Online Food Delivery

The Online Food Delivery market in Brazil is projected to reach a revenue of US$18.83bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 8.11%, resulting in a projected market volume of US$27.81bn by 2029.
In the Grocery Delivery market, in Brazil is expected to experience a revenue growth of 16.1% in 2025.0.
The market volume is projected to reach US$9.73bn in 2024.
When compared globally, China is anticipated to generate the highest revenue in the Online Food Delivery market, with a projected revenue of US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$278.10 in 2024.
In the Meal Delivery market, the number of users in Brazil is expected to reach 90.5m users by 2029.
The user penetration rate will be at 36.6% in 2024.
Brazil's online food delivery market is booming, with a wide range of platforms offering convenient and fast delivery options to satisfy the country's diverse culinary preferences.

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 food delivery market in Brazil has seen significant growth over recent years, driven by the increasing demand for convenience and the rise of digital platforms.

Customer preferences: Brazilian consumers are increasingly turning to online food delivery services due to their convenience and ease of use. The younger generation, in particular, is driving the growth of the market as they are more likely to use digital platforms for food delivery. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as people are avoiding going out to restaurants and instead opting for delivery options.

Trends in the market: One of the key trends in the Brazilian online food delivery market is the increasing competition between the major players. Companies are investing heavily in marketing and promotions to attract and retain customers. Another trend is the rise of dark kitchens, which are delivery-only restaurants that operate out of industrial spaces. These kitchens allow restaurants to expand their delivery reach without the need for a physical location. Finally, there is a growing trend towards healthier food options and sustainable packaging, reflecting a wider global trend towards healthier eating and environmentally friendly practices.

Local special circumstances: Brazil has a unique food culture, with a wide variety of regional dishes and flavors. This has led to the emergence of local food delivery services that specialize in regional cuisine. Additionally, the country has a large unbanked population, which has led to the development of cash-based payment systems for food delivery services.

Underlying macroeconomic factors: Brazil is the largest economy in South America, with a growing middle class that is increasingly adopting digital technologies. The country has a large and young population, which is driving the growth of the online food delivery market. Additionally, the COVID-19 pandemic has accelerated the shift towards digital platforms for food delivery as people avoid going out to restaurants. However, Brazil's economic instability and high unemployment rates may impact the growth of the market in the future.

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.