Online Food Delivery

The revenue in the Online Food Delivery market in Australia & Oceania is projected to reach US$12.80bn in 2024.
This market is expected to show an annual growth rate (CAGR 2024-2029) of 7.85%, resulting in a projected market volume of US$18.67bn by 2029.
In the Grocery Delivery market, a revenue growth of 13.3% is expected in 2025.0.
The projected market volume for this market in Australia & Oceania is US$10.11bn in 2024.
When compared globally, China is expected to generate the most revenue in the Online Food Delivery market, with US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to amount to US$1.00k in 2024.
In the Grocery Delivery market, the number of users is expected to reach 13.2m users by 2029.
The user penetration in the Grocery Delivery market in Australia & Oceania will be at 23.3% in 2024.
The online food delivery market in Australia is experiencing rapid growth, driven by the increasing demand for convenience and the growing popularity of food delivery apps.

Definition:

Online Food Delivery refers to the intersection of ordering groceries and prepared meals online. Orders are typically placed through an app or website and delivery times vary.

Structure:

The Online Food Delivery market contains the user and revenue development of two different delivery service solutions: (1) Meal Delivery and (2) Grocery Delivery. Included are services that deliver prepared meals and food ordered online for direct consumption (Meal Delivery) and non-prepared food and beverage products, household, and personal care products (Grocery Delivery). Meal delivery includes the delivery of meals carried out directly by restaurants (Restaurant Delivery) and online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves (Platform Delivery). Grocery Delivery consists of fresh, nonprepared products delivered from supermarkets or retailers where delivery is scheduled (Retail Delivery), Delivery that is under 3 hours and operates dark stores or own warehouses (Quick Commerce), and prepared fresh ingredients to be prepared at home, typically offered through a subscription service (Meal Kit Delivery).

Additional Information:

Revenue figures are the gross merchandise value (GMV), defined as the total sales dollar value for merchandise/food sold through the Online Food Delivery marketplace. User and revenue figures represent B2C services.

Meals and groceries ordered online that are directly delivered by the restaurant, retailer, or platform no matter if ordered via a platform (e.g. Delivery Hero, Instacart) or a restaurant/retailer website (e.g. Domino's, Walmart.com)
Online meal and grocery order and delivery both carried out by a platform (e.g. Deliveroo, Grab, Flink)

Phone orders
Click & collect Grocery orders
Ready-to-eat meals

The Online Food Delivery market in Australia & Oceania has experienced significant growth in recent years, driven by changing consumer preferences and advancements in technology.

Customer preferences: Customers in Australia & Oceania have shown a growing preference for convenience, speed, and quality when it comes to food delivery. This has been reflected in the rise of online food delivery platforms, which offer a wide range of food options and quick delivery times. Additionally, consumers are increasingly seeking out healthy and sustainable food options, leading to the emergence of niche delivery services that cater to these preferences.

Trends in the market: Australia has emerged as a significant player in the online food delivery market, with several local players competing with global giants such as Uber Eats and Deliveroo. One trend that has emerged in the Australian market is the rise of dark kitchens, which are delivery-only kitchens that cater exclusively to online orders. This has allowed for greater efficiency and cost savings for delivery companies, while also providing consumers with a wider range of food options.In New Zealand, the online food delivery market has been slower to take off, with consumers still preferring traditional dining experiences. However, there has been a recent uptick in demand for food delivery services, particularly in urban areas. This has led to the emergence of local delivery companies that cater specifically to New Zealand tastes and preferences.

Local special circumstances: One unique aspect of the Australian market is the dominance of local players such as Menulog and EatNow, which have a strong presence in regional areas. Additionally, the country's large and diverse immigrant population has led to a wide range of cuisines being offered on delivery platforms, catering to a variety of tastes and preferences.In New Zealand, the market is more fragmented, with a mix of global and local players competing for market share. Additionally, the country's geographic isolation and small population size have presented challenges for delivery companies, particularly in rural areas.

Underlying macroeconomic factors: The growth of the online food delivery market in Australia & Oceania can be attributed to several macroeconomic factors, including rising urbanization, changing consumer preferences, and advancements in technology. Additionally, the COVID-19 pandemic has accelerated the shift towards online food delivery, as consumers have been forced to stay at home and avoid dining out. This has led to a surge in demand for delivery services, particularly in urban areas. Overall, the online food delivery market in Australia & Oceania is expected to continue its growth trajectory in the coming years, driven by changing consumer preferences and advancements in technology. However, local players and niche delivery services are likely to play an increasingly important role in the market, as consumers seek out personalized and sustainable food options.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.