Online Food Delivery - Canada

Canada

The Online Food Delivery market in Canada is projected to reach a revenue of US$14.59bn in 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.41%, resulting in a projected market volume of US$20.86bn by 2029.
In Canada, the Grocery Delivery market is anticipated to experience a revenue growth of 15.7% in 2025.
With a projected market volume of US$8.05bn in 2024, it holds a significant position in the market.
In a global context, China is expected to generate the highest revenue in the Online Food Delivery market, with an estimated amount of US$448.90bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$0.57k in 2024.
As for the Meal Delivery market in Canada, the number of users is expected to reach 22.1m users by 2029.
The user penetration rate in this market is predicted to be 50.8% in 2024.
The online food delivery market in Canada is experiencing rapid growth due to the increased demand for convenience and the growing popularity of food delivery apps.

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Analyst Opinion

Canada, known for its diverse culture and love for food, has seen a significant increase in the Online Food Delivery market in recent years.

Customer preferences: Customers in Canada are increasingly looking for convenience and time-saving options when it comes to food. Online food delivery platforms provide them with the option to order food from their favorite restaurants without having to leave their homes. Moreover, the rise in the number of working professionals and students has led to an increase in demand for online food delivery services.

Trends in the market: One of the significant trends in the Canadian Online Food Delivery market is the rise of healthy food options. With the growing awareness of healthy eating habits, customers are looking for healthier options when ordering food online. This has led to many restaurants and food delivery platforms to include healthy food options in their menus. Another trend in the market is the rise of ghost kitchens. These are kitchens that only cater to online food delivery orders and do not have a physical restaurant. This trend has led to an increase in the number of food delivery options available to customers.

Local special circumstances: The climate in Canada is harsh during winters, and this has led to an increase in demand for online food delivery services. Customers prefer the convenience of ordering food online rather than venturing out in the cold weather. Moreover, the pandemic has also played a significant role in the rise of online food delivery services. With the closure of restaurants and social distancing measures, customers have turned to online food delivery services as a safer and convenient option.

Underlying macroeconomic factors: The rise of the Online Food Delivery market in Canada can also be attributed to the country's strong economy and high internet penetration rate. Canada has a robust digital infrastructure, which has made it easier for online food delivery platforms to operate in the country. Moreover, the rise of the gig economy has led to an increase in the number of delivery drivers available for food delivery platforms.In conclusion, the Online Food Delivery market in Canada has seen a significant increase in demand due to the convenience and time-saving options it provides to customers. The rise of healthy food options and ghost kitchens has also led to an increase in the number of food delivery options available to customers. The harsh climate during winters and the pandemic have also played a significant role in the rise of online food delivery services. Finally, the country's strong economy and high internet penetration rate have made it easier for online food delivery platforms to operate in Canada.

Methodology

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.