected to grow at a CAGR of 15.8% during 2025–2034 due to increasing family dining trends and expansion of quick-service restaurant partnerships.

Top 3 Major Dominant Countries in the Family Segment 

• China led the Family segment with a market size of USD 11.72 Billion in 2025, holding a 25.3% share and expected to grow at a CAGR of 16.1% driven by family-centric promotions and home dining culture.
• India followed with USD 9.28 Billion in 2025, capturing a 20% share and forecasted to grow at a CAGR of 16.7% due to growing middle-class demand and app-based loyalty programs.
• United States ranked third with USD 8.65 Billion in 2025, accounting for a 18.6% share and expected to grow at a CAGR of 15.5% with the rise of weekend family meal orders.

Others

The Others segment includes educational institutions, hospitals, and community centers utilizing online food delivery for bulk or event-based needs. These clients account for nearly 14.3% of total global orders, emphasizing high-volume, scheduled deliveries and menu customization.

The Others segment accounted for USD 16.32 Billion in 2025, representing 19.3% of the total market, and is anticipated to grow at a CAGR of 14.9% from 2025 to 2034, driven by institutional catering, campus partnerships, and expansion of delivery service contracts with healthcare facilities.

Top 3 Major Dominant Countries in the Application 3 Segment

• United Kingdom led the Others segment with a market size of USD 4.09 Billion in 2025, holding a 25.1% share and expected to grow at a CAGR of 15.1% due to school and hospital delivery contracts.
• Canada followed with USD 3.57 Billion in 2025, representing 21.9% share and growing at a CAGR of 14.8% supported by institutional digital partnerships.
• Australia ranked third with USD 2.94 Billion in 2025, accounting for 18% share and expected to grow at a CAGR of 14.2% due to strong adoption in universities and care facilities.

Online On-Demand Food Delivery Services Market Regional Outlook

The Global Online On-Demand Food Delivery Services Market was valued at USD 73.51 Billion in 2024 and is expected to reach USD 84.81 Billion in 2025, rising to USD 307.11 Billion by 2034, expanding at a CAGR of 15.37% from 2025 to 2034. Regionally, Asia-Pacific dominates the global market with a 41% share, followed by North America at 27%, Europe at 21%, and the Middle East & Africa accounting for 11%. Rapid digitalization, smartphone adoption, and evolving dining preferences are driving strong regional demand, with key differences in delivery infrastructure, pricing models, and restaurant partnerships shaping growth patterns across markets.

North America

The North America Online On-Demand Food Delivery Services Market continues to lead innovation through advanced logistics, contactless delivery systems, and strong consumer spending power. Around 64% of urban households in the U.S. use at least one food delivery platform weekly. Platform loyalty programs and fast deliveries under 30 minutes account for 48% of customer retention. High integration of AI-driven route optimization and digital wallets enhances efficiency.

North America held the second-largest share in the Online On-Demand Food Delivery Services Market, accounting for USD 22.90 Billion in 2025, representing 27% of the total market. The region is expected to grow at a CAGR of 15.1% from 2025 to 2034, driven by consumer preference for convenience, platform consolidation, and growing partnerships between restaurants and delivery apps.

North America - Major Dominant Countries in the Online On-Demand Food Delivery Services Market

• United States led North America with a market size of USD 17.43 Billion in 2025, holding a 76.1% share and expected to grow at a CAGR of 15.4% due to strong app-based ordering penetration and widespread digital payment adoption.
• Canada followed with USD 3.41 Billion in 2025, representing a 14.9% share and anticipated to expand at a CAGR of 14.6% driven by urban expansion and new platform entrants.
• Mexico ranked third with USD 2.06 Billion in 2025, capturing a 9% share and growing at a CAGR of 14.8% supported by affordable food delivery models and growing young consumer base.

Europe

The Europe Online On-Demand Food Delivery Services Market is characterized by high app usage, sustainability initiatives, and diversified food preferences. Approximately 58% of European consumers prioritize eco-friendly packaging and local restaurant listings when ordering online. Subscription-based discounts and multi-platform loyalty integrations have driven a 42% surge in repeat orders. Germany, the U.K., and France are leading in terms of digital adoption and service partnerships with cloud kitchens.

Europe accounted for USD 17.81 Billion in 2025, representing 21% of the global Online On-Demand Food Delivery Services Market, and is projected to grow at a CAGR of 14.8% between 2025 and 2034. The growth is driven by consumer demand for sustainable packaging, cashless payments, and expanding regional delivery networks connecting local restaurants to online platforms.

Europe - Major Dominant Countries in the Online On-Demand Food Delivery Services Market

• United Kingdom led Europe with a market size of USD 6.43 Billion in 2025, holding a 36.1% share and projected to grow at a CAGR of 14.9% due to demand for eco-friendly delivery models.
• Germany followed with USD 5.88 Billion in 2025, representing a 33% share and growing at a CAGR of 14.5% supported by robust B2C delivery integration.
• France ranked third with USD 5.50 Billion in 2025, capturing a 30.9% share and expected to expand at a CAGR of 14.7% driven by increasing digital dining culture.

Asia-Pacific

Asia-Pacific dominates the Online On-Demand Food Delivery Services Market due to rapid urbanization, smartphone growth, and expanding online payment ecosystems. The region accounts for over 58% of mobile-based food transactions globally. China and India together contribute nearly 60% of all regional orders. Around 67% of millennials in the region prefer home-delivered meals over dining out, while 52% of restaurants have fully integrated delivery systems.

