The food delivery market is often considered to be saturated, with little room for new services to flourish and an apparent stagnation in customer demand. To investigate this, we teamed up with our technical partner to conduct a comprehensive study. Our mission was simple: to measure the real demand for food delivery services among active users of on-demand business – taxi business. Using a simple survey that required users to answer either 'yes' or 'no', we collected valuable data from over 17,000 participants. The results are both revealing and region-specific, shedding light on the state of food delivery demand in different parts of the world.
Worldwide overview
At a high level, the survey results show that 30% of respondents answered "Yes" while 14% opted for "No." 44% of users who received the survey left their vote, which is a highly successful survey result. These figures provide an initial understanding of the overall demand for food delivery services among on-demand business customers. However, a more detailed analysis is necessary to gain a more nuanced perspective.
North America
In North America, the survey revealed that 20% of respondents in the USA and 20% in Canada voted "Yes." These numbers, while identical, reflect the dynamic nature of the market. The underlying dynamics in the USA showed a breakdown of 19% "Yes" and 14% "No," whereas Canada had 20% "Yes" and 11% "No."
According to statista.com the food delivery market in North America is expected to experience a compound annual growth rate (CAGR) of 5.98% from 2023 to 2027, resulting in a projected market volume of US$121.80bn by 2027. In 2023, the projected revenue of the Meal Delivery market in North America is estimated to be US$96.56bn.
The Platform-to-Consumer Delivery US$64bn market is projected to have a market volume of 135m users in 2024.
The Restaurant-to-Consumer Delivery US$42bn market instead is projected to have a market volume of 180m users the same year.
In terms of average revenue per user (ARPU), the Meal Delivery market is projected to reach US$0.47k in 2024.
South America
Moving south to Latin America, the data showcases a diverse picture of food delivery demand. Costa Rica had the highest "Yes" vote at 24%, followed by Peru at 11% and Chile at 17%. Conversely, Costa Rica had the lowest "No" vote at 8%, while Peru and Chile were at 14% and 15%, respectively. These numbers indicate variations in acceptance of food delivery services across different LatAm countries.
We turned to statista.com and collected valuable data according to the South America food delivery market perspectives. Here it is:
Revenue in the South America Meal Delivery market is projected to reach US$12.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 7.36%, resulting in a projected market volume of US$14.31bn by 2027.
The Restaurant-to-Consumer Delivery market has a projected market volume of US$8.56bn in 2024.
And the Platform-to-Consumer Delivery market has a projected market volume of US$3.78bn in 2024.
Africa
Africa demonstrated significant variation in food delivery demand. Libya led the region with 36% voting "Yes," closely followed by Nigeria at 41% and Angola at 40%. Meanwhile, Sudan had a 19% "Yes" response, and South Africa and Saudi Arabia scored 25% each. In the "No" category, Sudan and Libya each had 10%, while Nigeria, Angola, South Africa, and Saudi Arabia had 15%, 13%, 15%, and 15%, respectively. These results suggest varying preferences across African countries, with some showing remarkable enthusiasm for food delivery.
And here are general predictions by statista.com:
Revenue in the Meal Delivery market is projected to reach US$4.66bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 15.87%, resulting in a projected market volume of US$6.67bn by 2027.
The Restaurant-to-Consumer Delivery market has a projected market volume of US$2.87bn in 2024.
The Platform-to-Consumer Delivery market has a projected market volume of US$1.79bn in 2024.
Europe
In Europe, the data highlights distinctions in food delivery demand. The United Kingdom recorded the highest "Yes" rate at 19%, with Croatia at 16% and France at 15%. The Netherlands and Germany followed closely with 23% and 16% "Yes" votes, respectively. On the "No" side, the United Kingdom and Croatia had 17% and 16%, while France, the Netherlands, and Germany registered 12%, 10%, and 20%, respectively. This data implies a diverse range of food delivery demand within Europe.
Market perspectives for 2024 according to statusta.com:
Revenue in the Meal Delivery market is projected to reach US$48.95bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 10.24%, resulting in a projected market volume of US$60.88bn by 2027.
The Restaurant-to-Consumer Delivery market has a projected market volume of US$33.16bn in 2024.
The Restaurant-to-Consumer Delivery market has a projected market volume of US$15.79bn in 2024.
So, what did we find out? Well, it looks like people all around the world still want food delivered. Even though some places have more "yes" votes than others, the overall demand is there.
For businesses, there are opportunities to grow. Predictions for 2023-2027 highlight sustained growth opportunities, indicating that businesses can enhance their market share through targeted marketing campaigns and loyalty systems. Importantly, the distinction between the Platform-to-Consumer and Restaurant-to-Consumer delivery markets varies by region, emphasizing the importance of understanding local preferences for businesses aiming to thrive in the dynamic and evolving food delivery landscape.
In a nutshell, the food delivery world is big, and there's room for more growth. It's about understanding what people want and making it easy and exciting for them to get their favourite meals delivered.