Online Food Delivery

The revenue in Iran's Online Food Delivery market is projected to reach US$928.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 15.36%, resulting in a projected market volume of US$1.90bn by 2029.
The Grocery Delivery market in Iran is also expected to show a revenue growth of 28.4% in 2025.0, with a projected market volume of US$682.00m in 2024.
In global comparison, 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 Iran's Grocery Delivery market is projected to amount to US$70.05 in 2024.
In the Grocery Delivery market, the number of users in Iran is expected to reach 12.4m users by 2029.
User penetration in Iran's Grocery Delivery market will be at 10.8% in 2024.
In Iran, the online food delivery market is booming with a wide range of traditional Persian cuisine options available at the click of a button.

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

Iran, a country known for its rich history and culture, has also been experiencing a surge in the online food delivery market. With a population of more than 80 million, the country has become a lucrative market for food delivery companies.

Customer preferences: Iranians have always been known for their love for food, and the rise of online food delivery has made it easier for them to enjoy their favorite meals without leaving their homes. The convenience of ordering food online has become increasingly popular among the younger generation, who are more tech-savvy and prefer to order food through mobile applications.

Trends in the market: The online food delivery market in Iran has been growing rapidly in recent years, with more and more players entering the market. This growth can be attributed to several factors, including the increasing popularity of smartphones and mobile applications, the rise of e-commerce, and the changing lifestyles of consumers.

Local special circumstances: One of the unique aspects of the online food delivery market in Iran is the dominance of local players. While international players like Uber Eats and Deliveroo have entered the market, they face stiff competition from local players like Snappfood, Chilivery, and Delino. These local players have a better understanding of the local market and have been able to tailor their services to meet the needs of Iranian consumers.

Underlying macroeconomic factors: The Iranian economy has been facing several challenges in recent years, including high inflation and a weak currency. This has led to a rise in unemployment and a decrease in purchasing power. As a result, consumers are looking for more affordable options when it comes to food, and online food delivery companies have been able to provide this service at competitive prices. Additionally, the COVID-19 pandemic has accelerated the growth of the online food delivery market as more people are staying at home and ordering food online. In conclusion, the online food delivery market in Iran has been growing rapidly in recent years, driven by changing consumer preferences, the rise of e-commerce, and the dominance of local players. The underlying macroeconomic factors, including high inflation and the COVID-19 pandemic, have also contributed to the growth of the market. As the market continues to evolve, it will be interesting to see how international players will be able to compete with local players and how the Iranian government will regulate the market.

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.