Online Food Delivery

The Online Food Delivery market in the CIS region is expected to reach a projected revenue of US$10.15bn in 2024.
This market is expected to show a steady annual growth rate (CAGR 2024-2029) of 6.42%, resulting in a projected market volume of US$13.85bn by 2029.
In the Meal Delivery market, a revenue growth of 17.1% is expected in 2025.0.
The projected market volume for this market in 2024 is US$7.46bn.
When compared globally, China is projected to generate the highest revenue in 2024, amounting to US$450.50bn.
The average revenue per user (ARPU) in the Meal Delivery market is projected to be US$258.00 in 2024.
In the Meal Delivery market, the number of users is expected to reach 47.6m users by 2029.
The user penetration rate in this market is estimated to be 14.5% in 2024.
The online food delivery market in the CIS is experiencing rapid growth, with a focus on convenience and a wide variety of cuisine options.

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 CIS has been rapidly developing in recent years, with a significant increase in demand for food delivery services.

Customer preferences: One of the main reasons for the growth of the Online Food Delivery market in CIS is the changing customer preferences. With busy work schedules and hectic lifestyles, customers are increasingly looking for convenience and time-saving options. Online food delivery services provide a convenient way for customers to order food from their favorite restaurants without leaving their homes or offices.

Trends in the market: The Online Food Delivery market in CIS is characterized by intense competition among the players. The market is dominated by a few major players, but there are also many small and medium-sized players that are trying to gain market share. One of the trends in the market is the emergence of new delivery models, such as cloud kitchens and dark kitchens. These models allow restaurants to operate without a physical storefront and focus solely on delivery orders.

Local special circumstances: The Online Food Delivery market in CIS is diverse, with each country having its own unique characteristics. For example, in Russia, the market is dominated by Yandex.Eda and Delivery Club, while in Kazakhstan, the market is dominated by Foodpanda and Sulpak. In addition, the market is also influenced by local cuisine and food preferences. For example, in Uzbekistan, the market is dominated by traditional Uzbek cuisine, while in Armenia, the market is dominated by Armenian cuisine.

Underlying macroeconomic factors: The Online Food Delivery market in CIS is also influenced by underlying macroeconomic factors. One of the factors is the increasing internet penetration rate in the region. As more people have access to the internet, the demand for online food delivery services is expected to increase. Another factor is the growing middle class in the region. As more people become financially stable, they are more likely to spend money on convenience services such as online food delivery. Finally, the COVID-19 pandemic has also had a significant impact on the Online Food Delivery market in CIS, with many customers turning to online food delivery services as a safer alternative to dining in restaurants.

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.