Online Food Delivery

The Online Food Delivery market in Israel is projected to reach a revenue of US$1.23bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 8.57%, resulting in a projected market volume of US$1.85bn by 2029.
In the Grocery Delivery market, a revenue growth of 14.3% is expected in 2025.0.
The projected market volume for Grocery Delivery in Israel is US$990.20m in 2024.
In global comparison, China is anticipated 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 in Israel is projected to amount to US$504.90 in 2024.
In the Meal Delivery market, the number of users is expected to reach 3.1m users by 2029.
The user penetration rate in the Meal Delivery market in Israel will be at 27.0% in 2024.
Israel is experiencing a surge in demand for online food delivery services due to its tech-savvy population and bustling food scene.

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

Israel's love for food is no secret, and the country's online food delivery market has been growing at a rapid pace over the past few years.

Customer preferences: Israeli customers are increasingly turning to online food delivery services for convenience and speed. The rise of dual-income families and the busy lifestyle of the younger generation have resulted in a growing demand for quick and easy meal options. Customers are also looking for a wider variety of food options, including international cuisine, which can be easily accessed through online delivery platforms.

Trends in the market: One of the major trends in the Israeli online food delivery market is the emergence of niche delivery services, catering to specific dietary needs or food preferences. For example, there are now several vegan and vegetarian food delivery services, as well as services that specialize in healthy food options. Another trend is the integration of technology, with many delivery services offering mobile apps and online ordering platforms to make the process more seamless for customers.

Local special circumstances: Israel's unique cultural and religious landscape has also had an impact on the online food delivery market. For example, the country's strict Kosher laws mean that many restaurants are unable to offer delivery services on the Sabbath, which has led to the development of specialized delivery services that cater to the Orthodox Jewish community. Additionally, the country's diverse population has created a demand for a wide variety of international cuisines, which has been met by the proliferation of online delivery services offering food from around the world.

Underlying macroeconomic factors: The growth of the online food delivery market in Israel can be attributed to several underlying macroeconomic factors. Israel's strong economy and high-tech industry have led to a culture of innovation and entrepreneurship, which has helped to fuel the growth of the online food delivery market. Additionally, the country's high population density and urbanization have made it an ideal market for online delivery services, as customers in densely populated areas are more likely to use these services for convenience. Finally, the COVID-19 pandemic has accelerated the growth of the online food delivery market in Israel, as more customers have turned to these services for safe and convenient meal options during lockdowns and social distancing measures.

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.