India Online Food Delivery Market Share, Size, Growth: By Cuisine: Indian, Chinese, Italian, Others; By Platform: Website, Mobile Application; By Delivery Type: Restaurant-to-Consumer Delivery, Platform-to-Consumer Delivery; By Payment Method: Online, Cash on Delivery; Regional Analysis; Competitive Landscape; 2024-2032

India Online Food Delivery Market Outlook

The India online food delivery market size was valued at USD 7.4 billion in 2023. In the past three years, the market has shown a year-on-year growth of 100%. The market growth is expected to witness a robust growth in the coming few years.

Key Takeaways
 

Online food delivery in India has gained significant popularity in recent years, offering convenience and variety to customers across the country. Some of the top food delivery apps in India include Zomato, Swiggy, Uber Eats, and Food Panda. These platforms allow users to browse local restaurants, place orders, and track deliveries.

The Indian online food ordering market is expected to reach a high revenue in the coming years due to the high dependency on these applications, which has increased due to the ease and variety they offer. Food delivery apps have become popular in major cities like Bangalore, Delhi, Chennai, Hyderabad, and Mumbai, but they have also expanded to smaller cities. These apps provide a wide range of cuisines, from regional Indian dishes to global favourites, and offer various payment options. They also cater to the needs of busy professionals and those seeking a hassle-free experience. Some apps, like Zomato, offer additional features such as booking tables, tracking orders, and discovering top restaurants, which is resulting in India online food delivery market development.

In addition to food delivery, some apps also offer grocery delivery services, allowing customers to order household items and groceries in select cities. This expansion of services has made these apps even more valuable to customers and is thereby driving the demand for online food delivery in Indian market.  Overall, food delivery apps in India have become an essential part of modern life, providing convenience and variety to customers across the country.

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Key Trends and Developments

Development of cloud kitchens, rise of hyperlocal delivery, and increasing availability of discount offers are propelling the India online food delivery market growth

India Online Food Delivery Market Trends

India online food delivery market growth is driven by the swift digitalisation, increased internet and smartphone usage, and rapid lifestyle changes favouring the trend of online food delivery. The growth of the market is further attributed to the convenience it offers, the variety of cuisines available, and the increase in marketing campaigns by the leading players. Moreover, the rise in the number of busy white-collar workers, the increasing prevalence of double-income families, and the rise in the population of the younger generation with higher disposable incomes are further aiding the India online food delivery market value.

However, Indian online food delivery industry expansion is not limited to metropolitan areas, as food delivery apps have extended their services to smaller cities and towns, catering to a broader customer base. The top food delivery apps in India, including Zomato, Swiggy, and Dunzo, have played a pivotal role in transforming the food delivery market landscape in India, offering a wide range of dining options, live order tracking, and contactless delivery across 500+ cities in India.

In addition to the traditional food delivery model, significant market trends such as the subscription model, meat delivery, and pre-made meals have emerged in the online food delivery sector, reflecting the industry's dynamic nature and its ability to adapt to evolving consumer preferences.  The demand for online food delivery in the Indian market is expected to continue witnessing substantial growth and innovation, driven by the expansion of services to smaller cities, the introduction of new delivery models, and the integration of additional offerings such as grocery delivery.

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Market Segmentation

India Online Food Delivery Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Online payments expand the market size due to the rising digitalisation in the country

The online payment segment dominates the India online food delivery market share and accounts for most of the revenue. Payments made with credit/debit cards, payment wallets, net banking, and UPI are included in this segment. The convenience of fast payments and rising adoption of digital payments are the main factors driving the growing adoption of online payment services. The expansion of this segment is also being fuelled by the growing number of joint ventures between banks and online food delivery services.

On the other hand, India online food delivery market report states that some people still prefer cash-on-delivery (COD) while ordering food as it is extremely convenient for buyers as they don't need to worry about paying in advance. Furthermore, in tier-2 and tier-3 cities in India, where there is a lack of awareness and infrastructure for online payments, and where many individuals do not have access to smartphones and bank accounts, COD is a preferred mode of payment.

Platform-to-consumer delivery hold a significant market share due to the expansion of delivery-only kitchens

According to India online food delivery market analysis, platform-to-consumer delivery segment hold a large share in the market due to the expansion of delivery-only kitchens in areas with low presence of restaurants.  Furthermore, there is a greater need for quick home delivery models as a result of the growing workload and prevalence of nuclear families. Additionally, easy access to the internet and the widespread use of smartphones have made it more convenient for consumers to order food online.

However, restaurant-to-consumer delivery segment is witnessing a steady growth rate as players in this model are offering customers loyalty and subscription programs to gain a foothold in the market. Delivering directly from the centre further provides an additional revenue stream for restaurants, which can help them stay afloat during uncertain situations. It also eliminates third-party commission fees, allowing restaurants to focus on their profitability while retaining customer interaction, which can increase their revenue share, thereby boosting the India online food delivery market size.

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Competitive Landscape

Established brands and new entrants are strategically aligning themselves with initiatives such as ONDC to drive growth in the market. They are further strengthening their position in the market by enhancing the service offerings.

Other key players in the India online food delivery market include Yum! Brands, Inc., Plaza Restaurants Private Limited, Curefoods India Private Limited, Rebel Foods, Sky Gate Hospitality Pvt Ltd, and Poncho Hospitality Pvt. Ltd., among others.

India Online Food Delivery Market Analysis by Region

Substantial demand for online food delivery comes from South India due to the robust presence of food delivery applications

The South India region is anticipated to hold a dominant position in the India online food delivery market as consumers in Bengaluru highly order South Indian dishes for breakfast through various online food delivery platforms. Additionally, Swiggy, for example, delivers a wide range of delicious food, including Hyderabadi cuisines, across various neighbourhoods in Hyderabad. Furthermore, there are online Indian grocery stores that offer delivery of South Indian groceries and food items to doorstep.

Furthermore, in North Indian cities like Delhi and Mumbai, food delivery applications have encountered late night orders for Italian, Chinese, and street food, impacting the online food delivery market in India. These apps provide late-night food delivery, providing a convenient way to satisfy cravings during the late hours. For example, Swiggy ensures timely delivery, even during late hours, allowing customers to enjoy their favourite cuisines from the comfort of their homes. These services reflect the growing demand for online food delivery in these cities. Moreover, majority of the population are working in these metropolitan cities and have less time to cook their meals, which further contributes to the regional market share.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.