How the world eats today is changing dramatically.
About 10 years ago, the delivery of restaurant-quality meals was mostly limited to pizzas and spicy Chinese takeouts.
Today, various delicacies, including entrees, main courses, and desserts, are ordered online through food delivery apps. As a result, the global food delivery market has skyrocketed to $150 Bn—almost thrice since 2017!
It is well known that the COVID-19 pandemic played a monumental role in boosting the food delivery market share. People all around the world were ordering food through apps because restaurants were under lockdown.
This explosion of the food delivery market in a short span is a testament to its increasing relevance and need.
Also, the advent of appealing, user-friendly, and technically advanced food delivery apps has furthered the growth of online food delivery across all continents.
Hence, in this blog, we’ll briefly review the global online food delivery market. We’ll also examine the food delivery trends of some major geographies like the USA, Canada, Singapore, and UAE.
This blog is perfect for food delivery app startups who need to cement their understanding of the food delivery market or for those who want to adapt their business models to some of the latest food delivery trends.
So let’s jump right in!
Online Food Delivery Industry Overview
The online food delivery industry is an intriguing one. Its boom since the CVOID era has completely altered food consumption habits.
Today, with just a few taps on our smartphones, we can browse menus from our favorite restaurants and get that same quality of food served to our doorstep.
The key to success in this industry is maximising customer convenience.
Food delivery apps are becoming increasingly popular because they help consumers save time and offer them a restaurant-like experience from the comfort of their homes.
Some of the factors that are driving growth in this industry are listed below:
- Busy Lifestyles: As consumers try to navigate through their chaotic lives, food delivery apps have proved to be a solid anchor. Food delivery apps have made it possible for consumers to relish sizzling meals of their choice—anywhere, anytime. Imagine having a hot plate of food waiting for you as you rush in and out of your business meetings. Isn’t that simply convenient?
- Accelerated Urbanization: Urbanization has provided the means and resources to deliver food items quickly to customers. Since a higher concentration of people inhabit spaces, it also makes it much more convenient and efficient to order food online than dine-in.
- Smartphones: The widespread use of smartphones has further accelerated the growth of the online food delivery market. Today, app stores are teeming with user-friendly apps that enable them to run through menus, place orders, make payments, and even track their orders in real-time.
- The COVID-19 Pandemic: We keep stressing the importance of the role of the COVID-19 pandemic in skyrocketing food delivery revenues. But it’s not enough. The pandemic enabled people to try food delivery apps and overcome that initial hesitation barrier. The multiple lockdowns have demonstrated that it is just as safe and easy to experience restaurant-style delicacies at home. Thanks to COVID-19, online food delivery has now become an essential part of all our lives.
Food Delivery Statistics that you should know!
We know that the global food delivery market is on the rise.
But did you know? The global food delivery market is on track to reach a staggering $1.22 trillion revenue mark by the end of 2024.
If this impresses you, hold on to your hats as the projected user penetration rate (UPR) of the online food delivery marketplace is to reach 27.5% in 2024.
It is safe to say that the future of the global food delivery market is shining bright like the sun.
From 2024 to 2028, the industry will have a robust CAGR of 10.06% and will successfully reach a market volume of $1.79 trillion by 2028.
This means the industry is expected to grow by 50% in just 4 years!
The above food delivery statistics confirm the booming popularity of online food delivery services.
With a rising consumer base, these delivery apps are ingrained into the everyday lives of people around the world. As a result, the industry is poised for continued expansion and relentless growth in the years to come.
Food Delivery Trends: USA
Now that we’ve briefly understood the factors driving growth in the global food delivery industry, it’s time to inspect some of the food delivery trends in geographical areas like the USA, Canada, UAE, and Singapore.
We’ll start with the United States of America:
- The US online food delivery market is showing signs of robust growth. The projected food delivery revenue is about $353.30 Bn in 2024.
- This momentum of growth and progress is expected to continue as the projected CAGR between 2024 and 2028 is almost 10.91%
- Data from a US-based survey estimates that over 51% of the US population has used meal delivery services this year.
- The rise in the US online food delivery market has further been boosted by user-friendly ordering websites and free food delivery mobile apps. These technological tools have enabled people to explore multiple culinary options from the comfort of their homes.
- As a result, almost 60% of consumers in the USA have ordered delivery at least once a week. This showcases the consistent resilience of convenient food delivery apps in the US market.
- With a 67% market share, DoorDash has emerged as the most popular food delivery app in the United States.
- With a 23% market share, next comes Uber Eats, the second most popular food delivery app. Uber Eats like Door Dash offers its consumers a wide range of culinary options.
