Online Food Delivery

The Online Food Delivery market in Pakistan is projected to reach a revenue of US$1.63bn in 2024.
With an expected annual growth rate (CAGR 2024-2029) of 10.30%, the market is anticipated to reach a volume of US$2.65bn by 2029.
In the Meal Delivery market, a revenue growth of 21.1% is expected in 2025.0.
The market volume is projected to reach US$1.46bn in 2024.
When compared globally, China is expected to generate the highest revenue, reaching US$450.50bn in 2024.
The average revenue per user (ARPU) in the Meal Delivery market is projected to amount to US$29.55 in 2024.
In the Meal Delivery market, the number of users is expected to reach 78.8m users by 2029.
The user penetration in the market is forecasted to be at 20.2% in 2024.
The online food delivery market in Pakistan is experiencing rapid growth due to the increasing popularity of mobile apps and the convenience they provide.

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 demand for online food delivery services in Pakistan has been on the rise in recent years.

Customer preferences: One of the main reasons for the growth of the online food delivery market in Pakistan is the increasing number of young, tech-savvy consumers who prefer the convenience of ordering food online. These consumers are often busy with work or studies and do not have the time or energy to cook meals at home. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as people are avoiding crowded public places.

Trends in the market: The online food delivery market in Pakistan has seen the entry of several new players in recent years, leading to increased competition. As a result, companies are offering innovative services to attract and retain customers. For example, some companies have introduced subscription-based models that offer discounts and other benefits to frequent customers. Other companies have partnered with local restaurants to offer exclusive discounts and deals.

Local special circumstances: Pakistan has a unique food culture, with a variety of local and regional cuisines. This has led to the emergence of several online food delivery platforms that specialize in specific cuisines, such as biryani or barbecue. These platforms cater to consumers who are looking for a specific type of cuisine and want to order from a restaurant that specializes in it.

Underlying macroeconomic factors: Pakistan has a large population of over 220 million people, with a growing middle class that has more disposable income to spend on food. Additionally, the country has a high rate of smartphone penetration, which has made it easier for consumers to order food online. The government has also taken steps to promote e-commerce and digital payments, which has further fueled the growth of the online food delivery 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.