Asia-Pacific held the largest share in the Online On-Demand Food Delivery Services Market, valued at USD 34.77 Billion in 2025, representing 41% of the total market, and is projected to grow at a CAGR of 16.1% during 2025–2034, driven by platform digitization, rising disposable incomes, and the proliferation of low-cost delivery models.

Asia-Pacific - Major Dominant Countries in the Online On-Demand Food Delivery Services Market

• China led the Asia-Pacific segment with a market size of USD 12.86 Billion in 2025, holding a 37% share and expected to grow at a CAGR of 16.2% due to strong mobile app engagement and platform partnerships.
• India followed with USD 9.34 Billion in 2025, representing a 26.8% share and growing at a CAGR of 16.8% supported by rapid digital adoption and affordability.
• Japan ranked third with USD 6.12 Billion in 2025, capturing a 17.6% share and forecasted to expand at a CAGR of 15.9% due to smart delivery logistics and consumer convenience trends.

Middle East & Africa

The Middle East & Africa Online On-Demand Food Delivery Services Market is emerging as a fast-developing region, supported by urban growth, digital transformation, and young tech-savvy consumers. Around 49% of consumers in the region now prefer online food delivery at least once per week. The introduction of app-based services in Tier 2 cities and rising disposable incomes are expanding market accessibility.

Middle East & Africa accounted for USD 9.33 Billion in 2025, representing 11% of the total Online On-Demand Food Delivery Services Market, and is anticipated to grow at a CAGR of 14.5% from 2025 to 2034. Growth is driven by strong demand from GCC countries, increasing smartphone penetration, and partnerships between local restaurants and delivery startups.

Middle East & Africa - Major Dominant Countries in the Online On-Demand Food Delivery Services Market

• United Arab Emirates led the region with a market size of USD 3.42 Billion in 2025, holding a 36.6% share and projected to grow at a CAGR of 14.7% due to high digital engagement and food tech innovation.
• Saudi Arabia followed with USD 2.98 Billion in 2025, representing a 31.9% share and expected to grow at a CAGR of 14.3% driven by convenience culture and expanding quick-service restaurants.
• South Africa ranked third with USD 2.16 Billion in 2025, capturing a 23.1% share and forecasted to grow at a CAGR of 14.1% with improved logistics infrastructure and rising mobile ordering usage.

List of Key Online On-Demand Food Delivery Services Market Companies Profiled

Investment Analysis and Opportunities in Online On-Demand Food Delivery Services Market

The Online On-Demand Food Delivery Services Market is attracting significant global investment with 62% of venture capital funds directed toward app-based logistics and AI-driven delivery systems. Around 54% of investors focus on last-mile delivery automation and route optimization technologies to reduce delivery times by up to 28%. Sustainability investments are rising as 39% of companies integrate eco-friendly packaging and carbon-neutral operations. Strategic mergers and acquisitions have surged by 31% in the past two years, focusing on cross-platform collaborations. Additionally, 48% of investors prioritize cloud kitchen expansion and data analytics-driven demand forecasting as long-term growth opportunities across emerging markets.

New Products Development

Continuous innovation in product offerings is reshaping the Online On-Demand Food Delivery Services Market, with 46% of companies introducing subscription-based meal plans and 33% launching express delivery options within 20 minutes. About 41% of platforms now use AI to personalize menu recommendations, improving order frequency by 27%. Drone and autonomous vehicle trials have increased by 35%, aiming to optimize delivery logistics and reduce labor dependency. Additionally, 38% of delivery apps are introducing eco-packaging products and zero-waste initiatives to meet rising consumer demand for sustainability. These product developments aim to enhance operational speed, service quality, and customer retention.

Developments

• Just Eat Plc: Introduced AI-based predictive order management, improving delivery time accuracy by 22% and customer satisfaction by 17% across major European cities.
• Delivery Hero SE: Expanded its sustainable packaging initiative to 21 new markets, reducing plastic use by 43% and improving brand eco-performance.
• Meituan Dianping: Launched a food quality assurance program integrating real-time tracking, which reduced consumer complaints by 26% in metropolitan areas.
• Glovoapp23 SL: Partnered with over 6,000 local restaurants to offer faster delivery times, boosting order volume by 32% in key Latin American markets.
• Zomato Media Pvt. Ltd.: Rolled out AI-powered delivery route optimization, enhancing efficiency by 29% and reducing operational fuel consumption by 18% across India.

Report Coverage

The Online On-Demand Food Delivery Services Market report provides a detailed assessment of market dynamics, competitive landscape, and key growth factors influencing the sector. It covers SWOT analysis, highlighting strengths such as high mobile app penetration (74%), growing urban customer base (65%), and integration of AI-based platforms driving order optimization. Weaknesses include high commission fees affecting 41% of partner restaurants and quality control challenges across decentralized networks. Opportunities stem from expanding cloud kitchens, which contribute nearly 45% of new investments, and cross-border platform partnerships boosting transaction volumes by 38%. However, threats such as operational costs and data privacy concerns affect 33% of online service providers. The report also includes in-depth regional insights covering Asia-Pacific’s dominance (41% share), North America’s technological advancements (27% share), and Europe’s focus on sustainability (21% share). Additionally, it examines consumer behavior trends, pricing dynamics, logistics integration, and strategic movements by major companies, offering actionable intelligence for stakeholders and investors to identify profitable opportunities within the global Online On-Demand Food Delivery Services Market.