20 Feb, 2024 | Statistics
Delicious food is a universal affection that unites individuals today through a common enjoyment of culinary delights. The pleasure derived from savoring a delicious meal triggers the release of dopamine, a neurotransmitter associated with the brain's reward system. This shared happiness has revolutionized how individuals can enjoy their favorite foods and propelled the expansion of the food industry and the thriving online meal delivery market.
The food industry plays a vital role in the global economy, contributing over 12% to the GDP and providing employment for more than 40% of the workforce. In 2024, the food market's revenue is estimated to reach a staggering US$10.07 trillion. The surge in demand for food delivery services is driven by the desire for convenience, with 70% of customers preferring to order food online and have it delivered. The convenience factor has led to online ordering growing 300% faster than in-house dining.
Economic impact
The global online food delivery sector, estimated at over one trillion U.S. dollars in 2023, is dominated by key players, including DoorDash (USA), Zomato (India), Grab Holdings (Singapore), and Delivery Hero (Germany). At $46.19 billion in market capitalization, DoorDash is the leader. Users of online meal delivery services are primarily young adults (up to 65%), especially those between 18 and 29.
With more than 40% of the global income from online meal delivery, Asia Pacific has the greatest share of the business. Europe and North America follow closely behind. One of the major players in the market, DoorDash, has seen a sharp rise in monthly active users (MAUs), with over 37 million of them as of December 2023. As evidence of the industry's ongoing expansion, its contribution profit increased by 67% yearly to $533 million in the first quarter of 2023.
Regional Trends and Market Dynamics
Zomato and Swiggy continue fighting for dominance in the meal delivery market in India. In 2023, Zomato's 54% market share remained ahead of Swiggy's 46%. Zomato's strategic positioning and consistent investor interest are credited with its success. The brand stands out for its distinctive marketing strategy, especially on social media sites like Facebook, Instagram, and X, the former Twitter.
Zomato uses meme marketing, creating unique and realistic memes that appeal to many people, especially millennials and Generation Z. Zomato has found memes to be an effective marketing tactic since they help them engage with younger consumers who spend much time online. Zomato's marketing strategy has been successful in sparking conversations and capturing the attention of a varied audience by incorporating comedy, innovation, and reliability.
Regarding the preferences of consumers ordering takeout online. According to DoorDash, fried rice, chicken quesadillas, and garlic naan are the top three food items ordered in the United States. However, according to data, the most ordered food on Zomato was biryani, with over 10.09 crore orders, followed by pizza and noodle bowls in 2023.
The popularity of online meal delivery across the globe is evidence of how customer tastes are changing and how convenience, variety, and creativity are valued. The sector's economic influence and the competitive strategies of its key players continue to shape the food industry and give consumers an abundance of options at their disposal.