- About 31% of American consumers use third-party apps like DoosDash, Uber Eats, GrubHub, and PostMates at least twice a week. This indicates the shift from traditional ordering to app-based ordering in the USA.
- Online pizza orders generate 18% more revenue than any other type of cuisine in the USA.
As we can see, more and more consumers in the USA are opting for app-based food delivery services. Convenient payment options, contactless delivery, and online order tracking are features that have brought about this shift in consumer behavior.
The convenience and accessibility of food delivery apps have also played a significant role in driving the growth of the online food delivery market in the United States. Consumers are enjoying the ease of having restaurant-quality meals delivered straight to their doorsteps.
Consumers in the US are increasingly looking for ways to save time and simply their lives—and food delivery apps are doing that exactly. Hence, they are emerging to be extremely successful in the USA.
It is also important to note that the rise of third-party delivery services is highly trending in the US online food delivery market.
These service providers often collaborate with local restaurants, bakeries, ghost kitchens, cloud kitchens, and cafes. The third-party food delivery service providers handle end-to-end delivery logistics, allowing restaurants to reach a broader audience through their solid network of delivery partners.
Food Delivery Trends: Canada
The popularity of food delivery apps seems to be consistent as we move from the United States to Canada. Let’s look at the revenue volumes, market growth rate, and use penetration rates of the Canadian food delivery industry:
- The online Food delivery market in Canada is projected to reach a revenue point of US$ 14 bn in 2024.
- The food delivery market in Canada is showing a 6.33% YoY growth. At this rate, the Canadian food delivery market volume is expected to reach a revenue of US$ 19.03 bn by 2029.
- User penetration in the food delivery market is estimated at 50.8%
- By 2029, Canada will have 22.1 m food delivery app users.
One of the most significant trends in the Canadian food delivery market is the shift in eating habits. With growing awareness of healthy eating habits, Canadians are gravitating towards healthier and vegan culinary options.
Canadians are mindful when ordering online and are trying to avoid fast food or red meat.
Thus, third-party food delivery apps in Canada are actively including and promoting vegetarian and vegan restaurants on their platform.
In 2025, Canada has witnessed the rise of ghost kitchens. Ghost kitchens only cater to online food delivery orders and do not have the option to dine in. These kitchens don’t need to invest in dining spaces or in-house staff.
As a result, they can cater to online customers faster than a regular dine-in restaurant. Ghost kitchens are becoming increasingly popular on online food delivery apps as they can cater to consumers effectively.
Weather conditions in Canada are also driving food delivery revenue growth.
In harsh winters, most consumers prefer to stay in their homes instead of going out. As a result, food delivery apps are coming in really handy, and more and more consumers are using them because they’re a huge time-saver and extremely convenient.
Lastly, it’s safe to say that Canada’s strong economy and high internet penetration rate have made it easy for food delivery apps to operate and churn profits in this country.
Food Delivery Trends: UAE
Compared to North America, the growth and expansion of the food delivery industry is a lot slower in UAE.
However, in recent years, consumers in the UAE have been warming up to the idea of ordering food online as apps like Talabat, Careem, and Easy Eats dominate the food delivery app market.
Let’s take a look at the statistics and explore factors affecting food delivery trends in this region:
- In UAE, the online food delivery market peaked at US$ 1122 m in 2024.
- The expected annual growth rate for 2024-2029 in UAE is 3.78%
- At this rate, by 2029, UAE’s food delivery market volume will reach US$ 1351m.
- Customers in the UAE are slowly realizing the benefits of food delivery apps. For quick, time-saving meals, consumers are using online ordering apps frequently.
The COVID-19 pandemic has accelerated the adoption of online food delivery services. Consumers who were once hesitant to order food online have realized the safety of contactless online ordering.
Like Canada, the UAE has also seen the rise of cloud kitchens. These delivery-only kitchens save a fortune on overhead costs by eliminating the need to run a physical storefront. Hence, they have more substantial profit margins than regular restaurants and are turning out to be a much more affordable option for online customers.
Consumers in the UAE are also looking for healthier options and meat alternatives. Hence, many online platforms have expanded their vendor list to include a range of healthy meal choices.
Another noteworthy trend in the UAE is the high demand for cold and refreshing beverages. Since the weather in the UAE is mostly hot and humid, delivery platforms have witnessed a surge in online orders of fruit juices, smoothies, and cold drinks.
The government of UAE is actively promoting local businesses and entrepreneurs. As a result, they have streamlined the process of licensing food delivery businesses. This has further led to an increase in the number of third-party food delivery apps in the region. The government initiative to support food businesses is a crucial factor in driving revenue growth in the food delivery industry.
UAE has a growing middle class with a disposable income. As a result, consumers are willing and can afford to spend on online food delivery services.
