United States Online Food Delivery Market

Market Overview:

The United States online food delivery market size reached US$ 29.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 68.6 Billion by 2032, exhibiting a growth rate (CAGR) of 9.8% during 2024-2032. The changing consumer preferences for eating at home, expanding adoption of convenience-driven lifestyles, significant technological advancements in the industry, and the COVID-19 pandemic-induced demand are among the key factors driving the market growth.

Online food delivery is the process of ordering and receiving food items through digital platforms, typically facilitated by dedicated websites or mobile applications. Customers can browse menus, select dishes, and place orders from a variety of restaurants and eateries. The orders are then transmitted to the respective restaurants, which prepare the food and package it for delivery. Delivery personnel, often referred to as couriers, transport the orders to the customers' specified locations. This convenience-driven service has gained significant popularity due to its accessibility, ease of use, and the ability to enjoy restaurant-quality meals in the comfort of one's environment.

The increasing penetration of smartphones and high-speed internet in the United States has made it more convenient for consumers to access online food delivery platforms, browse menus, and place orders effortlessly, primarily driving the market’s growth. In addition to this, the evolving lifestyle patterns of busy individuals have driven the demand for convenient dining solutions, making online food delivery an attractive option. Moreover, the COVID-19 pandemic strengthened the market growth as lockdowns and social distancing measures prompted a shift towards home-based dining experiences. Besides this, the availability of diverse culinary choices online from local eateries, national chains, and international cuisines on these platforms is contributing to the rising popularity of online food delivery. Furthermore, extensive collaborations between delivery platforms and restaurants to provide exclusive deals, discounts, and seamless payment options have enhanced the overall customer experience, fostering sustained growth in the online food delivery market.

United States Online Food Delivery Market Trends/Drivers:

Technological advancements

The proliferation of smartphones, coupled with widespread access to high-speed internet, has fundamentally altered consumer behavior and transformed the food delivery landscape. Besides this, the convenience of ordering meals through a mobile app has significantly contributed to the market’s popularity. Moreover, the user-friendly interfaces, personalized recommendations, and efficient tracking systems have enhanced the overall customer experience, creating a positive outlook for market expansion. Apart from this, the integration of global positioning system (GPS) technology allowing real-time monitoring of delivery progress, instilling a sense of transparency and reliability in the process, is aiding in market expansion. The tech-savvy nature of modern consumers has enabled the seamless integration of online food delivery platforms into their daily routines, thus driving the market's growth.

Shifting consumer preferences

The evolving lifestyles of individuals, characterized by busy schedules, dual-income households, and an emphasis on convenience, have driven the demand for dining solutions that save time and effort. Online food delivery caters to this demand by offering a wide variety of culinary options that can be accessed from the comfort of one's home or workplace. This trend has been further amplified by the COVID-19 pandemic, which forced a significant portion of the population to work and dine from home. Lockdowns and social distancing measures accelerated the adoption of online food delivery, leading to a sustained increase in demand. As consumers prioritize safety, the contactless nature of online orders and payments has become an attractive feature, aligning with the current health-conscious mindset.

United States Online Food Delivery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States online food delivery market report, along with forecasts at the country level from 2024-2032. Our report has categorized the market based on platform type, business model and payment method.

Breakup by Platform Type:

• Mobile Applications
• Websites
   

Mobile applications represent the biggest market segment

The report has provided a detailed breakup and analysis of the market based on the platform type. This includes mobile applications and websites. According to the report, mobile applications represented the largest segment.

The rising demand for online food delivery mobile applications due to their inherent benefits in terms of accessibility, customization, and real-time interaction is contributing to the market’s growth. Besides this, mobile apps provide users with instant access to a wide range of restaurants and cuisines, enabling them to explore diverse dining options without geographical limitations. These platforms also allow for personalized experiences, as users can easily filter and customize their orders based on dietary preferences, allergies, and portion sizes. The real-time interaction between customers, restaurants, and delivery personnel through notifications and tracking systems instills a sense of control and transparency, enhancing the overall customer experience.

Breakup by Business Model:

• Order Focused Food Delivery System
• Logistics Based Food Delivery System
• Full Service Food Delivery System
   

Order focused food delivery system accounts for the majority of the market share

A detailed breakup and analysis of the market based on the business model has also been provided in the report. This includes order focused food delivery system, logistics based food delivery system, and full service food delivery system. According to the report, order focused food delivery system represented the largest segment.

The expanding demand for order-focused food delivery systems is primarily propelled by the desire for enhanced efficiency, reduced errors, and improved overall customer satisfaction. These systems streamline the ordering process by minimizing miscommunication between customers and restaurants, leading to more accurate and error-free orders. By allowing customers to customize their orders directly through the platform, the potential for misunderstandings is significantly reduced, resulting in a smoother dining experience, thereby contributing to their increasing demand. Moreover, such systems often integrate real-time updates and tracking features, enabling customers to monitor the progress of their orders and anticipate delivery times accurately. This level of transparency and control enhances customer trust and reduces uncertainties. As a result, the demand for order-focused food delivery systems is on the rise as they add to a hassle-free and reliable dining experience that meets the evolving expectations of today's discerning consumers.

Breakup by Payment Method:

• Online
• Cash on Delivery
   

Online represents the biggest market segment

The report has provided a detailed breakup and analysis of the market based on the payment method. This includes online and cash on delivery. According to the report, online represented the largest segment.

The surging preference for online payment is driven by the increasing consumer inclination towards cashless transactions, enhanced security, and streamlined convenience. As digital payment methods become more widely accepted and trusted, customers are gravitating towards the ease and efficiency of paying for their food orders online. The ability to securely store payment information within the platform eliminates the need for physical cash transactions and reduces concerns related to carrying money or making exact changes, which, in turn, is propelling the market forward. This shift aligns with broader trends towards contactless transactions, particularly in light of health and safety considerations post-pandemic. Furthermore, online payment options often come bundled with loyalty programs, discounts, and exclusive offers, incentivizing customers to engage with the platform and fostering customer loyalty.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

South exhibits a clear dominance, accounting for the largest United States online food delivery market share

The report has also provided a comprehensive analysis of all the major regional markets, which include Northeast, Midwest, South, and West. According to the report, South accounted for the largest market share.

Competitive Landscape

The United States online food delivery market is marked by intense competition among various players that encompass a diverse range of participants. Notably, third-party aggregator platforms, hold substantial market shares, leveraging their extensive networks of partner restaurants to offer customers a wide array of dining options. These platforms compete fiercely through strategies such as offering promotional deals, loyalty programs, and user-friendly interfaces to attract and retain customers. Apart from this, restaurant chains are entering the scene with proprietary delivery apps, aiming to establish a direct connection with their patrons and reduce reliance on third-party services. Moreover, grocery delivery services and local delivery startups are diversifying the competition, offering convenience beyond restaurant meals.

The market report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.

United States Online Food Delivery Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States online food delivery market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States online food delivery market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States online food delivery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.