Online Food Delivery

The projected revenue in Japan's Online Food Delivery market for the year 2024 is estimated to reach ¥US$38.13bn.
It is expected that the revenue will experience an annual growth rate of 7.81% (CAGR 2024-2029), resulting in a projected market volume of ¥US$55.54bn by 2029.
In the Grocery Delivery market, a revenue growth of 11.6% is anticipated for the year 2025.0.
The projected market volume for this market in Japan is ¥US$32.89bn in 2024.
In comparison to other countries, China is expected to generate the highest revenue in the Online Food Delivery market, reaching ¥US$450.50bn in 2024.
The average revenue per user (ARPU) in Japan's Grocery Delivery market is projected to be ¥US$807.30 in 2024.
For the Grocery Delivery market, the number of users is expected to reach 51.8m users by 2029.
The user penetration rate in this market is projected to be 33.2% in 2024.
With the rise of convenience culture in Japan, online food delivery services have become increasingly popular, catering to the busy lifestyles of urban dwellers.

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 popularity of online food delivery services in Japan has been on the rise in recent years.

Customer preferences: Japanese consumers are increasingly turning to online food delivery services due to convenience and time-saving benefits. With the busy lifestyle of many Japanese people, the ability to order food online and have it delivered to their doorstep has become a popular option. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as more people are staying at home and avoiding crowded places.

Trends in the market: One of the key trends in the online food delivery market in Japan is the emergence of new players in the market. While the market is currently dominated by a few major players, such as Uber Eats and Rakuten Delivery, there has been an increase in the number of new entrants. This is due to the attractive market potential and the growing demand for online food delivery services.Another trend is the expansion of services beyond traditional restaurant delivery. Many online food delivery platforms are now offering delivery from convenience stores and supermarkets, as well as other types of retailers. This has expanded the market and created more opportunities for growth.

Local special circumstances: One unique aspect of the online food delivery market in Japan is the popularity of bento boxes. Bento boxes are a traditional Japanese lunch box that typically contains rice, fish or meat, and vegetables. Many online food delivery platforms offer bento box delivery services, which has become a popular option for busy workers who want a quick and convenient lunch.

Underlying macroeconomic factors: The Japanese government has been promoting the use of cashless payment systems, which has helped to drive the growth of online food delivery services. Many online food delivery platforms accept cashless payments, which has made it easier for consumers to make purchases online.In addition, the Japanese economy has been experiencing a labor shortage in recent years, particularly in the food service industry. This has made it difficult for restaurants to find enough staff to handle the demand for delivery services. Online food delivery platforms have helped to alleviate this problem by providing an alternative delivery option that does not require additional staff.

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.