Food Delivery Trends: Singapore
Singapore is known for its vibrant food scene. As a consequence, it has witnessed a surge in online food delivery services:
- The online food delivery market in Singapore is valued at a staggering US$ 1.61 bn in 2024.
- Singapore’s online food delivery market has an annual growth rate of 6.25 % and this is almost twice as much as that of UAE.
- By 2029, Singapore’s food delivery market volume will be at US$ 2.18bn.
In recent years, Singapore’s food delivery market has seen a significant increase in the number of market players. As a result, the food delivery space in Singapore is extremely competitive. To attract more consumers, many food delivery service providers are offering large discounts and customer loyalty programs.
Some have even expanded their services to include a wide range of multi-national cuisines to cater to a wider set of consumers.
Further, Singapore is densely populated which makes it an ideal market for food delivery services. Resources are easily available and extensive delivery networks can be formed within Singapore.
Singaporeans are known for their love of food. People are excited to try new cuisines and dishes from around the world. This makes Singapore a perfect region for establishing and scaling third-party food delivery services.
There is also high smartphone penetration in this country. As a result of this digital revolution, consumers are much more willing to order food online.
Moreover, Singapore has established itself as a financial hub and has attracted a lot of financial investors and talent in the last decade, As a result, many international food delivery services are also trying to get their foot in the Singaporean food delivery market.
Future of food delivery trends
Food delivery trends continue to evolve rapidly amidst technological advancements and changing customer preferences. Here are a few to look out for this year:
- Contactless and hyper-local deliveries that provide services within a few minutes are becoming extremely favorable in urban areas.
- Optimized operations of cloud and ghost kitchens enable them to serve customers online efficiently. Hence are becoming increasingly popular on food delivery apps.
- AI-powered recommendations that suggest personalized dishes based on past orders are becoming a go-to feature in all major third-party food delivery mobile apps.
- Customized meal kits, where customers can pick their ingredients and recipes to create food at home, are also in high demand.
- Food delivery apps are also rapidly expanding their food delivery services to include grocery delivery, fresh produce delivery, and meat delivery.
- Food delivery providers are also offering monthly subscription discounts to promote customer loyalty.
- Contactless payments and digital wallets are becoming the preferred payment methods for food delivery
Summary
Needless to say, the food delivery market is booming globally. Factors like busy lifestyles, rapid urbanization, the COVID-19 pandemic, access to technology, and government initiatives have catalyzed the growth of the food delivery market.
While the US is the largest market with robust food delivery service growth, countries like Canada and Singapore are also catching up. Some common trends across these regions include the shift to healthier eating options and the rising popularity of cloud kitchens.
On the other hand, some technical features have also played a pivotal role in the rapid adoption of online food delivery services. Features like contactless deliveries, easy payment options, live tracking, and easy-to-navigate menus have encouraged people to choose online ordering over dine-in.
In highly competitive markets like Singapore or UAE, the need for well-designed ordering apps is on the rise. Consumers like to order frequently from apps that are easy to navigate, provide a variety of culinary options, and are safe to use.
Deonde is dedicated to creating and building high-quality white-label food delivery apps so that food delivery startups can get their leg up on the competition and churn profits in competitive regions.
Deonde’s dedicated data and analytics tools like interactive dashboards and easy-to-read reports help enterprises understand customer preferences. As a result, Deonde users witness huge traffic on their food delivery apps.
With Deonde you can convert first-time users to life-long loyal customers. If you want to see how we can help you do this, please connect with us.
We’re here to help you kickstart your food delivery business—even in competitive spaces.
The statistics and insights in this blog post were referenced from the following sources:
FAQs
Q: What are the main factors driving the growth of the online food delivery market?
A: Factors like busy lifestyles, rapid urbanization, the COVID-19 pandemic, access to technology, and government initiatives are accelerating the growth of the global online food delivery industry. As a result, the projected global market size for online food delivery in 2024 is US$ 1.22 trillion.
Q: What is the future of the online food delivery industry?
A: The future of the online food delivery industry is very promising. However, food delivery trends like AI, machine learning, autonomous delivery, and virtual/augmented reality are waiting on the horizon. Customers demand personalized experiences when they order food and online and this can be achieved through machine learning. It is also possible to achieve high customer satisfaction rates by offering healthy and sustainable culinary options
Q: What are some of the popular food delivery apps in the US, Canada, UAE, and Singapore?
A: In the US and Canada, DoorDash is dominating the food delivery market and is closely followed by other third-party apps like Uber Eats, Grubhub, Postmates, and SkipTheDishes. In the UAE, many food delivery apps are booming but Talabat has a majority market share. In Singapore, apps like GrabFood, Deliveroo, and Foodpanda are taking the food delivery market by storm.
